How to choose new main industry in transition

 How to choose new main industry in transition?
Zhejiang Council meeting of July hot topic
turned oil into the energy sector hh
is diversified or focused on the core business? main industry on how to continue expansion into their core competitiveness? diversification is facing what kind of problems? Zhejiang enterprises in transition are faced with many new options. To do this, achievements in the development of their enterprises for the number of transformation and the current transformation own experiences, to share together with the Zhejiang enterprises in all his different stages of development management philosophy.
7  14 afternoon, West Lake in Zhejiang Hotel Many came to the scene ahead of Zhejiang have have to start sharing them. reporter saw Hangzhou Green Group Chairman Lin Dong Sheng and Hua Rui Pei Investment Management Ltd were the discussions for the public is hot. Jinchang Group Managing Director of Zhejiang Long Pan regime, the Financial Group Chairman Mr. Ni, the Silk Road Holding Group Co., Ltd. Ling Lanfang, Zhejiang Sunfire guarantee Quan Group Company Ltd. Shentu swimming, party secretary of China's Ancient and Modern Construction Group Lee Mead, Newgrand Software Co., Ltd. such as the Council Chairman Dan Zhongshao Zhejiang Council President and executive director of more than 40, members and invited guests, Chairman Hu Jiqiang Zhejiang CONBA has arrived at the scene, took part in this event.
Zhu Renhua said that the Council should be the Zhejiang Zhejiang their latest thinking, new practice exchange places. the future arrangements for monthly meetings every month, on the hot issues of common concern were discussed.
report before the subject, Zhejiang Business Council of Zhejiang Federation of Industry has also appointed special inspector Mr. Zheng Mingzhi to Zhejiang Council, consultants, and invited him to host meetings and activities to do. Cheng said he was very pleased to accept the Meiji Zhejiang Council hired. He said, Zhejiang The semi-official non-governmental Coalition; Zhejiang Council high quality, strength, quality, is the Zhejiang group leader. He hoped that the Council can become Zhejiang Zhejiang classroom knowledge, communication bridges, looking for business opportunities Ocean.
After the event, also attended by the Zhejiang Zhejiang well-prepared cocktail Council. everyone in a relaxed atmosphere with mood of wisdom once again spark the collision.
The following is this Extract the contents of dialogue and exchange activities.
Wang Licheng: How Holley
retreat in the industry from the first birth DD16-type power meter products, but now grown to have begun to take the international competitiveness of multinational corporations, Holley has gone thirty-seven years after a course of development, become a Jianmin four A-share listed companies. industries related to medicine, instrumentation and systems, information electronics, chemicals, real estate and other areas of .2006, Holley Group achieved a total revenue of more than 12 billion yuan. It can be said, Holley in business transformation and diversification, there are many profound experience.
lessons
diversification as a diversified investment, diversified, multinational private enterprises, Holley in the process of diversification, but also made mistakes, have been learned.
the last century, the late 70s early 80s, with the country's reform and opening up and industrial consolidation, Holley completed the transition from workshop to factory and began full production of electricity meters. In the 10 years 80 years , Holley is a strong sense of the planned economy, environment, production of energy meters. to the late 80s, there has been a new round of crisis, the industry is very depressed, and the product is a single Holley. This forced the breakthrough mechanism Holley, the company began to shift from the factory system, goods from a product economy to economy. In this way, Holley out of the industry was almost eliminated from the stage of destiny, embarked on a rapid development path.
1990-1995 Holley multiple years period of investment and development. In this 5-year period, Holley is in a period of low levels of diversification. almost every investment in new projects, what projects are to vote, and the starting point is not high. At that time China market economy is still in a relatively short period of product, far from excessive competition, the era of full competition. Together with the late eighties out of the products are single, the situation of enterprises in difficulty, we are very excited. So, when someone anything to make money on the investment and jealous, and no wonder why do such a thing, that is, with Holley has been invested in drinking water, clothing, high-tech and other industries, the results are down the drain.
now looking back, the biggest risk is diversified cash flow tight. When faced with a number of projects a steady stream of cash flows needs, I began to reflect, to review its strategy is working. people say diversity can not on the East, the Western light, but the fact is often not on the East, the West is not bright.
fingers with injury, it is better off a means. I was determined to adjust the strategy in 12 industries to comprehensive analysis, those who are not able to do all of the top three national counterparts to give up. two years, the sell sell all the back exit, and finally The remaining three industries.
If you do not take the initiative in 1996 to adjust its strategy, Holley may not hold. It was a good lesson, although a large loss. Experience is a treasure, but the lesson is wealth, can reduce the probability of the future made more mistakes. the road to success with thousands of articles, others can not copy the experience of success, and business failures can be attributed to it is.
if 90 out Holley Diversity is bright light in the west to east, it is to find a larger profit margins; so that by the year 2000, Holley is looking for an alternative to the meter as the main industry sectors. because the previous main meter is a very special instrument industry very narrow one industry. but after several rounds of shuffling, the market is relatively stable, then we need more space. This is why diversification Holley inner impulse.
Holley main future industry in the end be? when we do a wide range of discussions, then the choice facing the pharmaceutical and IT industries. We do not know which is better, both on the final decision. We established a trial and error mechanism to determine the two Road to the medicine men, respectively, IT direction. But the bottom line to set the risk that investment in each industry is not more than 2 million. because no output beyond this limit, it is difficult to bear the Holley.
results to 2005 years, Holley has 30 medical scale of several hundred million, and annual sales of IT has only 3 million or so, medicine is far greater than the speed of the speed of IT. Finally, Holley identified as the core business of medicine, IT is financial investment business; the original meter, etc. as a strategic investment business, as well as venture capital business.
diversification is the key to the industry to new level of understanding, understanding is not equal to understanding, and only the door to know in the end how. For diversification, I have come to the precepts of an enterprise in a period of time for certain purposes can be diversified investment, but certainly can not have both a wide range of industrial operations. a business can have a core primary industry, would be difficult to succeed.
business diversified and professional are a dialectical unity. an emerging market countries, as market opportunities are everywhere, there will be a large number of diversified enterprises; and when entering mature markets countries, the vast majority of professional enterprise. China's future trends should be more and more enterprises take the professional road.
talent is the problem of transition
Now look, Holley at least the main industry in transition also need 3-5 years, the biggest bottleneck is the talent! Holley had to enter the pharmaceutical industry, the reserve's management training background do not have to do drugs. And when a pharmaceutical Holley are not and can not reserve medical personnel. Rather, Holley is no way to advance in the case of reserve personnel to enter the pharmaceutical industry. Although the pharmaceutical companies before the acquisition, Holley on target to assess the human resources, but they are far from just a not enough. So, the only way to change corporate employment system, opening up the market to recruit a large number of professional managers!
good and the bad in itself, but professional managers, and perhaps professional can, short of the company's management style and culture may not be immediately accepted, not to talk about loyalty. professional managers to truly integrate into the team to go, in particular the establishment of a trust relationship needs at least 3m5. Thus, starting from 2000 to 2010, Holley has truly complete the transformation , which lies in cultural conflict and human resources bottleneck. In addition to middle and senior management personnel and specialized technical personnel, business leader is more important. At present, private enterprises in Zhejiang Province are faced with an insurmountable threshold, is the successors of problem.
in 2000, when I openly declared that in 2010, its just time to retire aged 50. But a lot of people within the enterprise is concerned, are not the Wang Licheng Holley think what would happen. But I want to period of time I have publicly announced his retirement, is that to be sure to be back, and I declared purpose is not to their burning our bridges! In fact, the surface is not retire my back problems, in fact, this back and reclaim reveals that behind Holley talent, business development strategy and system. To me, more or want to create a Holley hit a hundred years. Chinese enterprises have to get rid of a successful entrepreneur created a successful enterprises, but with age, the aging of the entrepreneurs, and finally destroyed the inertia of the enterprise.
However, history tells me that in the current industry structure and management framework, simply must find a successor to the failure of the succession . My idea is that when China really become established core business of the pharmaceutical industry, Holley become like a professional company like Novartis, and Holley to become an investment holding company type of business, all other investments into a diversified financial investment, and has very strong liquidity and exit mechanism, then there will be a lot of people can take the class, instead of non-I Wang Licheng not.
In addition, it even told me about ideas and values of life. the core competitiveness of the Chinese people for that? U.S. business school professor Walton gives a stunning view: Chinese people's cultural and spiritual life is not money! But I would like, the cause is very important, life is more valuable. hard work to a better life. I still have my childhood dreams I need to realize, when I want to zoologists. and after retirement, I will put a lot of energy to philanthropy. We have set up green and Inclusion Fund of Zhejiang , now a lot of meaningful things to do after retirement would have been more good operation of the fund.