It is easy to be a small business, but it is not easy to make a company big. Many companies die in the process of becoming big.
After the meeting, Li Cong was thinking about these two sentences. His company is now very popular. People on this year's list have already predicted that his company will enter the top 500 in China by the end of the year. He is already firmly on the list.
He is the richest man in China, and is even the first person in mainland China to be among the top ten richest people in the world. He is only 25 years old this year, and he is also the youngest rich man in the world. Everyone believes that he can surpass Buffett before he is 30 years old.
American stock market god) dethroned him from the throne of the world’s richest man.
But how should his own business develop? Although Li Cong already wants to develop it in an all-round way, he is a layman in other aspects. Strictly speaking, he used to be a clerk in a small company and was a layman in everything. If
If he wasn't lucky, he might have become a brat in the Palace of Hell by now.
The company now owns two energy production bases, a chain of hundreds of cooperative gas stations, hundreds of Samsung appliance stores, a city park under construction, and a 15% stake in Korea National Oil Group.
There is a company in Jinan and Qingdao each with tens of thousands of employees, and soon there will be an ocean-going fleet with tens of thousands of employees.
Looking at the report on the table, Li Cong really didn't know that he was already the boss of so many people. Every decision he made could already affect the jobs of tens of thousands of people. In the future, his scale would increase, until he had hundreds of thousands of people.
How can the government still dictate to itself when it has millions of employees? You are forcing me to quit. I don’t believe you can watch these millions of people lose their jobs.
"Jenny, come in." Li Cong felt that it would be fruitless to think so blindly. It would be better to ask professionals. People who know the development history of some large companies will give him better suggestions.
"Jenny, please take a look at these first, and then tell me how to invest and how to make my company continue to develop, develop comprehensively, and no longer be limited to one aspect." Jenny took the document handed over by Li Cong.
Jia was very surprised. This was the company's top secret information. She didn't expect that Li Cong would trust her as a newcomer so much. This was unimaginable in the companies she had experienced before.
It took about half an hour for Jenny to read it carefully. In the past, he only knew that the company he worked for was powerful, but he really didn’t expect it to be so powerful. A few months ago, it owed the country tens of billions. A few months later, it had already owed the country tens of billions.
All the debts have been paid off, and there are tens of billions of working capital, and there are more than one billion in income every day. Does it cost nothing for my company to produce environmentally friendly oil? Of course it doesn’t cost money. Does Sunshine want to do this?
Money?
"President, first of all, I must congratulate you on your success. It is very gratifying that a company as large as ours has no debt and has such abundant cash flow. What's even more gratifying is that you are so enterprising.
The heart is not satisfied with the status quo." In any case, the director of this think tank is very good at flattering, and this alone is worth it. "If you want to make a company bigger, there are generally three ways: horizontal merger, vertical merger, and cross-industry merger.
Merger. Horizontal merger is a merger between companies with the same product, that is, to increase the output of a product to achieve economies of scale and reduce costs. In many industries, technical efficiency can only be achieved when the scale reaches a considerable level.
And reduce costs, this requires expanding output and enterprise scale. This expansion can be realized by enterprises investing profits in production, or by merging other enterprises. However, it is too slow to achieve economies of scale in the former way.
Therefore, the latter method is generally used. This horizontal merger can be the unification of several companies through a joint-stock system, or it can be the merger of a large company into a small one. For our company, we can do it in inland areas of China.
Investing in the construction of an energy base, but this road is basically not allowed at present. We do not have that much energy to complete it, and there are no companies similar to ours that want us to merge." Li Cong feels the same way, and it will not be possible to build another base within this year.
It's possible, and the government won't help.
"Don't talk about mergers. What I want is comprehensive development across industries." Mergers are impossible, so just skip it.
"Good president, cross-industry mergers, also known as diversified operations, are also the development strategies of many multinational companies in the world. Cross-industry mergers can bring many benefits to companies. First of all, resources can be more fully utilized. The company's resources can
Divided into dedicated resources and general resources, diversification can make general resources more fully utilized. Secondly, it can avoid risks caused by the deterioration of market demand for individual products. Finally, diversification is also conducive to the adjustment of the company's product structure. When the original
When the leading product loses its market, it can be smoothly transferred to the products or industries that are already in operation. These benefits brought by diversified operations are called economies of scope." Basically, it was an economics class, and as expected, it was from an existing major.
Cultural and practical, Li Cong felt more and more that the person he hired was worth it.
"President, I must remind you that theoretically, these three ways to make a company bigger are clear, but in fact, each road is full of traps and landmines. If you are not careful, the road to success will change."
For the road of death." I also know this, but what's the point of living without challenging people.
"I have a few ideas. I don't know if they are possible. Please help me analyze them. Since we have decided to cross-industry, we must become bigger and stronger. First, I will use the company's 300 Samsung stores as the basis to enter the home appliance sales."
"President, you must know that there is no profit in this industry at all. I prefer to develop ocean shipping."
"We are already developing, but the sales of home appliances is an industry with huge influence. Take China Shipbuilding Industry Corporation as an example. Its assets are twice that of Gome, but I can guarantee that more people know about Gome than those who know about CSIC.
I want to pay more than twice as much. What I want is the visibility of the company, so I think you can help me formulate a development plan. The total investment should not exceed 30 billion yuan. We will build a third base next year." Jenny was helpless.
He shrugged his shoulders with Li Cong. He was the boss, and his opinions could only be suggestions. He had never thought that his words could determine the direction of a large company.
Li Cong's consideration was also correct. After all, the energy group can contact end customers through PetroChina and Sinopec. He is eager to let the public know his strength and improve his social image.