"Isn't Beidacang Group doing well? Why did they want to acquire Hope Group? That company is doing well, and we had been supporting them. "
Zhang Ruiqiang also does not understand why these two companies were merged. Especially Beidacang Group, which was previously a state-owned company, to be a state-owned company.
If it was ten years ago, many companies were not making profits. At that time, the state-owned companies were not making profits, and many people would have sold their companies. This was because the state-owned companies were making losses, and it was also reducing the burden on the government.
But now, it was different. Beidacang Group was ranked fifth in the world's agriculture industry and the number one in Asia. Suddenly, the state-owned companies lost their leading position, and many people will talk about it.
"Do you still remember what I said about small companies merging into bigger companies to be more competitive in the international market? The facts had proven that the state-owned companies had merged with many companies, and they had become more competitive and made more profits. "
"But there is a big problem. The leaders of the companies merged with the state-owned companies are still the same people. I am not saying they are not good, but they might have different strengths. They might be good at management, but they might not be good at business. "
"That means they might be suitable to be the Chairman, but they are not suitable to be the General Manager. The Chairman is very important, but the General Manager is more involved in the company's operations. "
"For example, I am the Chairman of Taihua Holdings, but my working hours are not even one-tenth of Liu Chuanzhi's. This is the result of Liu Chuanzhi and Zong Qingxian's cooperation. They had worked very hard."
The state-owned companies had been merging some small companies into conglomerates to increase their competitiveness before going overseas.
For example, if a food trading company merged with agriculture, food processing, and packaging, it will be able to form a one-stop production chain and lower their costs. This will increase their profits and competitiveness.
For example, an electronics company. If they can form a one-stop production chain from R&D, assembly, and sales, they will be able to make more money.
Unless it is a unique company, then the cost will be the most important factor for the company. But even if the company is unique for the time being, there will be lots of competitors. This is not only happening to Hua Xia's companies. It is also happening to overseas companies.
Even when Microsoft is at its peak, it is not unique, and it has lots of competitors.
Lenovo Group was the first to introduce L-Pad. But within half a year, other PC manufacturers had also developed their own products. Some had bought the authorization from Lenovo Group, and some had used alternative technologies to bypass these patents.
Although the L-PAD was still the best product of its kind, its market share was no longer 100%. Someone else was sharing the profits.
At this time, L-PAD would not be in a hurry. In fact, this also had great benefits. It would no longer be said to be a monopoly, and it could highlight the superiority of L-PAD's products.
A product that took a few years to develop will not be as good as a product that took 6 months to develop. The overseas PC manufacturers' technologies are not much better than Lenovo Group. Many of them are not as good as Lenovo Group. That's why the L-Pad is a level higher than other tablets.
However, except for some strategic industries, such as banking, telecommunications, energy, steel, etc., the merger of state-owned enterprises is not very good for other mergers.
The most fundamental reason was that they lacked the ability to execute and their resistance was too strong.
In the mobile phone industry, other than Wind and Rain and Aiwa, there are more than a dozen well-known mobile phone brands in China. These are not including those imitations.
More than half of these imitations are owned by state-owned enterprises.
There are many outstanding engineers in these companies, but why can't they surpass Wind and Rain Mobile? Even when compared to other overseas mobile phone manufacturers, they are lagging behind.
Firstly, it is the direction of development. Wind and Rain Mobile is the best in the world. Feng Yu knows what the consumers like and what functions are more useful.
Secondly, these companies do not have enough R&D funds. It is impossible to do technology R&D without money.
Lastly, these companies are too scattered. Ten companies, which are one-tenth of Wind and Rain Mobile's size, have less than one-tenth of Wind and Rain Mobile's profits. Their cost is too high, and they are not competitive.
If these mobile phone manufacturers merge, they will save a lot on R&D, advertising, and other costs. But why don't they merge?
Many people are against this.
Someone said that with Wind and Rain and Aiwa in China, those overseas manufacturers are not doing well, let alone Wind and Rain and Aiwa. They had placed themselves at a lower position than Aiwa.
Most importantly, who will be the leader after the merger? You all have brands, and we also have brands. Whose brand will be kept, and whose brand will be abandoned?
Who will be the leader after the merger, and who will be forced to leave? There are too many interests involved, and it's hard to settle.
At this time, the most direct solution is for some people to give in. This way, the merger will be successful and increase the competitiveness of the companies.
Feng Yu had said that if the state agrees, then Bing City Machinery Manufacturing Group can merge with FAW, and FAW will become a subsidiary. This way, the state's shares will increase.
Feng Yu can invest and control 51% of the shares, or Feng Yu can veto, and the state will become the major shareholder.
But while the higher-ups are still discussing this, FAW's side started to object.
FAW felt it is doing well, and its spare parts are already the best in the world. Why should it merge with others and become a subsidiary? FAW's General Manager will be forced to be the deputy, and this made him even angrier.
Who is that Li Dafu? Why should I be his deputy?
That's why there are too many problems with the merger of state-owned enterprises. The main problem is the management's greed for power. If it's not for Hua Xia's capability, he can easily set up a few companies to monopolize the Chinese market. Even if he enters the international market, he will still be one of the top companies in the industry.
In the past, some mergers were successful, and some failed. The key is to see if the company's leader is good, and then it will be the right industry to merge. Both sides can complement each other's strengths.
"Feng Yu, if we merge, can you give up your veto power?"
"What harm will it do to the company if I keep this power? Don't you think that if I supervise the operation of this enterprise, the development of the enterprise will be better? Without me, will Beidacang Group exist? "
"Alright. I know. I will settle Beidacang Group's problems for you."
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