What he knew was only superficial, such as real estate, restaurants, hotels, printing, and shoe factories. He was involved in them, so he had a general understanding of them.
But there were more he didn't know. For example, Italy's Omnitel Group, Belarus's Buffo Group, and Japan's SoftBank Group were all very large. Not only did they have subsidiaries, but they also had second-tier subsidiaries, second-tier subsidiaries, third-tier subsidiaries, third-tier subsidiaries, and third-tier subsidiaries. The structure was so complicated that he couldn't understand it at all.
Take Buffo Group for example. More than half of the factory plots he had acquired in the former Soviet Union were there. He had hoped that Ivanov could become the king of real estate in Eastern Europe, but he didn't know the specifics.
He didn't even know about Tida Group, Tsinghua Financial Group, and Golden Deer Group. They were all diversified and cross-industry group companies. A single branch from them could form a group company. For example, the textile company under Golden Deer Group was qualified to become a textile group. Hotels, exhibitions, and electronics could also be completely independent.
As for Yuan Da Investment Group, the scale of the Yuan Da Group was huge enough. They owned the controlling shares and stocks of more than 100 domestic and foreign companies.
Unknowingly, he had a huge business empire.
He looked at Wei, who was sitting in the middle, and asked, "What do you want to say? Say it."
Wei cleared his throat and said seriously, "Mr. Li, Jingmei Electronics is interested in forming a group company."
Probably affected by the atmosphere, he didn't dare to joke. His words were also formal, and even the way he addressed Li Sicheng was very formal.
"Okay, I agree." Jingmei Electronics had developed to this scale, and it was time to go up a level. Li He glanced at Huang Guoyu and his brother, who were standing straight behind Wei, and gave them an appreciative look.
The two brothers were scared by Li He's gaze and couldn't help but lower their heads.
On this occasion, they, like Yang Fugui and Feng Lei, did not have a seat, but they didn't care. Even Luo Pei, Chen Dadi, and Fu Biao, who were trembling, were standing here.
They didn't feel that there was anything wrong and felt very balanced.
It was an honor to be able to come in and stand. As for Guo Fuxing and Xu Heng, they were not even qualified to come in.
"Thank you, Mr. Li." Wei was very happy.
"Do your best." Li He gave him a rare smile. Then he said to Mr. Li, "Mr. Li, please continue."
Li Shaojie continued, "We think that the structure of the big international group companies is worth learning from. For example, General Motors. Durant established General Motors on the basis of Buick. Over the next year or so, Durant used methods such as exchanging GM's shares to acquire other companies' shares. He obtained controlling shares of Buick, Oz, Cadillac, Oakland, and six other automobile companies, three truck companies, and ten spare parts companies.
In the beginning, most of these companies retained their original legal personality and independent operating entities. Durant used General Motors as the holding company, and through stock trading, these independent satellite companies were always able to revolve around General Motors.
But in reality, not long after, General Motors fell into a management mess. The problem was that the subsidiaries were all acting on their own. The head office would take responsibility for the overall management or losses, but once there were profits, the subsidiaries would refuse to hand them over.
In 1923, Sloan became the president, CEO, and chairman of the board of directors of General Motors. In the 1950s, he referred to the DuPont Chemical Company's experience. Sloan followed the principle of "decentralized management, coordinated control" and reformed General Motors' organizational structure.
It was very successful, and it acquired Chevrolet, Vauxhall, and Opel, becoming a global company.
There is another global company that is also worth learning from. It is General Electric. They also adopted a divisional system. They split the company into 150 departments, business financial services, consumer finance, industrial, infrastructure, medical, and so on. They are independent of each other, and the managers are in charge of management. At the same time, when the annual business exceeds 50 million USD, it is split into two independent departments to compete with each other … "
"You mean we should also adopt a divisional system?" Li He roughly understood what he meant. In other words, he wanted to learn from General Motors and General Electric.
As for General Motors and General Electric, Li He only admired them. It was not a bad idea to learn from them.
General Motors could be seen in daily life, so there was no need to say more. As for General Electric, he had heard a lot about it, but he might not know much about it. Let's put it this way, this company could basically meet the entire industrial system of a medium-sized European country.
These two companies were both called General Motors, but they had nothing to do with each other. It was equivalent to the popular names of People's Square, People's Hospital, People's Road, and People's Bank.
Lin Zhengfu added, "When a company is in a stage where its product line is relatively single and its business scope is relatively narrow, the top leaders of the company can basically directly manage the subordinate departments. When the company implements comprehensive mass production and diversifies its business on this basis, this highly centralized organizational structure is completely unable to meet the needs of management.
In order to solve the management problems caused by diversified operations, the divisional system came into being. The divisional system can ensure that the company's headquarters can be freed from the daily operational business and devote itself to the research and decision-making of major issues. At the same time, it allows the various departments to display initiative and enthusiasm … "
Li Shaojie continued, "According to foreign experience, the strategy executive committee is mainly responsible for the formulation of the company's major operational decisions and financial policies. At the same time, it also undertakes some management work. According to the regulations, it should deal with the division of product lines between the various departments from the perspective of policy and adjusting the product quality between the departments as a whole, so as to avoid product conflicts between different departments. In addition, it should also carefully design the product policy and clearly explain it to the subordinate departments to help them improve the quality of the products … "
Li He nodded repeatedly. Whether or not he could understand, only he knew.
"In principle, I agree. Set the final plan, and you guys will implement it."
Li Shaojie joked, "Mr. Li, don't worry, we are worthy of this high salary."
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