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The following content is a speech made by Mr. Zhao Fuquan on the December 3rd China Auto Enterprises Global Going Strategy Summit Forum.
Chinese enterprises in international business development strategic significance <br> <br> companies follow a certain objective laws, which I have raised three sections enterprise development model: the first is the start-up stage, entrepreneurs in their own super With courage and courage, seize market opportunities and realize corporate start-up;
The second is the stage of modernization management. Enterprises must adopt the formalization, international management and control of core technologies to achieve transformation and upgrading, and strengthen the enterprise.
The third is the diversification and global management stage. The enterprise has changed from a single operation mode to a diversified operation mode. It has moved from a specific area to a wide area, thus forming the ability to resist the risk of “the east is not bright and bright in the west†and ensure the everlasting foundation!
At present, many auto companies in China have made initial development by using the dividends released by the reform and opening up. Some companies have done very large scale operations, and their businesses have expanded from automobiles to finances and other fields. They are actively planning the layout of the global market. However, in the long run, the scale does not fully represent the competitiveness of the company.
In my opinion, the core competitiveness that supports the sustainable development of enterprises can be summarized into the following three elements: strategy, culture, and system. In the process of strategic landing and cultural growth, formalization and internationalization are needed. Formalization is relying on system competition and acting in accordance with the process. Internationalization is the formalization on a global scale, that is, formal participation in the international market competition, so that enterprises can truly upgrade to the modern management stage.
The concept of internationalization also has different understandings. My view is that internationalization is the smooth deployment and effective role of corporate resources in the international community, and also the process in which corporate products leave a particular region. Its connotation is that companies comply with the prevailing rules of the game rather than participate in the international division of labor, collaboration, and competition as they please.
Going to the international market is the only way for Chinese companies to grow and expand. First, the Chinese market is currently the most international market, followed by the large Chinese market and the larger overseas market. Once again, “going global†is the best exercise for the company. This is a strategic need for the country to build a strong country and export high-end manufacturing.
Therefore, "going out" is not the question of what to do, but how to do it. Chinese car companies, whether they are OEMs or parts and components companies, must unswervingly take the path of internationalization and build a global enterprise!
Chinese car companies need a clear strategy for overseas development
At present, Chinese companies are "going out" and become common practice. However, what exactly is the right overseas development strategy? The answer is different from firm to firm. In my opinion, before Chinese enterprises “go outâ€, they must be clear about the following four issues.
First, why go "going out"?
Only with a clear goal can we unswervingly implement the established overseas development strategy of the enterprise. Otherwise, we may shake and shrink if we encounter difficulties. If we only want speculation, it will eventually become a big deal.
First of all, companies must understand that “going out†is not just to sell their products overseas, but also to increase their brand, technology, management, and talent through overseas development so that our products can occupy foreign markets for a long time. .
Second, it is very difficult to obtain core technology by acquiring foreign companies. Even if the other party really sells, they must first master basic skills and have the ability to digest.
Finally, as we gradually expand our overseas market size, we must be able to nurture the domestic market and support local companies to become bigger and stronger. Otherwise, irrespective of the temporary size of foreign markets, the domestic market will still have no future.
Second, why should we "go out"?
After the target is clear, companies must also think about what their “going out†capital is, and what advantages they have for overseas development. Is it market, capital, technology or cost? If it is cost, then it has low-cost capability in the country, and can guarantee low cost after it is built overseas? If it is quick decision-making ability, then after “going outâ€, in overseas markets thousands of miles away, but also to ensure that their decisions are both fast and correct?
In fact, even if foreign companies fight for many years in China, it is difficult to fully understand the Chinese industry and the market. The same reason, a Chinese local company living in a foreign country will also face unfamiliar circumstances and encounter unexpected situations of one kind or another. It may move forward in full compliance with established planning.
Therefore, for local companies, they must really think clearly about their own situation. The most important thing is to work hard to improve basic skills while practicing. Must not take speculative psychology "going out". To expand the land, there is no solid basic skill. Everything is talkative!
Third, how to "go out"?
There must be differences between overseas countries and China. We must find suitable development models, and we need to fully demonstrate, adjust, and improve. The most direct method is overseas mergers and acquisitions or holdings. Choosing this model to expand companies in overseas markets is certainly prepared for funding. Therefore, buying is not a problem, and management is the key!
If foreigners are not well managed and want to sell, then what can Chinese people manage? If you don't think about good management before you buy it, you may have big problems. Overseas development can also adopt cooperation models, such as the implementation of strategic cooperation with foreign companies, capital cooperation, or joint local companies to build factories overseas. There can be a variety of modes, but the purpose of cooperation must be clear: the basic principle is to go overseas to stand on the shoulders of giants, learn from giants, compete with giants, and eventually surpass giants.
In this sense, it is not a good idea to start from scratch, and companies should work hard to revitalize overseas resources. Finding the right "local agent" may be a shortcut. We must make full use of foreign resources, and at the same time provide the urgently needed needs of foreign countries, the factors that they do not have and we have, so as to achieve the strategic goal of “going outâ€. In the overseas development process, we must be "something more effective and more effective" and strive to do more with less.
Fourth, when will you "go out?"
Companies should always be prepared to pay close attention to potential targets. Once opportunities arise, they must dare to make quick decisions. In terms of timing, good sorghum will not work well, and it will not do so. When it breaks, it is broken, because the best time cannot wait for you forever.
The Chinese car prices overseas development specific recommendations <br> <br> First, affirmative action, cautiously.
"Going out" cannot wait. It is necessary to plan ahead. On the one hand, make plans early and pay attention to opportunities; on the other hand, lay a solid foundation and improve it practically. At the strategic level, it is necessary to “think twice before proceeding, and then move forwardâ€.
The second goal is clear and effective pulling.
“Going Global†should build overseas bases into the backbone of the domestic market, use foreign brands, technologies, management, and talents to help improve the country; overseas bases must be built to become a bridgehead to the world.
In this sense, I do not recommend that it be possible to set up factories solely overseas. This is probably not the best policy. It is likely to be less effective.
The time and cost spent on capital investment, talent recruitment, sales channel construction, etc. for building a plant are very high. More importantly, it is equivalent to copying domestic companies directly to overseas. It is difficult to obtain brand, technology and management learning. And promotion. And can this construction cost maintain its advantages? Even with staged success, even stronger opponents can build factories to replace you at any time.
The third is internal and external interaction and complementary advantages.
“Going Global†Whether it is overseas mergers and acquisitions or strategic cooperation and capital cooperation, overseas and domestic cooperation must be effective rather than fragmented. Can not establish a business unit overseas, recruit a group of people, but there is no contact with the country. Instead, we must make full use of overseas local resources that are not yet available in the country, seize foreign markets, and feed back domestic companies.
So, how to find the optimal combination of complementary? In my opinion, the first is to achieve a cost-optimized combination, such as partial domestic manufacturing plus some overseas manufacturing, so that the former's production costs are combined with the latter's logistics costs. Then we can also achieve a cost-effective optimization combination, assembling Chinese parts and components in foreign countries, and then using foreign brands to effectively pack and occupy foreign markets.
The fourth is overseas mergers and acquisitions to accelerate development.
Overseas mergers and acquisitions are an effective way to accelerate the overseas development of Chinese companies. Through mergers and reorganizations, they can quickly acquire ownership. This may be one of the shortest ways to “go globalâ€.
Of course, digestion and absorption and effective operation are more important and the most difficult. How can foreigners help us make money in earnest? In my opinion, the Chinese must abandon many informal practices in the country and do as the Romans do. It is necessary to understand that respect is the premise, understanding is the foundation, and win-win is the purpose and motivation.
Fifth, peace of mind and courage to try.
"Going out" must be persisted. The path of internationalization of Chinese companies is bound to be an arduous process of constant improvement and gradual progress. It cannot be changed in the face of a setback.
In fact, even many well-known foreign companies have been constantly groping when it comes to expanding overseas markets. For example, Japanese car manufacturers have been able to gain a firm footing in the United States; Volkswagen has not been successful in the United States.
Therefore, Chinese enterprises should be bravely tried and gradually promoted with a peaceful attitude and firm determination.
Sixth, Baotou warms up and gathers power.
"Going out" must use or share resources as much as possible to reduce costs and avoid risks. However, the awareness of cooperation among local Chinese companies is very lacking. We must do our utmost to share the common elements that companies like logistics, services, legal and political influence need to “go globalâ€. At the same time, we must not fight price wars abroad, but we must work together to reverse the “Made in China is equal to low quality and low priceâ€. Image, together to create an outstanding Chinese brand.
In addition, regardless of the overseas market expansion plans of local automakers, local component companies have to formulate their own overseas strategies and achieve rapid improvement through leverage of foreign automakers and parts factories.
The "going out" of Chinese auto companies is a general trend and imperative. With overseas development and strategy first, companies must have a clear overseas development strategy. At the same time, we must also strive hard to improve our internal skills and lay a solid foundation. In the process of truly "going out", we must take positive actions and proceed with caution.
For Chinese companies to build a century-old shop, they must take the road of normalization and internationalization, accumulate experience, and gradually improve. Such successful “going out†will only be a matter of time. In a word, Chinese companies will go out of the country and will be "unfinished scenery in the dangerous peak"!
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The heavy duty cantilever design makes the SME Sump Pump ideally suited for heavy continuous handling of corrosive
