Chapter 2030 Burdensome Business

What Shi Jinglin said makes sense. If we follow this logic, we really can't take over the marginalized products of Dongpeng Group.

These products, according to the requirements of Yuanwei Group, should be eliminated. They are completely a burden to the company.

This is the business philosophy of a typical modern enterprise.

In many traditional companies, the so-called "burdensome" businesses often refer to those businesses that are suffering serious losses. I adjusted the management staff several times, but still couldn't save it, so I finally learned from the experience and laid off the company.

This is a relatively traditional corporate philosophy, and most ordinary companies do this. Business that makes money is a good business, business that doesn't make money is a burdensome business.

The concept of modern large companies is different.

Businesses that make little money are redundant businesses and should be eliminated!

The small amount of money earned is not enough for the hard work of corporate elites. There are few elites in the first place, and they should be allowed to spend all their energy on making big money, rather than making small money.

The most typical one is General Electric back then, which had a set of "no one, no two" theory, which means that if a certain product is not number one or number two in the industry, it has no value and should be eliminated. Lose.

However, there is actually a more advanced concept.

For a company, there is something more important than making a lot of money, and that is a future-oriented development strategy.

Therefore, many great companies not only focus on loss-making businesses and businesses that make little money, but even businesses that can make a lot of money!

If this business no longer conforms to the company's strategy, even if it can still make a lot of money, it will be laid off.

Just like when Steve Jobs returned to Apple.

Apple's performance at that time was not very good. In fact, it only needed to cut off those unprofitable businesses to turn the situation around quickly. Steve Jobs didn't have it, so the axe-hands were ready. Good and bad businesses were cut off. All businesses that were not related to the strategy, regardless of whether you made money or not, gave up!

Then, integrate resources and integrate all the elites in the company to do something big!

Yuanwei Group is just a beverage company. It doesn't need to have as high a vision and goal as a technology company. It just needs to make a lot of money.

If Yuanwei Group acquires Dongpeng Group and retains all Dongpeng's marginal products, what will this look like for Yuanwei Group's product line?

It would feel very unfair.

At my own company, performance is not up to standard, jobs are gone, and even product lines are about to be completely shut down. Dongpeng has a bunch of products that cannot be put on the market, and they are just enjoying themselves every day... This can easily cause internal conflicts.

However, Zhou Buqi was a little confused, "If the annual income is less than 100 million, it will be cut off? What kind of beverage can have an annual income of 100 million? Isn't this requirement too high?"

"Is this still high?" Shi Jinglin glanced at him with contempt, "Don't you understand? How big is the domestic market? As long as the products are not too bad, is it difficult to earn 100 million per year? Dongpeng is just a small local company. Launching Dongpeng After Peng Te Drink, do you know how much sales were last year? 200 million!"

Zhou Buqi still didn't understand, "There are so many advertisements for Dongpeng Special Drink, and you spent so much money to buy it. The advertisements are so big, aren't suppliers all over the country rushing to get the goods?"

"Huh?" Shi Jinglin smiled, "It's okay, I know a little bit."

Zhou Buqi glared at her and patted his thigh, "Come here!"

Shi Jinglin didn't refuse, she got up and walked over, sat down on his lap, then went up and bit him on the face, not polite at all, just leaving 5 obvious teeth marks.

Zhou Buqi yelled, "Are you a dog?"

Shi Jinglin hugged his neck with her arms and smiled proudly, "Scream! The louder you scream, the more I will like it!"

Zhou Buqi didn't want to go crazy with her and slapped her on the butt. "Let's get down to business. Products with sales of less than 100 million will be axed. Doesn't that mean the life cycle of many products is very short?"

"That's right! Don't you understand this?"

"I'm asking you for advice."

"There are too many types of beverages. Except for cola, coffee, and Red Bull, which are long-lasting, most beverages have a short life cycle and are trendy. Look at herbal tea, how popular it was in the past few years. In recent years, It’s not good anymore.” Shi Jinglin concluded, “Each generation has its own taste.”

Zhou Buqi understood what she meant, "So we have to constantly introduce new things?"

Shi Jinglin chuckled and said: "Yes, we have to keep up with the trend. In fact... I saw Guo Pengfei last time and chatted with him for a while, talking about mobile Internet. I think the ideas are similar, we need to adopt a 'collision' Tactics. Be optimistic about a direction and launch seven or eight products at once. There will always be one that can become popular and become a hit, and the remaining ones that are less successful will be cut off. Anyway, you can’t be old-fashioned and follow the rules. I don’t think it’s okay to do something like Wahaha.”

Zhou Buqi said: "What happened to Wahaha?"

Shi Jinglin said: "The concept is too traditional, just like Dongpeng. Many products have been marginalized and they can't make ends meet. They are still trying to maintain it. Doesn't President Zong's daughter want to take over? She wants to use new concepts to Transform the company and rejuvenate the Wahaha Group. As a result, there are always conflicts. Her daughter fired employees in the morning, and her father invited them back in the afternoon and apologized to them, saying that his daughter was ignorant."

Zhou Buqi nodded, "So, private enterprises that were restructured from state-owned enterprises have sequelae. This is the biggest hidden danger. Wahaha was also restructured from a state-owned enterprise. It was also a 100% state-owned enterprise back then. The situation is similar to that of Dongpeng It’s pretty much the same.”

Shi Jinglin said softly: "Yes, I know, so I can't take over Dongpeng's unnecessary product lines no matter what. I won't be able to control them by then, and I will be angry to death."

Zhou Buqi said: "Then don't."

Shi Jinglin blinked a few times, "Do you have a solution?"

Zhou Buqi actually had this idea in the afternoon, "If it doesn't work out, we will establish a Dongpeng Special Drinks Co., Ltd., with Dongpeng Group holding 50% of the shares and Yuanwei Group holding 50%."

"Fifty-fifty?" Shi Jinglin immediately refused, "That won't work! Then if there is a disagreement, who will listen?"

Zhou Buqi said: "Then you go talk to them yourself. This direction should be similar. It will not only allow Dongpeng Beverage Group to ride on the popularity of Dongpeng Special Drinks to maintain the vitality of its marginal products, but also allow Yuanwei The group avoids those product lines it doesn’t want. Each side takes a step back and that’s pretty much it.”

Shi Jinglin said with a smile: "Boss Zhou, could you please help me talk to Mr. Lin and the others?"

"I'm not going!" Zhou Buqi flatly refused, "I'll go back to the capital tomorrow, and I'm going on a business trip to the United States the day after tomorrow. You can handle this little thing yourself!"