The basic law of business management

This is the "Da Baiju" the disclosure of the rise and fall of 10 famous enterprises to the author's inspiration.

So, the basic law of business management is what it? Let us rise and fall from 10 companies to find some answers.

A basic law of business management: no interest, there is no meaning of life

Three failed, President Wu Bingxin published a few million words, "Wu Bingxin confessions", the first sentence is: "No interests, there is no meaning of life." What is the fundamental interests of the enterprise? Profits. Unfortunately, three while recognizing the value of profits, but choose the wrong way to achieve a just sweeps, "to an extreme cold, fanatical utilitarian, taking on the relentless fight against competitors, and with the color scheme subversion, the product of exaggerated excessive ", the result not only led to their predicament, but also the impact of Chinese health products industry, the healthy development of the enterprise's industrial base lost earnings.

Asia is a very different take so-called "strategists style" approach. Business was going smoothly, the scene lively keen to promote a sensation, but then how much money it very light. The result is a million sales to jump up to a billion, and profit has never more than 1000 million.

Ying Haiwei is yet another situation. Enterprises due to prematurely into the wrong industry, do not know where to generate profits, even the "pot of gold" are not dig, the result is not due to a minimum return on investment to shareholders, "complacent," the founder of ZHANG Shuxin forced removal, enterprises also will disappear from people's memory.

Asia opened 9 years now was not conducted a thorough audit, corporate borrowers outside the unit to eight million yuan, just playing with the sound of President WANG Sui-verbal greeting to the boat, without any formality. Three developed to the peak period, overlapping institutions, overstaffing, buck-passing, or even a telephone three tubes, all branches of the headquarters of the strange phenomenon of a large number of fraud. Based management is not strong because these companies lack the necessary self-stabilizing mechanisms and the immune system, like a house built on sand, one with external shocks, the firm succumbed in droves.

The basis of the importance of management for the enterprise, you can use the Haier Group, "the ball against the slope" theory to explain. Haier's "anti-slopes ball" theory tells us that business is like rolling a ball along the upward slope, market competition and internal staff that may occur in the inert form of both internal and external downward pressure on the sphere. If there is no greater than this pressure, an upward thrust, the ball will slide.

Three basic laws of business management: Honesty is the most reliable strategy

Qin pool and liquor blending, three of the false advertising, South of the bluff, so they embarked on the final point of no return.

According to the U.S. publication of the "millionaire's wisdom," a book about the United States 13 million millionaires in the survey results show that the secret of success is honesty, self discipline, good with people, hard work and a wife. Honesty is placed in the first place. Integrity depends on the role of enterprise development strategies and level of development of social credit. If the business want, "Falls in on the dead", then the integrity to be cast aside. But if companies want to pursue sustainable development, integrity is the maintenance of long-term market penetration of the basic premise. Does not give the credit society, a more limited role of faith, and even honest firms may have to eat the immediate losses, but even so, the customer in order to reduce transaction costs, will give special attention to the integrity, the integrity of corporate intercom soft spot. No credibility, companies simply can not build a market capitalization of the market capital is a platform for sustainable development of enterprises.

Four basic laws of business management: To build name, but also to create real

Qin pool because when the CCTV advertising standard king, known as at the sky, there has been a huge market demand, but because there is not enough production capacity, a "Qin pool blending wine and liquor is the" News to easily Qin down the pool. South of the name of Mu Qizhong it is made of a master, he proposed "a time" theory, "smooth tiller" theory, the "wisdom culture" theory, even the proposed North Hong Kong investment in building, ripped the Himalayas, the investment holding "No international satellite -8 "and so on, making the South the sky was in China," dazzling light. " Sadly, in addition to "canned for aircraft", the South has done anything to profitable projects is unknown.

Five basic laws of business management: the market is the enterprise of life and death of ecological field Ying Haiwei very strong despite the innovation, but the implementation of fees for online services system on the market using a set of popular Internet TCP / IP different communication processes, so that become independent of the food chain of islands in the market, can not take advantage of market demand has been formed. Qin pool, giant, three and news media relations, can be said that they are putting the media to "marketing", and finally ready to accept them by the media "marketing" because they are behind the success and failure and the media plays a detonation role in fueling. Giant, three "non-operation of the cards by way of common sense", although the rate of creation of the myth is Yang Zhi, but ultimately destroy the company's industrial base survival. Giant In the absence of its best, use of corporate facilities development and financial institutions to establish mutually beneficial relations, the results appear in the corporate financing of the financial crisis did not reverse the situation to "a mere 10 million yuan," so that Shi Yuzhu sky and lament: "What is a cents man at all, this is. "giant competitors as defamation (Wahaha Group), forced to hold a press conference by publicly apologizing to competitors and become a turning point in a giant landslide.

ZHANG Shuxin Ying Haiwei under the leadership of the president described as an idealistic enterprise. However, an important reason for its failure is that every major business initiatives to the lack of rigorous market analysis, target market is not clearly visible, the result is a large amount of business outside of just for the IT industry has made tremendous social contribution to, but not to bring such externalities internalization into business benefits. Of course, sometimes the market demand is created. However, this feature with the industry, technology and other relevant monopoly, the network for the Ying Haiwei industry in terms of business expansion depends on the improvement of social infrastructure, the establishment of the food chain depends on the market. Ying Haiwei as "born too early," inadequate social infrastructure restricts the formation of market demand, coupled with Ying Haiwei no financial markets in the food chain has been formed, both the food chain can not be formed by use of the market demand, but also difficult to form independent of the market demand.

Seven basic laws of business management: "There is no magic drill, do not embrace porcelain live"

Three in the creation of just three years time, all over the country up to 600 subsidiaries, branch offices set up in 2000, more than 150,000 promotional staff, headquarters staff can not eliminate a large number of violations occurred. Founded four years in Asia has opened within a large chain department stores 15, less than 4,000 million in equity capital under the conditions of the nearly 20 billion in super-expansion of these stores are opening at the time of the loss. Giant also involved in computer, bio-pharmaceutical and health of three unrelated real estate industry, lack of experience in the real estate situation, the giant 38-story building to 70 from the floor, the conclusion was "A merry heart Han. " The ability of enterprises is the basis for business decisions, depending on the company's resources, institutional, knowledge and skills. The ability of some companies can be obtained quickly through the market exchange, and some ability, such as core competence, you can not get from the market, can only rely on their long-term creation. The ability of the enterprise, the core competencies of particular importance, if the enterprises do not have the core competencies, the inevitable defeat in the competition in the market.

Eight basic laws of business management: to passion, but also rational Ying Haiwei of ZHANG Shuxin, giant Shi Yuzhu, Asia's WANG Sui-style boat is called the passion of entrepreneurs. Ying Haiwei hot news for the hype, can not consider the laws of the market; Giant Group, the computer time to market, health care products, pharmaceuticals three series of 30 new products; Asia almost crazy "Development Plan 1994-1999", are no one not fully demonstrated the entrepreneurial passion of these entrepreneurs.

Of the enterprises, passion and reason are a double-edged sword, the mental models of enterprise can have a decisive impact, thus affecting the sustainable development of enterprises. On the one hand, passion is a valuable asset, without passion will lose business opportunities, loss of original power. On the other hand, only passion is not enough passion to be increased for the reason, otherwise, the passion to succeed but may not be a trap; passion and reason in different stages of business development, position varies. Business, the passion precious; venture a great success, companies up and down the passion usually high, and overestimate their own, hot-headed, rational agents is a clear, valuable. Enterprises to sustainable development, the passion-type impulse must return to reason.