How should private enterprises start their second business?

How should private enterprises start their second business?

Private enterprises are the main body of China's market economy and the main force to stimulate economic growth and solve employment problems. At present, the total private economy accounts for about 65% of China's GDP, creating 2/3 jobs. In many areas, 70% of fiscal revenue depends on the contribution of private enterprises.

Private enterprises often lack policy advantages and it is difficult to enter monopoly industries. They can only struggle in the highly competitive market and develop from scratch. Therefore, private enterprises are very talented in customer-oriented and demand-oriented technology, products and market innovation; At the same time, because private enterprises often start businesses in labor-intensive enterprises, the equity of enterprises mainly belongs to private entrepreneurs rather than state-owned capital or foreign capital, so both labor income and capital income can stay in the private sector. It can be said that the sustained, healthy and rapid development of private economy has both positive significance at the micro level and important role at the macro level for China today, no matter from the perspective of innovating supply or stimulating domestic demand.

However, it is precisely because of the development characteristics of private enterprises, such as market-oriented, starting from scratch and crossing the river by feeling the stones, that private manufacturing and circulation enterprises often have no clear strategy, lack of independent brands and core technologies, imperfect organizational structure, irregular management, unreasonable business processes, lack of high-quality, experienced and innovative talents in value-added links such as R&D, design and marketing, and to some extent, lack of culture to attract, cultivate and motivate such talents.

In the' big wave' of global trade liberalization, China's low-end manufacturing industry can still rely on the price advantage to achieve the stage of extensive and rapid growth. These problems have not become obvious hidden dangers, but under the multiple pressures of shrinking international market demand and rising domestic factor costs under the financial crisis, these shortcomings have immediately become shortcomings that restrict the further development of private enterprises. Even in the fierce market environment and cruel competition conditions, if these problems cannot be effectively solved as soon as possible, private enterprises that have achieved certain results will retreat.

Crisis crisis, any crisis contains opportunities for further development. Only when we are determined to change in the crisis and reshape the business model, organizational structure, corporate culture and core competence can we occupy an advantageous position in the next wave of development after the crisis. This is the' second venture' proposition that all successful private enterprises in China are facing at present.

So, where does the second venture start? "The first is to change the business model of single manufacturing and extend to the upstream links of value chain such as R&D, design, brand and marketing to increase the added value of products; Secondly, further strengthen the management of production and sales links as the basis of basic business, and realize business process, standardized management and refined assessment; Thirdly, by expanding the' corporate headquarters', improving the organizational structure and management functions, hiring and cultivating professional white-collar workers with higher education, introducing experienced professional managers, reshaping the new corporate culture and building a knowledge-based organization. " Luo Yonghua, an expert in knowledge organization, summed up the three major tasks of private enterprises' second venture.

Develop upstream of the value chain

As a big manufacturing country, China has long played the role of manufacturing export and processing trade in global trade, and it is at the lowest end of industrial chain and value chain, and private enterprises in China's real economy are directing this role. For example, the Pearl River Delta is a clothing production base in China and even the world. The factory employs a large number of workers to produce on the production line, with lower wages, while the design and brand come from foreign brands. The clothes produced by the factory are continuously transported to all parts of China and all over the world. Lang Xianping, a famous economist, has repeatedly shouted: Private enterprises in China should not continue to focus only on manufacturing, but should be separated from other links in the industrial chain-design, warehousing, logistics, wholesale, etc., and be satisfied with the meager profits in processing and manufacturing for a long time. Take a $9.9 Barbie doll in the supermarket as an example. Its manufacturing cost is 1 yuan, from which China manufacturers can only make a profit of 20 cents, and the remaining $8.9 will be shared by Barbie and retailers. For example, a sweater with ex-factory price of 1 euro can be bought at 50 euros or even 100 euros in European shopping malls of European and American brands.

Due to low value increment and low profit margin, the path choice of further development and profit expansion of enterprises can easily lead to scale expansion, which in turn leads to overcapacity, oversupply and intensified competition, and finally destroys the bargaining power and market space made in China. The low gross profit also leads to the weak ability to resist risks and easy to turn losses into profits when external factors such as rising raw material costs and exchange rate fluctuations change. Release date: 20 17-03- 13

For private enterprises, only by moving from production to the upstream of R&D, design, brand, marketing and other value chains can they obtain better growth and stronger competitive strength and avoid the decline of competitiveness and non-competitiveness. And occupying the whole value chain is the quality that mature private enterprises must have under the market economy. Throughout the world, large companies such as Procter & Gamble and LG all occupy the upstream link of the value chain and control the whole value chain, thus having strong strength in the competition. In recent years, private enterprises in China have paid more and more attention to the extension of the value chain, such as Li Ning, Geely, Metersbonwe, Bang Wei, Bang Wei, Meizu, Vanke Eslite and other private enterprises, all of which are examples of winning by brand, design and marketing. ;