Recommended Articles crisis across the wall

 Hungry, to eat fast food Lenovo white gold, thirsty, drink starfish Rongshi drinks, hot, and can use the same side of the central air conditioning, tired, Shida development in the rest house, sick, can Founder of the production of pills to eat - they are IT companies, but they do not just IT companies. In more and more well-known IT enterprises to non-related business diversification behind the crisis and how hidden Yinzhong? last mid-90s, the whole IT industry in China, triumph, Lenovo and other Founder Holdings company annual reports a loss of 168 million Hong Kong dollars, to decline across the board in 1999 Founder, total profits and taxes from 330 million yuan in 1998 dropped to 2.4 million. Faced with this decline, of the computer) Annual Report 2000 published data, loss of about 252 million in 2000. because two years of losses, had made 27, Tongfang 2002 annual report released in five consecutive years of high growth, in 2002 net profit fell 36.8%; April 30, 2003, Neusoft shares announced first quarter 2003 financial results , results in a significant drop in 2002 annual report, based on the listing appears after the first quarterly loss, loss of 5.1 million yuan; May 28, 2003, the nation's largest IT company Lenovo announced results for the financial year 2002/2003, although Net income rose 21% over the same period, but only reached the lower end of market expectations, the growth rate is lower than Lenovo's PC business last year estimated at 20 to 25% increase, so investors in the Lenovo doubt whether the Evergreen Foundation. ... ... The old domestic IT companies are encountering or facing a When a scale would have increased the natural difficulties, the main performance is the growth slowed down, reduced efficiency, profits shrink or even losses. face or the face of When the water to reproduce an old problem, diversification is the only way out? bull attack, or clenched fists? July 2, ST Synthesis of listed companies (all referred to as Southwest Synthetic Pharmaceutical Co., Ltd.) issued notice on major issues, said largest shareholder Southwest Synthetic Pharmaceutical Factory to hold 9107 shares of the company owned legal person shares, accounting for 47.31% of total share capital, the official delegate to the Beijing University Founder Group Corporation .7 4, ST's high-synthetic re-release Notice of changes in management personnel. ST synthesis of the original managers officially withdraw, Founder of management personnel entered. It is reported that Founder, while in the custody ST synthesis, have started to acquire its controlling shareholder of the company. Prior to May 29 May, Peking University Founder Group and Suzhou City, the SASAC, asset restructuring of industrial investment company signed an agreement on the assets of Suzhou City, the largest and most municipal staff Soviet state-owned enterprises were wholly acquired Steel Group in August 2002 year, 229 million invested Founder control 51% of the equity securities of Zhejiang, enter the securities industry. Wei Xin is still relatively optimistic about the tourism industry, he said choose the Founder may enter the tourism industry. respond to growing crisis, the strategic choice of cross-Founder of non-related business diversification. enter the securities industry, steel industry, the pharmaceutical industry, is Founder important step in the path diversity .2001 November, in the electronic publishing business development represented a lot of space has limited circumstances, Wei Xin took charge of the new board of directors to determine the Founder diversification strategy: the two directions extension of high-tech sector is still in one direction, which is the most promising Founder 3G. Another is a traditional industry. line after the change of the Founder of the new position is At the same time, selective access to some traditional industries, industrial capital and financial capital to combine the Founder and stronger, so real, big, and gradually became an international consortium. distant one. recently with the parties in the integration of resources within the education market based on the announced deep plowing, and increase IT in education with the party's competitive advantage. At the same time, with the eggs on the other side of the basket. After four Beijing North Circle, inadvertently will see, Tongfang real estate company by the investment and development of the day show garden of D, officially started construction. Tongfang fact IT is only one of two main business, Tsinghua University was established with the side from the beginning, the company co-existence of multiple main . In 2001, though with the side still maintained a high growth rate, but signs of growth appeared to slow down. with the growth of top management has long been recognized that the crisis started from June 2001, with the introduction of the internal side of ; increase independent technology development, increase product process first-class enterprises, billion yuan in profits, software contributed 50 million yuan profit, comprehensive investment contributed 50 million yuan profit. which is a comprehensive investment refers to investment in real estate and financial services. This is the oldest association for the IT companies to avoid the future of mainstream mobile phones and other mobile communication terminals, and raised in the domestic enterprises in the first transition to a service. Lenovo Group's diversity is a product diversification within the IT industry. Comparison Strikingly, as the parent company of Lenovo Group Limited Lenovo Holdings Limited has entered a non-IT areas. such as the establishment in June 2002 in Beijing Raycom Real Estate Development Co., Ltd., is the holding company for the association to enter the real estate industry, specifically the establishment of a wholly owned subsidiary, is the diversification is an important piece layout. in Beijing developed a commercial office building - Raycom InfoTech, this year in February, Raycom and Tianjin into the real estate market, started its first residential project in different places - Ruijing living area. Legend Holdings is also impressive in the restaurant industry has done, Lenovo's Great Wall Group's position in the already limited to This strategic plan is a part of the Great Wall. In fact, in the last century the early 90s, mid-profits face the computer era to an end, the Great Wall has begun the expansion of the road. as a joint venture with Great Wall International and IBM joint venture, extended to parts manufacturing and other fields. In the computer hardware business increasingly slim profit margins and other circumstances, the Great Wall since 1997 to network transformation. Now open the Great Wall Group's website, which twinkled slogan. maybe not good at his own computer business for market. In the Great Wall Group's business, the more promising is the Great Wall of broadband services. According to a recent news show, Great Wall Broadband has revealed the dawn of profit. Great Wall Broadband speed up the action, and the Great Wall of China Unicom broadband recently signed a cooperation agreement, will be joint action on the broadband network business, owned by their respective mobile communication network and local resources together to create a new broadband business broadband value-added business model. the same as a long history with the Great Wall, the tide started to PC in the PC field difficult to reproduce the brilliant, but the backbone of the new breed of business - the server. Sun Pishu in early 2001 was promoted to president, the proposed development strategy to focus, then focus on this strategy, the strategic adjustment, the computer sector combined with the server group, Beijing set up a wave of companies. wave finally abandoned the individual consumer PC business, and adjust the original commercial PC industry users to personalize the end product and support the oriented, adjusted for restructuring measures in their own advantages are the wave of software companies in drastic manner. with the wave of its own software business advantage, business software, to adjust for telecommunications and other industries, mainly large-scale e-government applications and Service In 2002, the wave of the completion of a comprehensive solutions provider strategic transformation of the transition, the wave of new development onto the track. and other enterprises horizontal expansion is different is the wave of selecting a suitable expansion of vertical integration road. compared to the previous several integrated IT enterprise, Neusoft is quite focused, Neusoft's development path has not left the software. Neusoft 3 years ago to the telecoms and IT industry is expected to trade the risk of active restructuring, the implementation of strength. on the growth of the crisis hit, but also a blow to the Neusoft decision-making. This reporter recently interviewed a business trip in Dalian Dalian Neusoft Park Industrial Development Co., Ltd. Li Jun, general manager learned that the business is currently undergoing a comprehensive adjustment of Neusoft, to further enhance the company's core competitiveness. He also told reporters at around the software continues to expand Neusoft, just set up a special department, the development of business process outsourcing (BPO) services. strategic choice lost or reality? business growth in two modes : either a professional, such as Intel, Nokia, Qualcomm, etc.; either diversified, such as GE, Samsung, Hewlett-Packard. For a long break the enterprise, in the end should be selected diversification, or adhere to professional road? ; choose which model should depend on their own terms and your environment. familiar with the industry, can escape the wide range of the trap? to achieve the purpose of expansion; the second is obvious in this area which have their own core technology; the third is in this area is international. like Intel, Microsoft and others, like this, but this condition is not necessarily able to do successfully, but certainly do not have this condition unsuccessful. flag, and placed higher levels of government, the competent departments of the high expectations of .1998, the state has selected six companies, the implementation strategy for large companies, invest some money each year, aims to train a number of large enterprise groups, Founder as one of the only IT enterprise. order not to stop the pace of growth, diversification Founder chosen. But diversification can be achieved Founder expansion purpose? for diversity, is no stranger Founder, Founder intervened before and after 1997, real estate and other fields is not successful, learn the lessons of the past blindly diversified, Founder made a new diversification strategy, GE, he hoped Founder industry in the new expanded to occupy the top three market position; second condition is that the selected industry sectors must be increased, not decreased in the industry or shrinking industries. In the eyes of Wei Xin, securities, steel, tourism industry in line with these conditions; The third condition is there must be a professional team. summing up the past to do real estate, new reasons for the failure was new view, the Founder has chosen to enter some traditional industries, but also the need for risk-sharing. ;. This shows that Founder involved in traditional industries, is also difficulties in the event of IT growth in a Chairman of the Board, chairman of Legend Capital Corporation, Lenovo Holdings president Liu, has been capitalists. afford to do but no reliable people, such things are not competent, and estate planning professionals. It is understood that Raycom is born out of the original property supervision and project associate; gold white dining Before independence, in fact, think of the staff canteen operators. to have a certain size, then how to scale? First make wide (diversified), a so deep (professional). In the absence of sufficient scale and depth of the case, with the side only in the 'width' to do article. criticism. the same side of the main business, including the information industry, consumer electronics, environmental engineering, and artificial containers to detect nuclear, chemical products, and in the IT field, but also computers, software, systems integration and other product diversification. choose such a path , Lu Zhicheng that with the current stage of the relevant companies. according to Lu Zhicheng to say, with the side not to a certain size, in the future will maintain the appropriate width: the depth increases, may be more narrow. to establish the wave of the Group's new strategy, that is a concentrated focus on the development of resources to servers, application software and communication products are the main core business. Sun Pishu do not agree with IT companies to the professional scale expansion would be difficult to say, he said: Domestically, we can not do a single product, the ability of various aspects of the market, there are certain restrictions, but to do independent of each other's business, should be more difficult. China is now the IT companies, including those of several turnover billions or even tens of billions, and its operating capacity and financial strength are still relatively limited, if attack on all fronts, blindly diverse, often was referred to out of hand. In fact, many big foreign companies, but also basically revolves around a direction to do, and then success. is that big companies like IBM, do not do everything, even if some people think it is in the implementation of diversity, but also tightly around the diversity of IT fields, and it's business very strong correlation. , IBM is the most successful cases. wave of positioning is to do a service provider. expansion of the eternal. small companies in more than 1000 million turnover occurs when management difficulties, and large companies in the 400 billion dollars would be a changes in the macro industry environment, but the root causes of the crisis within the company but, as the crisis from within the system, organizational culture and competitive environment, conflict, and performance management in the face is not enough to recognize this contradiction. not all companies to cross the block will face the choice: specialization or diversification? For many companies, this is a dilemma. GE and Nokia are the world's best companies, GE is a diversified way, the way Nokia is professional, and diversification of the final shift from the professional, they are very successful. After many successful business models come to this conclusion. Dr. Jiang Ruxiang that, GE's core competency is its cultural and institutional innovation, is based on this core competence, GE's diversification was past the manufacturer of wood 20 years ago, when it turned to communications, the communication is by cultivating a core competence, became the leader in the field of communications. However, on the other hand, examples of the failure of diversification is too many. Giants , Stone was once a blind diversity of the Road is also based on the basis of core competence? market, the PC shrink to the but to do what industry had to go to development in the real estate industry's core competitiveness. What core competence? One explanation is that long-term development of the business momentum and profitability within. force? Founder's core competencies in the end is what? Founder to do in time of crisis cross-diversified, and Founder of the core competencies related to? for the Founder's leadership, how to enter the field in the new culture their own core competitiveness is still a problem. mechanism: the causes of the crisis? Founder Founder implementation of a diversification strategy staff view is that: . believe that the Founder of diversified investments in previous years with frequent high-level failure related to changes. there was a well-known leader of state-owned enterprises have joked that they are , and back to one leader, so he may be indecisive when making decisions, difficult to have long-term considerations, and state-owned enterprises are state-owned assets management company is not actually the number of decision-making power. Wei Xin Peking University in 1999 to the internal food for thought: that this should be a market behavior, if not on the face of our pressure, I can rectify this company, done to rectify it is relatively narrow, not expand, and light to make money on it. , it turned out that the company is constantly expanding, both Peking University and superiors, Founder Group itself, or the public opinion, it is difficult to accept Founder become a wide range of helplessness. Although Wei Xin since he took office, was from the management of the Founder to a full range of changes in corporate culture, so far away from the Founder had frequent personnel changes, establish an iron fist enterprise prestige and image of the leader, however, Founder can revive the glory, Wei Xin's personal qualities and abilities not achieve a decisive role. Founder Wei Xin currently exist can not control, such as system, property rights and other Dr. Jiang Ruxiang conclude that: a company to do well, there must be a good entrepreneur; but a business to last, but depends on its system and culture of innovation. Keung that the Founder of the fundamental problem is that institutional issues , there is no clearly defined property rights, the modern company's corporate governance structure has not been established. more fundamental, due to ambiguous property rights and institutional personnel, Founder unable to obtain the power source of change and institutional support. the current state is promoting school enterprise restructuring, Founder reform ushered in the dawn of the problem. However Founder smooth progress of reform on the premise that need to resolve the internal management mechanism. mention the Great Wall computers, it may not be known which product, but the frequent replacement of general manager. In Qing-Sheng Wu this year in April after the departure of some people sharply pointed out: Great Wall Computer's poor performance, the fundamental problem lies in the strategic direction and institutional issues. no matter what the general manager of its hit some changes to the Great Wall within the deep-seated, the change would be difficult to implementation down. In contrast the wave, is also a veteran of the state-owned IT companies, after open development the drawbacks of deep feeling. in the Sun Pishu promoted on wave after wave of Group President, carried out a bold reform. At first, the dismissal of a person would be a phenomenal thing. integration with capital as the link, through a series of acquisitions and equity conversion mechanism from options to ensure the integration: the wave of the Group held by the server and PC-based wave of the information industry, 59.86 percent of listed companies of the shares; wave of information held a 65.39% stake in Qilu Software. Qilu Software is a listed holding company parent of the software wave, tide wave through the software and holds a 54.22% stake in the soft .2001 May, the Group began a wave of restructuring efforts. Not long ago, Sun Pishu disclosed to reporters, the wave of restructuring is still in progress Group, the wave is working MBO, after the wave of the Group will introduce strategic investors, and the way in exploring the market. ; four together good atmosphere .2001, Lenovo restructuring, the holding company changed its name to Lenovo Group Lenovo Holdings Ltd., Chinese Academy of Sciences and the ESOP Association, respectively, as a shareholder holds 65% and 35% of its shares to complete the association from the mechanism of change. Lenovo multiple of the investment, Liu association for many years to mature development process, management mechanism of the formation of a new business introduced to them, to Continuity: In the known equity arrangements, Legend Holdings and Legend Capital were held Raycom 80% of the shares, while the two companies share the remaining 20% held by company management. Management is shareholders, from the beginning to solve the problem of incentive mechanism. Although Lenovo restructuring process after a long-distance running, but it is after all still walking in front of many businesses. economic and social transformation in China, the background, the Government pushing The Domestic IT history there have been a brilliant page. in the Zhongguancun has accounted for more than 60%. But now Stone is in a more awkward reality: many people know the Stone, but Stone now know what people are doing more than estimated. Stone ; for today's situation, was blind to its diversified investments are inseparable. Stone has become a typical case of the failure of diversification. created a total investment of 120 million yuan 7 days the item on the record. Stone's diversified investment limited success of the project, as mentioned in the beginning of this article may be more successful four-way optimist, the other successful investment project is the Internet Now Stone is still the largest shareholder of Sina. It has served as president of the Zhuxi Duo Stone Group believes that the founder of the Stone came from research institutes are most familiar with the IT sector, the construction and textile can be described as an outsider, investment failure is inevitable. This year the end of March, because two years of losses in the stock market Hi-Tech Stone was bright yellow - delisting risks of special treatment, the stock referred to the appropriate change to Although the Stone House has been Group Co., Ltd., listed in 1996, the main business is production and sales of petrochemical equipment .1998 May, Stone Group, Industrial Group from Guangdong Holley Holley hands of the transferee of the shares of corporate stock Hi-Tech 2000, the company's total shares 13.14%, Holley made the largest shareholder of Hi-Tech, Holley was subsequently renamed as the four-way Hi-Tech Hi-Tech. for Holley Tech entered this time, Stone is clearly not prudent. Since the original Holley Hi-Tech is the largest in the During Holley Holdings shareholders, leaving a lot of the debt burden and complex historical issues, the White Stone Group, after the main effort had to busy cleaning chores, and clean up the hard, obviously far beyond the Stone Group expected. Stone White Stone Group Hi-Tech in the 3 years after, business is still not improved, performance has been hovering between a loss and profit. helpless soldiers Stone loss away - in March 2002, Stone Stone Group Hi-Tech officially withdraw, will they hold 2300 shares of corporate stock to the price of 1.80 yuan per share, transfer to Shenzhen Wei base. Stone Group had the hands of the transferee from Holley Holley Tech 2000 million legal person shares , the price is 2.95 yuan per share, the total amount of 59 million yuan. After 1998, sent to 1.5 shares per 10 shares, the Stone Group Hi-Tech shares owned by Holley into 2300 shares. However, the price of 1.80 yuan per share fully transferred to the base of Shenzhen Wei, the Stone Group only recovered 41.4 million yuan. Stone Group Hi-Tech into the establishment in China after 3 years without a cash dividend, not only spent 3 years in vain time and energy and nothing but also went to 17.6 million yuan loss of capital, can be described as lost his wife after bad. Stone Group is currently the main force in the IT industry in Hong Kong-listed Stone Electronic, also caught in loss or profit situation. Stone last few years had a series of actions to try to make a comeback again in the IT field, but the result is unknown in the market, more and more people seem to have on the already battered the four-way does not hold much hope. link the essence of two GE models, China's GE? . Some experts believe that a global, diversified business in general, not a successful business model. such as . So, GE What is the essence of success? Beijing Tin Yan, general manager of Dr. Jiang Ruxiang management consulting firm that most of the domestic science company GE to diversify the road, only to see the benefits of diversification, and diversification do not really know how to GE road behind the real strong point. Jiangru Xiang listed several reasons for the success of GE diversification: ...