Energy Group

Section 120 Development

It is easy to be a small business, but not easy to make a business bigger.Many companies died in the process of getting bigger.

After the meeting, Li Cong was thinking about these two sentences. His own company is now very popular. Now this year's list has predicted that his company can enter China's top 500 by the end of the year, and he is already firmly seated. China’s richest man, and even the first person in mainland China to enter the world’s top ten richest people, he is only twenty-five years old this year, and is also the youngest richest man in the world. Everyone believes that they can turn Buffett before the age of thirty ( American stock god) ousted the throne of the world's richest man.

But how should his own business continue to develop? Although Li Cong already wants to develop in an all-round way, he is a layman in other aspects. Strictly speaking, he was just a small employee in a small company before, and he was a layman for everything. If it's not lucky, I'm afraid I'm already a kid in the Hades Palace.

The company now has two energy production bases, a chain group consisting of hundreds of cooperative gas stations, hundreds of Samsung electrical appliances stores, and a city park under construction, with 15% of the Korean National Petroleum Corporation.Each has a company in Jinan and Qingdao with tens of thousands of employees, and immediately adds an ocean-going fleet and tens of thousands of employees.

Looking at the report on the table, Li Cong really doesn’t know that he is already the boss of so many people. Every decision he makes can affect the jobs of tens of thousands of people. In the future, his scale will increase until he has hundreds of thousands. When there are millions of employees, the'government' can still point fingers at itself?You are'forcing' me, I just quit, I don't believe you can watch millions of people lose their jobs.

"Jenny, come in." Li Cong felt that it would be fruitless to think so. It is better to ask professionals, who know the development history of some large companies and will give him better suggestions.

"Jenny, you can take a look at these first, and then tell me how to invest, how to make my company continue to develop, all-round development, no longer limited to one aspect." Jenny took the document handed by Li Cong Jia was very surprised. This was the company's top-secret information. I didn't expect that Li Cong would believe that she was a newcomer so much. This was unimaginable in the companies she had experienced before.

It took about half an hour for Gianni to read it carefully. Before, he only knew that the company he was in was powerful. I didn’t expect it to be so strong. A few months ago, he owed the country tens of billions. All the payments are paid off, and there are tens of billions of circulating funds, and more than billions of income every day. Doesn't it cost your own company to produce environmentally friendly oil?Of course it doesn't cost money. Does Sunshine ask for money?

"President, first of all I have to congratulate you on your success. It is very gratifying for a company as large as our company, without any debt, and with such a wealth of cash flow. It is very gratifying that you are so enterprising. The heart is not satisfied with the status quo." Anyway, the director of this think tank is very good at flattering, and this is worth it."You want to make a company bigger, generally there are three ways: horizontal merger, vertical merger, and cross-industry merger. Horizontal merger is a merger between companies of the same product, that is, increase the output of a product to achieve economies of scale , And reduce costs. In many industries, only when the scale reaches a considerable level can technical efficiency be achieved and costs can be reduced. This requires the expansion of production and the scale of the enterprise. This expansion can be achieved through the company’s profit investment in production. It can be achieved by merging other enterprises. However, the former method is too slow to achieve economies of scale. Therefore, the latter method is generally used. This horizontal merger can be a unity of several enterprises through a shareholding system, or it can be Large companies merge small companies. As far as our company is concerned, we can invest in the construction of an energy base in inland China, but this road is basically forbidden. We do not have so much energy to complete it, and there is no Companies similar to ours want us to merge." Li Cong felt that it would be impossible to establish a base within a year, and the'government' would not help.

"Don't talk about the merger, what I want is the comprehensive development of cross-industry." Merger is impossible, or just skip it.

"Good president, cross-industry merger is also called diversification, and it is also the development strategy of many multinational companies in the world. Cross-industry merger can bring many benefits to enterprises. First of all, resources can be more fully utilized. Enterprise resources can be Divided into dedicated resources and general resources, diversification can make general resources more fully utilized. Secondly, it can avoid the risks caused by the deterioration of individual product market demand. Finally, diversification is also conducive to the adjustment of the company’s product structure. When the leading product loses the market, it can be smoothly transferred to the product or industry that is already in operation. These benefits brought by diversified operations are called economies of scope. "Basically, it is an economics course, and it is indeed an existing academic background. With culture, he can actually "operate". Li Cong feels that the person he hires is more and more worthwhile.

"President, I have to remind you that in theory, the three roads to make the company bigger are clear, but in reality, every road is full of traps and landmines. Carelessness will change the road to success. For the road to death." I know this, but what's the point of not challenging people to live.

"I have a few ideas. I don't know if it is possible or not. Let me analyze it. Since we have decided to cross-industry, we will be bigger and stronger. First of all, I will enter home appliance sales based on the company's 300 Samsung stores."

"President, you must know that there is no profit in this industry. I prefer Yu to develop ocean transportation."

"We are already developing, but home appliance sales is a hugely influential industry. Take CSIC as an example. Its assets are twice that of Gome, but I'm sure to know that Gome has more than that of CSSC. More than twice, what I want is the reputation of the company, so I think you can help me formulate a development plan with a total investment of no more than 30 billion yuan. Next year, we will build a third base." Gianni was helpless. Li Cong shrugged his fragrant shoulders. He is the boss, and his opinion can only be a suggestion, and he never thought that his own words could determine the direction of a big company.

Li Cong's consideration is also correct. After all, the energy group can contact end customers through PetroChina and Sinopec. He is eager to let the public know his strength and raise his social image.