Volume III Section 56 Guidance, Investment, Diversification
Focus, perseverance and diversity, who is right and who is wrong, it is difficult to say in one word.
If you find the result and then work backwards to the process, you will find that the result really determines the process, as long as it is successful, then what to do in the process is wise.
Rigidity can be described as persistence, half-heartedness can be explained by moving with the times, all in all, if you succeed, then naturally someone will come to wash the floor for everything you have done, and if you fail, then no matter how wise your choice is, it is just a little more tragic.
For Sha Zhengyang, the memories of his previous life are enough to provide him with countless classic cases, positive and negative.
GE's diversification was not necessarily a failure, at least it was a success in the Jack Welch era, and there are different opinions as to why it began to decline in the later period.
The chaebols of the Korean system, such as Samsung and Hyundai, can also prove comprehensive, or they can be diversified chaebols, which can also succeed, and of course losers such as Daewoo are also typical of diversification.
Sharp's focus is still inevitable to fail, Toshiba bet on nuclear power at all costs, and the result is ashes, and the Japanese people's focus and success are famous, but it is precisely those who are not focused seem to be very nourished, and those who are very focused have been repeatedly frustrated, and even the ability to resist risks has been weakened.
In Sha Zhengyang's view, focusing on perseverance and diversification, in fact, there is no contradiction, in a certain main business area of dedication is the basis for success, but in other areas through strategic investment to achieve capital appreciation, in order to reduce risks, and even provide greater capital support for the main industry, that is not a bad thing.
The key here is whether you can use professional people to do professional things, and whether you can allocate capital to these fields very reasonably.
Using professional people to do professional things, then this kind of diversity is not necessarily wrong, this is Sha Zhengyang's understanding.
The current Dongfanghong is facing this kind of problem.
Dongfanghong wine industry performance continues to be hot for Dongfanghong Group to bring huge cash income, in the wine industry in this part of the continuous investment is naturally needless to say, the development of new products, the construction of channels, the maintenance of advertising advantages, this is no problem, but if there is still a considerable amount of cash rolling in?
So what to do? financial investment, or continue to expand in industry?
However, whether it is financial investment or industrial expansion, they are also facing risks and challenges in new fields, after all, cross-border is not so fun.
For Sha Zhengyang, what he needs to do is to give them atmosphere, and at the same time give them some advice.
"Zhengyang, we know what you said, what we want to ask is a more distant plan, we all understand what you said, continue to develop new products, channel laying, we will increase our efforts on these issues in the past two years, but is there anything else?"
After Jiao Hong finished speaking, Ning Yuechan picked it up again.
"We have plenty of cash and we're not sure what the future holds, but we know we're going to keep it that way for a year or two, but planning ahead and preparing ahead is the way to go, so we'd like to hear your point of view, or rather, you're showing us the way. ”
Sha Zhengyang glanced at Ning Yuechan and Jiao Hong.
It should be said that in the past few months since he left, Ning Yuechan and Jiao Hong have changed a lot, including Gao Baishan, who seem to have been reborn in their entire temperament, that is, they have become more confident and independent, but he can still feel the anxiety and pressure behind their self-confidence and independence.
Whether it is Dongfanghong or Nature, their history is too short, two years, almost a snap of a finger, to create such a huge business empire at once, even if the outside world exclaims, but they themselves know very well that the foundation of this empire is still too shallow, and the foundation is still far away.
Maybe in the minds of some people, they will be arrogant and invincible, but Ning Yuechan, Jiao Hong and Gao Baishan will not.
The structure of this empire was made by their own hands, from the direction of the road to the laying of the structure, they were all completed by their own hands, of course, they also made great efforts to do this, and now they want to go further, or they want to make their role more full.
Whether it is Ning Yuechan, Jiao Hong or Gao Baishan, they all have a common characteristic, that is, they are not confident enough, which stems from the fact that they were almost nothing before, and basically have no real successful experience, all their successes are achieved in Dongfanghong Group, and Dongfanghong Group is created by themselves.
Now they want to be able to show themselves better, but they are afraid of being accidentally beaten back to their original shape, and it is this mentality that makes them particularly entangled and anxious.
Therefore, they hope that Sha Zhengyang can show them the way like Dongfanghong in the later period, and they can explore and create by themselves in the direction specified by Sha Zhengyang.
For them, this is not something unacceptable, because Sha Zhengyang knows them well, and Sha Zhengyang has also proved his vision with his near-perfect performance.
Now Dongfanghong has a huge amount of cash back, and even after it is used for the development of its main business, there is still a considerable surplus, which is actually the result of almost huge profits.
Sha Zhengyang groaned for a while, he needed to think about how to take this step.
"I roughly understand your thoughts, in fact, I also talked about the high profits of the liquor industry, even if you continue to increase investment in technological transformation, research and development and channel laying, there may still be a considerable cash surplus, so what else can Dongfanghong do?" Sha Zhengyang asked.
Everyone's eyes converged, in fact, they just wanted to get such an answer.
"Then Dongfanghong Group can consider doing this and setting up an investment company. Sha Zhengyang said very calmly: "It is not a good thing to keep a huge cash surplus in hand, of course, the necessary cash flow must be maintained, but for a company like Dongfanghong Group, which is mainly based on FMCG, in the current situation, cash flow will only increase in the short term, not shrink, so in addition to maintaining the necessary amount, you can set up an investment company or two investment companies." ”
"The Natural Hall can also be set up, but at present, due to the need to build a large number of water sources and channels, this investment company may not have much investment for the time being,......
At present, the investment company under the large enterprises is still a new thing, especially for state-owned enterprises, even more so, there is no such thing under the planned economy, but with the wind of reform and opening up, some state-owned enterprises have begun to take action in this regard, such as Shougang, the State Council issued a special document for this last year to agree to its pilot, which is actually to support its diversification and expansion through investment.
In Sha Zhengyang's view, the current Dongfanghong Group can also take this road.
Shougang's diversification later encountered a cold snap, but many of its explorations were of great significance, especially in some industries, but they played the role of crab eaters.
For example, Shougang Nippon's chip industry, Shougang Motoman's robot industry, and the joint venture with Hyundai Group, although they have all suffered various setbacks and even failed to achieve the expected results, this has undoubtedly played a good leading role in the development of domestic high-tech industries.
"Establish an investment company?" Jiao Hong asked in a deep voice: "This is indeed a road, but Zhengyang, do you think we set up an investment company to take the path of financial investment, or to look for industrial growth points, and take the road of strategic investment?"
gave Jiao Hong an approving look, Jiao Hong is also learning, and is improving, can't be underestimated, Sha Zhengyang said with a smile: "Sister Hong asked very well, Dongfanghong is now based on liquor, so it is needless to say that taking the road of financial investment, that is, for the purpose of making money, and strategic investment, how to go?"
"Do you continue to go around the upstream and downstream industrial chain of the liquor industry, or do you want to expand horizontally and merge other liquor companies?" Sha Zhengyang asked, and then asked himself: "The upstream and downstream industrial chain of liquor is nothing more than channels and food, which Dongfanghong has been doing for a long time, and there is no need for an investment company to do it, and I personally think it is inappropriate to expand horizontally and merge other liquor companies." ”
"Because the style of Dongfang red white wine has tended to be fixed, consumers have also accepted, if the acquisition of other liquor companies, what effect can be achieved? It's easy to give people a handle and be caught by competitors to attack, so we can expand production on the spot, but we can't buy it in other places, which is the foundation of the Oriental Red Wine industry. ”
Sha Zhengyang's words won the unanimous nod of approval from everyone present, have you heard that Moutai or Wuliangye is brewed by a distillery other than Renhuai or Yibin? Yes, it must be fake wine.
Baijiu is not wine, and doing so can only destroy the Great Wall.
"So another way of strategic investment is to start anew and find new growth points, just like when we entered the mineral water industry, it has been proved that we are not wrong, and Nature Hall will also become another major growth point of Dongfanghong Group." Sha Zhengyang said proudly.
From the bottom of my heart, now Dongfanghong Group still regrets a little, knowing that the mineral water industry is so hot and the profits are so high, Dongfanghong Group should invest more to obtain greater equity and compress the shares of Sanlian Village.
But at that time, Sha Zhengyang intended to support Sanlian Village, and everyone, including Jiao Hong, Ning Yuechan, and Gao Baishan, was still suspicious of this new thing, who would spend money to buy water flowing in the wild?
This question once made many people skeptical, so everyone did not insist, and even a little lucky, but unexpectedly, it evolved into the current yield of the natural hall water industry has faintly exceeded that of the Oriental Red Wine Industry, of course, in the absolute value is still far behind.