In October 1985, the American "Wired" magazine published a special issue of Phoenix Arcade, from the early model of Phoenix Arcade to the new Phoenix Arcade with a 40-inch plasma screen.

"The unprecedented clarity made me feel for the first time that what I had seen before was a fake screen...... People who have experienced such a screen may no longer be able to get used to the CRT display of the past. ”

The editor-in-chief of Wired magazine has a love for the plasma screen beyond imagination.

At the same time, a large number of articles on plasma display technology appeared in the media all over the world.

The pre-sale of the Phoenix 40-inch plasma large-screen arcade machine is very amazing, and on the day of the press conference, an order contract for 2,000 units has been signed. Since then, it has continued to grow rapidly at a rate of seven or eight hundred units per day.

It is conservatively estimated that by the end of December, at least 50,000 orders will be signed. Even for a company as big as Startup Electronics, the sales of the Phoenix 40-inch arcade machine are not bad.

These dealers must pay a deposit of $3,000 per unit to order a unit, so all the funds in the mass production process are basically the customer's advance payment. Even by waiting for the first arcade machines to be delivered, it is expected that this advance payment will be far from exhausted. After the delivery, the customer continues to have to pay the final payment.

If the balance is not paid, the deposit will not be returned. It is precisely for this reason that such orders are very stable, and the growth of the number of orders is equivalent to the future performance of the Phoenix 40-inch plasma large screen arcade machine, and a large number of performance reservoirs have been reserved. As long as you need to produce and deliver step by step, you can make huge profits far from it.

And how expensive is the real cost of a $15,000 arcade machine? The real cost is only $6,000 at most.

The Phoenix 40-inch plasma large-screen arcade machine of the new venture electronics company is invincible before it is officially listed.

In addition to the shocking experience of the new machine, there is also the past achievements of the new venture electronics company, so that many dealers know that it is difficult to lose money if they are looking for food behind the new venture electronics.

"Boss, this year's arcade division is expected to make a profit of more than $250 million, and next year with a large number of production orders gradually delivered, there is hope for a significant increase. Zhao Ruofei said.

"So, what about the arcade department's independent operation and the plan to establish Phoenix Games Co., Ltd., what are the opinions of the employees of the arcade department?" Lin Qi asked.

"Most people don't object. Zhao Ruofei said with a smile, "Those who oppose have the right to choose, and they can be like Phoenix Games subsidiary." Of course, there are not many such people!"

……

In November 1985, Xinchuang Electronics announced that it had carried out a streamlining of the structure within the group company, and the first batch of streamlining plans was to separate the arcade game department.

Phoenix Games Co., Ltd. was established, and 1,500 employees were divested from the new venture group company. The number of employees in the group company has been reduced from 6,500 to 5,000.

Once the enterprise is large to a certain extent, personnel management will occupy most of the energy, and even the enterprise will confuse management with work. Even, take daily management as the focus of work, unlike some smaller companies, which think about doing things all day long, and have no time to think about management, and there is no need to think about management. And the kind of company that simply does business is often the fastest stage of its company's growth. After more and more people, there are gradually too many things to consider, and there is no way to focus so much, so the growth rate of large companies will inevitably decline in the primary election.

For the radical cure of this disease, Lin Qi has no choice. However, it is possible to alleviate the disease of large companies by constantly divesting large subsidiaries within the company.

Subsidiaries that are spun off naturally do not need the parent company to pay greater management costs.

In the case of the new venture electronics group company, the company's financial statements are only read once a year. In addition, the subsidiary is required to pay dividends, and the parent company is only willing to be a shareholder similar to a financial investor and does not interfere in the operation of the subsidiary.

This kind of relatively wide management is not only for the management of better subsidiaries who are interested in development. Moreover, for the parent company, it is also a great weight loss, which is conducive to future development.

……

"Dear colleagues, we at Phoenix Games are independent from the arcade department of the group company, not because we are left with the group's development goals, nor because we have been abandoned. "In fact, this is part of the development plan of our group company. In the future, today the company will spin off one profitable department after another into subsidiaries. Avoid the parent company being too bloated and falling into the busy management of Wenshan Huihai. ”

"Independent subsidiaries will have a great deal of operational autonomy and at the same time, new opportunities for growth. For example, even if we use all of our salaries to subscribe for the equity of the group company, the share we can subscribe for is extremely limited. At the same time, we work hard and contribute to the whole huge new startup system. However, when we become shareholders and employees of the smaller Phoenix Company, then the more obvious it will be that we work hard and feed back into the company's performance. Of course, because the scale of our subsidiaries is smaller, so relatively speaking, we can subscribe for more equity, if we can make more efforts to achieve more than the average of all departments of the group company, then, we will get a growth return, even more than the group company! Moreover, relative to the rule that the head office will never be listed, we Phoenix Games Company will have a plan to go public in the future......"

The independent operation of Phoenix Games Co., Ltd. is not to throw off the burden, but to give a large number of orders to Phoenix Games Co., Ltd. first, to ensure that the new subsidiary will have a better growth environment in the early stage.

In addition, the goal of going public has indeed made many employees of Phoenix Games Co., Ltd. full of enthusiasm.

"Mr. Zhao, we listen to you!"

"The subsidiary's current achievements can't be lost!"

"I also want to go public, and I should be a shareholder of a listed company!"

The subsidiary's incentive system, similar to that of the parent company, allows employees with a salary cap to purchase equity in the company on a salary.

The parent company, Xinchuang Electronics Group Co., Ltd., has no listing plan, so the shareholders who invest in the shares mainly need to obtain dividend returns for a long time and patiently, and earn very stable long-term returns.

However, if you want to get rich in the short term, the most convenient channel is the listing plan of the subsidiary. The shareholders of the original shares of the new start-up company earn 10 times as low, and many of them have a relatively low cost of shares, and they have enjoyed the growth of the subsidiary before it goes public, and the growth of the stock price after the listing is dozens of times or even more than 100 times the income.

From the perspective of investment, it is equivalent to giving benefits to insiders, who have low shareholding costs and enjoy the company's internal equity incentive price to buy shares. Even if it is only sold at the IPO price of the listing, it is definitely a big profit. If the company is sought after by the market, then the rate of return will increase exponentially.