Chapter 75: New Business Logic (4)
"Therefore, from a series of small Ziano strokes, I have drawn two conclusions: first, needs can be stimulated and created; Second, there is industrial diversification centered on customer needs, which is closer to the essence of business activities and more likely to succeed than supply diversification......"
Demand-centric diversification? Little Agnelli was stunned for a moment, and then came back to his senses, as long as he is a human being, there must be basic survival needs such as food, clothing, shelter and transportation, as well as spiritual needs such as culture, art, sports, and aesthetics.
In fact, the latter is not based on this theory and logical system to advance, but to comprehensively weigh the current industrial pattern and future development of Italy deliberately layout, specifically pick emerging industries, and enter industries without leading hegemons, so as to reduce competition resistance as much as possible and accelerate growth. Facts have also proved that Contini's approach is very effective, the dislocation of the second newspaper makes him not face the competition of other ordinary newspapers, radio, express delivery, civil aviation no one to fight at all, although there are many brands in the motorcycle market, but there is a lack of national and consistent leaders, this is the idea of subtly reconstruction.
Old Agnelli put the newspaper in it, took a sip of the water glass, and continued: "Now let me ask you, which is the best analysis and popular science newspaper in Italy?" ”
"Youth Daily?" Little Agnelli replied uncertainly.
"Who was the first radio station? Who is the only radio company? ”
"Union Group."
"Who owned the first civil aviation enterprise and the first military club?"
"Union Group."
"Who owns the best motorcycle?"
"Union Group."
Old Agnelli smiled: "Look, you have admitted that it is the United Group, which means that his image building has been deeply rooted in the hearts of the people." From the customer's point of view, he doesn't care whether the company can make money, he only cares about whether the service he gets is good or not, and whether the products he gets are the most cost-effective. ”
Little Agnelli nodded helplessly.
"Just now you said that the United Group will lose 100 million lira a year?"
"Yes, we reasoned so."
"Well, I'll give you 200 million lira, allowing you to lose half of your money in a year, if you start your business tomorrow and it can't be related to Fiat's existing business, in what field do you think you can create a brand and product with national influence in just 6 months?"
Agnelli Jr. thought for a long time, and finally said: "I really can't think of anything else, probably Juventus Club can be built into the most valuable football club in Italy." ”
"In fact, if you only have 200 million lira, you can't lose 100 million at all, you don't have the psychological ability to bear it, and you may shrink back when you lose 20 million. Do you think I'm right? You're a conservative balancer at heart, just like me, and you don't do those crazy things. For a company like Fiat, losses are unexpected, and if you knew you were going to lose money before you acted, the board wouldn't have passed it...... I won't accept it in my heart. ”
"Father, I think you're right." Little Agnelli smiled bitterly, he found that the old man really knew himself too well, if he really took 200 million to start a business, he would definitely be careful and careful, how could he lose half of it in a year? It's not your personality at all, and it's worse than killing yourself.
"Therefore, the business school will only teach a comprehensive and balanced, effective management, steady progress, and comprehensive coordination of business strategies, which is the normal thinking that has been summarized by countless people...... It's impossible to teach a business idea like this. In many cases, geniuses and madmen are very few, and they are often separated by a thin line. It's like looking at the United Group, most of the professional managers in the industry, especially the old-fashioned board of directors, think he's crazy, but I think he's a genius - genius or crazy, it's all up to you how you interpret it. ”
Little Agnelli was taken aback, his father actually had such a high opinion of little Chiano? He said cautiously, "Father, you seem to value him a lot?" ”
"Yes, I value him, he has qualities and qualities that we don't have at all, and considering his age, it's completely beyond imagination." Old Agnelli sighed, "It's a pity that you don't have a sister, and your children are too young, otherwise I would really like to find a family member to marry him." ”
Little Agnelli was stunned by this statement, and subconsciously thought about his children, and when he found that the eldest was only 3 years old, he smiled wryly and shook his head.
"His inspiration, unbridled way of thinking and ability to operate capital, combined with Fiat's consistent down-to-earth and conscientious work, will have a qualitative leap. Of course, you don't have to be presumptuous, you have advantages that he doesn't have - you are from an orthodox academic background and have been in Fiat for so many years, and you are familiar with every aspect of the production management process, little Ziano should not understand this, and I think he does not do a good job in cost control......"
This point is very accurate for the old Agnelli: although Contini is also the chairman of many boards, but the chairman of the board of directors is completely ignorant of production and operation, all rely on the management personnel and professional managers who are collected everywhere to support him, he is only responsible for the overall planning of things, the beautiful name is "grasp the big and let go of the small", the chairman can do a good job of strategic planning, how to do the work of the general manager. If it weren't for Antonio to help grasp part of the management, the internal chaos would have been a mess a long time ago.
As for the lack of cost control, it is caused by a variety of factors: in order to attract talents, the United Group will generally offer relatively high salaries; In order to speed up the speed and turn the Italians accustomed to slow down into joint speed, Contini has to increase the monetary stimulus; In order to achieve multiple rounds of rolling operations to grab time, there is naturally a lot of waste in the delivery of materials.
It's okay not to say this, but as soon as he said this, little Agnelli was a little angry and muttered: "He has been so blind this year, he has taken 174 engineers and managers from Fiat, and at the same time attracted more than 700 skilled workers." ”
"So many?" Old Chiano was taken aback, "I know that the turnover rate has increased a lot this year, but according to you, almost 1,000 people have gone to the United Group, what's going on?" How come I never received a report like this? ”
"The human resources department was also kept in the dark at the beginning, and many people left because they went to other companies, and it was not stated that it was the United Group, so we registered, and it was not until this time that I went to visit the opening and first launch of the United Motorcycle, and I found that many people went to the United Group. According to my observations, the United Group currently has formed three main schools of personnel, the first is some of the technical backbones and skilled workers excavated from various small and medium-sized enterprises in Milan; The second is the backbone and workers of Fiat's past; The third was the introduction of engineers and workers from Germany...... The overall staff ratio is almost 4:3:3, and now the total number of workers in United Motorcycle is more than 3,000, and it is reported that it is still recruiting. ”
"This is not going to work, we have to find a way to curb this."
"No, we can't provide the salary and treatment given by United Motorcycle." Little Agnelli complained, and the old Agnelli understood why his son's attitude towards Contini was so unwelcome, there is no love and hate in the world for no reason, in fact, there is a reason.
The basic monthly salary of skilled workers in United Motorcycle is divided into 8, 9, and 10 three gears, according to the technical ability rating, the lowest is 800 lira a month, and the other is 900 and 1000 lira a month, which is basically consistent with the Fiat level, the key is that overtime pay and bonus calculations are several times more than the latter, this year Fiat basically has no overtime tasks due to shrinking orders and market problems, and it is very good to maintain the scale without layoffs, and United Motorcycle is a continuous overtime, Basically, you can get an additional 500-600 lira bonus every month, so that the income of skilled workers is about 30% higher than that of the same position in Fiat, and as for the technical backbone and management personnel, it is basically implemented according to this ratio. In addition, in the United Group system, German and Italian workers and engineers are paid equally for equal work, taking into account only skill and skill, regardless of nationality, which is very satisfying to everyone
In addition to the increase in salary, Contini's benefits are also better than those of ordinary enterprises, the base of the United Motorcycle is far away from the city, so he deliberately opened up a commuting service to and from the city, and the base is also building workers' housing, promising that employees can rent at a lower price, if they want to buy in the future, they need to be linked to the service years, according to the design, these workers' housing houses are usually more spacious and modern than the same type of houses in the city of Milan, except that the location is in the suburbs, everything else is fine, However, with the introduction and construction of more supporting services and facilities, many employees will be eager to try.
This is an additional cost that Contini has invested in human resources, and what other companies see as irrational behavior of lavish spending.