Beiyang 1917

"If Pfizer takes the lead in using the new process of citric acid, the output can be tripled and the cost of raw materials can be reduced to 30% of the original, which means that Pfizer can produce citric acid to meet the needs of the entire United States with only 100 million US dollars of production working capital. Come"

"Pfizer's market share will not be 30% but 100%. Of course, the old factory building needs to be remodeled, and the cost of new storage and logistics will also increase with the increase in output, and the number of workers will also increase accordingly."

Wang Geng unhurriedly snapped his fingers and said,

"I did a rough calculation on the way here just now. If Pfizer only increases its annual output from 700 million pounds to 2000 million pounds, this is almost the annual demand of the US market. Of course, with the decline in the price of citric acid, the demand will continue to increase. continue to rise"

"In this case, from your original working capital of 300 million US dollars, keep 150 million as the production working capital under the new process, and the remaining 150 million can be used for technical transformation of production lines and workshops, as well as the increase of labor in warehousing and logistics."

Anderson couldn't hide his shock. It's a pity that this young man doesn't go into business. If Pfizer has such a successor to take over, he can retire at any time with peace of mind. Look at his calm look with fingers. The students of West Point Military Academy are definitely much better than the top students of any business school. {Fastest Text Chapter Read}

Wang Geng was chilled by the way Anderson looked at him. Nima, I am not used to being stared at by an old man so obsessively. This guy stood up from the sofa, walked around, and continued to snap his fingers ,

"In this way, Pfizer's total assets have not changed much, except that the production working capital has decreased from 300 million to 150 million, while fixed assets have increased by 150 million. However, Pfizer's annual output has increased from 700 million pounds to 2100 million pounds. Pounds, and at least double the number of jobs for workers!"

"What do you think is the reason for the extra 1400 million pounds of citric acid produced by Pfizer every year at the same cost?"

Wang Geng took out another cigar from the cigarette box on the coffee table, sat back on the sofa, gently unwrapped the cigar with his hands, and stared at Anderson opposite him.

Anderson, who was immersed in Wang Geng's words, woke up like a dream, and murmured, "The extra 1400 million pounds produced is the revolutionary change brought about by the new technology of citric acid."

Nima, who is telling you this, Wang Geng frowned, lit a match and lit the cigar in his hand, and said,

"The current market price of citric acid is US$1.25 a pound. As the war progresses, raw materials from Italy cannot come in, so the price will continue to rise!"

"You are right, but the annual demand in the U.S. market is only about 2100 million pounds. If Pfizer's production is increased to 2100 million pounds, it will inevitably collide with the original production capacity of 1400 million pounds of a dozen other companies. The market price of citric acid in the United States will fall instead of rising!"

Anderson came back to his senses at this time, and regained his demeanor as the head of Pfizer, his mind was not slow at all!

"This is a question for you and Pfizer to consider. There are 17 to 8 million people in the world. The citric acid market in the United States only accounts for about 15% of the global market. With the deepening of the war, the production of citric acid in European countries They are constantly shrinking and declining, which happens to be an opportunity for Pfizer to show its talents!"

Wang Geng lit the cigar in his hand, and continued to point,

"If you look at the global market, even if Pfizer's production capacity is increased to 2100 million pounds, it is far from enough to supply. The whole of Europe needs at least 6000 million pounds. Adding Asia, North America and South America, the annual output of 1 million pounds may not be enough!

Of course, the premise is that the production capacity of European countries continues to shrink, and the new technology is only in the hands of Pfizer for a period of time! "

A wily man who is used to the market such as John Anderson, the head of Pfizer, is also dizzy for a while at the moment when he is dazzled by the great money scene depicted by the Chinese youth in front of him!

If all dreams come true, even if the final market sales price is reduced by half, this is a big deal!

Even if the production capacity is only increased to 2100 million pounds in the first year and the price drops by 20%, Pfizer's turnover can increase to about 2000 million US dollars, and the net profit can reach at least 1000 million US dollars!

"It's better for you to set a price first, young man. Based on the prospects you have described, old Anderson really can't make an offer!"

Anderson took out a handkerchief from his pocket and gently wiped the oily sweat on his forehead. He felt his heart rate was accelerating. This fellow looked at Wang Geng opposite him eagerly, wondering how far the other party would open his mouth.

"1400 million pounds of citric acid, the wholesale price of citric acid in the U.S. market is now $1 per pound. If Pfizer wants to put this increased production into the U.S. market, then the wholesaler will have to give discounts to the price. Let's not say this is a price war. , but high quality and low price are the only rules for competing for market share”

Wang Geng spit out a smoke ring, "If Pfizer's marketing level is not so incompetent, it can still maintain the wholesale price of citric acid in the US market at 80 cents a pound this year, 1400 million pounds multiplied by 80 cents a pound = worth $1120 million”

"1120 million dollars?!" Anderson exclaimed in surprise!

"What? Am I wrong?" Wang Geng was taken aback by the old man's actions.

"No, you're right. In fact, the price of citric acid in the US market is still rising. If we have a proper marketing strategy, we can definitely keep the wholesale price at $1. Besides, we can export it to Europe!"

"It's just... to tell you the truth, Pfizer's total assets at the moment are only... 600 million dollars... 300 million dollars in working capital and raw material inventory, 300 million dollars in fixed assets, if your formula and invention are sold for 1120 million dollars ... Pfizer can't afford the price!"

There was more sweat on Anderson's forehead. The temperature in the early spring at the end of February, in fact, the heating in the house was not that hot, but the old Anderson was stumped by the huge opportunities in front of him and Pfizer's cash difficulties!

"US$1120 million is nothing. Pfizer earned it back in one year without increasing investment. Of course, most of Pfizer's 300 million working capital is accounts receivable. In the short term, there will be a short-term funding gap of nearly 200 million U.S. dollars.”

Wang Geng thought, Anderson, the old fox, has finally handed in the bottom line. Pfizer's total assets are 600 million US dollars?Didn't expect it to be that much.

"You're right...but Pfizer...I promised Mr. Charles Pfizer that the company would never be acquired by others!" Anderson wiped the sweat from his brow, feeling a battle between heaven and man.

If this young man takes the new technology he invented to Pfizer's competitors, then Pfizer will have no other way out except bankruptcy or acquisition.

Unless the Pfizer laboratory can develop a new process by itself in the short term, and the technology of Pfizer's new process cannot be compared with the other party, Anderson is in a dilemma at the moment, counting on the progress of James Curry in the laboratory, who knows when it will Have results?

In fact, both Anderson and Wang Geng understood that Pfizer would either accept Wang Geng's offer now, and after a short period of pain, it would lead to long-term development and become a leader in the industry!

Either keep Wang Geng out of the door, which is tantamount to sending a big killer to competitors, and the fate of Pfizer being acquired or going bankrupt in the future is inevitable!

obe?

This is a difficult question before Pfizer General Manager John Anderson!