The Complete Works of Wolf Road

Chapter 45 Enterprise Wolf Strategy (2)
Only companies that seek change can remain invincible in the competition.The competition with the opponent is to constantly make strange moves, so that the opponent always feels the pressure of competition and is tired of coping.You must know how to make moves, and at the same time make moves resolutely.In the arena, a person keeps making moves, correct moves, wrong moves, useful moves and useless moves. It may not be possible to kill people with one move, but this process has constituted an offensive force. "Continuous moves" means to continuously attack the opponent in continuous changes, and at the same time constantly seek the opponent's weaknesses and find opportunities to defeat the enemy with one move. "Consecutive moves" also prevents the opponent from finding your main attack direction, avoiding a lose-or-win duel with the opponent in a static state.

If all the wolves are going to grab a bone, some wolves must be starved to death.When a clever wolf grabs a bone, it knows how to observe. Why is there only one bone, and where is the other bone?Eventually form your own method of finding the bones.

Only by finding a new method can the wolf survive, and those wolves who are all grabbing the only bone will surely starve to death.

Finding your own method is actually a strategic issue, and why you must find your own method is a philosophical issue.

Enterprises' constant search for changes is actually a need for their own transformation. Many changes gather together to form the power of enterprise transformation.An enterprise will not change but will die. Change is as important to an enterprise as innovation.To do a good job in an enterprise, there must be a good entrepreneur.

However, if an enterprise wants to develop continuously, it depends on the innovation and transformation of its technology, system and culture.If you want to live through the various crises in the death zone, you must create a new growth logic.

Change is eternal, and change is eternal.For any enterprise, only by reforming the organization, structure, culture, process, human resources, etc., and truly establishing an efficient operation mechanism, can it break through the obstacles encountered on the way forward and continue to develop.

我国中、小企业的平均寿命只有3～5岁；集团公司的平均寿命7～8岁；世界上，30年前跻身于财富100强的企业今天有三分之一被淘汰出局。

Why are some companies able to prosper for a long time, while others are struggling?
It is inevitable for enterprises to have problems, because "in today's world, the only constant is change", and "change" will inevitably lead to new problems.Especially in today's environment of rapid technological development and increasingly fierce competition, only by maintaining a high degree of flexibility, full of innovation and vitality, can enterprises continue to survive in the market.

The biggest problem for an enterprise is not the change in the external environment, but whether the enterprise itself can take corresponding reform actions according to this change, which is the so-called "change the system with the system".

Some business managers believe that the company needs to make changes only when there are problems, and more people regard change as a prescription for turning losses into profits.In fact, the ultimate goal of reform is not limited to short-term actions such as turning losses into profits, but more importantly, through reform, the enterprise can respond quickly to the ever-changing external environment to ensure that the enterprise can maintain its position in the fierce competition. Advantage.

Therefore, any enterprise, regardless of its significant benefits or outstanding achievements in the industry, needs to make continuous changes.

This is the key factor for the success of many famous enterprises.General Electric has maintained a momentum of rapid growth and has become the most valuable company in the world because it dares to change and is good at changing.Lenovo, Haier, Changhong, Chunlan, Vanke, Yuanda, Huawei and other well-known domestic enterprises have all taken the initiative to carry out reforms to ensure the sustainable and stable development of enterprises.

Change cannot wait for a problem to be implemented, but should be carried out proactively when the enterprise is in a good state.

Objectively speaking, many enterprises dared to carry out changes, but they paid a heavy price for their blindness in the practice of change.A lot of practice has shown that change is a double-edged sword: on the one hand, a successful change will bring the company to a higher level; on the other hand, a failed change may ruin the future of the company.

For an enterprise, it is not enough to just know how to change, but more importantly, to know how to change.

5Speed ​​wins, leap to the top

Due to the socialization of science and technology, the differences in information, information, and technology between enterprises are getting smaller and smaller. Therefore, the survival of enterprises depends on their speed.If an enterprise wants to gain a firm foothold in the fierce market competition, it cannot do without speed.Modern society pays attention to high efficiency. Without high efficiency, enterprises may miss great opportunities.Opportunity always seeks out businesses that are prepared and efficient.Whoever is slow will be eaten.For example: in fighting, the fast fights the slow, the military strikes first, and the commercial war has changed from "big fish eat small fish" to "fast fish eat slow fish".Big and slow equals weak, small and fast can become strong, big and fast is king of kings!
Fast is opportunity, fast is efficiency, fast is "big" in an instant, and countless moments constitute long-term "strength".The essence of competition is to do the best thing in the fastest time.

In 1998, Haier Group became the first Chinese company officially included in the Harvard case, and Zhang Ruimin also became the first Chinese entrepreneur to be on the Harvard forum. The Haier case shocked the world's first-class business administration schools.

The case of Haier entering the Harvard MBA class is called "Haier Culture Activates Shock Fish".Zhang Ruimin said:
"Red Star Electric used to be a washing machine factory. When it was merged by us, its net assets were only 25 million yuan, but its loss was 3 billion yuan. After the merger, we only sent 700 people there. The people are still the same, and the equipment is still the same. The loss in the first month of the merger was 100 million yuan, the loss was reduced in the second month, the loss was reduced in the third month, and the profit was [-] million yuan in the fourth month. Why? It is the result of our use of corporate culture to implement organizational innovation!"

Zhang Ruimin explained why Haier merged enterprises in this way:
"From an international point of view, mergers are divided into three stages: when the capital stock of the enterprise dominates and the technology content does not take the lead, the big fish eats the small fish, and the big company merges the small company. When the technology content has surpassed the role of capital At that time, fast fish eat slow fish. Microsoft did not start early, but it has always maintained technological leadership, so it can quickly surpass some old computer companies. In the 20s, it was a strong alliance, the so-called sharks eat sharks This is the case with the merger of Boeing and McDonnell Douglas in the United States.”

Once a set of effective management system is formed and the market is grasped, it will soon be able to stand up again.What Haier is good at is precisely management and market development, and this has found a combination point.

This is because even companies that are "shock fish" have basically ceased to exist in the fierce market competition. They are either eliminated or activated, and are becoming a shark.

The current rules of the game show more clearly that the competition among enterprises is no longer limited to the question of who eats whom, but is faster than anyone else.Fast fish can grab the best resources first and get the best rewards.And those slow-moving fish will slowly starve to death.

Competition has entered a new era. It is difficult for enterprises to obtain absolute advantages in the past ways of winning competitive advantages, such as cost, quality, technology, etc., and a new and constantly changing way of winning and maintaining competitive advantages has been replaced. —— Make full use of the strategic weapon of speed to respond quickly to the market in the competition.

The magic weapon of today's American new technology industry competition is also speed.Not only small businesses have a natural speed advantage, but large businesses are also desperately pursuing speed. Without speed, scale is an obstacle. With speed, scale is a greater force.Welch, the former CEO of General Electric Company of the United States, told the business department, "The most important thing is to be the first." He asked to run out quickly and speed up the starting speed.

When Jack Welch became CEO of General Electric in 1981, his corporate strategy focused on reshaping the company's diverse portfolio of businesses using the concept of "speed"—the number-one rule.He posed a challenge to the managers of GE's business units: to be number one or number two in their respective industries, and failing that, the business unit had to find a definitive technological advantage and be able to leverage it. Transform it into a competitive advantage, otherwise it will face the fate of being stripped.

In the 20s, after spinning off most of the ailing businesses and building the existing ones into leading competitors, Welch took steps that greatly boosted productivity and reduced the number of GE executives.Welch believes that if GE wants to continue to succeed in the global market, the company must commit to continuous cost reduction in each business unit, by reducing various bureaucratic procedures, shortening the reaction time to changing market conditions, and shortening the Time allows businesses to develop at a faster rate, thereby greatly increasing the profit margins of each business unit. In 90, General Electric had the highest total market capitalization of any company in the world.

The pursuit of speed by enterprises means that at the tactical level, information technology should be used to transform the value chain, and cost effectiveness should be achieved with speed; at the level of strategic planning, it means that enterprises should formulate strategies during the execution process, rather than formulating strategies first and then implementing them ; In terms of understanding of quality, the speed-centered quality concept emphasizes moving from static quality to dynamic quality, and believes that continuous improvement of quality is more important than quality itself.

It is no longer enough to meet customer needs, what is needed now is to meet customer needs faster.

The key to the speed strategy is to compress the time required for processes—manufacturing, wholesale, sales, and so on.In the manufacturing industry, the first and the key is to compress the time of development, manufacturing, sales or service, especially the time of launching new products.

This is reflected in the specific things: from taking orders to manufacturing and shipping products, answering customer questions, and striving to compress the development cycle.According to relevant research, from production to delivering products to consumers, the effective process takes less than 5% of the actual time spent, and the remaining 95% of the time has no added value.These invalid times just provide a broad space for tapping the potential for the implementation of the time strategy, so the basic idea of ​​its implementation is: increase the value-added time and shorten the non-value-added time.In fact, compressing time means accelerating asset turnover, increasing production, increasing mobility and the ability to meet consumer needs.

As a strategic weapon, speed is as important as money, productivity, quality, and even innovation.The next source of competitive advantage is the speed strategy, which not only reduces costs, but also helps broaden product lines to cover a wider market, thereby outflanking slower competitors with lightning speed.Speed ​​has become the key to staying ahead of the competition.Competition for resources has been replaced by competition for speed of development.Therefore, it is very important to understand the constant changes in the global market and technological breakthroughs and use them for enterprises to continuously improve their response speed to the market and technology.

The meaning of winning by speed is that the decision-making of the enterprise must be fast, which requires the enterprise to establish a flat management system with fewer layers; the innovation speed of the enterprise must be fast, which requires the enterprise to establish a sensitive market rapid response system ; The manufacturing speed of the enterprise must be fast, which requires the level of scale manufacturing of the enterprise to be high; the sales speed of the enterprise must be fast, which requires the enterprise to establish a set of rapid marketing network.

The speed has caught up, assuming that the original benefit of 1 hour is 1 yuan, and now it has become 2 yuan or 4 yuan, and the scale benefit will be reflected; and the rapid operation of business processes will make the company and employees more focused and potential Also easier to play.

The implementation of the speed strategy is not just for the pursuit of "fastness". On the contrary, two important principles must always be kept in mind: one is to implement the consumer orientation that wins with speed;

The so-called consumer orientation means that while emphasizing rapid response to the market, remember that "just being fast is not enough" and avoid taking speed as the only important task.While pursuing speed, you also need to be consumer-oriented. If no one buys your product, it doesn't matter how fast you are.In fact, the speed strategy requires "faster and better to satisfy consumers".If the shortcut is a rush, it will definitely not have a good result.Therefore, it must be fast, accurate in direction, and in the right way, and always adhere to quality awareness while being fast to meet the needs of consumers.

Different industries and enterprises have different speed requirements. The rapidity of an enterprise's response to the market should adapt to the unique characteristics and development rules of the industry as well as its own adaptability. The pursuit of irregular speed.Enterprises such as Sanzhu, Giant, and Qinchi collapsed because of their excessive speed in the past.

(End of this chapter)