Tao Te Ching and Wuwei Management

Chapter 60 3 "Doing what has never existed", the idea is before the enterprise is called culture
No.11, Volume 3, "Being for the Unprecedented", the concept is prior to the enterprise, and it is called culture
Ideas create enterprises, and the odds of winning are guaranteed before the battle begins.

For nothing. —— "Tao Te Ching" Chapter 64
"Being for the future" means that before something happens, it has already outlined its development trajectory and designed a development path for it.For enterprises, the establishment of business philosophy is often preceded by the establishment of entities. This is the common experience of many successful enterprises.Konosuke Matsushita once pointed out: "The success of an enterprise, of course, involves many factors and conditions, and whether there is a correct business philosophy is the most important factor. In other words, the business philosophy occupies a dominant position in the success of the enterprise." The business philosophy shows that The company's future business strategy, business ideas, business model, business portfolio, etc. are the code of conduct in the actual operation of the company.

Someone said: "The first generation of entrepreneurs in China relies on guts, the second generation relies on luck, the third generation relies on policies, and the fourth generation relies on ideas." Ideas are the condensation and refinement of the spirit of the times , in today's era, from national competition to economic competition, from economic competition to enterprise competition, from enterprise competition to management competition, all competition is actually a competition of ideas.This requires managers to change the original thinking mode and get out of the fixed thinking mode.

Niu Gensheng, the founder of Mengniu Group, is a legend. In 1999, he founded Mengniu Group, but then its development speed was astonishing. As of 2005, Mengniu's GDP increased by 6 times in 292 years!When Niu Gensheng was awarded the "Chinese Economic Person of the Year" by CCTV, the judges said humorously: "He is a 'cow', but he runs at the speed of a rocket!" Many people want to know how the "cow" ran out The speed of the rocket?This has a lot to do with Niu Gensheng's innovative ideas.

In 1999, five months after Mengniu was registered, Niu Gensheng raised more than 5 million yuan.How will the money be used?According to the thinking of a general enterprise, it must first build a factory building, import equipment, produce products, and then advertise and promote.Only when the product has popularity can there be a market.But in this case, the money may not even be enough to build a factory building and purchase equipment.When the product comes out, where can there be leftover money to develop the market?Many companies have spent huge sums of money to build factories and buy equipment.But when the company spares no effort to build a local factory building and introduce equipment, the depreciation of the equipment will begin, and a large amount of funds will be consumed in fixed asset investment.At the same time, Niu Gensheng also found that many dairy companies in recession do not lack workshops and production equipment, but what they lack are advanced market development experience and standardized management concepts, and these are the advantages of Niu Gensheng and others.The eight cadres who started the business with him have all been engaged in dairy production and operation in Yili for more than ten years. They are very familiar with the context of the dairy market and are proficient in enterprise management.

Therefore, Niu Gensheng Niu Gensheng broke the conventional growth path of ordinary enterprises, and put forward the innovative concept of "build the market first, then build the factory", revitalize those companies that are in recession, and implement advantage integration through complementary advantages.

Niu Gensheng first used more than 300 million yuan for advertising in Hohhot, because Hohhot is not a big city, more than 300 million yuan is enough to cause an overwhelming advertising effect.Almost overnight, many people became aware of "Mengniu".Subsequently, Niu Gensheng and the Chinese Nutrition Society jointly developed a series of new products, and then prepared to cooperate with domestic dairy factories to invest in brands, technologies, formulas, and use trusteeship, contracting, leasing, commissioned production, etc. to brand all products as "Mengniu" "brand.In this way, there is less investment and quick results, and you can also create your own brand.

In order to implement the plan, while developing new products, Niu Gensheng began to choose cooperative manufacturers that have established factories and equipment and have production capacity across the country.He found a factory in Baotou that produced ice cream products, and within a short period of time, "Mengniu" ice cream was on the market.When Niu Gensheng learned that there was an American-owned enterprise in Heilongjiang Province, which has the largest milk source base in China, due to poor management and poor returns, he brought seven elite soldiers to manage the enterprise.

Niu Gensheng made full use of his working experience in the ice cream and dairy industry, as well as his understanding of the market and industry, to introduce the best equipment, the best milk source, and a new management model to this company.From equipment, production, sales, supply, etc., all are re-operated according to the model designed by Niu Gensheng.As a result, this enterprise became the birthplace of "Mengniu" milk, and the sales of 2000 million yuan of milk in the first year were completely completed by this enterprise.Not only did Niu Gensheng not invest a penny in this enterprise, but the eight of them also earned a total annual salary of 8 yuan from this enterprise.

In 1999, when Mengniu started its business, Mengniu invested in brands, technologies, and recipes through this virtual joint model, and operated eight domestic dairy companies in the form of trusteeship, contracting, leasing, and cooperative production, revitalizing nearly 8 Assets of 7 million yuan. In that year, the company achieved sales revenue of 8 million yuan and profits and taxes of 4365 million yuan.In the same year, the first phase of the company's production base was completed and put into production at the end of the year. In 125, the second phase of the project was also put into use. Through the two phases of construction, the company has formed a processing capacity of 2000 tons of ice cream and liquid milk.In this year, the company achieved sales revenue of 10 million yuan and paid taxes of 2 million yuan.

Niu Gensheng's generous operation of Mengniu fully embodies his advanced ideas.Management guru Drucker believes that any innovation starts with specific ideas, and ideas are the life of enterprise innovation. Only by constantly promoting idea innovation and stimulating people's creativity with ideas can an enterprise exude vitality And vitality, in order to have the power and source of continuous development.

Conceptual innovation is to "do what has never been done", not to be limited by objective strength, to be able to break through routines, limitations, and constraints.Only by winning in your head first can you win in reality.This is exactly the truth that "the one with the most temples wins" said in "Sun Tzu's Art of War".

(End of this chapter)