My 1979
Chapter 854 Business Department
What he knows is superficial, such as real estate, restaurants, hotels, printing, shoe factories, etc. He has been involved and has a general understanding.
But there are more things he doesn't know. For example, Italy's Omnitel Group, Belarus's Baffo Group, and Japan's SoftBank Group are all very large. Not only do they have subsidiaries, but they also have secondary subsidiaries. There may be third-level subsidiaries under the company, and there may be shareholding and holding companies under the third-level subsidiaries. The structure is complicated and complicated, and he can't understand it at all.
Take the BAF Group as an example. Most of the factory plots it acquired in the former Soviet Union were built on the inside. He had pinned his hopes on Ivanov becoming the king of real estate in Eastern Europe, but he had no idea about the specific situation. .
Even under his nose, he didn't know what the Dida Group, Tongshang Financial Group, and Golden Deer Group were. They were all diversified, cross-industry group companies. A separate branch company could form a group company. , like the textile companies under the Golden Deer Group, are fully qualified to become a textile group, and hotels, exhibitions, and electronics can also be completely independent.
And companies like Yuanda Investment Group and Yuanda Group are large enough, with controlling shares and stocks in hundreds of domestic and foreign companies under their names.
Before he knew it, he already had a huge business empire.
He looked at Serena, who was sitting in the middle and was hesitant to speak, and asked, "If you have anything to say, just say it."
Xiao Wei cleared her throat and said seriously, "Mr. Li, we, Jingmei Electric, intend to form a group company."
Probably affected by the atmosphere, he didn't dare to joke, and he spoke in a strict manner, even addressing people in a formal manner.
"Okay, I agree." Jingmei Electric has grown to this scale, and it's time to move to the next level. Li He glanced at the Huang Guoyu brothers who were standing straight behind Xiao Wei, and gave them an appreciative look.
The two brothers were so frightened by Li He that they couldn't help but lower their heads.
On this occasion, like Yang Fugui and Feng Lei, they had no place to sit, but they didn't take it seriously. Even people like Luo Pei, Chen Dadi, and Fu Biao, who were stamping their feet and trembling, weren't they also standing here?
They didn't feel anything was wrong in their hearts, and they felt very balanced.
And being able to come in and stand is an honor. As for Guo Fuxing and Xu Hengda, they are not even qualified to come in.
"Thank you Mr. Li." Xiao Wei was very happy.
"Do it well." Li He gave him a rare smile. Then he said to Li Stock, "Mr. Li, please continue."
Li continued, "We believe that the structures of large international group companies are worth learning from, such as General Motors. Durant established General Motors based on Buick Motors. Over the next year or so, Durant acquired controlling shares or a considerable proportion of shares in Buick, Olds, Cadillac, Oakland and 6 other car companies, 3 truck companies and 10 parts companies by exchanging GM shares for company shares. .
At the beginning, most of these companies retained their original legal personalities and independent operating entities. Durant used General Motors as the holding company and kept these independent satellite companies around General Motors through stock transactions. .
But in fact, it didn't take long for General Motors to fall into a management chaos. The disadvantage was that the subsidiaries worked independently and could not lose the big tail. The overall management or losses were taken over by the head office, but whenever profits were made, the subsidiaries withheld them without authorization and refused to hand them over.
From 1923 to 1923, Sloan was appointed President, CEO and Chairman of the Board of Directors of General Motors. Until the 1950s, he referred to the experience of DuPont Chemical Company. Based on the principles of "decentralized management and coordinated control", Sloan made changes to General Motors' organizational structure. Transformation of business unit system.
It was very successful and successively acquired Chevrolet, British Vauxhall and German Opel, becoming a global company.
There is another global company that is worthy of our reference, which is General Electric. They also adopt a divisional system and split the company into 150 departments, including 11 departments including business financial services, consumer finance, industry, infrastructure, and medical care. Business group companies are independent of each other and are managed by managers. When the simultaneous business exceeds US$50 million per year, they are split into two independent departments to compete with each other."
"You mean we also adopt the business unit system?" Li He probably understood the meaning, and to put it bluntly, he just followed suit.
For international companies such as General Motors and General Electric, Li He can only admire them and learn from them.
General Motors can be seen in daily life, and there is no need to say more. As for General Electric, we have heard a lot about it, but probably know less about it. Let’s put it this way, this company can basically satisfy the entire industrial system of a moderately developed European country.
These two companies are both called General Motors, but they have nothing to do with each other. They are equivalent to popular names such as People's Square, People's Hospital, People's Road, and People's Bank.
Huang Bingxin added on the sidelines, "When an enterprise is in a stage where the product series is relatively single and the business scope is relatively narrow, the top leaders of the enterprise can basically directly manage the subordinate departments. And when the enterprise implements comprehensive large-scale production , and when diversified operations are carried out on this basis, this highly centralized organizational structure is completely unable to meet the needs of management.
In order to solve the management problems caused by diversified operations, the business division system came into being. The business unit system can ensure that the company headquarters is freed from daily operational business and is committed to the research and decision-making of major issues, while allowing each business unit to exert its initiative and enthusiasm."
Guo Dongyun continued, "According to foreign experience, the Strategy Executive Committee is mainly responsible for the formulation of the company's major operational decisions and financial policies, and also undertakes some management work. According to the responsibilities, it should be from the perspective of policy and regulating product quality among various business divisions. Deal with the problem of product line division between business units as a whole to avoid product conflicts between different business units. In addition, it should carefully design product policies and clearly explain them to subordinate business units to help them improve the quality of their products. quality"
Li He nodded frequently. Only he knew whether he could understand.
"In principle, I agree. We will make the final plan and it is up to you to implement it."
Huang Bingxin joked, "Don't worry, Mr. Li, we are worthy of this high salary."
"That would be troublesome." Li He said with a smile, "But the main thing is to focus on finance. This must be the first priority."
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