rebirth of cataclysm

Chen Xuesheng only sees current interests. It is normal for him to have this limitation, because he can only see so far. Maybe nm company is a giant in his eyes, an idol company that is difficult to surpass.

However, Hu Mingchen came back after more than ten years, so his vision cannot be the same as Chen Xuesheng's.

In the era of explosive knowledge before Hu Mingchen was reborn, he saw too many great companies that disappeared after their brilliance. These companies all have a common feature, that is, the company's products and development paths are no longer suitable for the times. They

The vast majority of them do not have their own core technology at all. Their rapid development is just relying on the huge market dividends of more than one billion people. Once the dividends fade and competition intensifies, they will crash like houses built on the beach.

collapse.

Bloomberg Electronics Co., Ltd. was established not long ago and is still in the development and growth stage. This is the most suitable time for adjustments. Once time passes and the company's genes are formed, it will be difficult for the ship to turn around.

Since Hu Mingchen is the major shareholder of this company, or the real boss of this company, he must instill his thoughts and ideas into this company, and grasp the future course of this company, so that this company can

In the future, our company can grow into a great company that benefits employees, society and the country.

Hu Mingchen plans to persuade Chen Xuesheng from the fundamentals first. If he cannot be convinced, Hu Mingchen will not rule out the possibility of withdrawing and going it alone.

"Don't say tens of billions, even if it's hundreds of billions, so what? A company without core competitiveness may be replaced by competitors at any time. Just like a person without real ability, even if he is lucky now,

He won't be rich for a long time even if he only counts money. What is the core competitiveness of nm company? Can you tell me? Do you think it can exist for as many years as a company like ge?" Hu Mingchen asked.

"For core competitiveness, nm company relies on its brand. Its brand is its competitiveness. The market recognizes the nm brand. As for ge... I don't know much about it. I only know that it was founded by the inventor Edison.

"Chen Xuesheng's answer seemed a bit weak and lacked confidence.

"Uncle Chen, first let's talk about nm's brand. It's not core competitiveness at all. Yes, the brand is very important, but the brand must also have content. What does the brand rely on? It depends on the product. And what does the product rely on? It can only

Rely on innovation, rely on quality control, only innovation can create new things

With the emergence of new products, only innovation can win the opportunity. Correspondingly, only by controlling quality can we win the continued trust of customers and the company can grow stronger. Does nm company have these two? As far as I know, they don’t.

There is almost no R&D power, so

, the products they make are not new products that transcend the times. In terms of quality control, they are also very poor, which is directly related to their insufficient technical strength. To put it bluntly, the achievements they have achieved today are due to

Advertising, which is what you call brand

Already. If it were you, if you spent hundreds of millions of dollars on advertising every year, the brand you could build would not necessarily be worse than nm. So what would you do? If the advertising dollars were given an additional 50 million, you would be number one in the industry.

It's not that difficult." Hu Mingchen said in a disdainful tone.

Chen Xuesheng also listened quietly to Hu Mingchen's explanation and analysis, and he would nod in approval when he encountered something he thought made sense.

"Let me tell you, a company like nm is the easiest to defeat, but conversely, a century-old company like ge is very difficult to defeat. You have already said that this company was founded by Edison.

Perhaps for this reason, this company has always paid more attention to technology development. More than 20 years ago, this company invested in

The funds invested in R&D are more than the turnover of eight nm companies. So far, this company has more than 20,000 R&D personnel, including hundreds of people with Ph.D.s in optical physics. Think about it, a company like this

, as long as they master the most cutting-edge and avant-garde technology, can they easily fall? Even if they don’t do anything,

If you do it, you can earn a lot just by collecting patent fees. In other words, even if these companies fail, they can still make a lot of money by selling their patents. This is why it has been more than a hundred years since it was established in 1892.

The fundamental reason why they are still so powerful. Do you think the brand of nm company and this brand of others will be the same?

Is it the same thing? Let me tell you, nm company’s advertising investment of not only 100 million yuan a year, but also 10 billion advertising investment cannot compare. Because the core technology cannot be bought, they are now spending some money to buy technology.

But they are all second- and third-rate, and at most they just create their own exterior design." Hu Mingchen continued after taking a sip of water.

Hu Mingchen said so much, Chen Xuesheng was also a little touched. But it does not mean that Chen Xuesheng fully agrees with Hu Mingchen's strategic vision and development path.

There is another problem here, and that is the problem of self-confidence. In Chen Xuesheng's heart, he does not have such ambitious confidence. In his opinion, a small company like Bloomberg Electronics Co., Ltd. can only make money by doing OEM work.

It is the first priority, whether it is ge or nm company, it is a bit out of reach for him.

In other words, Chen Xuesheng does not have the ambition to become an influential big entrepreneur, but Hu Mingchen does. Not only does he have it, Hu Mingchen has already tried every means to move in that direction.

"I think everything you said makes sense, but our company is still very small, and we are still far behind others. Even if we engage in technology research and development, how much money can we invest? Those things should only be played by large companies.

.Just like our industrial zone, there are dozens of companies, but none of them really spends a lot of money on research and development." Chen Xuesheng struggled.

"So these companies will not succeed in the end. Maybe they can live a prosperous life now and earn hard-earned money, but one day, they will be swept into the trash can of history. When others use cars and trucks to haul goods

, no matter how good the carriage is, it is still lagging behind and will lose. What opened our door in the late Manchu Dynasty? Strong ships and sharp cannons. How many people were dispatched to support talents at that time, and how many people we had with swords and spears

, the result is not signed yet

Treaties that are humiliating the country one after another. You said those are things that only big companies can play. Then big companies are also grown from small companies. Which company is great as soon as it is founded? It is not accumulated step by step. The thousands of companies in ge

Tens of thousands of patents cannot be created in one day. Technology must be accumulated, and talent must also be accumulated. Otherwise, we will never have our own core technology, let alone our own core talents." Hu Mingchen said rationally.

"Then what do you think we should do? What should we do now?" Chen Xuesheng couldn't defeat Hu Mingchen, so he had to settle for the next best thing.

"It's very simple. List a rule, such as how much of the profit should be invested in technology research and development, or how much of the turnover should be invested in technology research and development. This ratio must be controlled." Hu Mingchen said.

"What do you think? What's the appropriate ratio? As far as I know, most companies don't exceed three percent."

"Three percent, what can three percent do? Just because the R&D investment of our country's enterprises is too low, we will always be at the lowest end of the industrial chain." Hu Mingchen said this and took another sip of water.

He hesitated, "Considering our current operating conditions and methods, it is a bit unreliable to measure it by turnover. Our profits are too low. In this way, let's use profits to calculate the proportion. Fifty percent of the profits will be used for technological research and development."

and transformation.”

"Fifty percent? That's half. Isn't this ratio too high? If we invest like this, how can we expand production capacity? For example, if our current profit is 4.8 million, doesn't it mean we need to have 200?

Four hundred thousand to support technicians?" Chen Xuesheng almost jumped up when he heard Hu Mingchen say 50% of the profit.

In all his years in Pengcheng, he has never heard of any company that would use such a high proportion of profits for technology research and development.

An enterprise cannot rely solely on technology research and development. It costs business expenses, management expenses, incentive bonuses, and expanding production is a huge sum. What’s more, if you build a brand, you also need brand promotion expenses, that is, advertising expenses. All of this money must come from

It comes from profits. For example, at Bloomberg Electronics Co., Ltd., when the new year starts, Chen Xuesheng, the boss, will give red envelopes to employees and bonuses to employees who have made contributions.

If half of the R&D station is occupied, the other parts will be significantly reduced, which will inevitably affect the company's continuation and development.

"If you think this ratio is too high, then we can also lower it appropriately. The key is that our profit margin is too low." Hu Mingchen had to give in after seeing Chen Xuesheng's fierce reaction. After all, he is also the second largest shareholder and

General manager.

"Ten percent, I think ten percent is too much. It's also hundreds of thousands a year, which is almost enough to cover the expenses of a dozen technicians." Chen Xuesheng himself said a ratio.

"What can you do with ten percent or hundreds of thousands? The minimum cannot be less than thirty percent. When doing technology research and development, you have to consider not only the salary of the personnel, but also their equipment costs and scientific research consumption, which are all expensive.

Either we don't do it, or we have to do it well and ensure their needs, otherwise it will be useless?" Hu Mingchen immediately rejected Chen Xuesheng's suggestion.

"Thirty percent... we have to invest 15.6 million next year, which is too much." Chen Xuesheng said with a bitter face.

"Uncle Chen, don't look at how much they invest now. If they can really do something good, they will earn more. Do you know that some companies are doing radar now? Do you know what their profits are?" Hu Mingchen said.

"I don't know."

"Let me tell you, their profit will not be less than 200%, and some can even reach 300%, or even higher. Things that cost more than 100 yuan can be sold for 400 to 500 yuan.

What do you think they rely on, other than mastering some technology? You have to believe that the return we invest today may be ten times, a hundred times, or even a thousand times in the future."