Rebirth of the Wild Age

The economy is in a downturn, and private companies are all down. How can state-owned companies survive?

Farmers in the 1980s were envious of workers holding iron rice bowls in their hands, and even a beautiful village woman marrying a disabled worker was a carp jumping the gate of the farm.

What is an iron rice bowl?

There is a school for children’s education, a bathhouse for employees when it’s cold, a movie theater for entertainment when they are bored, children can inherit their jobs after retirement, a hospital for employees when they are sick, and a unit to help with funeral affairs when a person dies. High welfare, big pot of rice, egalitarianism, overstaffing, the enterprise has become a small society, and life, old age, sickness and death are carefully arranged.

what's the result?

The non-operating expenses of state-owned enterprises account for more than 40% of the overall management expenses! That is to say, regardless of other aspects, when state-owned enterprises compete with private enterprises, they have to spend more than 40% more in management costs.

In the past, state-owned enterprises were directly allocated funds by the government. After the reform, they took money from banks, and the banks were almost hollowed out by the huge number of state-owned enterprises!

It's almost empty!

Historically, China issued 270 billion yuan of special treasury bonds in 1998, which were used to replenish funds for the four major banks, barely making the capital adequacy ratio of the four major banks reach 8%. Then in 1999, the four major asset management companies were established and purchased 1.5 trillion yuan of bad debts from the four major banks, most of which were bad debts left by state-owned enterprises, so the bad debts have not been filled.

It's not that the state doesn't want to care about the tens of millions of laid-off workers. Since 1978, it has been reforming state-owned enterprises, trying various methods, admiring various models, and promoting various reform pioneers. However, the overall situation of state-owned enterprises still cannot be changed, and even the loss situation is getting more and more severe.

According to statistics in 1995, the actual asset-liability ratio of state-owned enterprises has reached 85.15%.

The major economic situation in 1997 and 1998 finally made the central government make up its mind, and the strong men cut their wrists to survive!

It's just the process of advancing, which has become a profit-making tool for some people. There are two most typical phenomena:

The first is corruption. For example, the higher authorities want to compensate each laid-off employee with 5,000 yuan, but the leaders only give 2,500 yuan, and put the rest into their own pockets. The more laid off, the more the factory leaders earn, and they wish they could all be laid off.

The second is the loss of state-owned assets. The workers were laid off, but the factory was sold at a low price and turned into the private property of the factory leader.

The central government has severely investigated and cracked down on these phenomena, but the scope is too wide and the targets are too many to investigate at all. It can only catch a few typical cases and deal with them severely.

Because the local government wants to get rid of the burden as soon as possible, they turn a blind eye to this, and there are not a few people who help secretly.

In a few months, there will be overwhelming reports about laid-off workers. Why pick up rotten leaves for several months to eat, why are you afraid of being ashamed and secretly pick up garbage in the middle of the night to sell money, what is self-defeating and committing suicide with your family... At first people talked about it, but later it became normal.

...

Shenzhou Science and Technology has contacted several companies in Japan Benzene, and will go to inspect and introduce equipment after the Spring Festival.

Song Weiyang, Lin Zhuoyun, Lin Wanzi, and Doudou returned to Rongcheng, spent an early life at the Lin family, and then returned to Rongping City alone.

Xifeng instant noodles still haven't caught up with the Spring Festival travel season before the Chinese New Year, and can only wait for the peak of migrant workers returning to the city after the new year. The competition in the domestic instant noodle market is already fierce. In addition, when the market turns cold, manufacturers die one after another. Xifeng instant noodle can only open the market through the railway system.

Of course, the sales channel of Shenghai Yimin No. 4 Factory has also taken over part of it, which can radiate to the entire Yangtze River Delta region.

Xifeng originally wanted to buy Yimin No. 1 Factory, but they have already entered into a joint venture, and even the old brand "Guangming" has been hidden by Watsons. Still the boss of Zhengguanghe, taking the opportunity of the inspection by the central leadership, took back the "Guangming Brand" trademark at the end of 1997. "White Rabbit Toffee" was also continuously reduced by Watsons, and it was about to face the fate of being frozen. Fortunately, Guanshengyuan also took this opportunity to get it.

As for Yimin No. 4 Factory, it was merged by Guanshengyuan, and Xifeng Company bought the factory from Guanshengyuan. Including land, factory buildings, equipment, brands and some channels, the total bid was 28 million yuan, and the debt of several million yuan was assumed.

The instant noodles of Yimin No. 4 Factory mainly take care of the light taste market. Xifeng also built an instant noodle factory in Xikang, specializing in the production of pickled peppers, sauerkraut, spicy and other flavors.

Back at Xifeng Company, Song Weiyang got all kinds of reports for 1997 and was completely overwhelmed.

Yang Xin said: "Since October, we have continued to develop small and medium-sized cities and township markets, and our market share has steadily increased. However, except for pure water, the annual sales of beverages dropped by 12% compared with 1996. In the past, the beverage assembly lines in various factories were running at full capacity, and the supply was still in short supply, but now the machine operation rate can only be opened to 70%, and there will be a backlog of products if there is more.”

Song Weiyang said: "I'm afraid it will fall again next year."

"It will definitely fall," Yang Xin said, "so we must launch new products as soon as possible, strive for multi-line development, and use the idle assembly lines to produce fruit juice drinks."

Song Weiyang asked: "How about Wahaha?"

"Food and beverage companies across the country are similar," Yang Xin said with a smile, "Wahaha has been trying its best to enter big cities in the past few years, but the channel management is very chaotic. Take Shenghai Market as an example, the entire city is only divided into urban areas and suburban areas." The phenomenon of cross-selling is endless, and the net profit of distributors is only 3%, which is not enough for Pepsi’s channel rebates. The person in charge of Wahaha’s Shenghai has been replaced seven or eight times, which is useless at all, and I don’t know what Boss Zong thinks of."

Historically, Wahaha broke through Shengbang in the nutrition express era, and it was many years later.

This is the hidden danger of the general agency system. When you meet a more powerful regional general agent, you can naturally expand the market quickly. But when encountering a bad Shenghai general agent like Wahaha, you can only be anxious. He can't even sort out the regional distributors, and he will ship you casually. In the end, dealers had no money to make, and the regional market was delayed.

Xifeng Company uses the 101 channel plan to consolidate the market, which will inevitably kill many enterprises, and even the development of Wahaha may not be so smooth.

Especially in the general environment of the market downturn, you can live and die, and there is nothing to say.

Yang Xin asked: "Is it time to reduce advertising expenses next year?"

"No, we need to increase our investment in advertising," Song Weiyang immediately shook his head. "At this time, the more we need to do publicity, even if we don't make money in the past two years, we must firmly occupy the market share!"

Yang Xin said: "What about the naming of the train? I had someone conduct a market survey, and the effect of naming the train is not very good, and the naming fee is getting higher and higher."

Song Weiyang said: "It is possible to reduce the naming of some trains in an appropriate amount, but we cannot say goodbye to the railway system completely. Our products will go through the sales channels of the railway department in the future. Take the launch of instant noodles as an example. This is the most convenient way to open up the market. The way."

"Okay, you have the final say," Yang Xin sighed, "The development momentum in the past few years has been so good, and I am also ambitiously planning to go public. The market environment is really changing at will. Last year, sales fell by less than 5%. Regional managers, I still have to rate them as excellent employees. The profits of all provinces are falling, and it’s just falling less than anyone else.”

Song Weiyang smiled and said: "You can be content. Some time ago, I read a magazine, saying that last year, every third color TV produced in China could not be sold. In some industries, the shutdown rate even reached 70%. It’s broken. No matter how bad the beverage and food industry is, people will still buy it. To be honest, this is a good opportunity to clean up the industry. At least 40% to 50% of the beverage and food companies will be killed. Let’s take this opportunity to eat a few more dollars from the market and get through it He is the leader in the industry!"

To live to the end is victory - Sima Yi.

. m.