How To Break The Limited Marketing System Of Family Shoe Companies?

In 1898, a Chaoshan businessman named Cheng Tai died in Singapore, leaving behind a wealth of money accumulated in the timber business. Perhaps he had foresight, and in order to ensure that his descendants would not be insecure because of their possessions, he made a will at the age of 27, requiring that the youngest grandchild died when he was alive, only 21 years after he died, and that the estate was temporarily preserved by the Anglo American trust company. When Cheng Tai died, his youngest granddaughter, Xu Jinyu, was a baby. The youngest grandchild died in 1982. According to the will, 21 years after Xu Jinyu's death, in 2003, Cheng Tai's legacy was finally divided equally among the descendants of the family.

The truth of this story is not to be studied, but at least it is not a legend. Because this is the direct explanation of Chinese civilization's recognition of family business management. 105 years after a man dies, can his descendants separate? If Cheng Tai is very honest, it seems not to be over, but as an operator, it is not qualified.

If Cheng Tai's business adopts modern enterprise management system, he may not need such a cumbersome method to enable his descendants to inherit his will. Or perhaps he made a career decision by his professional manager, and now his timber business will still stand in the world. Unfortunately, he has no long-term vision. He chose to make a willed act of wills. What's more, he did not balance the business brand and marketing incentives.

In fact, most Chinese family businesses in history are just like Cheng Tai, the biggest difficulty is this problem. On the one hand, it is necessary to ensure that the right of control is not outflow, on the other hand, the professional marketers think of work as their own business, and the simple problem to balance between the two is often indecisive and difficult for many family enterprises. So many family businesses are full of opaque governance structure, cronyism management system and complex power struggles, which make family business brand marketing ability generally lack of stamina.

As the most common form of organization in the world, family businesses are growing and developing. The most direct impression is that they are absolutely "family oriented" management. Nearly 40% of the managers of family enterprises are family or quasi family members, and basically occupy important posts in enterprises, which control decision-making, production, finance, distribution and other activities. Family businesses have strong vitality and competitiveness, and family ties are better than anything else. This is perhaps the cornerstone of their successful development. Once the enterprise is on the right track and the scale expands, the management level is often not able to keep pace with the development, which has seriously restricted the further development of the enterprises, and some have even been eliminated.

Why is that?

From the perspective of value release and industrial upgrading, Chinese family businesses are still operating at low added value. If we do detailed input output analysis, the management of family businesses can not be lean, specialized and systematized. Generally, there is no very strong market place and more competitive scale. The development of many family businesses depends on external factors and policy factors. In the main business area, family members' ownership and control rights have two rights. The family members participate in the management of enterprises and participate in the distribution of residual claims. This makes family members conflicting with the possibility of adverse selection and moral hazard. At the same time, a small group is often formed among members of the family business, which makes the information asymmetry of the members and the coordination cost of the members too difficult. Moreover, due to the maintenance of consanguinity, the family members have a high sense of identity and sense of unity towards their families, which has created a sacred responsibility for their families. This makes family members work for family businesses. They are "doing what they want and do what they want". They do not care whether the labor paid by other labor is in a reasonable proportion with the remuneration paid, so that the transaction costs between members of the family are greatly reduced. The most important point is that in order to ensure the family's control over the enterprise, the phenomenon of family ownership is very common. Although this system is increasingly being criticized, it is still hard to shake the deep-rooted concept which is influenced by tradition.

Therefore, the management of family businesses is a long-term and complex process. In most family business mechanisms, how to break their marketing barriers is still a top priority in its development process. The only way to solve this problem is to establish a complete set of modern management plans, so as to ensure the evergreen life.

The lack of modern enterprise management system is fatal to Chinese modern family businesses. The solution of this problem really needs a process. If we must find a way that seems to be a shortcut, it will start with screening, elimination and capacity upgrading.

　　 1., establish a normative system. 

In the early days of Chinese family business, there was a lack of perfect enterprise system in owner system and partnership system. At this stage, many enterprises often have the final say that family members have the final say. The system has great randomness, but in the transformation period, we must change to the "modern system". Practice has proved that through the establishment of a modern enterprise system, the management structure of three levels of decision making, management and management can effectively improve the efficiency and safety of enterprises.

　　 2. establish a scientific concept. 

With the development of society, the mode of enterprise management has gradually changed from the production management of traditional industrial society to the innovation management in the era of knowledge economy, and the management mechanism of family businesses is also facing the same problem. And when modern management methods are integrated into family management, their due vitality will also be enhanced. For example, the way to manage production quickly and dynamically according to market changes is to enable employees to get relevant information from internal and external departments concerned with production and operation.

　　 3. building a good competition

The essence of marketization is to enable talents to participate in the production and management of enterprises in an open, competitive, incentive and restrictive environment. For China's family business, the main way to carry out the socialization of talent mechanism is: first, establish a mechanism for top managers to open competition and preferential employment; two, absorb relevant methods of modern talent motivation theory, such as equity incentive, target management, etc. three, implement team management, which is an important part of modern enterprise management, by enhancing the cohesion of team members to improve production efficiency; four, improving the proportion of scientific and technological personnel and conducting knowledge management.

　　 4. pay attention to the application of technology. 

The development of information technology is an important symbol of knowledge economy, and also an important part of enterprise modernization in the era of knowledge economy. Specifically, the family business is to improve the scientific and technological content of family businesses through the new and high technology based on information technology, and establish internal information management system, computer-aided manufacturing, computer integrated manufacturing system, etc., so as to realize the connection with the external Internet, and on the basis of this, use modern electronic commerce and other information network mode to produce and manage.