Reasons For Enterprises To Decline From Prosperity

　 In the field of my work, I can often see many cases of prosperity and decline. We usually use a "dot line and plane" method to analyze this kind of recession. Point refers to the exploding point or dominant differentiation of enterprises. The line refers to an advantage line formed by the point effect of differentiation, that is, the competition of the equinore defense line; the surface refers to the balance of the development of enterprises, that is, the balance of the barrel theory, the growth and avoidance of weaknesses; the body refers to the establishment of a balanced and harmonious alliance between enterprises and the environment, and also the source of the ultimate core competitiveness of enterprises after becoming bigger. In today's market environment, for a mature enterprise, "point" and "line" are very important corporate personality, but they can not constitute the source of sustainable development of enterprises, because your "exploding point" is easily copied or imitated by competitors, and competitors often take the "big bend" way to bypass the thin "dominant line", and because of the rapid change of market environment, "points" and "lines" are extremely easy to be eliminated for the market. Only when the eye's inward "surface effect" and the "body effect" focusing on environment can form the structural competitive advantage of enterprises, and then form the core competitiveness of enterprises. In the process of analysis, we find that all these declining enterprises have experienced a "water injection" campaign in their prime.

What is waterflooding? After Ni Runfeng's comeback, Changhong has said a lot. Classic Then he said that his most important mission at present is to promote the fever and swelling of Changhong group. Why is it "swollen"? It is because too much "water injection" causes enterprises to circulate poorly and can not vomit old Na Xin, resulting in the accumulation of more water in the body and the formation of "empty swelling". Such flooding process is widespread in Chinese enterprises, and is generally at a very dangerous level. Moreover, a lot of "water injection enterprises" began to pour water out of very ideal and good faith reasons.

I have served a health care product company for three years, helping the company grow and become a company. China One of the first private listed companies is not brilliant. Just like many entrepreneurial entrepreneurs, the company bosses have a strong sense of mission, keen market insight and tough execution. Before listing, the company's market operation, internal management and capital operation are operated by a group of entrepreneurs and local managers who have joined the company in succession. The company's style is very simple, pragmatic and solid, and pursues value orientation: that is to say, everything is judged and evaluated by whether or not it really creates customer value or company value. In fact, this is a very simple and avant-garde customer value theory.

After the listing, the company exploded overnight and became a concern for people from all walks of life. focus So the boss often hears many famous people's suggestions and criticisms: what company image is too land, company managers are not internationalized and so on. The boss is determined to make the transition, and the water injection project begins. First of all, from the management level, we must use "leather shoes" instead of "straw sandals" or even "no shoes", so the company began to introduce the airborne troops on a large scale. The airborne troops are not only costly in salary, but also more expensive because you have to pay higher landing cost for them. Airborne troops naturally bring airborne experience, which is exactly what you want most. So today, we are learning the organizational transformation of GE, learning the brand manager system of PG tomorrow, and introducing the international consulting company 4A advertising company the day after tomorrow. However, year-end liquidation: sales declined and profit margins declined, only the rate of customer complaints rose. I am not advocating that the company should remain unchanged. Nor are these outsiders and experience bad.

However, Chinese enterprises must be sober to realize that "the eyes of the people are competing for the sons and the minds are bright". The transformation of enterprises is no longer an investment game overnight. It needs to take the corporate culture as the dark line, take the company strategy as the open line, and take the company's actual capabilities and human resources as the backing, step by step to recuperate and improve. Most enterprises are most keen on "revolution". Once the revolutionary results can not be quickly shown, they begin to spend money on water injection from organization structure, water injection to human resources, water injection for brand management, water injection for advertisements, and even the reports of listed companies dare to water. At the same time, a "big monster" is poured out. At the same time, with media advocacy and outside worship, it is natural to think Lao Tzu is the first giant in the world. As a result, slow action and failure to make decisions failed to fall over three years ago. The company mentioned above was sold out of the market by the first brand in less than 8 years, and the shares of the listed company were sold in full.

　 Seeking truth from facts and self deception may be the best advice for these companies. Kung Fu Emperor Bruce Lee wrote in his only book, "the interpretation of Wu Dao": people have increasingly ignored the essence of martial arts - winning, and the three most important elements to win are simplicity, efficiency and intuition, while people are wrong about it. Many of our enterprises are increasingly ignoring the essence of management: simplification, efficiency and value, while people are in the wrong pursuit of the endless pursuit of the latest management methods. Returning to the essence and simplifying the system are the lasting ways for an enterprise.