On The Success And Failure Of Shanxi Merchants

Why did Shanxi merchants become the leaders of Chinese businessmen? Shanxi Why has the charm been popular for more than 500 years?

The dead have gone. Cross the "Qiao family courtyard" to point out the success or failure of Shanxi merchants.

On the plot and acting alone, CCTV's "Qiao family courtyard" is not perfect, but the distant theme song "far away" reveals the regrets and helplessness of contemporary Shanxi businessmen.

Bigoted, honest, crazy, "broken" bureau, these words are Qiao Zhi Yong They jumped on their bodies and jumped out from time to time to stimulate and collide the nerves of today's Shanxi businessmen.

Shanxi merchants are far away. Qiao Zhiyong gathered all the Shanxi Merchants' strengths and weaknesses, and his packaging appeared, giving the modern people insight and Sublation of Shanxi merchants. Business&You Another chance.

　 Shanxi business path: industrial operation and financial capital

"If I could build an invisible big net in the world through the ticket number, so that all businessmen could go around doing business with a small silver ticket, how much should my business be?" Qiao Zhiyong seemed to appear in front of a picture of thousands of businessmen who were so leisurely as to draw silver tickets and exchange silver from their pockets.

The operation of the industry has reached the limit, and the invoice number has become the conscious behavior of Shanxi merchants. Fan Xiaojun, chairman of the Shanxi Federation of trade unions, and Yin Mingshan, member of the CPPCC National Committee, consider it an inevitability. At that time, Shanxi merchants could only achieve their ambition to integrate their goods with the world by combining financial capital and industrial capital. {page_break}

The Shanxi merchants who attached financial capital can afford to expand their business. However, risks are brewing at the same time: the high risk of financial capital operation has left Qiao Zhiyong's descendants in the vortex, deeper and deeper, and finally unable to extricate themselves. The phenomenon of excessive reliance on finance and internal management out of control in the Late Jin Dynasty has led to the farther and farther the Shanxi vote. Wang Yutian, chairman of the National People's Congress and President of the Datong Federation of industry and Commerce in Shanxi Province, told reporters that "in any era, industrial capital and financial capital can be well integrated. But if we can not clearly manage accounts and separate management and mutual restraint in the process of combining industrial capital and financial capital, we can achieve two lines of revenue and expenditure. The more rapid development of enterprises, the greater the risk."

　 Shanxi business method: equity incentive plus professional manager system

The mutual worship of Qiao Zhiyong and apprentice Ma Xun gave birth to another professional manager of Qiao family. As the head of the Qiao family division, Ma Xun owns all the power of daily management, personnel appointment and so on, including his branch. Qiao Zhiyong only knew the operation of Ma Xun at the end of the year.

This practice, which is very similar to the "professional manager system", has been unanimously endorsed by the business community and the theorists: the separation of management rights and ownership is very advanced and has greatly stimulated the enthusiasm of the big shopkeeper.

The original intention of the system design may be good. However, under the imperfect governance structure, the information asymmetry between the boss and the manager and the strict control of the moral hazard caused by it are the drawbacks of this system.

"Every year, the owner will invite the shopkeeper to have a good meal, and he will sit at the bottom of the business if he is a good businessman. The royal family only toasted the business and ignored the bad business. " The deputy chief of the Tiens Group, Wen Jun, thinks that there is a hidden danger in the system of giving full responsibility to the head of the cabinet. The reason is that the management mode is too loose. Yin Mingshan never trusted professional managers. He insisted in an interview that "at the time when information flow was extremely poor, the single moral restriction was not perfect, and there should be institutional norms."

"The financial management and corporate image building of the branch must be highly centralized. The head office must strictly control the transparency of the financial sector and the unity of the brand building." Wu Shouzhong, vice president of AOKANG group, is a professional manager. In his view, it is right to delegate authority to professional managers. But decentralization must be combined with centralization of power, and the system should be used to encourage and restrain professional managers.

　 Failure of Jin Merchants: losing money in risk control

The completely open system of responsibility for large shopkeeper has laid the foreshadowing of the system for the risk control of Shanxi merchants.

In fact, smart Shanxi merchants have long been aware of the high risks of financial operation, and have designed a way of withholding the "safeguard". That is, when dividends are paid, they can not only pay dividends. No matter whether there is risk in the future, it is necessary to mention a certain amount of loss that may occur in the dividends, and establish a risk fund to store the funds. If losses occur, it will be used as compensation.

However, Shanxi Merchants failed to protect and stop the business.

"Now there are various boards of directors, decision-making committees, risk control committees and so on. It is very difficult for them to control all kinds of business risks. Shanxi Merchants only extract a number of books according to a certain proportion, and this proportion is also very difficult to consider the environmental factors that are left unpredictable outside the market, so it is normal to keep the bottom up." Jiao Wenjun said.

The inability to vote is also one of the main reasons for the difficulty of controlling capital risk. "At that time, the capital volume of Shanxi Merchants Bank was huge, but the chain was too long, the circulation was limited, and the management system was not perfect." Yin Mingshan said. "This limited business mode has led to Shanxi Merchants unable to borrow and support each other during the run up. They are in isolation."

Hu Xingdou, an economics professor at Beijing Institute of Technology, suggested that Shanxi merchants should take the example of Shanxi merchants and implement the "dam management mode". Hu's self definition "dam operation" refers to building dams, expanding reservoirs, lowering water levels and controlling risks. That is to say, the water level should not exceed the warning line, the debt ratio of the enterprise should not be too high, the inventory should be limited and the front line narrowed, so that there will be enough room for the improvement of the repayment ability.