Four Inequalities In The "500 Strong"

Now, several domestic media and American authoritative financial magazine fortune and business weekly publish several global enterprise rankings every year.

These rankings show a huge gap between Chinese enterprises and world-class enterprises.

To catch up, we need to reform the system, clarify the property rights, activate the mechanism and strengthen management. We need to increase investment and raise the level of equipment, but more importantly, we must break the habit of thinking, clarify some knowledge and renew our ideas on some key issues.

Such as:

Da Qiang

The size of an enterprise lies in its assets, scale, turnover or sales revenue and market share. The strength of an enterprise lies in its core competitiveness, profitability and efficiency.

For enterprises, big is not equal to strong.

In China, it is easier to make bigger companies.

Of the top 500 enterprises in China this year, 18 are loss making enterprises, with a total loss of up to 6 billion 700 million yuan.

In addition, there are also 100 enterprises whose profit level has shrunk considerably compared with the past, and the profit drop has reached 609.41%.. According to the evaluation criteria of the China Federation of enterprises, the list companies are large enough, but the market competitiveness and profitability level are really not flattering.

Therefore, it has been suggested that the name should be changed to "the 500 largest".

For this reason, Chen Qingtai of the State Council Development Research Center also said that it is not universally believed that big is strong, and that the business of assets is reluctantly tied up with impetuous mentality.

Efficiency and efficiency

Efficiency is usually a subtraction of input and output, while efficiency is a more complicated division, such as labor productivity and per capita profitability.

Many people erroneously equate high efficiency with high efficiency, and think that high efficiency must come from high efficiency.

In fact, the overwhelming majority of the top 500 companies in China are monopolized enterprises. The benefits of these enterprises are generally good, and the absolute value is quite amazing. But this high benefit is not from high efficiency. If there is no state without cost high investment, there is no policy of long-term support from the state, no country can do everything possible to give them preferential treatment and special care, or even consumers' sacrifice, will they get such a huge monopoly profit? The conclusion is self-evident.

Advanced innovation

China's iconic enterprise SAIC's first entry into the world's top 500 is exciting and worrying.

Without joint venture's huge sales and without the high added value of other brands such as Buick and Volkswagen, what is SAIC's entry into the world's top 500? The experts of China automotive industry consulting and Development Corporation say that they have no brand, nor much technology, nor creativity. Even if they can produce the most advanced automobiles in the world, it is difficult to count as a completely autonomous enterprise. SAIC's entry into the world's top 500 is "form is greater than content".

Yes, innovation is the soul of an enterprise, and the producers of advanced products do not necessarily have the capability of independent innovation. Some domestic enterprises will not fall into the double circle of "lagging behind - Introduction - backward, re introduction" and "weak ability - dependence, the weaker dependence".

Long term eternity

In the early 90s of last century, the author began to pay attention.

Some people, some places, and some enterprises have turned these inequality signs into equals. To a large extent, they are acting as profit factors and reflecting the relevant systems.