Company Value And Sustainable Development

Enterprises, like any living creature in the world, will eventually die out and end. What we do is to extend the life span of enterprises as long as possible and achieve their greatest value in a limited life cycle.

The view of enterprise lifecycle points out that the existence time of each company is limited.

Like organisms, enterprises have to go through stages such as birth, growth and death.

Many factors can put an end to their existence.

According to the survey, only the average life expectancy of group companies can reach 7.5 years in China. The average life expectancy of more SMEs is only 2.9 years, while the average life expectancy of large enterprises in Europe has reached 40 years.

With the great impact of reform and development and China's entry into WTO, sustainable development has become the most serious problem faced by Chinese enterprises.

Then, how should we maintain the sustainable development of enterprises so that enterprises can truly assume the responsibilities entrusted by society and create their own value?

Although the enterprise has its own unique life cycle, once the enterprise loses the ability of continuous profitability, the enterprise can not maintain life at all. This is no longer a problem of premature death, but a problem of premature death.

Sustainable development has become the most basic guarantee for the survival of enterprises.

When it comes to the value of a company, many people naturally think that the value of a company is to earn money and get higher profits. Is this really the true value of a company? What the enterprise ultimately wants to achieve is to pursue efficiency in pursuit of scale and efficiency from efficiency to efficiency, that is, not only to make money but also to earn faster.

Under this measure of value, the competitiveness of an enterprise depends on the continuous profitability of the enterprise. It is no longer how much profit you have created this year, but how much value you can create in the next year, the next year or even longer. A successful enterprise must constantly pursue the maximization of the value of the company, that is, to continuously pursue and create a continuous growth of profitability.

With such profitability, we can ensure the sustainable development of enterprises, so we can say:

from

First, formulate sustainable development strategy.

The key content of strategy formulation is to define what kind of business field you want to pursue and pursue in this field. This is actually very important. It is often difficult to decide what to do instead of deciding what to do. Because there are 100 choices, you are equal to giving up 99, and giving up 99 is far more difficult than choosing 1.

To formulate a strategy of sustainable development needs more foresight and systematic thinking of our enterprises.

It is undeniable that the establishment and development of Chinese enterprises are highly speculative, which is closely related to the environment.

China's enterprises are dominated by small and medium-sized enterprises. The whole development is viewed from an entrepreneurial perspective. It is an opportunity created by national policies, and its strategy is an opportunity to create.

Early enterprises in the primitive accumulation process, most of them experienced a profiteering era, the profit space is very large, so the potential opportunity cost of decision-making is relatively small, that is to say, there are 10 opportunities to succeed, 5 can be profitable; now entered the two venture stage, has been a meager profit era, fierce competition leads to small profits. Under such circumstances, the potential of decision-making is great, 10 decisions 8 success can be profitable, a failure of decision-making can even be destroyed.

Business is bound to be speculative, which is understandable. But China's reform and opening up has been deepened, and its industrial structure has been gradually adjusted, creating many opportunities.

The reform of the price management system, the double track system of prices, the approval of batches and the dumping of steel products can make money; foreign exchange management system reform can make money for foreign exchange; the policy of the special zone is tilted, the real estate can become rich, and the stock market can become rich if the company starts to go public.

Several opportunities to get rich have made the public become more and more serious overnight. Under the guidance of this mindset, the operation of enterprises will ignore the continuous operation of enterprises, pay too much attention to immediate interests and neglect long-term strategic planning, be busy with choosing speculative projects, engage in large-scale advertising investment, neglect systematic planning and long-term consideration, and will inevitably lead to "35 years of coquettish".

Many enterprises in early China started to have more or less such opportunity components. Now that enterprises are developing to a certain scale, the management problems of most enterprises are focused on strategy and operation rather than strategy.

Because these two levels require entrepreneurs to have systematic thinking ability, which is a huge challenge for entrepreneurs who only rely on personal courage and courage.

The early growth of enterprises in China has not really experienced the cultivation of the market. Many entrepreneurs have not experienced the experience of market competition. Most of them lack the foresight strategic direction. Business decisions are mainly oriented by opportunities, lack of sustainable growth mode, blind and greedy, and lack of unique core competencies.

It shows more competitive consumption, lack of strategic thinking and consensus, mainly relying on power leadership rather than strategic leadership, virtually hidden dangers for the healthy development of enterprises.

If enterprises want to develop for a long time, they need to formulate sustainable development strategy.

{page_break}

Two, establish the core system.

Inside the enterprise is like doing the electronic Brown movement. We must use external force (electromagnetic) to guide them to move in a direction. So is the operation and management of enterprises. What we need to solve is how to make the enterprises operate in a standardized and orderly way under the guidance of strategy, which embodies the function of the system.

Most enterprises in China are in the form of management and operation, which is driven by trade and lacks an effective modern enterprise system.

Many of our state-owned enterprises are strictly speaking of a factory. Many private enterprises are also like this. They are not real companies and enterprises.

Most of the enterprises started by trade or foundry are far more organized than the company's organizational form. They are fragmented and the reaction speed is reduced. No professional system is formed. From strategic operation to economic feedback, the value chain is not closed.

All departments are in the same line, unable to effectively coordinate and unified management, resulting in waste of large resources and difficult to implement the management and development of large enterprises.

We can say this: Although many enterprises in China have the desire to become bigger and stronger, they do not have the means of becoming bigger and stronger.

The bigger and stronger enterprises need to complete the construction of "two forces", one is leadership and the other is executive power.

The building of leadership is to strengthen personal prestige, and the construction of executive power is mainly to strengthen personal action, neither of which is sustainable.

As a successful leader, the fundamental change is to evolve from tactical leadership to strategic leadership.

First, make strategic decisions; second, integrate effective resources; third, grasp key structural procedures, such as financial structure, product structure, talent structure, and some key procedures.

For example, many enterprises have introduced professional managers in the absence of or without full introduction of professional managers in order to improve their management.

Enterprises do not have a standardized system and access system, and haste to introduce managers, hoping that professional managers can bring new vitality to enterprises.

In fact, it is more like a big gamble. Winning is a fluke. Losing the manager has hurt the business.

At present, most Chinese managers lack professional ethics, and most of them are self selected in business management.

The quality and ability of managers is a problem that many business owners often worry about. In fact, I think the important thing is whether your company's system is in place, your system environment can give the middle level people the highest level.

Many enterprises are disunited with managers. This is not just the quality of managers, but also the institutional problems.

Just as the fate of our entire country can not be built on a clear ruler, we must move from "rule by man" to "rule of law", so that national leaders can serve the people better.

If we want our managers to complete the prescribed management actions and then join their own optional actions to complete the work tasks, we must establish a complete system to restrain and motivate the managers' behaviors and make them contribute the greatest value.

The most important need for enterprises to strengthen is the consensus of strategy and implementation.

As a result, many enterprises are busy doing executive training, while ignoring the synergy between strategy and execution.

The problem is not the speed problem of a single individual, but how to guide people to work in one direction.

The operation of many enterprises is like dragons. If the faucet is in the process of wobble, there is a lack of close connection between the parts of the dragon body.

Even if a company has a clear strategic objective, it is necessary to do well in its internal operation and management so as to achieve the ultimate goal in coordination.

Therefore, we explore the executive power of an enterprise not only by how to achieve the action of managers, but by a set of executive systems and a set of standardized management systems.

Operation management depends on the construction of the system, and the operation management of the system is like "castle in the air". Even if the strategy is in place, it can only be empty talk and disaster.

{page_break}

Three, shape excellent culture.

The promotion and implementation of an enterprise is actually a revolution. The key to change lies in human beings, and the key lies in the concept.

The difficulty lies in the cultivation of people's habits and the recognition of their ideas. This is the fundamental task that enterprises must adhere to in order to shape excellent culture. Only excellent corporate culture can help enterprises achieve real changes.

Wang Zhigang, a famous mastermind, has a famous saying: "behind the famous brand is culture. The larger the volume of cultural carrying is, the greater the benefit will be released. The growth of benefits is not an arithmetical progression, nor a geometric progression, but an atomic fission pole."

Today, as a top level enterprise management method, means and management system, corporate culture has been accepted and respected by most enterprises, and has gradually become an integral part of the core competitiveness of modern enterprises.

For the existence value of an enterprise, the role of corporate culture is undoubtedly crucial.

It is hard to imagine what is the value of an enterprise without its own values, habits of thinking, norms of conduct, and habits of communicating with customers.

In the process of conducting management consulting for some high-tech enterprises, the company found that many enterprises had problems of corporate culture and the scale and mode of existence of enterprises, which greatly restricted the healthy development of enterprises.

This is especially serious for businesses funded by academic, research, technological development units or individuals.

The inherent culture of the Institute and the Institute Culture (which can be collectively referred to as "academic culture") are pplanted to the enterprise without exception. The technological development, product development and market development of the enterprises follow the original thinking and behavior habit of doing knowledge and research, and the research oriented and technology centered products have good technical performance, even the first class in the industry, but they always applaud more and buy less.

Why? Because without cultivating and forming an appropriate corporate culture, employees do not have clear mission and values consistent with their business objectives. There is no market oriented and customer centered modern market concept. The products produced eventually do not really meet the actual needs of most consumers.

In view of this, corporate culture directly affects the mission, values and behavior habits of the staff team, and does not adapt to the corporate social attributes (or profit characteristics) and the corporate culture of its scale and mode of development, which directly or indirectly impede the realization of enterprise goals, and greatly weaken and even destroy the existence value of enterprises, including business value and social value.

If an enterprise loses its existence value (especially commercial value), it is impossible to continue to exist and develop, and its social value based on its commercial value will not be reflected.

It can be seen that corporate culture is the foundation for the realization of company value, and enterprises must strengthen their own cultural construction. This is especially true for high-tech enterprises with strong academic culture.

At present, most hi-tech enterprises have deeply felt and recognized the importance of corporate culture construction, and are committed to the pition and integration of academic culture to market competitive corporate culture. We should explore and build a more distinct corporate culture that is more suitable for the characteristics and development stages of our enterprises, and strive to enhance the existence value of enterprises.

The development of enterprises depends on the core competitive advantage, but the sustainable development of enterprises must rely on comparative competitive advantage. The core competitive advantage can only come from the system and culture, which depends on long-term construction, while the comparative competitive advantage is still inseparable from the system and culture.

Culture is a belief, and she answers why everyone is willing to do so.

It is precisely because GE has such a system environment and cultural environment that Jack and Welch will be the leaders of enterprises. With the strategic planning of sustainable development, we must have system and culture to ensure the sustainable development of enterprises and gradually realize the value of the company.

Similarly, the realization of company value is to enable enterprises to have the ability of sustainable development. The competitiveness of enterprises lies in the continuous creation of continuous profitability, and the sustainable profitability ultimately depends on strategy, system and culture.

Therefore, for Chinese enterprises, it is necessary to return to the origin of business management under contractual relationship, carry out the management of business value and manage the economic performance, and the company needs to lead a cycle of orderly and efficient management within a management framework under the guidance of strategy. Managers need to perform the prescribed tasks accurately and accurately in a professional system driven by performance. Only in this way can we have a century old shop in China and realize the Evergreen Foundation.