How Can A Manufacturing Enterprise Get Rid Of Deficit?

< p > first, it needs to be clear why Chinese manufacturing enterprises will lose money immediately when sales growth is slowing down or negative growth.

Over the past thirty years, Chinese manufacturing enterprises have seized rare opportunities and gained rapid growth on the scale.

But at the same time, our enterprises gradually get used to the development mode of "high input, high growth and extensive management".

Under the condition that the growth rate is high enough, the so-called "one high" conceals "hundred ugly", that is, high growth covers the problems of low efficiency and high investment and extensive management.

Once the growth rate has declined or even negative growth, the various problems in the operation of enterprises will focus on the outbreak, resulting in a sharp drop in profits or even a loss.

That is to say, during the past thirty years and more rapid development, Chinese manufacturing enterprises gracefully enjoyed the opportunities of world industrial pfer and huge a href= "http://cailiao.sjfzxm.com/" > demographic dividend < /a > (ultra low labor cost).

That is to say, extensive management pushes the breakeven point of the business operation high, resulting in poor profitability.

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< p >, what is the way out for Chinese manufacturing enterprises? I believe that only by rapidly reforming the management mode of enterprises can we improve the physique of enterprises and enhance their continuous profitability.

Then, what kind of survival and development strategy should be adopted? We need to think and practice from two aspects of short term and long term.

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< p > from a short-term perspective, the strategic focus should be on the throttling improvement, and reduce the "a" href= http://www.91se91.com/news/index_s.asp "break even point" /a as soon as possible, reversing the situation of low profitability or loss of corporate profitability.

There are three main aspects to reduce the breakeven point.

First, we must strictly control investment in hardware, such as land, plant and equipment, and reduce fixed costs.

For a long time, entrepreneurs lack planning or even abstinence in expanding land, plant and equipment scale, resulting in high fixed costs. This situation must be reversed immediately.

Second, reduce redundant personnel, especially non value departments redundant personnel, while ensuring the growth of personal income of employees, efforts should be made to reduce the ratio of labor costs to sales.

It is not very difficult to do this job well in the relatively short supply of labor force in China.

Third, through targeted improvement, we should focus on reducing cost expenditure, such as raw material cost, < a href= "http://www.91se91.com/pioneer/" > marketing cost < /a > and management cost, so as to raise profitability level.

Of course, all these efforts should not be at the expense of reducing the quality of products and services.

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< p > focusing on the long term, the strategic focus should be on open source management, that is, to increase the sales scale and the added value of products, so as to greatly enhance the profitability of enterprises.

How to open source? First, expand the gross margin of products by enhancing R & D capability.

R & D is the decisive factor of product competitiveness and profit margin. Without research and development, there will be no future.

Second, accumulate credibility and build brand strategically and strategically.

Brand building is not just a noisy name, it is not just fame gained by media propaganda.

More importantly, through first-class products, services and integrity management, the accumulation of corporate credit and brand reputation.

Third, innovate sales mode, continuously expand the level of market share, promote industrial agglomeration and achieve economies of scale.

Fourth, create a strong atmosphere for learning and improvement, cultivate a culture of continuous improvement and lean participation, and continuously improve all aspects of enterprise management.

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< p > of course, some people will say that Chinese manufacturing enterprises can take the road of pformation in addition to upgrading management as soon as possible.

But practice shows that pformation is much more difficult than upgrading, and needs more subjective and objective conditions.

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