How should traditional wire and cable manufacturers face the problem of "enterprise failure"
Source: Cable recruitment network
The economic development is fast, many things are the survival of the fittest, the renewal rate is particularly fast, for the wire and cable this traditional industry, how should avoid the enterprise failure this question, the following author comes to talk to you how the cable enterprise should face the enterprise failure this question!
As the global economy continues to slow and the downward trend is evident, the author still holds the heavy proposition of "corporate failure". From the author read the world famous management consulting master Lamu·chalan an article entitled "Why Business Failure". The article analyzes the cases of some well-known companies in the world, such as Enron, WorldCom, Polaroid, Arthur Andersen, Xerox, etc.. It lists "being paralyzed by success, seeing no danger, fear of bosses more than fear of competition, taking excessive risks, buying and selling greed, believing Wall Street more than its own employees, wavering strategies, dangerous corporate culture, and the death spiral of the new economy. The reasons for the failure of the top ten companies, such as the functional board of directors, were eventually summarized as: management mistakes. These cases are worth reflecting on by every business manager. For any company, its managers, and even its employees, the question of "corporate failure" must be faced sooner or later. It must be faced, and it must be paid more attention, because a company that does not know the reason for failure. We will not know the way out of the success of the enterprise.
  
What is Business Failure? The failure of the company is the difficulty of the company's production and operation, the decline in the status of the industry, the loss of profits, the reorganization of assets, and even bankruptcy, bankruptcy, and unemployment of employees. Although corporate failure has the inevitability of economic laws, no corporate manager wants the company to fall in his own hands. He hopes that through the joint efforts of the company, the company will be able to make this "inevitable" for 50 years, 100 years, or even longer. Continue. But we must not hide the fact that any company has the potential to fail in one way or another. So what is the root cause of business failure? "Ren Ren Ren Ren Ren, Zhi Zhi Ren Zhi Zhi Zhi." The author believes that the most fundamental crux of "management mistakes" is "human mistakes." Enterprises are through the formulation, promotion and implementation of enterprise strategy to achieve business objectives. So what is the most significant role for the executive level in the implementation of an enterprise strategy, whether it is at the decision-making level in formulating a corporate strategy or at the managerial level in driving the strategy to the ground? Not brands, not technology, not equipment, but "people"! Why is it that when a company makes a strategy, some are appropriate, while others are pompous? Why some enterprises in the production and operation will find the danger in time, and take remedial measures in time, while others, like frogs in warm water, step by step towards the edge of death? The employee of an enterprise does not have the sense of crisis, is precisely this enterprise biggest crisis. Bill Gates said: "Microsoft is only 18 months away from bankruptcy." And history tells us that when a nation, an army, an enterprise wins, it is often the beginning of a crisis. From ancient times to the present, there are many "mourning soldiers who will win" and there is no lack of "proud soldiers who will lose." Therefore, the author believes that "man" is not only the creator of all success, but also the maker of all failures. Any enterprise needs to "think in danger, but also think in danger."
The following author only makes a few thoughts on the reasons why the failure of the wire and cable enterprises may involve in the personal perspective:
First, whether the strategic positioning of the enterprise is clear.
It is a strategic problem that confuses many Chinese companies whether they should be big or strong first. Looking at the leading companies in the wire and cable industry, there are already examples of strategic positioning with "doing big and strong". Through the diversified development, it has achieved a significant expansion across industries and fields. There is also a model of strategic positioning with "doing strong and doing big". It occupies an absolute advantage in a certain area by concentrating advantageous resources, steadily grows, and achieves the best comprehensive quality. In fact, the strategy is not good or bad. It is only appropriate. No matter what kind of strategic positioning is adopted, the prerequisite must be suitable for its own company, because "fit is the best."
Under such intense competition in the current cable industry, it is obvious that the "big" requirements for production cost management are high. Otherwise, if you are not careful, "big" will drag companies into the quagmire of "cost out of control". At the same time, "do big" can not avoid the issue of diversified development. Lang Xianping, a famous economist, believes that the goal of benign diversification should be business complementarity and risk diversification. It requires rhythmic cooperation between long, medium and short-term businesses, and must master stable cash flow. Therefore, the author believes that the promotion of "small, steady, strong, large and long-term" five stages of development is a reference for cable enterprises to formulate corporate strategies. Because, a company only has its own strength, can have the ability to resist the market risk, also can survive in the cruel competition, and finally laugh to the end.
Second, whether the enterprise has firmly mastered the strategic customer resources.
The market is the leader. The importance of the market is self-evident because the market has customer resources that can determine the life and death of the company. At present, most of the cable industry's sales adopt two modes: ordinary sales mode, that is, through the internal sales personnel of the company to open up business relations, open up market customers; Agency sales mode, that is, through the external agents of the enterprise to develop customer resources. But no matter what kind of sales method is used, has the company manager ever asked himself: Does the company firmly grasp the strategic customer resources? If there is a change of salesperson or agent, is there a potential loss of strategic customers? If it exists, it will be a major risk for the company. Therefore, establishing detailed customer files, adopting different marketing strategies for different customers, customer relationship management, maintenance, compensation and other measures should be included in the daily management of the enterprise, and highly valued.
Third, whether the enterprise production management is lean and efficient.
"Delivery time" is a sensitive topic that cable companies and market customers are prone to disagreement. The length of delivery time is also a "barometer" of whether the production management of enterprises is lean and efficient. Enterprises want to establish a production system that can fully meet the needs of market changes and sales scale, be agile, flexible, and efficient, and completely solve the conflict of delivery dates. The author believes that the most effective way is to improve the utilization rate of equipment and improve the efficiency of employees. Through perfect production capacity analysis, reasonable resource allocation, break through the production bottleneck link, ensure that the equipment is operating at full capacity, and ensure that the output of each machine is maximized.

Fourth, whether the return of enterprise funds is timely and safe.
The timely and safe return of sales funds is the most fundamental guarantee to ensure a virtuous circle in the operation of enterprises. How to let the order flow drive the product logistics, the final remittance of cash flow, should be the first standard for enterprises to measure the success or failure of sales. The author suggests that the enterprise may as well establish the preventive system of "prevention in advance, control in the event, supervision in the event". 1, prevention in advance, establish a scientific credibility assessment system. That is, to objectively assess the reputation of customers, salespeople, or agents, relatively loose capital policies can be given to customers, salespeople, and agents with high reputation, and otherwise impose a tightening capital policy. 2, control in the matter, ensure the safety of funds, timely. Once the salesperson or agent and the customer have sales behavior, should strictly follow the contract to carry out "take money to collect goods", "money and goods to clear" the sales principle, put an end to the phenomenon of selling on credit. At the same time, the fund management department should keep abreast of and understand the situation of capital recovery at any time, pay close attention to the financial trends of customers, salespeople, and agents, and truly achieve "where the funds are, where they are managed". 3, after the supervision, strengthen the information feedback and disposal. Once the emergence of capital arrears, should immediately feedback to the enterprise, is the customer's problem, according to the level of customer credit immediately take appropriate measures, such as: high credibility-letter reminder; In the credibility-door-to-door reminder; Low credibility-judicial solicitation and suspension of all business with the customer to avoid the enterprise being taken up by more funds; If it is a salesman or agent problem, the company must immediately take appropriate measures to restrain the conversation, personnel replacement, or legal prosecution. The ultimate goal is to achieve "no funds that have lost control, no personnel who have lost supervision, and no management that has lost institutional constraints."
Whether enterprise cost management is reasonable and in place.
Cable industry is the material heavy industry light, material costs account for a large proportion. Whether or not cost control is in place directly determines the enterprise's profit level. In the cost management, the author suggests that the enterprise may as well in "big place to start, small place to think". In a big way, we should focus on the source, that is, strictly closing the supply of materials, vigorously promoting scientific procurement, ensuring that the price of the raw and auxiliary materials purchased is scientific and reasonable, and that the profits of upstream enterprises are reasonably controlled before reasonable control of their own production costs; A small point of view refers to the process of grasping, that is, strictly controlling the production process, a drop of water, a power, a piece of paper, and a grain of material to control all acts that employees may cause waste.
Sixth, whether enterprise technology innovation pays attention to the effect.
Technological innovation is the source of enterprise's vitality. What is the place of enterprise innovation after all? For innovation, or to be able to create value for the enterprise innovation. Every year, the cable industry will have many new products approved by the technology, but how many new products can really form sales in the market? If a large number of new products are shelved, it is only a paper certification, which is a great waste of human and financial resources. Therefore, the enterprise technology innovation should always adhere to the market demand as the starting point, only the market has the demand, can create the wealth for the enterprise, is the new product, the good product. Of course, innovation does not always start from scratch, and improvement is also an innovation. If you can't develop disruptive products, you might as well focus more energy on existing products and weak points in the production process by improving and optimizing the details of production processes, processes and equipment. It can also reflect the essence of innovation-to create value for the company.
Whether enterprise talents are well used and can be kept.
Talent is the first resource of the enterprise. Any employee regardless of the level of education, it is possible to become an outstanding talent. This depends on the hard work and hard work of the employees themselves. More often than not, they must use the enterprise platform to train employees. After an employee enters the company, through a period of internship exercise, the company should help employees plan a career suitable for their personal development, give correct guidance and systematic training, and build a career stage for employees. Only by allowing each employee to see their own development space and prospects, so that each employee really enjoy the benefits of the development of the company, employees can resist the temptation of the outside world. Enterprises can also truly achieve the purpose of "keeping people, attracting people, and gathering people."
Eighth, whether corporate culture is full of vitality.
The construction of enterprise culture is a process of long-term accumulation, absorption, digestion and refinement. It is a kind of belief and belief formed by enterprises from the top down and from the bottom up, and it is a kind of "soft restraint" outside the system. It has powerful cohesive function, guiding function, stimulating function and restraining function. Enterprise culture construction can not be achieved overnight, nor can it be done once and for all, nor can it be fixed. It is necessary to make progress with the times, carry forward in inheritance, and innovate in development. Enterprise culture is full of vitality, the author believes that its standard is: it can be recognized by the majority of employees, believe, and voluntarily accept the constraints, follow the management. If the enterprise only regards the enterprise culture as a kind of capital of the enterprise propaganda, if the enterprise culture is reduced to just a kind of tool of the leader binding the employee, then the enterprise culture is backward, has no vitality, such enterprise is also precarious.
Temporary mistakes and failures are not terrible, because half of the "mistakes" are "gold" and half of the "defeats" are "shellfish". The terrible thing is that they do not know how to gold in "mistakes" and pick up in "defeats." Management is a complex art, enterprise managers should constantly self-review, change perspectives, not only to look outward, pay attention to market changes, customer needs, clear performance direction; It is also necessary to look ahead, pay attention to the development of the quality of enterprises, and strengthen work input; We must also look inward, seek for ourselves, and keep moving forward.