Leading change in a crisis

The basis of thinking is to judge the situation accurately. The investigation report of the CEO of China Hundred Enterprises analyzes the current economic situation from the macroscopic point of view, and puts forward the development direction and some thinking of Chinese enterprises.

Today, the excelled business in China, in this global economic crisis, need to have a more sober understanding of the environment, and make it a designated investment development strategy. Yes, most businesses are suffering. But at this time, to put their own this "pain" first put aside, look at the macro far, decisive decision-making, to change. It is common sense to never die in lukewarm water.

But unfortunately, many enterprises are facing the situation is not good, but most still hold a wait and see attitude to deal with this crisis, without decisive and promising judgment and courage. So China's CEOs need to look at the current economic situation in a macro-perspective and help companies make the right business decisions.

Good news and bad news.

In the absence of 100% accurate judgments, it may be better to imagine the market worse, so as to effectively avoid greater losses. Ufida President Wang Wenjing in the "China Hundred Enterprises CEO survey Report" said: "The transformation and upgrading of Chinese enterprises, or from export to domestic, internal and external sales simultaneously, or from the foundry to independent research and development, independent brand, or improve the quality and value of products and services, from the low-end of the industrial chain to high-end upgrades, or from manufacturing to services, or integrate the upstream and downstream related resources of the industrial chain, or from extensive to fine management, upgrade risk control system, all require enterprises in innovation, management and human performance three aspects have a significant improvement, reshaping the core competencies of enterprises. ”

Now, many Silicon Valley bankers and American economists are pondering a question: Is this economic crisis that seems to have hit the US, or does it have a big impact on the US or on China? Of course, from a different perspective, the answer to this question is not the same.

Some academics argue that the Chinese economy suffers more than the U.S. and Europe in the crisis. This is mainly based on the following judgments: China's economic growth depends mainly on "three legs" walking, that is, export-oriented economy, real estate investment and government, state-owned enterprises consumption. Now, two of the three legs are having problems.

First, exports are facing shrinkage, which is evident in recent customs statistics. Consumers in the US and Europe have clamped down on their wallets and are afraid to spend more and consume more, leading some of China's export-oriented manufacturing companies to cut production and lay off workers.

Morgan's statistics show that 45% of China's goods are exported to the US, Europe and Japan, while 30% of China's fixed assets are invested in export-oriented manufacturing. Clearly, China's economy relies heavily on these developed countries ' markets. When the Western market is in a state of decay, the manufacturers of toys and apparel are under a lot of shock, while it manufacturers are not immune.

In Shenzhen, a large number of OEM manufacturers face the situation of lack of orders. Therefore, at this time, enterprises should change their thinking, look to the domestic market and the potential market of developing countries. Recently, Ufida "China Hundred Enterprises CEO Survey Report" for the enterprise to provide a true and effective report, the present situation of Chinese enterprises, the crisis performance, as well as how to resolve the detailed analysis of the meticulous, showing Ufida in the crisis together, accompanied by enterprises to tide over the difficulties, leading Chinese enterprises to accelerate the pace of transformation and upgrading, Looking for a way to be overly stable.

2nd, as a result of lower consumer confidence, real estate investment slowed down, or even negative growth. The central government's policy to save the housing market and save the Auto markets also illustrates this. The impact of the slowdown in real estate investment on the IT industry is indirect, but the effect will be more lasting. Recently, the central government reported 4% of urban unemployment, foreign economists believe that if the rural-urban integration and rural unemployment, the proportion of unemployment will reach 10%~11%. This figure may not be accurate, but some Chinese economists have also cautioned against "invisible unemployment". An increase in unemployment is bound to slow the increase in it consumer demand.

Change in a crisis

Chinese medicine says: no general pain. Optimistic that the financial crisis has become a catalyst for the transformation and upgrading of Chinese enterprises, after nearly 30 years of rapid development, Chinese society is bound to encounter economic cycle, Chinese enterprises have already faced the problem of structural adjustment. Within the scope of the financial crisis so that Chinese enterprises direct orders to reduce the price of raw materials, financial constraints and so on, to promote enterprise thinking, change, innovation and so on. So how should they solve these difficulties and let themselves accelerate the pace of transformation and upgrading?

93% of corporate CEOs believe that in the face of the current situation, enterprises must make the choice of transformation and upgrading, this is not only the enterprise for sustainable Development must take the initiative, but also in the fast changing market environment to maintain the competitiveness of enterprises effective means. In the survey found that outstanding performance (average annual gross profit margin ≥20%) of the enterprise performance more positive, they are more positive thinking about the transformation, the path of upgrading, mining market opportunities, to find new growth points.

This huge economic adjustment means that Chinese companies must face a new future. The size of the enterprise and past successful experience are not enough to ensure that the enterprise will be able to survive this economic structural change. The key lies in active change, adapting to change. According to our survey results, the key elements to determine the success of the change are three: continuous innovation, management promotion, improve human performance. This is the current CEO to reshape the enterprise fundamentals, must do a solid job in three aspects.

In the enterprise practice of dealing with crisis calmly and solving problems effectively, "China Hundred Enterprises CEO survey report" summed up such six transformation and upgrade path, may be to other Chinese enterprises to deal with the crisis more meaningful, they are: from the export to the domestic market transformation, from the foundry to the independent brand transformation; upgrade from low-end to high-end , transforming from manufacturing to service, integrating industrial chain resources, upgrading from extensive to fine management.

Reshaping Chinese enterprises, that is, rely on the rational allocation of production factors, scientific and technological progress and improve the quality of workers, through increasing production efficiency and achieve business growth. In particular, Chinese enterprises must return to fundamentals, through continuous innovation, refined management and efficient human resources to achieve development.

Whether it is through the transformation and upgrading of the six models summarized in this paper, continuous innovation, refinement of management and efficient human resources are essential elements, since the first two are the ways to improve profitability, while the latter is the performer.

However, to reshape the fundamentals and achieve recycling, the enterprise itself must have the most basic premise: respect for customers, respect for employees, respect for technological progress. Only respect for the customer, innovation makes sense, because the customer is the source of value, only respect for employees, innovation can be achieved, because employees are the executor of innovation, only respect for technological progress, innovation is the basis, because continuous innovation and meticulous management must rely on technological progress.

Practice has proved that in the past 30 years of reform and opening-up, Chinese enterprises have a strong learning ability, we will also see that Chinese enterprises in the transformation and upgrading of learning ability and innovative spirit, will lead them out of the fog of economic adjustment, towards a bright future.