Chapter 714 Product Division
Qin Zhengguo's words made Liu very happy and the cooperation intention between the two parties was confirmed while the three of them were drinking tea and chatting.
As for the details later , they don’t need to worry about it. As the boss, he is in control of the general direction, and the specific work will naturally be handled by the people below.
After the cooperation was agreed upon, the atmosphere became more harmonious. The next topic was some small talk. Liu enthusiastically talked about some interesting stories in Hong Kong, including many topics about the entertainment industry. Although Song Yuanchao and Qin Zhengguo were not as interested in women in the entertainment industry as Liu, they still enjoyed listening to some interesting stories told by Liu.
In the afternoon, Song Yuanchao and Qin Zhengguo left the teahouse and returned halfway up the mountain. On the way, Song Yuanchao suddenly asked Qin Zhengguo a question.
"Do you think Boss Liu is just cooperating today?"
"Why do you ask?" Qin Zhengguo was slightly stunned and asked back: "Didn't he ask you to meet to discuss cooperation? What else could it be? And his factory in Pengcheng will be built soon. How can such a large-scale factory open up without stable orders? Of course, maybe because of our Shenghua's channels in the mainland, he also plans to promote his products to the mainland through Shenghua's channels, right? Isn't that what businessmen are like? They focus on profits. Boss Liu has made the company so big in just a few years. It would be impossible without such a business sense."
Song Yuanchao smiled, seeming to acknowledge Qin Zhengguo's judgment, but he was still a little confused in his heart.
Although on the surface, Da Liu took the initiative to invite them to discuss cooperation, and such cooperation is a good thing for both parties. But for some reason, Song Yuanchao always felt that there seemed to be something unknown hidden under Da Liu's smiling face. Did he have other ideas? Song Yuanchao couldn't figure it out for a while, but no matter what, as Qin Zhengguo said, the cooperation between the two sides is indeed not a bad thing for both parties.
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Moreover, the cooperation companies in the mainland are still in progress, and the current production and supporting factories have not affected the upcoming business explosion. When these cooperation companies are completed, Liu's factory in Pengcheng will also be successfully put into production, which is just in time.
Song Yuanchao stayed in Hong Kong for about half a month, and Qin Zhengguo left for the United States a few days before Song Yuanchao returned to Nanjing. After Qin Zhengguo left, Song Yuanchao was also leaving. There was still a lot of work to be done at Sit, and things in Hong Kong were almost done.
After bidding farewell to his wife and children, and asking Ying Caixia and Xu Hui to help take care of the family, Song Yuanchao embarked on his journey back home.
On the first day back in Jinling, Song Yuanchao plunged into his busy work. He held meetings for several days in a row and listened to reports from his subordinates on the company's situation during his temporary absence.
When Song Yuanchao was away, General Manager Ruth and Deputy General Manager Zheng Guoyuan managed the company in an orderly manner. The latter in particular took on a heavy responsibility. The projects he was responsible for progressed very smoothly and the results were unexpectedly good.
Zheng Guoyuan is indeed a talent, he just didn't have a platform to show his talent before. But now, Song Yuanchao values him, and his actual power in Sit is almost the same as that of General Manager Ruth, especially in the two major areas of marketing and production, Zheng Guoyuan's talent has been recognized by everyone.
Because of the spread of news of the overseas awards and the broadcast of the classic advertisements, the whole country knew about Sit's beverage products at once, and because of the beverages, it also affected the reputation of other products, such as instant noodles.
The tactic used by Song Yuanchao was very effective. The goods from all over the country were in short supply. The main factory and its branches had started working in three shifts, but they still could not meet the crazy market demand.
After several days of continuous meetings, Song Yuanchao, with the support of everyone, passed the decision to expand production capacity again. In addition to adding new equipment to the main factory, the addition of assembly lines to branch factories in various places was also confirmed. In addition, the site selection and establishment of three branch factories have been finalized.
In Song Yuanchao's office, Zheng Guoyuan reported some progress in his work to Song Yuanchao alone. Song Yuanchao listened carefully and nodded: "Basically there is no problem, just do it according to this plan. If you have any difficulties, report to me directly. If I'm not here, communicate more with Ruth. I've already told her."
Zheng Guoyuan is now full of energy and no longer decadent as before. Although he is very busy every day, such busyness is very meaningful to him. Once a person is busy and finds a goal to strive for, his spirit will be different.
Zheng Guoyuan smiled and told Song Yuanchao that General Manager Ruth had already communicated with him and was very supportive of his work. The Assets Department (formerly the Finance Department) had also prepared the follow-up funding and there were no problems with funding.
"But Mr. Song, it's a commonplace, the problem of personnel is still difficult to solve. This time the capacity expansion is not only in the main factory, but also in the branch factories. There is a huge shortage of personnel. Although the company has made a decision to let subordinate technical schools and secondary schools enter for internships in advance, even if these young people enter our company, there is still a shortage of personnel."
"In addition, it is not only the sales of beverages that have skyrocketed, but the sales of instant noodles have also increased rapidly. I think we must walk on two legs. Instant noodles have been one of our development focuses since they were launched. The market in the past two years has also proved that the company's original choice was correct."
"We can't wait for the instant noodle market to explode before trying to solve the problem of production capacity. I think we should learn from this lesson and make plans in advance."
"Do you have any specific ideas?" Song Yuanchao agreed with Zheng Guoyuan's suggestion. He had taken this into consideration when he decided to suppress the promotion of instant noodles. Although Song Yuanchao felt that winning awards and publicity overseas would have a positive impact on the company, he did not expect the impact to be so great.
With a series of subsequent operations, it was originally thought that Si Te was ready for the market explosion, but the facts told Song Yuanchao that this preparation still underestimated the market potential.
A sentence flashed through Song Yuanchao's mind: "Be bolder and take bigger steps..." Doesn't the current situation prove this point?
"Yes!" Zheng Guoyuan had already made this plan and immediately told Song Yuanchao that the best way at the moment was to separate the two products, beverages and instant noodles, directly from within the company and form two business units, with a separate business unit being responsible for a major product category.
Si Te Company started out as a beverage company, and instant noodles were a new product that Song Yuanchao pushed hard before Si Te was officially established. So after Si Te was established, the two products were merged together, that is, whether it was the main factory or the branches, they were just divided into workshops and assembly lines within the factory, producing both beverages and instant noodles.
This worked without any problems before, but not now.
Despite the explosion of the market, different types of products have some hidden problems in terms of raw materials, production and sales, and these problems are becoming more and more prominent at present.
Zheng Guoyuan believed that now was the best opportunity for the divestiture. He should take advantage of the production adjustments of the company's factories to directly divest the two types of products, and set up dedicated business units to be responsible for each of them at the headquarters.
As for the names of the divisions, Zheng Guoyuan has also thought about them. One can be called the Beverage Division and the other can be called the Instant Noodle Division. As a branch of the headquarters, the division is similar to a sales company and is fully responsible for its own products.
There are many benefits to this, and Song Yuanchao certainly understands it with his knowledge. However, this also means that Si Te Company has changed from directly controlling its subsidiaries to controlling its subsidiaries through the product division. With an extra hand in the middle, the company structure will inevitably become larger and more sophisticated.
Moreover, once the two divisions are established, their status will be inherently higher than that of ordinary departments. According to Zheng Guoyuan's idea, the divisions will have general managers and deputy general managers. The general manager's level will be between the group deputy general manager and director, and the deputy general manager's level will be between the director level and the department manager level.
Song Yuanchao did not speak immediately, smoking and thinking quietly, weighing the pros and cons. He thought for a long time and still felt that setting up a product division was the best way at present. Of course, once the product division was established, the "big company" structure would be formed accordingly, and many corporate management would gradually tend to "big company disease" over time.
In Song Yuanchao's opinion, this problem does exist, and the longer the time goes, the greater the power of the product division will be, and the company will gradually become more conservative in the future.
Thinking of this, Song Yuanchao burst into laughter. This was thinking too far ahead.
Even if this is the case, it will be many years later. Moreover, when a company reaches a certain scale, it will inevitably become a large company and suffer from large company diseases. This is a problem that all companies cannot escape. However, this is a matter of the future. It will take a long time to reach this level. This is the best option for now.
Song Yuanchao asked Zheng Guoyuan to make a preliminary plan for the two product divisions. Such a big thing could not be discussed by the two of them alone, and it had to be decided through an internal company meeting.
Seeing that Song Yuanchao agreed to his suggestion after hesitation, Zheng Guoyuan was very happy and immediately agreed to complete the plan as soon as possible.
After work, Song Yuanchao did not go home, but went directly to Lin Daoyuan's residence.
When they arrived, Chen Yuqin was at home. She was very happy to see Song Yuanchao. She took Song Yuanchao aside and asked him about Lin Yan and the children in Hong Kong.
Although they kept in touch by phone, the person was no longer in the mainland but in Hong Kong. As a mother and grandmother, Chen Yuqin was still a little worried. Only after Song Yuanchao told her that Lin Yan and the child were fine did Chen Yuqin smile.
