[Reprinted - China Business Report] China Manufacturing Network Expert Comments: Leader Character Determines Corporate Fate

The transformation of Chinese companies is to a large extent "passive, take advantage of," and simple product manufacturing can no longer meet the needs of the market, especially the demand of the international market, which forces companies to change their own concepts. We began to pursue production and management methods that are more in line with market demand.

Judging from the development process of Hirose, his success does not simply look at how their current performance is, how good the program is, and how outstanding the after-sales service is. It is undeniable that these factors are necessary, but it is easy to find out that the character of a business leader determines the fate of the company.

This point is also the commonality of Hu Wen and Yang Rukun.

When I communicate with many SMEs, I would ask a question: Do you want to think about what a company will be like after five or ten years? A company's development will face many problems, such as R & D, promotion, financing and other aspects will bring pressure to business owners, but there is a saying well, "everything money can solve the problem is not a problem."

In recent years, the survival status of domestic SMEs is not very good. It is no exaggeration to describe the living environment as internal and external. Many experts and the media will regard human capital costs, raw material costs, and exchange rates as the most critical factors affecting their survival. However, judging from the situation of many companies that I visited during the past few years, it is not the case that has brought the greatest trouble to China's manufacturing industry. It is all these.

Zhang Liangchong, chairman of Shenzhen Taixingyuan, once said in a straightforward manner that if the real estate market continues to boom, then China's manufacturing industry will collapse without external factors. This is a bit sensational, but think about it. This is indeed the case. For a small and medium-sized enterprise, the gross profit for one year does not compare with the profit of real estate investment. This point is the biggest crisis in China's manufacturing industry - the floating of people.

When these cornerstones of the Chinese economy no longer focus on product production and R&D, but instead invest limited profits in real estate and the stock market, the most immediate impact is that the upgrading of manufacturing industries is slow, even stagnant, and serious. The failure of investment, the fracture of capital chain, and the closure of large-scale enterprises.

Among all the factors that can determine the fate of the company, the concept of the business owner is the only one that cannot be solved with money. This is precisely the common problem of Chinese SMEs. Market-based passive changes often bring many unexpected and uncontrollable factors to the development of the company. These factors also determine the company’s life and death.

China Manufacturing Network Special Commentator