Extraordinary Genius - Chapter 723
Chapter 723 – Decision
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Zhang Ruiqiang and Secretary Xu looked at each other.Merger? What merger?
Zhang Ruiqiang was speechless as he looks at Feng Yu. Thisbrat had stopped halfway again. Why can’t he just finish whatever he got to sayat once?
“You should have thought about how to merge. Tell us aboutit.”
Feng Yu picked up his teacup and then place it back on thetable. He had drunk all the tea. Zhang Ruiqiang was afraid that Feng Yu wouldcall Secretary Xu’s secretary to pour tea for him. He immediately pushes histeacup towards Feng Yu: “I have not touched this cup of tea.”
Feng Yu picked it up and finishes all the tea. After that, helooked at Secretary Xu’s cup.
This was Secretary Xu’s office, and he was using hispersonal cup. How can he give it to Feng Yu? Secretary Xu immediately calledfor his secretary to brew two cups of tea.
Feng Yu was satisfied and said: “There are two forms ofmergers. Firstly, consolidate all the small companies, dealing in the sameindustry, and merge them into a big company. This way, their assets, scale,etc. will increase. All their resources will be combined to introduce a brand.This company will be bigger, and it will be easier for them to market theirbrand. If the company becomes the biggest in China, it will increase theconsumer’s trust in that brand. Of course, this will not happen overnight andneeds time to see the effect.”
“The second solution was to make use of an establishedbrand. All the other smaller companies in the same industry will merge withthat established brand and become the company’s subsidiaries. Their productswill use that established brand name. All the companies will see an increase intheir profits, and it is much faster than the first method. You will be able tosee the results in a short time.”
Zhang Ruiqiang frowned. “Are you trying to tell us to choosethe second method? Are you thinking of merging all the machinery,pharmaceutical, and electronics companies with your companies?”
Feng Yu replied with a proud tone: “You want to let thosealmost bankrupt companies merge and become my companies’ subsidiaries? You mustask my companies’ employees and see if they are willing or not!”
Damn! Old Zhang is getting smarter. He can tell what I amthinking?
Feng Yu planned to let those small factories take oncontracting jobs for his companies. Those small machinery factories might notbe able to manufacture any good machines or engines. But they should not have aproblem to produce some parts for the main factory.
Anyway, Bing City Machinery Company also had to buy manyspare parts. The profits from producing spare parts were quite high too. If thecars and motorcycle spare parts were Songjiang brand, then those people who ownSongjiang vehicles would surely pick Songjiang spare parts. Most people stillprefer original parts.
This would lower Bing City Machinery Company’s productioncost and increase the profits. It will also solve the Provincial Government’sheadache.
It was the same for the electronic and pharmaceuticalfactories. As for the other products, those small companies can merge under themost popular brand. This way, they would be combining all their resources toincrease the brand awareness of a single brand. It will be easier compared tothose small companies trying to fight for themselves.
Just look at last year CCTV’s highest spender in advertisingslots auctions, Confucius Distillery. This company had combined the resourcesof many small companies and market under a single brand. It was very effective,and their sales last year were excellent.
This year, Confucius Distillery had introduced a localConfucius Banquet Wine, and they were the highest bidder of CCTV advertisingslots auctions. This wine was extremely popular, and they hit record sales.
Now, Confucius Banquet Wine was already exported tooverseas. Many customers will order this brand of baijiu at restaurants astheir first choice. Those bosses, who did not receive high education tends toprefer this brand because of their advertising slogan. Drink Confucius BanquetWine and write the best essays!
Those bosses might not even be able to write a primaryschool essay!
This Confucius Banquet Wine was the product after some smalldistilleries merged. They merged and managed a single brand. Once this brand ofalcohol becomes popular, all the distilleries were able to make money. This wasbetter than each of them trying to market their own brands.
Secretary Xu was hesitating. What Feng Yu said seems to betrue. But the most popular brands in Longjiang province were Bing CityMachinery Company and Bing City Pharmaceutical Enterprise. Both were Feng Yu’scompanies. Other than these two companies, no other companies’ brands werefamous. There was another well-known brand, Tian Peng Pigs. This was not FengYu’s company……. It was Feng Yu’s father’s company!
That means if Feng Yu or his companies does not participatein this merger, then the Provincial Government will have to use the firstmethod mentioned by Feng Yu? Merge the small companies to form a big companyand introduces a brand?
However, it will be like what Feng Yu had said. It willsucceed, but it will take a long time. Secretary Xu could not wait any longer.
Secretary Xu needs results. If he could not achieveoutstanding results soon, he will be asked to retire to the back office.
Also, there was another issue. The implementation of thisplan will take some time. If he chose the first method, he would be transferredaway before he could see the results. What would happen to this plan after hewas transferred away?
This was why all the government officials have to stay forat least a term. The shortest duration of a term was 2 years, and a full termwas 5 years. This was for the government officials to have time to implementthe changes they proposed.
But not all changes will have effects instantly.
“Manager Feng, I think Bing City Machinery Company can mergewith some smaller machinery factories, or you can acquire them if you want.”Secretary Xu said.
Feng Yu shook his head: “Most of those machinery factories’equipment are old, and do not have the technologies. The workers and leadersthere are not very skilled too. Also, they are located in areas not easilyaccessible. It is not worth to acquire them. Furthermore, the local governmentwill not be willing to sell them.”
“They will be willing to sell those factories. I can promiseyou.” Secretary Xu could climb to his current position was because he was adominating person. If he were unable to control his subordinates, he would havebeen asked to retired a long time ago.
Secretary Xu needs those small companies to merge with anestablished brand. Even if those companies were to be acquired, it was fine. Tohim, it was the same. He would rather sell those struggling state-ownedcompanies than to see them just trying to survive every month. Those companieswould have better developments and higher profits if they were acquired by anestablished company. The Provincial Government would also be able to increasethe tax income.
Most importantly, the Provincial Government would be able toimplement the Social Security Insurance policy!
Secretary Xu finally understood why Feng Yu brought up thesubject of Social Security Insurance. This policy was set by the CentralGovernment and had to be fully implemented in the next phase. If Secretary Xucould introduce this policy successfully in Longjiang Province, ahead ofothers, he will get an opportunity to enter the Central Government to takecharge of this policy.
Secretary Xu might not be promoted, but he will get to dothe work of a Provincial-Ministerial level official. He will be satisfied.
What Feng Yu had said were all interlinked. No matter whatFeng Yu’s motive was, his advice had given Secretary Xu hope. He could see hisfuture career progression!
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