The hottest Schneider electric forced Hu Chengzhon

  • Detail

Schneider Electric "forced" Hu Chengzhong to stay away from low-voltage

whether Hu Chengzhong was willing to admit it or not, he seemed to have drifted away from the low-voltage electrical appliances he had brought up with him. At the same time, Hu Chengzhong's investment tentacles have expanded in many industries. Is this because of the implementation of the established strategy or the intervention of Schneider, who was once called the wolf by him

the black car braked suddenly in front of the joint venture factory of Schneider and Delixi. The guard at the door made a standard stop sign

you can't go in. We received the notice that the tail number of the vehicle that will enter the factory is 7668, but your car is not. Please contact your leader and ask him to come out and pick you up. The guard's statement made the people sitting in the car feel a little difficult to understand, because such a strict access control system could not be seen in the enterprises in Liushi

you're not bad. It's said that even when Hu Chengzhong wanted to enter the factory, the guard only recognized the license plate but not the person. Local people in the same industry explained so. In fact, after the joint venture between Schneider and Delixi two years ago, this factory has been jokingly called the forbidden area of Liushi by local peers. Except for some government leaders and senior executives of both sides of the joint venture, few people can enter this factory to visit

Hu Cheng and Shi Ruixiu (president of Schneider Electric Asia Pacific) are also wearing the mysterious veil with the factory. In December, 2007, Delixi and Schneider signed the joint venture agreement, which has been questioned and worried by the outside world. Since then, the two companies have become silent, and have been secretive about any joint venture issues. But now Hu Chengzhong's attitude has changed. Maybe he thinks the time is ripe. It's time to come forward to quell the rumors and resolve the misunderstanding through the skull repair experiment on mice! Therefore, the past of being deliberately sealed up for two years began to surface slowly

after the joint venture, is Schneider a wolf or a catfish in Liushi? Is Hu Chengzhong Wu Sangui in China's low-voltage electrical appliance industry? This issue has been debated by people for nearly two years

President Hu has lived with wolf for more than two years. How do you think of this marriage now? Someone asked Hu Chengzhong. Hu Chengzhong's answer was a slight nod and smile

is this subtle expression change an avoidance or an expression of satisfaction with the joint venture? According to relevant executives of Delixi, after two years of verification, Delixi believes that the joint venture with Schneider is very successful. Is this really the case

in 2009, the income of Delixi in the electrical industry increased by 20% compared with 2008. Only the Wenzhou electrical industry of Delixi contributed nearly 400million yuan of tax revenue to the local government. Delixi executives say so. In recent years, the low-voltage electrical appliance industry in Liushi seems to have hit the ceiling, and the profits are constantly diluted. Last year's financial crisis made them worse. Enterprises that can achieve a 20% growth rate are rare locally. However, this does not seem to be Hu Chengzhong's credit

speaking of this, I have to say that Zhu Hai, who claims to be the most powerful CEO of Liushi. After a joint venture with Delixi, Zhu Hai, who worked in Schneider for 12 years and was valued by Shi Ruixiu for his strong execution, went to Liushi to complete the integration work, which may be the most memorable time in his career. Two years later, Zhu Hai became president of Schneider China due to the success of integrating Delixi

what I did at that time was all offensive work, Zhu Hai once recalled. But in the view of Shi Ruixiu, some people in Delixi must offend. The familialization of Liushi enterprises has always been a headache for many managers. In some large enterprises, the investors, partners and relatives of shareholders who experienced the storm together often occupy quite important positions. The quality of low-voltage electrical appliances in Liushi is difficult to improve, because familiarization is particularly serious in purchasing and administrative departments. Local insiders said so. In fact, before the joint venture between Delixi and Schneider, huchengzhong had nearly 1000 suppliers. There are even some small workshops

this is the most intolerable thing for Schneider. No matter how advanced your production line is, you can't assemble high-end products with low-quality parts. The joint venture of Delixi and Schneider requires that the original good quality and low price be changed into good quality and reasonable price in terms of product positioning. In order to improve the quality of products, Zhu Hai must deal with some people entrenched in Delixi's supply chain

Zhu Hai divided the original suppliers of Delixi into four levels. After strict screening, only 28 suppliers finally became class a suppliers of the joint venture. This fire that burned the economic interests and corporate status of many people has a wide range, involving some relatives of Hu Chengzhong and related households of Delixi's old shareholders

and this is only the beginning. At the beginning of the joint venture with Delixi, Schneider established a complete framework management system, in which they set up management levels and positions. Zhu Hai seemed a little ruthless when implementing this framework. In one year, Delixi dismissed nearly 280 middle and senior managers of food packaging materials in China, which is not a small number. After Schneider imposed a mandatory weight loss on the management organization of Delixi, Zhu Hai established a complete ERP system in the joint venture. This made many of Delixi's original dealers experience the embarrassment of having no goods in the market

the pressure is too great. Zhu Hai said in an interview with a media. At that time, it was not only some relatives of Hu Chengzhong and Delixi's original shareholders who came to him to argue. These people felt that they had worked hard for more than 20 years, even if they had no credit. Now the cunning rabbit is still alive, cooking a lackey. They can't understand how. Although according to the labor law, these dismissed people have received enough money, according to local people in Liushi: those employees who have followed a company for many years are no longer short of money, and they care more about their position in the company. At the same time, more agents came to ask for goods. In the office of a person in charge of the Sales Department of Delixi, more than 150 agents were received a day. Some agents even swearing, and everything fell into chaos

fortunately, such a difficult time did not last long. In less than a year, the joint venture between Delixi and Schneider was on the right track. The joint venture company that successfully slimmed down and put on digital running shoes can achieve a profit margin of more than 10%, which is more than twice the general level in Liushi

maybe we will have the same problem as Hu Chengzhong's relatives who were laid off at that time. That is: where is Mr. Hu, the protagonist of Delixi? In fact, Hu Chengzhong has been far away from the joint venture. According to Hu Chengzhong's daughter, the relatives who came to the door at that time were received by Hu Chengzhong's wife. While avoiding his relatives, Hu Chengzhong also avoided the daily business activities of Wenzhou Delixi. Is this his original intention

according to the joint venture agreement with Schneider: both parties of the joint venture hold 50% of the shares, and each party elects three senior executives to form the board of directors. The chairman of the board is held by the Chinese side, while the president is appointed by Schneider. Major strategic issues are discussed and decided by the board of directors, while with the rapid development of today's society, the president is the sole judge of business affairs. It is such an agreement that gives Zhu Hai a lot of power to take life or death

maybe Hu Chengzhong is not willing to carry out such a large-scale transformation in his company. Maybe when some of his relatives and friends come to the door to cry, Hu Chengzhong will also be secretly moved

Delixi has three major industrial bases in the electrical field. Wenzhou is the manufacturing base of low-voltage transmission and distribution and industrial automation control, Hangzhou is the manufacturing base of automation instruments, and Shanghai is the manufacturing base of high-voltage electrical appliances and complete sets of equipment. The joint venture with Schneider is the electrical manufacturing industry in Wenzhou, namely the six product series of medium and low voltage, which is Hu Chengzhong's starting industry. But after the joint venture, in the company he led, he was no longer the same as before; After giving all the management rights to Schneider, Hu Chengzhong no longer echoed. Even when Zhu Hai transformed Delixi ERP system, Hu Chengzhong could not put forward the spot goods from the warehouse of Wenzhou base. Lying on the couch, how can others snore! Think of Nan Cunhui and Zheng Yuanbao. Will Hu Chengzhong feel a little lonely when he dreams back at midnight? However, from the moment Hu Chengzhong signed his name on the joint venture agreement, he could only act in accordance with the contract and could not help but share the ups and downs of his personal emotions

Hu Chengzhong commented on the joint venture at the meeting of senior management of Delixi: since you enter, there is no reason to withdraw. However, the reputation of the partner chosen by Hu Chengzhong in China is not very good, and Shi Ruixiu will not let Hu Chengzhong easily quit

concerns that can be calmed

maybe good profits can slightly alleviate the concerns of industry insiders. According to the agreement between the two parties of the joint venture, Schneider will give Hu Chengzhong a brand royalties of two points of annual sales in addition to the relevant retention of Delixi. According to the executives of Delixi, Delixi received hundreds of millions of shares from the joint venture last year, including the brand royalties that Schneider should pay

from then on, Hu Chengzhong can collect huge profits without thinking about low-voltage appliances and without considering the fierce competition with Chint. According to insiders, after the joint venture with Schneider, the profit growth of Delixi in the field of low-voltage electrical appliances is in multiples. From the perspective of Delixi, it seems to be much more cost-effective than doing it yourself. Schneider also promised the suppliers that have entered the joint venture system 7 points of profit every year

after the joint venture, Delixi's management has become more standardized. The strictness of the guard system described at the beginning of this article is a distinctive performance. A Delixi employee said: we now strictly follow the schedule to work and go to work. Once we exceed the time, there will be overtime fees. However, unpaid overtime and no weekends are quite common in Liushi. According to insiders, the staff treatment of the joint venture is also higher than the average level of Liushi manufacturing enterprises

at the same time, Hu Chengzhong also learned a lot from Schneider. Seeing the huge benefits of digital management, Hu Chengzhong invested heavily in the SWOT situation management system. (this was put forward by a professor of management at the University of San Francisco in the early 1980s. The four English letters of SWOT represent strength, weakness, opportunity and threat respectively. The so-called SWOT analysis is situation analysis. This system is applied in Delixi head office, which does not belong to the joint venture company.) Hu Chengzhong hopes that through this system, the company's decision-making will be more scientific and the management voice will be more consistent. Instead of the original kind of boss slapping his head to make decisions. According to people familiar with the matter, the maintenance cost of the system is close to 10 million a year, which is relatively rare in domestic private enterprises

seems to be a win-win situation. But how long can this situation last? Especially those who are used to the carrot and stick technique

Copyright © 2011 JIN SHI