跨越式成长的战略魅力（The strategic charm of leaps and bounds）

1、跨越式成长的战略魅力（The strategic charm of leaps and bounds）President of China Ocean Shipping (Group) Corporation Wei JiafuWei Jiafu, President, China Ocean Shipping (Group) CorporationBorn in Jiangsu in 1950.In 1991, when the Secretary of Guangyuan in the domestic first support the reform and opening up ten

2、 views of the Commission for Discipline Inspection.In 1998, he became president of COSCO group.2002 to achieve the first profitable group shipping business.In 2004, COSCO entered the top 10 of the central enterprises with profits of over 10 billion yuan.COSCO was listed in Hongkong in 2005, forming

3、a two wheel drive mode of production, operation and capital management.In 2006, the company was committed to promoting lean management based on system integration within the group.A successful state-owned enterprise operator must have the qualities of politicians, thinkers, artists, diplomats and do

4、ers at the same time. CEO must have strategic thinking, and be sure to jump out of the familiar world. Look at the world and learn all the successful experiences in the world.Survival based on personality!I believe that a successful leader must have charisma.I have had many contacts with Mr. Li Jiac

5、heng, one of whom I remember most. When I called on him, his son had just been kidnapped. In after lunch, Mr. Li insisted on sending me a straight, lift lobby, take me to the parking lot, I got on the bus and turn around to leave, he turned around. And around him, surrounded by more than a dozen hea

6、dphones wearing bodyguards, thats a very special period. I thought to myself, why did Li Jiacheng succeed? Because he has charisma! He knows, customer first.!I was impressed by the fact that Li Jiacheng agreed to sell an asset at the airport, and then someone offered a higher price, and his assistan

7、t advised him to reconsider. But Li Jiacheng said, No. I have been shaking hands with others, give me how much money do not sell. This is honesty!When I came back, I said: COSCO must study Li Jiacheng! The first is honesty, and second is customer first. Integrity and customer are the strength of ent

8、erprise survival.Strong comes from foresight!As a successful leader, you must also have foresight and boldness.In 2002, I visited Wang Yongqing, the God of management in Taiwan. He asked me the first words: Wei, President, how long can you see the financial statements?When I was president in 1998, t

9、he report would be delayed for 25 days before I could see it. I think this can not be, such a large group, as operators must rely on data to keep abreast of the pulse of enterprise capital flow, according to the financial situation at any time to make adjustments. So, in 1999, when I lost my main bu

10、siness, I was determined to reject the 1 billion budget and build digital cosco. From the introduction of SAP in 2002, it took me 3 years to end up with 1 billion. Now I can see the days report, which is already on the same line as the worlds highest level.When he heard it, he immediately said, ther

11、e are talented people on the mainland.!I do not engage in IT, but as CEO must have strategic thinking, you must look out you are familiar with the field, we must see the world that Tao business elite is how to do further study, all the worlds successful experience.COSCO leap business tipsI took offi

12、ce in November 6, 1998 and Ive been here for 8 years now. Ive used 4 data to summarize the changes that have taken place in cosco:The first is the scale of transport capacity. In 1998, it was 16 million 350 thousand DWT, which has reached about 41000000 today, even three steps! Second is the freight

13、 volume. In 1998, 15 million tons were shipped, 320 million tons last year! This year, 1 to September, an increase of 9% over the same period last year. Third is turnover. 1998 was 32 billion 500 million yuan, last year was 112 billion 200 million, an increase of two times. Fourth is profit. In 1998

14、, the whole group was 515 million; from 2002, the main industry began to make money; it was 970 million; in 2003 it increased by 3 times, reaching 3 billion 600 million; in 2004 it was 3 times again; 13 billion 100 million; last year it was 20 billion!COSCO development can jump so, what is the reaso

15、n? I summed it up as five.The first is stick to the market. Thats what the opening chapter says: customer first, really get the client out of action.COSCO was so difficult when I first took office that I couldnt find clients! When the freight rate reaches the lowest point, Baosteel quoted us $2.93 a

16、 ton, while our cost is more than 5 yuan, and the more it is shipped, the more it loses! At that time, I put forward strategic cooperation with baosteel. Because shipping is a cyclical industry, the ups and downs caused by the market are dangerous to the enterprise. Baosteel also the same: because t

17、he same cycle, do not look at today can save a little bit of cost, but the market is like waves, after the trough there will be a peak. Sure enough, in 2004, the market rate soared to $39! So I went to Baosteel again and said to Xie Qihua, now we should sign the partners.! I offer you special offers

18、 on a market basis, and you cant push me at the bottom of the market at the lowest possible prices. Since it is a win-win situation,Dont make the peak market profits, and I dont want to lose money at the bottom of the market. The results of this meeting, hit it off! Because Baosteel and COSCO are bo

19、th listed companies, they need a steady and visible growth.Since then, we formed a partnership with major steel mills, ports and Changhong, Haier and other goods. I believe that a successful state entrepreneur must have the qualities of statesmen, thinkers, artists, diplomats, and doers.Second is Mi

20、ng strategy. If others certainly not do business. When I took office, COSCOs strategy was six words: the sea, landing, heaven, the sea is shipping, landing is real estate, the sky for air transport. I think this diversification strategy will not, it will threaten my main business.So, just a month af

21、ter my appointment, I asked the experts of the State Council Development Research Center to develop strategies for cosco. Some people start to disagree. But I do not know the true face of Mount Lu, just because in the mountains, to sit in a helicopter at Mount Lu! Only beyond the original height can

22、 there be development. The experts do not understand shipping, but they understand the future trend of the economy and the impact on shipping. Thats fine.Finally, the experts condensed the whole report into a simple two change.The first shift is from global carriers to global logistics operators rel

23、ying on shipping. I am very convinced of it. Because the United States research shows that: in the global logistics chain, the middle of the shipping investment to account for 60%, while the average income is only 6%; while doing two of the warehousing, logistics, investment only 6%, but the return

24、has 20%.I got it right away! COSCOs main industry, of course, can not give up, but to invest in high value-added logistics field! Thus, in 2000 COSCO identified the core industry as follows: shipping, logistics. At that time, I put forward the one master, two, five pillars: one is the transport indu

25、stry. The two focus is a shipping, a logistics. Five pillars: the first is the shipping industry; the second is the shipping trade; the third is the financial sector, including investment banks; the fourth is the capital market in China and abroad, COSCO has seven listed companies; the fifth is IT.

26、In addition, COSCO in Shanghai, Beijing and other places of real estate, although they have done a great deal, but I sold them, because these are not the main industry.After the strategy has been finalized, I have strictly implemented the strategy in the past 8 years. Now we have 4 consecutive years

27、 to become the top 100 logistics Chinese first; COSCO terminal to become the worlds fifth largest port group, and the pier no cycle; again, a container manufacturing investment, we are also the worlds largest.The second change is from transnational operation to transnational corporation. COSCO has a

28、lways been a transnational enterprise, but it is not a multinational corporation. There are at least three conditions for becoming a multinational corporation. First, at least 50% of the assets come from overseas; second, at least 50% of the turnover comes from overseas; and third, at least 50% of t

29、hem are overseas. Of these three, we have achieved the first two, and the third is not in line with our comparative advantage.Third is heavy talent. COSCO employs 4000 foreign employees, and I dont like sending Chinese people abroad to do business. Many companies say that the products sold to the Un

30、ited States, but where do you sell in the United States? If you sell in Xiushui Street, youll never get the weather. So I agree with what Haier says go up, we must enter the mainstream market. Enter the mainstream market value is high, but to enter the mainstream market, rely on local people and for

31、eigners by foreigners.Fourth is sudden innovation. The first is institutional innovation. In the past, many projects were COSCO one hundred percent investment, and later joint-stock reform, and then listed. This is a major institutional innovation. For example: the real estate mentioned earlier, tha

32、t is, through cooperation to achieve market-oriented, localization. And to the local, we sit back as a shareholder return, but also to avoid many operational risks.The second is mechanism innovation. In my opinion, the core of the socialist market economy system is to operate an enterprise with the

33、laws of market economy! The incentive and restraint mechanism is an important breakthrough. So I began in 1999 for COSCO two enterprise leadership design annual salary system: early signing goals, according to the completion of the situation, more than how much to reward you. At the end of the year,

34、 the efficiency will be greatly improved! I won them a Santana, and about 200000 annual salary. After that, every year a change, they are full of energy. So our profit soared all the way! A unit of light in Shanghai earned 5 billion of the profits to the group, and I gave the general manager about 1

35、000000 annual salary, which is more cost-effective!Thirdly, management innovation. We have introduced six sigma and system integration. Last year I went to Cambridge, England, and learned the biggest thing about system integration. Come back from Cambridge, Ill do it right away.What is business mana

36、gement? The whole value chain is drawn into charts to find out which chains are created to add value, to reinforce, which do not create value, to cut down and to reduce costs.Finally, technological innovation. COSCO China was rated as the largest and most advanced IT system, and ultimately invested

37、1 billion 300 million, the annual rate of return is about 327%, three and a half years on the recovery of the entire investment. This is technological innovation.Fifth is good cooperation. In addition to said, we also carry out strategic cooperation with peers, such as Japan and Kawasaki and other c

38、omponents of the three four shipping alliance, is now the worlds largest shipping alliance, has been in operation for 8 years, very good. It is also based on a win-win concept of cooperation. For example, I open a line, the cost is all mine, but each port of the goods, I do not have a capacity to in

39、stall all, and this is a problem. Now, the four of us have implemented the project jointly, sharing the investment, sharing the resources, and covering a wide range of routes. In addition, we have signed a strategic cooperation agreement with the global dock and local governments.The strategic layou

40、t of COSCOs GlobalizationFor globalization, our core is commitment to enhancing core competitiveness. COSCO in 2005 20 billion profit, 80% are shipping business to earn, this is our special skills! I do not make 100% of the market profits, I would like to take out part of it, so that others are will

41、ing to cooperate with me, I will have a stable supply, there will be a long-term stable profit guarantee. Enhancing core competitiveness is a major feature of our global strategy. Specifically, we also summarize a few.First, we should enter the international capital market. COSCO entered the interna

42、tional capital market, which I initiated in Singapore in 1993 and the first overseas state-owned enterprise in china. One of the standards of good multinational companies is global financing capability. In 1998, COSCOs debt ratio reached more than 90%, and now our debt ratio is more than 50%, and ou

43、r hematopoietic function has been greatly strengthened.What I read PhD is risk management. The practical thing is to learn to take risks and control risks. Without risk, the enterprise is absolutely not going to go, but it is necessary to control the risk within the proper range. My decision princip

44、le is: possibility, feasibility, operability should have, can be finalized.And China aviation oil is a negative example. But we must understand and Study on financial instruments, make good use of, not unworthy. The key is to grasp the guiding ideology and degree. If it is to control their own opera

45、ting costs, thats right. For example, in the first half of this year, why did several major airlines only Air China to make money? Is because it made the futures of aviation oil. But if you want to make money, you cant do it. China aviation oil is to eat this deficit.There are many kinds of risk in

46、enterprises, which can be summed up by using the circulation of blood. For example: hematopoietic risk, that is, the main business is not profitable. Another example: the risk of blood stasis, that is, the enterprise funds are deposited in the following three or four levels, the company waste, and t

47、he headquarters is borrowing money everywhere. I found in 1999, COSCO subordinate company precipitated 9 billion of the cash! But I cant see it on it. Later, I went to the information system, the establishment of a capital computing center, now the national daily accounts of 4 billion 500 million of

48、 the funds! Where the money is called, you dont have to go to the bank. Recently, COSCO was granted the approval of the State Administration of foreign exchange, as the pilot unit for the centralized management of foreign exchange within the territory of the first state-owned enterprise. Now we can

49、have at least $600 million for scheduling, saving 2 hundred million a year!Second, globalization thinking, localization operation. Since COSCO wants to be a transnational corporation, it must have a global perspective, not just a local one. I pay close attention to international oil price, political

50、 and economic changes every day. However, it is necessary to have local operations, and to adapt to different areas, such as: wages can not be the same.Third, scientific management, strict supervision. When I took office, I withdrew all my investment rights from the headquarters. I just tell each co

51、mpany what the investment direction is, then find the project that conforms to the direction, submit the subject research report to the relevant department for approval, and finally implement. This program control is called scientific management. Since I took office, there has been no mistake in inv

52、estment decision-making. An investment decision mistake can compensate you for the benefits youve been operating for years. For example, China Aviation Oil, earned 100 million, suddenly lost 600 million! Also, strict supervision should be made. Since I started, everyone has to be supervised. Similar

53、ly, I have made the internal monitoring system very powerful. This is the back.Fourth, to create digital.Fifth, concurrence. This is our goal of globalization. Our globalization requires competition, cooperation and mutual benefit.Sixth, fulfill social responsibility. COSCO has always attached great

54、 importance to social responsibility. For example, the 2004 India Ocean tsunami, which we called in the morning, sent 10 million to the Red Cross by 5 p.m., the fastest in the country. As another example,SARS, we donated 6 million, but adopted a market-oriented approach. That is, no longer just a ca

55、sh, but joint peace insurance to front-line doctors, nurses on insurance! Thereby benefiting their families in real terms. This is our innovation, too. In fact, enterprises need to innovate in carrying out their social responsibilities!Seventh, realize the benign interaction between enterprise profit and national interest. For example: in the interior, we can not take off a large area, but take back the way. That is, in fu