Business brand shoe business "tyrants" crisis warning

The road to diversification is not easy. Mainly engaged in footwear industry and investment in mining and other industries well-known enterprises in Wenzhou - Pa Li Group has plunged into disruption, transferred to government regulation, stability maintenance. Pa Li Group, once the first shoe company in Zhejiang Province, the group of companies, but accidentally after 17 years of development suffered heavy losses. "Pa Li" in the nineties of last century set up the province's first shoe industry group company, but also the province's key enterprises in the leather industry. In 1993, tyrants won the "Chinese shoe king", "Chinese famous brand" top shoes and other titles. The "tyranny" change regretted, hope that through restructuring, companies can regain their vitality. However, the "tyranny" crisis did not happen overnight. The "tyrannical" crisis could provide the triple warning of private enterprises in Wenzhou: first, the contradiction between diversification and specialization. Diversification and specialized management are all ways in which capital seeks the maximum value-added of capital in a particular market environment without any distinction between advantages and disadvantages. Through diversification, enterprises can obtain scarce resources, reduce transaction costs, reduce environmental uncertainty and ensure the implementation of competitive strategies. However, "putting eggs in different baskets" is more risky due to the diversification of diversified resources under the impact of changes in the external environment than when "putting eggs in one basket". In recent years, tyrants in mining investment in Guangxi and other places, the return on investment is not ideal, greatly affected the original main business footwear development. In fact, a similar situation in Wenzhou is much more than "tyrants". Second, the conflict between family management and modern enterprise system. In Wenzhou footwear industry, tyrants is the first to complete the family-run management system to the transformation of private enterprises. However, establishing a company does not mean establishing a modern enterprise system. According to the basic requirements of the modern enterprise system, it is the equityization of property rights, the institutionalization of the organization and the institutionalization of management. The common problem in some private enterprises in Wenzhou is that it is difficult to eliminate the contradiction between the modern enterprise system and family management. Parsons Group's lifeblood of business in a core figure who is the leader of the leather industry, the biggest reason for the fall. For Wenzhou enterprises, in the development of enterprises, we must promptly improve the system. With the increasingly fierce market competition, the establishment of the right restraint mechanism of the board of directors, the professional manager and the board of supervisors is a very important part of the transformation and development of private-owned enterprises in Wenzhou. Third, the contradiction between business-oriented development and sustainable development. Undeniably, sensitive to market opportunities, good at capturing market opportunities is a weapon of Wenzhou enterprises. But too concerned about the opportunities in the environment, it is possible to ignore the business practice strength. Wenzhou is currently facing a key from the traditional native society, business community to modern society. Enterprises should not only pay attention to the quantity of economic growth, but also pursue the quality of economic development. Profitability can not be the sole goal of business development. Only in this way can we overcome the problem of "low and small casualties" in the industry and eventually achieve the transformation of the economic growth mode and the upgrading of the industrial level.