Development :Development is the eternal theme for an enterprise
Time:2016-01-03 11:08:35 From:
Development is the eternal theme for an enterprise and is an essential way to overcome difficulties and solve problems. We should, over the course of progression, solve the existing problems for greater development and to achieve the spiral rise of the enterprise.
Deng Xiaoping, known as the architect of China’s reform and opening-up, said that “development is the absolute principle”. This is true for China, and even more true for enterprises. Development is our eternal theme and priority as well an essential way to overcome difficulties and solve problems.
●Hiking’s previous practices once again proves that development is the absolute principle.
At the beginning of the establishment, Hiking Group was only an international trading company with scarce resources and capital, just like a blank sheet of paper.
Facing difficulties and pressures, Hiking Group, instead of stepping back, adhered to the development goal and forged a new world through reform and innovation. To address those inherent disadvantages of state-owned enterprises in corporate governance, we made great efforts to establish a new managing structure in correspondence to the requirements of the market economy. To change the reality of being a low-added-value part in the industrial value chain, we have “gone abroad” by acquiring local marketing/sales channel and brands in order to reposition ourselves as a high-value-added part. To diversify our business, we constantly explored new business segments, cultivated new profit-generating business to strengthen the Group’s capabilities in dealing with potential risks.
At the same time and under the guidance of entrepreneurial spirit, we seized many precious development opportunities and became the first provincial foreign trade enterprise completing privatization, the first provincial foreign trade enterprise completing IPO in Shanghai Stock Market. At present, we are working diligently to promote the digitalization of traditional foreign trade, develop new business model and eco-system in order to continuously add new competitive edges into our core competency.
Experiences have proven numerous times that development is the absolute principle. Over the course of development, we would be able to provide inexhaustible power for this train to keep moving forward. We would be able to grow our business and enhance our market competitiveness, solidify the common foundation that all Hiking employees will be able to achieve their life goals.
●Solve the problems over the course of development
It is stated in the Art of War by Sun Tzu that “The onset of troops is like the rush of a torrent which will even roll stones along in its course”, which indicates that in the torrential water, a heavy stone will float, while in the still water, the stone will sink. All problems may surface only when an enterprise maintains a rapid development torrent; otherwise, the problems may be hidden.
Development is not always smooth where all you needed would be available for you like sun, rain, mild wind and drizzle. Development is, on the contrary, about fighting in the stormy seas and forging ahead in the thorns. Only after experiencing the phoenix nirvana can one be reborn from the ashes. It is a widely accepted fact that enterprises would encounter all kinds of difficulties over the course of its operation, and no enterprise will not always enjoy smooth sailing in the process of its growth. The larger an enterprise is, the more difficulties it encounters, the greater the pressure will be on its shoulders.
It is normal to encounter difficulties. When facing of them, instead of holding back, we should deal with them from a developmental perspective, and solve existing problems in business from innovative and developmental viewpoint. This is a very effective way. After the old problems are solved, new problems will continue to arise, which requires us to continue to solve them through innovative development. This process repeats itself in circles and the enterprise will realize a spiral rise. We should solve problems of the enterprise arising from the development and achieve greater development by solving the problems.
●High-quality and sustainable development requires awareness of the changes and willingness to change with it.
The times are changing, the situation at home and abroad is changing and the definition and nature of development is constantly enriched and improved. If an enterprise wants to have a long-lasting business foundation, its strategy should comply with the trend of the times, and its strategic directions should conform to the national strategies and the needs of the people. Only by keeping pace with the times can an enterprise achieve sustainable development.
At present, we are under the macro background of great changes unseen in a century: The wave of the digital economy is sweeping; China has become an all-round moderately prosperous society, and is stepping up efforts to foster a new development paradigm with domestic circulation as the mainstay and domestic and international circulations reinforcing each other. Meanwhile, in the process of rapid development of the Group, the internal situation will also face great changes. All this requires us to deeply understand the development trend, not to stick to the convention and especially not to refuse changes.
We should always keep in mind that development is an eternal theme, and constantly review and judge the internal and external environment faced by the enterprise. Besides, we should work to establish an internal mechanism that can promote the enthusiasm of employees, strengthen the bond of employee with company, and inspire their creativity by optimizing the organizational structure and governance. This will create a great mechanism in the company that encourages the spirit of “fighting the norms, being inclusive and open minded, striving to be a top performer”. As long as an initiative is for the development of the company, we should set free our mind and try fearlessly to achieve a higher-quality, more efficient and more sustainable development of the Group.
●High-quality and sustainable development requirements strategic guidance.
In absence of a holistic consideration, any actions would be impracticable and meaningless. Without a long-term strategy, short-term achievement is unsustainable. Only by standing high can we see far. Enterprises must predict and evaluate the future situation and formulate long-term strategies to gain a firm foothold in the fierce market competition and achieve sustainable development. “Whenever you see a successful business, someone must have made a great decision” Drucker, the father of management, demonstrated this exactly.
Since its foundation, Hiking Group has attached great importance to the strategic planning and has been making strategic development plan every five years. These high-level, extensive directional mid-to-long-term plans are not only the fundamentals for annual planning and intensive planning, but also the foundation and stepping ladder to realize the long-term goals and visions. They have played a pivotal role in the development of the Group.
At present, after several years’ of evolvement, the Group has established a strategic structure incorporating international trading, elderly care and advanced materials, amongst which international trading is the main business . Each of our strategic adjustments is a decision made on the basis of the in-depth study of the domestic and foreign economic trends and the national strategy of the Government. This layout have become an important guide for the future sustainable development of the Group.
●High-quality and sustainable development requires strengthening risk awareness.
Big companies always have strong abilities in risk control and crisis management. Ren Zhengfei, the founder and CEO of Huawei Technologies, has been emphasizing for many years that “only those who have the ability in risk control can survive”. Haier’s five awareness, being quality awareness, market awareness, user awareness, brand awareness and service awareness, all come from the essential awareness of risk and crisis.
The development of an enterprise is not a smooth journey. It is normal to face various risks and challenges, so we need to maintain a keen awareness of the external environment all the time. The larger a company’s assets becomes, the more business units it will have , the longer the management chain it will have, the more it needs to strengthen its ability in risk management. Since its foundation, the Group has clearly stated the order of importance for development: risk management first, profit generation second, revenue the third. Over the years, we have strictly followed this principle. Risk awareness requires us to be prepared for potential crisis when our businesses are in prosperity, to stay humble and plan for the unexpected. Only in this way can we keep growing and never stop in the face of down turns.
