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Talking about the development of dual-star, President Wang Hai deeply touched: "If we do not actively adapt to the market and take the initiative to innovate, it is estimated that double-star shoes can only exist in people's memories now."
Strategic innovation
“Being a company must be prepared in times of trouble. If there is no forward-looking market predictability, the survival of a company will be directly threatened.†“In a fierce market competition, not being able to move forward means that you have begun to retreat.†——— — Wang Xing, President of Double Star Group
In 1983, Wang Hai began to serve as Party Secretary of the Double Star Group. Soon afterwards, Wang Hai proposed a major shift in the production layout of “out of town, go uphill, go to the countrysideâ€. For a time, the outside world's criticism and internal staff's suspicions continued. However, Double Star has firmly shifted its production lines to rural areas and urban suburbs to carry out horizontal expansion. In the following years, Double Star successively invested in the two cities of Shandong, Mongolia and Mengshan to create two shoe cities, namely, Double Star Luzhong and Erhai.
Regarding the choices at that time, Wang Hai still filled with emotion: “Being a company must be prepared for danger in times of peace. If there is no forward-looking market forecast, the survival of a company will be directly threatened.â€
A few years later, some shoe-making companies that had competed with double stars on the same stage had closed down one after another, and the market verified the original choice of Double Star. At the time, state-owned footwear enterprises had begun to fall into the predicament of the entire industry due to factors such as low manual operation efficiency and low product profit. The shift of production lines directly reduces the production cost of Double Star. This cost includes two aspects: On the one hand, the labor price in rural areas is lower than that in cities. Since the shoemaking industry is a meager profit industry, this decrease in labor costs has earned Double Star a profitable space. On the other hand, the cost of infrastructure construction in rural areas is relatively low. With the strategic adjustment, Twin Stars mobilized to develop tertiary industries such as tourism and catering in prime locations in the urban areas. This not only brought great benefits to the company, but also solved the problem of reemployment of some workers after the transfer of the production floor.
While the company is developing steadily, Double Star has felt the crisis. Wang Hai cautioned everyone: “In the fierce market competition, not moving forward means that you have started to recede.†Although the scale of the double star is even higher, it is in the low-profit footwear industry. The bigger, but the benefit growth is limited. Twins understand that they must change. How to change? Is the footwear industry further expanding? Still looking for new profit growth points? Binary chose the latter.
At that time, many companies actively launched "high-tech" projects, but Double Star chose the traditional tire industry as a new growth point. In this regard, Wang Hai has considered: “Tire and footwear belong to the rubber industry and have industrial relevance. The original technology and management foundation of the enterprise can come in handy, increasing the insurance factor for success in new industries; domestic autos. With the rapid growth of sales volume, the demand for tires has been increasing. At that time, most tire companies in China produced oblique rubber tires. The radial tire with better performance is still an emerging market, and the tire industry still has a lot of potential to tap. â€
In 1998, Doublestar set foot in the tire industry.
In March 2004, Double Star hosted Dongfeng Tire Co., Ltd. to vigorously explore the Midwest market. After that, Double Star established Double Star Zhongyuan Tire Co., Ltd., an annual output of 2 million light truck tires and 3 million inner tubes, making Double Star Tire one of the largest production bases for light truck tires in China. This is an important measure for the development of dual-star tires to large-scale and group-based development and to deal with international competition.
With the help of the Group's funds and brand, Twinstar tires have achieved rapid growth in just a few years. At present, Double Star Tire has production capacity of 10 million sets per year including the production of all-steel radial tires, semi-steel radial tires, oblique plastic load-carrying tires, agricultural light truck tires, engineering tires, inner tubes, belts, and special-purpose tires. The nationwide network of markets with good development potential has been exported to more than 130 countries and regions in Southeast Asia, Central and South America, and the Middle East.
With the double growth of all-steel radial tire sales, the overall strength of Double Star Tire ranks among the top five in the domestic tire industry.
Mechanism innovation
“When I first entered the Double Stars, I couldn’t think of the rural young people who I was in this way. One day I was able to become the director of a factory that manages hundreds of employees.â€â€”———————————————————————————————————————————————————————————————
After the enterprises went "down the mountain to the countryside" and expanded their production scale, the two stars had recruited a large number of workers from the countryside in a few short years. However, these newly recruited employees generally have a low level of education and are restricted by many aspects such as knowledge level and business skills. The old concepts such as “dare not to say, dare not think, dare not ask, or dare to do†restrict their Further improve. Twins decided to help them complete this transition.
First of all, Double Star takes wages and personnel system reforms as an opportunity to implement the same distribution system for migrant workers and urban workers. That is, all Double Stars are all contract workers, there is no “migrant workers†and “formal workersâ€, and all employees take positions. wage. The group also stipulates that the term “migrant workers†should be changed to “new-type workers†in Double Star. If they are doing well, they can also be on-shift leader and be managers of the company.
Zhou Shifeng, director of the Thermal Power Plant of the Double Star Group, told reporters: “When I first entered the Double Stars, I couldn’t think of the rural young people who I was in this way. One day I was able to become the director of a factory that manages hundreds of employees.†When the Binxing Group went to Zhou Shifeng's hometown, Yimeng old district, to build factories to recruit workers, Zhou Shifeng reported the name. Soon after he entered the Twin Stars, he realized that - as long as he entered the Double Star, everyone was on a starting line and could be promoted and reused with his own ability and hard work. This made Zhou Shifeng motivated. He devoted all his energies to the research business, and he has innovated and rebuilt equipment such as suspension conveyors, out-pressing lines, flat-rolling equipment, and self-produced towing machines to create an efficiency of nearly 3 million yuan for enterprises. He was also promoted as the maintenance squad leader and assistant to the director. In 2003, he was transferred to the Double Star Group thermal power plant as the factory manager, from a rural youth to a management backbone.
From the 1980s onwards, when more and more migrant workers entered the production line of the Double Star Group, Double Star began to gradually reform the employment system and establish an open and new employment mechanism within the company. "There are not so many farmers who have come from the farm. Without their wise contributions, there is no double star today." Wang Hai has special feelings for these employees.
"As early as more than a decade ago, Double Star focused on the concept of humanism in corporate management." Double Star people evaluate their own management mechanism innovation. Double Star's "people-oriented" management philosophy includes two aspects: First, it strengthens and perfects the individual's job responsibilities, and second, it defines each employee's individual interests.
In some companies' management systems, many people often participate in the management of a business line, which not only causes people to be overwhelmed, but also makes it difficult to identify the responsible person when problems arise, and when many related businesses cooperate with each other, they are inefficient. In Double Star, this "many-to-one" management model has been reformed into "one-to-many", that is, the direct person in charge of many businesses is a department or even a person, so that the internal management line is very clear. When the related businesses cooperated, they also changed the business coordination between different departments into business integration within the department, which not only improved the efficiency of the work, but also avoided the unclear responsibilities from the source. The clarification and strengthening of job responsibilities not only improved the management efficiency of Double Star, but also enabled the management of the company to be substantially streamlined. Now, the 50 thousand people of the Double Star Group have fewer than 50 non-productive management personnel.
In Double Star, the quality of employees' work and the size of their work performance are linked directly to their income. Every day, employees' wage income is announced, and employees are encouraged to rely on hard work, wisdom, and diligence to get rich first. For those who have made outstanding contributions, Double Star awards prizes every year. From award TVs 20 years ago to now awarding cars and award-winning housing, it has fully mobilized the enthusiasm and initiative of employees.
DoubleStar implements salesmen's contracting operations in machinery and tire companies, and awards awards on completion of contracting targets. For apparel and shoemaking enterprises, they allow internal employees to participate in shares and enjoy the dividends that the growth of the company's profits brings to the company. According to the actual conditions of the factory, they contracted each link of the workshop to individual employees and guided their employees to implement the “four-in-one†new production method of “self management, self-accounting, self-reduction, and self-reduceâ€. These practices have stimulated the employees' enthusiasm for work and the creation of passion. Employees have consciously maintained and actively repaired the machine, and have taken the initiative to improve quality and reduce consumption. The series of new income distribution reforms implemented by Double Star has stabilized the workforce, excavated the potential of employees, greatly improved production efficiency and employee benefits, and enhanced the market competitiveness of Double Star.
Marketing innovation
“Now there are double-star stores all over the country, but none of the property rights belong to the Double Star Group. Since we established these franchise stores and operated them personally, they have grown even better.â€â€” ———Shuang Xing Group, Deputy General Manager Sheng Xishun
In the initial development of the market, Double Star chose the form of a store to improve its market network. Although Double Star spent a lot of energy and money in building a nationwide store system, the market development model was successful at that time. Double Star's store sells only one brand, Double Star, leaving a deep impression on consumers; and the Double Star Store itself is an image display of Double Star. The Double Star Stores in various cities are themselves living ads. Double Star Store and Double Star Production Company belong to different departments within the system. The goods sold in the store are directly delivered from the production plant, which reduces the intermediate transaction links, thereby greatly reducing transaction costs and making the price of Double Star shoes. More competitive in the market.
In the past few years, the Twin Stars have managed to open more than 1,000 stores nationwide. When the industry's peers took advantage of Double Star to adopt the store model, Double Star sold all of its stores, and decided not to invest in newly opened stores. Instead, it established a franchise to establish and operate by individuals.
“Now there are double-star stores all over the country, but none of the property rights belong to the Double Star Group.†Facing the strange eyes of reporters, the group’s deputy general manager, Sheng Xishun, made a turn and said, “We have franchised these stores since. After the establishment of the business and the operation of the individual, they have developed even better.†When it comes to decision-making at the time, Binary believes that this is entirely a move to the market. The first is to adapt to the market development situation because “in the impact of more and more privately-owned shoe-making enterprises' flexible marketing methods, these two state-owned stores of Double Star have not taken the initiative to analyze because they are operating according to the old model. The market actively catered to the needs of consumers. At that time, almost all stores were at a loss. Second, they responded to the idea of ​​store employees and other employees within Double Star who wanted to run franchised stores: In the past few years, because of the good development of binary stars, they At the same time, it has also accumulated a certain amount of funds and needs to find an investment channel for the funds in the hands. The Double Star Stores are the ones they know best and they feel that they are the most confident in their operations. Linking the franchise to its own interests, employees believe that they can do a good job. Using this franchise, Double Star stores quickly grew from more than 1,000 to more than 5,000, and the original store sales have been greatly improved.
Wang Hai believes that franchising has achieved a win-win result. In addition to the benefit of employees in this model, it is even more beneficial to the Double Star Group: “First, the pressure on funding was lifted, and the second was to ease the management pressure on the company. "The investment to open a store needs at least 20,000 to 300,000, and a store with thousands of stars on Double Star will occupy a considerable amount of liquidity in the enterprise. This is precisely the time when the development of a certain number of Double Star stores has progressed. The reason for the slow. The scattered distribution of more than 1,000 stores, the uneven operating conditions is to bring a lot of burden to the personnel and sales management of Double Star. At that time, after Double Star had used the considerable funds vacated for the construction of other projects, the overall benefits of Double Star had improved significantly. This is equivalent to the Double Star Group breaking down the company's overall pressure. The numerous twin-star stores with a thriving business have also promoted the development and expansion of the dual-star brand in the market.
In fact, after the reform of the dual-star store model has formed a kind of internal market chain, this market chain not only has all the elements of a market economy, but also because the producers and sellers have a "seamless" Connected, the entire chain is more vital and competitive.
Wang Hai told reporters that in the process of adjusting the operating style of the Double Star Store, Double Star has been adhering to several principles: “It is conducive to the preservation and appreciation of state-owned assets, which is conducive to the development and expansion of the Double Star brand, and is conducive to encouraging employees to work hard to get rich.†This series of changes of the Double Star has achieved the effect of transforming the operating mechanism and rationalizing the relations of property rights, revitalized the state-owned assets, and greatly enhanced the vitality of the company.