Save oneself, bar up responsibility, know the danger
In the last section, we talked about Fuyao Group’s acquisition of shuangliao Float glass Factory, which was not well run and owed 600 million yuan. After bankruptcy restructuring, the old factory was revitalized. Since then, Fuyao Group also had its own float glass production line, and the enterprise developed further.Ok, today, let’s look again at what companies do when their employees are in trouble.When the company itself faced with crisis, and how to prevent and deal with?One day in 2007, Mr Cao got a call from A new graduate in the firm’s Beijing office in Gleason, Hebei province, who had been hired as an intern two months earlier. The trainee had fallen ill while visiting relatives, and tests showed he had leukaemia.The family is too poor to be hospitalized.Mr. Sang said the student was only working as an intern at the Beijing company and had not yet officially registered or signed a contract with the company.I would like to ask Cao Dewang, would you consider helping this student?Cao Dewang told sang, immediately send interns to medical treatment, all costs paid by the company.Sang always said, “But tens of thousands!”Cao Dewang said, “That too should be treated.People who have nothing to do with the company should give a hand when they encounter difficulties, let alone our own interns!”Not a few days later, Sang called again, said the intern’s illness is quite serious, the doctor said at least 500,000.”Even when people are in hospital, why care how much money they spend?Isn’t that superfluous?”It turned out that the sick intern was named Tian Jun, a countryman in Hebei province who had no father and was dependent on his mother.When he first entered Beijing company as an intern, he was serious and active in work. He was a simple and diligent child.Unexpectedly break out leukaemia when holiday goes home, local cannot treat, proposal goes to Peking University first hospital.But the family did not have money, mother and son hugged their heads and cried, thinking that they could only wait for death, the company knew this news, after cao Dewang’s clear instructions, quickly arranged for Tian Jun to be hospitalized.Then, fuyao Beijing company sang general line, rushed to the first hospital of Peking University, find the attending doctor to understand the condition and treatment of Tian Jun, the doctor told them that the treatment will last about a year, the total cost of at least 7, 800 thousand yuan.￼ fuyao Beijing company to the leadership of the hospital said, to save Tian Jun life, cost of treatment company take all.Then they visited Tian in the ward and told his mother to take care of herself.As soon as the words fell, Tian jun’s mother fell to her knees with tears in her eyes and didn’t know what to say to express her gratitude.Fortunately, the bone marrow provided by Tian Jun’s sister was successfully matched with Tian Jun.Tian Jun actively cooperate with the treatment, performance is very strong.A year later, Tian jun was discharged from hospital and returned to the company to a warm welcome.This matter let the hospital doctor feeling extremely, he said, Tian Jun so young to get this disease, it is very unfortunate.But he was lucky enough to have a bone marrow match with his sister, and his life went on.However, he was most lucky to have such a good company and such a good boss.You know, many patients died regretful because of lack of money for treatment, many units learned that employees were ill and ignored, but Fuyao company can do such a kind act, is really a model of Chinese enterprises!A good entrepreneur, says Mr Cao, has the wisdom to gauge the new direction accurately.He likes reading all kinds of newspapers and magazines, listening to the news in time, collecting and digesting the information from the media, so as to predict the future trend.In the second half of 2006, Cao Dewang surveyed many export enterprises and found signs of increasing friction between China’s export trade and foreign countries, which gave him a strong sense of crisis.In December 2006, Cao Dewang, on behalf of Fuyao Group, issued a crisis warning to all employees and introduced four measures.First, pay close attention to the construction of cleaning up, stop all expansionary investment, promote cash flow.Second, comprehensively clean up receivables and strictly control risks.Third, be prepared to close unprofitable or loss-making businesses if necessary.Fourth, improve product quality, reduce costs, and promote fine management.In 2007, The Gleason Group held a training conference on fine management.Cao Dewang was on hand to mobilize.He made a comprehensive analysis of the current situation and reminded the staff that there would be a crisis in three years, so the production cost, management cost and marketing cost must be reduced as soon as possible. Thus, the group launched a series of self-innovation activities.In 2008, China hosted the Olympic Games for the first time.At that time, the economic situation seemed to be good, so the financial department of the group proposed to Cao Dewang the proposal of issuing additional shares.But Cao dewang disagreed, arguing that Chinese stocks would plummet after the Games.The next day, Cao dewang held a management meeting and announced his intention to close four construction-level float lines.At the time, there was no consensus among management on his views.After the meeting, the secretary of the board of directors and the chief financial officer came to Cao Dewang and asked him if he still remembered the betting clause in the share reform.Cao dewang remembers, of course, that under the terms of the bet, major shareholders promised 30 per cent annual profit growth for three consecutive years after the reform.If not, major shareholders will have to chase one share for every 10 shares.The secretary of the board and the chief financial officer told Cao dewang that they had calculated that if four construction-grade float lines were shut down and impairment provisions were made, major shareholders would have to chase 70 million shares.According to today’s market value, it is about 2.2 billion yuan, because it involves the loss of 2.2 billion yuan of Cao Dewang’s personal assets, and they hope he will seriously consider it.Protecting the interests of big shareholders should be a priority for the firm, says Mr Cao without hesitation.No matter how big the loss, the majority shareholder must fulfill his promise, which is a personality problem.If you lose your personality, you can never get it back.At the next meeting, cao Dewang told everyone that from the point of view of corporate interests, the best time to close down invalid assets is when the company’s profit is good, when the profit is high, and the impairment is not important.If wait until the enterprise appears difficulty, again reduce value plan to carry, that burden is too big, may become the last straw that breaks camel.In addition, from the current situation of the country, the central government has stressed the elimination of backward production capacity. Since the group already knows what overcapacity exists, it should respond positively.If everyone does not carry out the decisions of the central government, what is the future of the country?Therefore, Cao Dewang insisted on making the decision to close down and eliminate the low-efficiency enterprises one by one.After the Olympics, as Cao dewang puts it, stocks began a freefall, falling as low as 1,664 points in October.At this time, the management of Fuyao realized how serious the situation was and how necessary it was to arrange the rectification in advance.To this day, Cao dewang recalls the history and is still proud of his actions.2.2 billion won is a lot of money, but it did not buy his personality.