Tang Guliang: Five major conditions must be met for the successful transformation of state-owned w88 online casino betting into an asset-light model

(Source: "China Business News"2014-4-5 Reporter: Zhao Zheng)

Since last year, China’s economic growth has declined due to domestic and foreign factors, and the losses of most companies have increased significantly. This is not only the impact and influence of the slow recovery of the world economy since the international financial crisis, but also the contradictions between my country's long-standing imbalances and unsustainability in the economic structure and development mode under the new situation. State-owned w88 online casino betting, represented by central w88 online casino betting and state-owned w88 online casino betting, are particularly facing more transformation pressure.

As we all know, equity restructuring, management and control system transformation and business model transformation are the three major transformation topics at present, and business model transformation is studied by business schools, especiallyEMBAThe most concerning topic in education. Recently, a reporter from "China Business News" conducted an exclusive interviewProfessor Tang Guliang, Dean of the w88 casino of International Business, w88 casino, he expounded his unique insights on the business model transformation of state-owned w88 online casino betting.

The transformation of state-owned w88 online casino betting is easier said than done

As for the business model, Professor Tang Guliang believes that it should be the ability to continue to make money and the stickiness to customers. There are both connotation and denotation issues here. The difference is between light assets and heavy assets. Asset-light and asset-heavy are a set of relative concepts. If an enterprise has relatively few inventories and fixed assets, it is an asset-light enterprise; otherwise, it is an asset-heavy enterprise.

You can occupy a large market with very few assets, equipment and factories. The best representative in the international market is Apple. Apple does not have a factory, but it has maximized profits; the most typical domestic representative is Xiaomi, which has a market size of tens of billions of yuan in just a few years, but does not have its own factory.

For heavy-asset w88 online casino betting, the initial investment is generally relatively large. Whether it is airports, highways, hotels, airlines, or manufacturing w88 online casino betting, they all require huge initial investments, and subsequent operating expenses are also high. Therefore, a little mismanagement can lead to huge losses. Most of my country's central w88 online casino betting and state-owned w88 online casino betting are typical asset-heavy w88 online casino betting.

Take China’s steel industry as an example. Due to overcapacity in recent years, steel prices have dropped to1994At the level of 13164_13262|, facing heavy financial burdens and cost pressures, the steel industry is facing the problem of industry-wide losses; in the past ten years, the construction of China's high-speed railways has indeed led to the great development of the transportation industry, but the huge investment in infrastructure has brought losses and insolvency to the Railway Corporation year after year.

In contrast, asset-light w88 online casino betting generally have few bank liabilities and often form a smile curve in their development. That is, strong R&D and brand are the two ends of the smile curve of asset-light w88 online casino betting. "But state-owned w88 online casino betting are relatively poor in research and development, market development and branding, and they can't smile." Tang Guliang said.

However, in Tang Guliang’s view, the transformation of state-owned w88 online casino betting from asset-heavy to asset-light is not an easy task, and many obstacles need to be overcome. Transformation in the Chinese market is particularly difficult. China's environment is not conducive to the transformation of central w88 online casino betting. For example, state-owned w88 online casino betting and central w88 online casino betting bear more social responsibilities, such as solving a large number of employment problems. If the transformation to an asset-light model is carried out, a large number of employed people will inevitably be diverted and jobs will be reduced. This is actually very difficult. Moreover, the financing of central w88 online casino betting is generally direct financing, mainly relying on banks, while asset-light w88 online casino betting generally have no liabilities and do not need direct financing. It is also difficult for central w88 online casino betting and state-owned w88 online casino betting to achieve this.

State-owned w88 online casino betting must create conditions for transformation

Since transformation is necessary, and if you don’t transform, you will die, then how should you transform? Tang Guliang believes that state-owned w88 online casino betting must first improve their own quality and create conditions for transformation.

The first step is to change the financial conditions. There is almost no indirect financing from state-owned w88 online casino betting, which greatly challenges the company's strategy. Nowadays, most state-owned w88 online casino betting have huge accounts receivable, insufficient cash flow, and weak operating growth, both financially and business-wise. Therefore, state-owned w88 online casino betting should return to cash flow orientation and profit orientation from product orientation, and improve the enterprise's own hematopoietic ability. "The current financing-driven model of state-owned w88 online casino betting is contrary to the asset-light model." Yu Guliang believes.

The second condition to change is the brand. In Tang Guliang's view, China's large state-owned w88 online casino betting have not competed with the world500Strongly matched with internationally renowned brands. In contrast, companies such as Apple, Xiaomi, and Huawei can achieve four unifications, namely the unification of companies, stocks, products, and intangible assets. Especially brands, which are the core of intangible assets, have great influence in the minds of consumers.

The third condition that needs to be changed is technological innovation capabilities. China's innovations are basically made by private w88 online casino betting. The innovation capabilities of state-owned w88 online casino betting are seriously insufficient and basically have no innovation ability. To realize the transformation of the asset-light model and realize the smile curve from R&D to brand, it is necessary to increase investment in R&D and improve innovation capabilities.

Fourth, the layout must be based on the requirements of an asset-light supply chain. Tang Guliang believes that the acquisition of mines abroad by state-owned w88 online casino betting is actually a kind of plunder of resources, which increases the risks of the w88 online casino betting and makes management difficult. "Our state-owned w88 online casino betting need to change their mindset. They do not necessarily need to own and operate it. Owning an oil field is not as good as buying oil directly. After all, we lack supply chain technology."

In addition, state-owned w88 online casino betting also need to improve their management and control systems and capabilities. State-owned w88 online casino betting generally have deficiencies in their management and control systems and capabilities. If an enterprise can copy its own management system, it can easily achieve rapid business expansion. Currently, Vanke is also embarking on a transformation from asset-heavy to asset-light. In the future, it can only achieve profits by exporting its brand and management.

Dialogue:

"China Business News":Asset-light and asset-heavy should be relative concepts. How to clearly define the difference between asset-light and asset-heavy? How to judge whether an enterprise is asset-light?

Yang Guliang:For light assets, a comprehensive explanation and definition are needed, and the structure and configuration of assets are important indicators. I think we need to look at it from five aspects. First, the equipment, products and factories of light-asset w88 online casino betting account for a relatively low proportion of the company’s assets.OEMMainly through 19199_19388|; financing mainly relies on endogenous financing, with relatively small borrowing liabilities, and mainly relies on profits to support operations; asset-light w88 online casino betting generally have larger cash reserves, better cash flow, and more cash resources; asset-light w88 online casino betting have relatively efficient supply chain management systems; the last point is that asset-light w88 online casino betting are generally unwilling to pay dividends. Neither Microsoft nor Apple has paid dividends, and shareholders rely on capital premiums to obtain income. The characteristics of asset-light w88 online casino betting can be defined from the above five points. Only in this way can we conclude: Why should Chinese w88 online casino betting transform? What to do to succeed?

"China Business News":You mentioned that enterprise transformation requires many conditions. Does this mean that transformation is very difficult for state-owned w88 online casino betting? Is it more urgent for manufacturing companies to transform, while service companies are less urgent in this regard?

Yang Guliang:We have found in practice that w88 online casino betting need multiple conditions to transform their business models, and certain conditions must be met before they can transform. For example, if indirect financing accounts for the majority of corporate liabilities, transformation is impossible, and transformation cannot be successful all at once. In the practice of transformation, many conditions need to be further clarified, and these conditions need to be met at the same time.

All w88 online casino betting have transformation considerations, from production w88 online casino betting to service w88 online casino betting, such as banks and hotels. In the past, the model of banks was to open stores and expand outlets. The more outlets, the better. This required renting a house and purchasing equipment. Nowadays, more financial services can be completed online without going to the bank. Therefore, banks must have the support of the Internet and mobile Internet to continuously increase online banking services. This transformation is the future trend.

"China Business News":As a well-known business w88 casino in China and itsEMBAProject, you must also be researching and paying attention to the topics and cases of Chinese enterprise transformation. In this regard, have you discovered which w88 online casino betting have already started to transform their business models, or are doing better?

Yang Guliang:In the past few years, we have been paying attention to and studying corporate transformation cases, such as the transformation of Vanke Group, the transformation of Greentown Group, and the transformation of Suning and Li Ning. We are all following and studying them. The transformation of many w88 online casino betting is still in progress, and it is difficult to judge whether it is successful or unsuccessful. In my opinion, Greentown Group's transformation is relatively more successful; while Suning's transformation is not yet successful, which illustrates the challenge and difficulty of corporate transformation.

"China Business News":Business w88 casino of w88 casino and itsEMBAWhat are the main research and focus topics of the project?

Yu Guliang:Business w88 casino of w88 casino and itsEMBAThe project mainly focuses on five aspects. The first is the issue of Chinese enterprises going global and international operations, and also the entry of foreign enterprises; the second is capital operation, which our business w88 casino hasEMBACapital class, studying corporate valuation, listing, restructuring,PEand other issues; the third aspect is the research of business models. For a business w88 casino, if it does not study business models, it is not an innovative business w88 casino; the fourth aspect is financial accounting issues, such as financial transparency, financial supervision issues, and research on Chinese concept stocks being shorted in overseas capital markets; the fifth aspect is the research of innovative enterprises. In recent years, with the development of relevant courses, a number of research results have been released, and have formed a good reputation and influence in the domestic and foreign business circles.

Yang Guliang’s introduction:

Dean and professor of the w88 casino of International Business, w88 casino, special editor of "Accounting Research" and the UKCIMAResearch committee member.1995Quinipiac University w88 casino of Business, USA,2005Year Cardiff University Business w88 casino, UK and2009Senior visiting scholar at the w88 casino of Business, Michigan State University, USA. Professor Tang has long been engaged in the teaching and research of corporate financial management, management accounting, and management control systems. He has made achievements in group financial management and control, budget management, and financial strategies. He is an advocate of the company's "operator finance" theory. Professor Tang is also a member of Beijing’s “Hundred Talents Project for Social Science Theoretical Talents in the New Century”, a recipient of a government subsidy from the State Council, and a Changjiang Scholar Distinguished Professor.

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