We are all reborn, who wants to be the richest man?

Chapter 86 Possibility of entering the pharmaceutical industry

After returning to Hong Kong Island, Luo Nianzhong relaxed and spent every day shopping and walking with his two girls.

I have nothing to do to attend some banquets held by others, and of course I can't miss gathering with my friends.

This kind of comfortable life does not mean that he ignores the company. On the contrary, he is very satisfied with the current management of the company.

In mid-August, Chris hired Jack Welch, who had just been promoted to deputy director of General Electric Company, to serve as the CEO of Far East Group.

The later legendary CEO of General Electric Company was named the best company leader of this century. He gave up his position as deputy director of General Electric and chose the Far East Group.

In Chris's words, how many years do you have to serve as GM's vice president before taking charge of the company? Will you be the next leader of the company? Looking to the future, it is better to cherish the present.

At GM, no matter whether you end up in the position or not, you will be constrained by others.

But it's different in the Far East. This will give you more room for performance and less competition for power. You only need to be responsible for one person, Luo Nianzhong.

Chris' words moved him so much that he not only left his job to join the Far East Group, but even brought his wife and young son who was not in college to Hong Kong Island, which also showed his determination.

After Welch came to the Far East Group, he not only brought some of his own people, but also started his reforms.

He found that the company's system was not perfect. As a world-class large company, there were no corresponding procedures for the company's fund approval, etc. The declaration was handed over to Robert or even directly to Luo Nianzhong.

Now Luo Nian has the authority to convince everyone. What if he downplays his influence in the company in the future?
This is likely to cause a lot of troublesome things, such as corruption.

Regarding Welch's reforms, Luo Niazhong supported it with both hands.

Didn't you invite him here just to create a suitable system and efficient and useful management for Far East Group?
In this aspect, Luo Nianzhong knew how much he weighed. Although he had been a high-level executive in his previous life, he was in charge of technical aspects. As for company management, he knew himself well.

In addition to Welch, Chris also hired Deloitte's first Chinese senior executive.

It is not that simple to get this position in the four major accounting firms.

The Chinese named Li Jie served as the financial officer of the Far East Group. As for Robert, he worked for the family office established by Luo Nianzhong.

To put it clearly, Li Jie is responsible for the company's finances, while Robert is responsible for Luo Nianzhong and the Luo family's wealth.

One is in charge of the Ministry of Revenue and the other is in charge of the Ministry of Internal Affairs.

It seems that there is no difference now, but as more and more of his companies are listed on the market, the difference becomes prominent.

As for the human resources and legal departments, they are still run by Chris and Jason.

In addition to personnel and administrative arrangements, in terms of career, Yunhua Investment has also been divested from the group and will be managed by the family office in the future.

After completing this series of arrangements, August has quietly ended.

Looking around the small room in the Far East Group President's Office, Luo Nianzhong looked at Welch who was going to get a cigar and said.

"Sorry, the office is a bit small, and there isn't even a break room.

However, the construction speed of our headquarters is pretty good, and I believe we can move the company there early next year.”

Two days ago, Luo Nianzhong went to the construction site of the Far East Group headquarters to inspect.

Newbijian told him that the seven main buildings have basically been capped and have now entered the renovation stage. There will be no big problem in completing the renovation by the end of the year, and they will be able to move in almost next year.

Luo Nianzhong didn't feel anything about Niubijian's satisfaction with the construction speed.

Originally, the floor was not high, and it was built by multiple engineering teams at the same time. Luo Nianzhong did not feel that the speed was much faster. After all, he had seen every floor in the future.

He took out two cigars from the cigar box and handed one to Luo Nianzhong. Welch sat diagonally next to him and made an indifferent expression.

"I'm here to work, not to rest. Of course, having a bigger and more luxurious office does make people feel better."

"Well, it seems that I, the boss, care about my employees in the wrong way."

Coupled with Luo Nianzhong's slightly aggrieved expression, this sentence made both of them laugh.

After laughing, Welch stood up and walked to his desk and took a stack of documents from it.

After coming back, he handed the top copy to Luo Nianzhong.

"This pharmaceutical product research and development report was submitted by Li Xiang today. I want to know, is this true? Are you confident about the finished product?"

After saying this, Welch stared at the expression on Luo Nianzhong's face, as if he wanted to see some clues and expected Luo Nianzhong to give him the answer he wanted.

Luo Nianzhong took the document, looked at the latest research and development data, and smiled, "It seems that the progress is not bad."

"Is this true?" Welch exclaimed.

Luo Nianzhong didn't say anything. He shook the documents in his hand and said, "Didn't you see them all?"

Welch took the document and gasped, "Do you know what this means? This will make us one of the most profitable pharmaceutical companies in the world."

“The pharmaceutical factory under Watsons is too small, and it cannot be considered a pharmaceutical factory, at least in my opinion.

We need to find a research institution worthy of this miracle drug."

Luo Nianzhong felt a little sad when he said this. Aren't all the small pharmaceutical factories in Hong Kong like this?

It's also because Luo Nianzhong doesn't understand the pharmaceutical industry. Those factories that he thinks are small pharmaceutical factories are just some family-style fake pharmaceutical factories. In order to facilitate running away at any time, they don't have many pharmaceutical equipment at all.

Luo Nianzhong didn't know this, so he just bought a small factory and used it for Watson's research and development.

"We should acquire a big pharmaceutical company, and we have the funds." Welch stared at Luo Nianzhong and said.

Luo Nianzhong hesitated and spread his hands.

"You should know our plans in the island country, which will require a huge expenditure."

"So what?" Welch didn't care at all.

“We promised Fuji Bank that we would loan them a large sum of money to fund this project.

As for other investment expansion plans, there is no need to spend so much money at once.

Moreover, the company is generating huge profits every day, and we have no problem even if we acquire a big pharmaceutical company with our money.”

Faced with Welch's explanation, Luo Nianzhong still did not agree. If it was as Welch said, then the company's cash flow would not be much.

Today's companies don't realize the importance of cash flow, but Luo Nianzhong does.

He still has many plans that require large sums of money, but he can't talk to Welch yet.

Seeing that Luo Nianzhong didn't speak, he fell silent.

Welch then said, "Boss, our group has no debt and is unhealthy."

This is the theory in Europe and the United States. In their view, money should be used to generate money. Companies can use their shares to lend large sums of cash. This money, whether used for development or new industries, is more valuable than leaving it alone.

Just leave it alone, a company without debt is like a large gold brick. Whether the price of gold rises or falls, it has nothing to do with the company itself, because it will not be sold.

So why not take this gold brick and lend some of the money to develop more industries? Just control the amount of debt.

This is the theory of Europe and the United States, and this is how their companies implement it.

You will find that many large companies will not take the initiative to repay debts no matter how much profit they make, but instead choose to pay large dividends.

Sometimes the debt is less and even more loans are borrowed. What for? Even using other people's money to develop yourself is also a debt transfer. Capitalists transfer all risks to the people through a series of reasonable operations.

As long as you owe enough money, even the bank will not dare to let you go bankrupt easily, and will try its best to save you.

Luo Nianzhong thought about Welch's words and felt that there was nothing wrong with what he said. He should seize the opportunity when he got it.

And with his prophetic ability, he can not only avoid all crises, but also raise funds when necessary. Now it depends on whether Welch can impress him

"Tell me which pharmaceutical company it is." Luo Nianzhong asked.

Although Welch didn't say anything, Luo Nianzhong knew that he had found the target.

Sure enough, Welch handed the second piece of information in front of him to Luo Nianzhong.

After receiving the handed document and turning the first page, Luo Nianzhong's eyes bulged because the names of the two companies written on it shocked him so much.

One is Bristol-Myers Squibb, and the other is the famous Pfizer.

Luo Nianzhong doubted how two such companies could agree to be acquired.

He continued reading according to his temper. The more Luo Nianzhong looked at it, the more feasible this plan became.

Let’s talk about Bristol-Myers Squibb first. Currently, Bristol-Myers Squibb is ranked higher than Pfizer in the pharmaceutical field, ranking among the top fifteen in the global pharmaceutical industry all year round.

It is a global leader in the research and development of cardiovascular diseases, metabolism and infectious diseases, central nervous system, and skin diseases. In particular, its anti-cancer drugs are at the forefront of the world's pharmaceutical industry.

What Luo Nianzhong didn't expect was that among the subsidiaries of this company, he also discovered a familiar brand, Mead Johnson, which could complement Watsons well.

Except for Mead Johnson, the rest is a medical device company, but it is not a large device, but some gadgets, such as braces and dental implants.

Continuing to scroll down, after reading Pfizer's introduction, Luo Nianzhong did not expect that the future number one pharmaceutical company in the universe would be in such a miserable state.

Now, the only thing that can be considered top-notch about this company is its promotion channels and oxytetracycline. Most of its previous brilliant patents have expired.

However, if you think about it, you can understand that Pfizer's two major drugs have not been released yet, so there is no funds to provide them with various mergers and acquisitions.

According to the data, Pfizer developed oxytetracycline in 1951. Oxytetracycline can treat more than diseases including pneumonia, which brought Pfizer back to its peak.

It was also during this period that Pfizer pioneered the medical representative model and used huge profits to start a marketing model.

For example, large advertisements in medical magazines, free newspapers and magazines mixed with various Pfizer pamphlets, hiring writers, publicizing them all over the world, pretending to be patients who said they recovered after taking its medicine, and asking medical representatives to go to hospitals and clinic carpets Promotional sales, etc.

It is because of the large amount of money invested during this period that Pfizer's promotion channels have become its trump card.

Unfortunately, since oxytetracycline, Pfizer has been slow to develop new drugs, invested a lot of public relations funds, and coupled with the control of the US government, they made the most disgusting decision and started non-related diversification.

Between 1961 and 1964, Pfizer acquired 14 daily consumer goods companies, producing products such as eye drops, soaps, perfumes, and skin care products.

However, in the daily chemical market at that time, Johnson & Johnson was the real leader in this type of products, and it is conceivable that the results were not much better.

Although Pfizer was still among the top 20 pharmaceutical companies at the time, it seemed a bit big but not strong due to its diversified development.

It was also during this period that Pfizer missed the opportunity to seize the lead and build barriers in the biopharmaceutical field.

Until now, Pfizer is still relying on oxytetracycline to support the company and survive.

Seeing this, Luo Nianzhong lamented that things in the world are confusing.

If it hadn't been for an accident in the 90s and the discovery of the little blue drug, Pfizer would probably have gone bankrupt or been acquired in less than two thousand years.

I guess none of Pfizer’s dreams would dare to do this now, right?
After closing the document, Luo Nianzhong was really moved.

Mainly acquired these two companies and led their merger. Together with the drugs currently developed by Watsons, this company will instantly become a top five presence in the pharmaceutical industry.

Moreover, in the beautiful country, the pharmaceutical alliance has one of the best penetration and influence on the government. Such invisible assets are of great help to Luo Nianzhong.

"How will the government solve the problem?" Putting the information on the table, Luo Nianzhong asked Welch for his opinion.

"It's very simple. The beautiful country now has no restrictions on Hong Kong Island at all, and there is no problem with foreign acquisitions.

The only difficulty is the influence within the country. Politicians in the beautiful country’s government will definitely come out to obstruct it.

However, we can also let the Xiang Party counterattack on this matter, that is, everything is for the recovery of the beautiful country's economy.

With the Xiang Party helping us, I believe the problem won’t be big.”

"What about the shareholders of the two companies? How to convince them to merge, and we still hold the majority."

Just because the economy is bad and profits are bad, it doesn't mean that the two companies will sell.

No matter how you say it, they are among the top 20 companies in the global pharmaceutical industry, and their influence is still a plus.

As long as it is not about to go bankrupt, it is generally difficult for shareholders to sell without lack of money.

Welch picked up the first piece of information and said, "Just because we have this, they're bound to give in."

In fact, the most difficult question is the medical alliance of beautiful countries. Whether they will accept us is a question, but this most difficult question is obviously not a problem for you."

"Because of Chris?"

Welch smiled.

Luo Nianzhong was also puzzled, because one Chris obviously couldn't achieve such an effect. The only explanation was that the DuPont family was also involved.

This was also something he couldn't figure out, why Welch was so sure that Chris would help, and how he got DuPont to agree.

Since he couldn't figure it out, he simply stopped thinking about it. If Welch wanted to say it, he would have said it long ago.

Picking up the coffee and toasting Welch in the air, "It seems that asking you to manage the Far East Group may be the most correct personnel decision I have ever made. I didn't expect you to find a new development direction for the group so quickly." .

"No, I didn't find him. I just made him bigger and stronger based on you."

After taking a sip, Welch put down his coffee and his expression became serious.

"To be honest, through my understanding of the company during this period, I feel that you are laying a big net.

Although I don’t know what your ultimate goal is, I believe that Far East Group will definitely leave a mark on the world.”

After saying that, Welch showed a yearning expression, "By then, I also hope that I can become the best manager in history."

Seeing Welch's appearance made Luo Nianzhong deeply moved.

Just like seeing people who do good things reminds him of Lei Feng, Welch now makes him feel that this person was born to manage enterprises.

"Don't worry, you will definitely become an example that all management talents must learn from, just like a textbook, believe me."

"Ha ha ha ha". Welch laughed happily. "If that happens, I will definitely write an autobiography in my later years."

"Okay, if that's the case, do you mind if I write you a preface?"

"Do you think you can escape?". The two laughed again.

If an outsider saw the state of the two of them, it would be difficult to believe that the two of them had a superior-subordinate relationship that they had just known each other for less than a month. They were more like old friends who knew each other and had not seen each other for many years.

It's so weird sometimes, it's just sympathy.

(End of this chapter)