Journey 1995:Non-Stop

Chapter 432 Group Management

It's conceivable that the path for refined calcium oxide will be even easier than that for polyurethane back then.

Any high-tech product will never have trouble commanding a high price. If it doesn't sell well, it's probably not a market problem, but a product quality issue. As long as you achieve analytical purity, it's impossible for it not to sell.

Moreover, since there are already sales channels for conventional calcium oxide, the company can break even in the early stages, and then gradually expand. Investing 3000 million here is not a problem; as long as the 2000 million investment in the mine makes money, that's fine.

As the bidding date approached, Yan Hui became increasingly cautious. He declined numerous dinner invitations and devoted himself to work every day, often staying in his office when he had nothing else to do.

This calm state allowed him to slowly begin to understand what Zhang Wei had told him.

He gradually realized that Zhang Wei was a very upright person who had shown him goodwill many times and was also hinting that he should not make any underhanded moves.

In this situation, the most important thing to do is to reciprocate.

However, based on the current market situation, Yan Hui's information indicated that only his company truly had the capability to bid, while others were likely just there to make up the numbers. The closer the bidding date got, the more certain Yan Hui became of the accuracy of this information.

If this information is accurate, then according to business logic, the price should be negotiated down. It shouldn't be difficult to reduce the price by several million, and ten million is possible.

Therefore, there are now two options: take advantage of the government's demand to lower prices or quote a normal price without resorting to underhanded tactics.

These two choices are difficult for any entrepreneur.

After several twists and turns and numerous revisions, Yan Hui finally decided to bid at the normal price and not engage in any underhanded tactics.

With the bidding details finalized, Yan Hui relaxed and handed over the work to the office, while he began researching concrete additives.

These past few days have been uneventful. None of the people in Yan Hui's social circle were actually involved in the bidding for this project, so no one asked him about it. The day before the bidding, Yan Hui looked at the calendar, called Sun Lei, and asked him to accompany him to the bidding process.

This project involves a large sum of money and also involves mining. Yan Hui felt more at ease bringing someone with a banking background like Sun Lei along.

On Monday, March 9th, at 6:30 a.m., Yan Hui was having breakfast in the cafeteria when Sun Lei pushed open the door, grabbed some food, and sat down opposite Yan Hui.

"Our cafeteria should be completed in May, and I'll hire a few more good chefs then. It's still too rudimentary right now," Yan Hui said with a smile.

"I work for a steel company, it's not good for me to keep coming over to eat," Sun Lei said with a smile. Actually, nobody really cared about the food, but reputation was very important.

“If we take over this mine and build the calcium oxide plant, I plan to implement group management. At that time, everyone can just come and go in this canteen,” Yan Hui said.

"President Yan is planning to implement group-based management?" Sun Lei suddenly became interested.

His biggest fear after resigning from the bank was instability. Among Yan Hui's companies, the most stable was undoubtedly the chemical company, while the least stable was the steel trading company. Therefore, if Yan Hui established a group, he could participate in more projects and make himself more stable.

Anyone who has left government-affiliated institutions, banks, or state-owned enterprises possesses this sense of crisis. "Hmm, do you have any suggestions?" Yan Hui asked.

“I have been in contact with several group companies. If President Yan wants to establish a group, the first thing to decide is whether to form a loose, unregistered group or to register with the industry and commerce bureau and formally become a group company,” Sun Lei asked.

"What's the difference? Can you explain it to me?" Yan Hui actually knew the difference, but he still wanted to hear Sun Lei's explanation.

“This is quite complicated, let me give you a brief overview. The biggest advantage of a group structure is that all resources, such as finance, human resources, risk control, procurement, and technology, can be shared. Moreover, different subsidiaries operate different businesses, isolating operational risks. Unregistered groups are only used for internal management structure and external branding. Internally, a headquarters is set up to uniformly manage finance, strategy, personnel, branding, etc., and a single brand can be used for external promotion. Registered groups, on the other hand, directly establish a corporate group and register with the industry and commerce authorities, which allows for greater uniformity. Simply put, there are many advantages and disadvantages, as Mr. Yan should already know,” Sun Lei said.

Registering a group is easy for Yan Hui now. If he registers with the business administration, he will have advantages in financing and bidding. However, the supervision will be stricter, and it will be very complicated to split up the group in the future.

"Yes, that's what I meant. I want to implement group-based management, establish an internal headquarters, and have senior executives from each branch company hold positions at this headquarters. At the same time, there will be some dedicated people at the headquarters who will be responsible for me. In the future, all companies will share resources and risks." Yan Hui sensed the inclination in Sun Lei's words.

Clearly, Sun Lei also believes that it's better not to register.

“That’s right. And being more independent will make going public less troublesome.” Sun Lei nodded.

"Going public?" Yan Hui shook his head slightly. "Going public isn't all good. Heng Hui is doing very well now and has plenty of cash on hand, so there's no need to go public. However, the future is uncertain, so we should be prepared."

"Yes, Mr. Yan, your considerations are very clear." Sun Lei nodded. The purpose of going public is to raise funds, so not all companies need to go public.

"The reason I'm talking to you about this today is to say that when the company starts planning the group headquarters, you'll still be needed to handle a lot of the overall risk control work. You should be fine with that, right?" Yan Hui looked at Sun Lei.

"Of course!" Upon hearing this, Sun Lei thought to himself, "This is exactly what I wanted to hear!"

"Don't worry, you've come with me. I never let anyone who's willing to follow me suffer a loss," Yan Hui said with a smile.

"Don't worry, Mr. Yan." Sun Lei didn't waste any more words.

After finishing their meal, the two went to the office together and moved the tender documents to Yan Hui's car.

"You drove here, so are you coming with me, or are you driving your own car?" Yan Hui asked.

"I'll drive it too; it'll show how strong our company is." Sun Lei still wanted to drive.

As subordinates, few people would truly want to ride in the same car as their boss. Besides, Sun Lei had only been driving his BMW for a few months and was still excited about it, wanting to drive it everywhere.

"Drive it if you want," Yan Hui said, not stopping him. When he first became wealthy, he even rented an Audi. Compared to that, it was perfectly normal for Sun Lei to like driving this car.

"Well, I'm not very familiar with the roads, I'll just follow you in my car."

(End of this chapter)