Family business failure cases

Not long ago, the "Cyber ??Digital Plaza" originally located on the first and second floors of the Haidian New Technology Industrial Building in Zhongguancun was withdrawn from Zhongguancun, a geomantic place, and moved entirely to the small camp of the Asian Games Village. On the north side of the building, the Silicon Valley Computer City, which is only separated from Cyber ??City by a wall, is still full of people. Why did Cyberspace, which only opened in September last year, withdraw from Zhongguancun? It is understood that Saibo has been in a state of loss since it chose Zhongguancun, and its occupancy rate and passenger flow are far behind those of Hailong, Pacific Ocean and Silicon Valley. The industry's general view on Cyber ??is that operating costs are the fatal factor; secondly, Cyber's "department-style" IT store concept is difficult to integrate with the unique business methods and concepts of the Zhongguancun business district, the so-called "Zhongguancun ecology". Cyberspace executives have admitted that the original location selection was wrong and the site was not suitable for the environment.

The Pacific Department Store located in the East Third Ring Road has been stranded and is considered by the industry to be a typical site selection mistake. "Martyrs": Cyber ??Digital Plaza, the fourth "Achilles heel" of Pacific Department Store in the East Third Ring Road, has expanded excessively

Under the pressure of the international market, Chinese companies have always had a "bigger" complex, and they strive to become bigger. Go big. So enclosure, franchise, chain. Take the pharmaceutical industry as an example. More than one commercial enterprise has claimed that it will build a chain of 10,000 stores within 5 years, that is to say, 5.5 stores will be opened every day. Based on the minimum investment of 500,000 yuan for a pharmacy, 1 billion yuan will be invested every year. At most, they only have more than a thousand stores.

The decline of "Roast Goose" is a typical case of failure due to blind expansion. "Roasted Goose" once had a glorious time. At one time, there were more than 30 chain restaurants across the country, with as many as 7 in Beijing. However, currently only a few are still operating. Lin Weicheng, the founder of "Shao Goose", was blunt when talking about the reasons for the complete failure: "At that time, when there were so many people coming to talk about cooperation, they became a little hot-headed. Thinking about it now, in fact, there was no foundation for large-scale expansion at that time, so it led to Franchise failed." In 1995, the famous "Red Sorghum" braised noodles were launched in 20 cities across the country from Zhengzhou to Beijing. Under the slogan of "copy, copy, copy as soon as possible", they went bankrupt one after another, and finally went bankrupt in 1998, with total liabilities as high as 36 million yuan. "Martyr": "Roast Goose", "Red Sorghum" Braised Noodles "Achilles' heel" - Attack from all sides

"Don't put eggs in one basket" or "Put all the eggs in" In a basket, and then be optimistic about this basket”? Obviously, Chinese companies prefer the former. It has always been difficult to reach a conclusion on whether enterprises should diversify their operations, but there is one thing: improper operation will lose the advantage of "concentrating forces" and become "attacking on all sides."

There are many companies that are pursuing multiple strategies, but not many companies have benefited from it. At present, those involved in diversified operations are mostly companies with strong capabilities and core businesses. However, the industry span is too large and is still not favored by others. For example, Wuliangye invested tens of billions of yuan to enter the computer chip industry, which means that its original talent resources, channel resources, management experience, corporate culture, etc. cannot be fully shared, and everything starts from scratch. This unrelated diversification has been questioned by many parties. Previously, its pharmaceutical, whiskey, plastic and other projects have repeatedly failed.

The cases of failure due to blind diversity should be worthy of reference: Giant, Sun God, and Vitality 28 all broke when they "put eggs in multiple baskets." After "Vitality 28" washing powder became a well-known brand in the country, Shashi Daily Chemical entered the washing machine, pharmaceutical, beer and other industries in just a few years. Since then, all projects have been delayed, and a good company is now showing signs of weakness. "Martyrs": Giant, Sun God, Vitality 28 "Achilles Heel" Six Ignored Brands

In 2002, the "Gluttonous Duck" that was once popular in Beijing, Xi'an, Jinan and other places has now long been Not much left. Industry insiders believe that neglecting intellectual property and brand protection is the main reason for its collapse.

Glutton’s Duck was first founded by Chongqing Fengguang Industrial Company. In early 2002, Gretton’s Duck was launched as a chain store across the country and became very popular. However, the word "Glutton's Duck" was not registered and protected. Instead, it evolved into a common name after being spread many times. At one time, more than a dozen brands of "Glutton's Duck" emerged one after another. The brand lost its exclusivity, causing the entire market to be controlled by bulls. Due to uneven craftsmanship, the market has become a mixed bag.

Some operators are even driven by profit to use sick ducks as raw materials for processing and production. This chaotic and disorderly competition finally affected consumers' recognition and favor of the "Gluttonous Duck" overall brand, and the brand was seriously damaged.

In the market, economic disputes over trademarks and brands are not uncommon. Many well-known companies have taken strict precautions to avoid losing their brands. For example, Haier has registered more than 500 patents around its own brands. Experts say that if there is a good product, but the brand operation cannot keep up, the product cannot develop healthily. The brand awareness of domestic enterprises has been continuously strengthened, but their skills are still insufficient. "Martyr": "Gluttonous Duck" Role Model: Haier's Seventh Achilles' Heel: Tax Evasion

There is a proverb in the West: There are only two things that are inevitable in the world, taxes and death.

As for the phenomenon that tax evasion and tax evasion are repeatedly banned in our country, some objective academic opinions believe that there are complex reasons behind this corporate behavior, and it is actually a decision made by the company based on the internal and external environment. In fact, companies can reasonably avoid or save taxes, but the prerequisite is that they cannot violate the law. Due to tax evasion, many wealthy people have become prisoners, and their companies have also fallen into crisis.

At the beginning of this year, Guangzhou Puyao Communication Equipment Co., Ltd. was suspected of tax evasion for falsely issuing special value-added tax invoices. Its person in charge, Shi Zhenghui, was arrested. This is the largest tax evasion case to date. The suspect evaded the amount of tax. Nearly 200 million yuan. Several companies in Guangzhou, Beijing, Shanghai and other places under Puyao's name have used methods such as off-book operations, setting up two sets of internal and external accounts, not issuing invoices for sales or using receipts instead of invoices, etc., to evade a large amount of taxes. At present, the company's property has been frozen, and the procuratorate will prosecute Shi Zhenghui and others.

Industry insiders believe that my country’s tax environment is undergoing qualitative changes. If we look at taxation with the old thinking, the lessons may be very painful. Enterprises should abandon the idea of ????falsifying accounts and try to make full use of tax planning and legal Run a business. "Martyrs": Eight of the "Achilles' heel" of Guangzhou Puyao Communication Equipment Co., Ltd. is Improper Employment

The 10th Entrepreneur Growth and Development Survey of the China Entrepreneur Survey System, a questionnaire survey of 3,539 business operators The results show that among the "most common problems for business operators", "improper employment" is second only to "decision-making errors" which ranks first. Improper employment has become an important factor restricting the development of enterprises.

Improper employment can take many forms, including nepotism instead of meritocracy, neglect of selecting people due to lack of trust, and backward incentive mechanisms leading to brain drain. There is only one consequence: the enterprise lacks talents and cannot form core human capital. An expert once said: Competition in technology, capital, products, and services is ultimately a competition in human resources.

The glorious Baixin Shoe Industry has developed more than 100 Baixin Shoe Store chains across the country in five years, claiming to have assets of more than 3 billion. Now there are only a few stores left, and they have been sold to others, but it is still difficult to pay off the "huge debt". According to managers who know the inside story of Baixin, "serious family management" is an important reason for Baixin's collapse. "Founder Li Zhongwen has given almost all the power of core and important departments to his relatives and friends, but there is no check and balance between them." For example, the Baixin Distribution Center is run by several "relatives", and some people take huge kickbacks. Li Zhongwen failed, but many of his relatives and friends became millionaires. "Martyr": The ninth "Achilles heel" of Baixin Shoes Industry is government-enterprise adhesion

The government is very important to the growth of any enterprise. State-owned enterprises have a closer relationship with the government, but private enterprises also have this kind of problem. Phenomenon. Enterprises are often the main source of local tax and fiscal revenue, and are also the government's political achievements and image projects; while enterprises enjoy more preferential policies in terms of loan financing and other aspects than other enterprises, and the government is often the enterprise's big supplier and customer. .

Haixin Group, a private enterprise in Shanxi that was once on the rich list (let’s not care about the specific rights and wrongs in this case), according to the "21st Century Business Herald", once had assets of more than 2 billion, but It is estimated that its liabilities are as high as over 2 billion. This company may have zero assets, and there are many speculations about its loans. Haixin is the only large company in the country that is well-known in the country. It accounts for 50% of the fiscal revenue and provides a large amount of money. Employment Opportunities.

However, many companies that were closely related to the government still collapsed. The reason was that they "encountered a confused mother." This "confused mother" can interfere with the operation of enterprises, and in order to satisfy the government's preference to "become bigger and stronger", enterprises get involved in industries that they are not good at and blindly increase investment. His family resources were exhausted and he was barely surviving. Government support is important to businesses, but support and dependence are two completely different things. "Martyrs": The ten "Achilles' heel" of Haixin Group arises from Xiaoqiang

There are countless companies established in the "gathering of righteousness" method like the heroes of Liangshan. This is also true in the IT industry with obvious high-tech components. A common pattern.

At the beginning of starting a business, loyalty was the first thing in the world. Everyone shared the joys and sorrows and shared one heart and one mind. However, the vague property rights relationship and vague distribution relationship between entrepreneurs often pave the way for internal strife among business managers. When the adverse consequences caused by these two relationships develop to extremes, there will be a scene like this: Successful Entrepreneurship At this time, several entrepreneurs began to calculate the merits and demerits and weigh the pros and cons; when the company grew, the managers of the company had disagreements about the future destination of the company; when the company began to take shape and prepared for further expansion, the company's senior management began to form a Factions, excluding each other.

When experts analyzed the reasons, they pointed out that at the beginning of starting a business, entrepreneurs expected common interests rather than common ideals; secondly, even if they had common ideals, they could not apply modern methods The enterprise system coordinates the relationship between capital and human resources, property rights and interest distribution. Therefore, the disastrous consequences of corporate internal strife are actually buried at the beginning of the establishment of the company. Internal friction can grind a company to a halt or even tear it apart. "Martyrs": Some IT companies in Zhongguancun represented one of the "Achilles' heel" and fought bravely

To this day, people still cannot forget the news that shocked the whole country in 1996: after the 66.66 million yuan in the previous year After winning the title of CCTV's "Band King", Qinchi Winery was re-elected with a "sky-high price" of 320 million yuan.

Although Qin Chi claimed at the time that the 320 million advertising investment was calculated through rigorous analysis, the cruel facts directly proved the irrationality of Qin Chi’s huge advertising investment, and Qin Chi has since faded away. Jianghu, it is still difficult to make a comeback. Entrepreneurs should have integrity and passion. However, starting and running a business is not about showing the courage of an ordinary man.

Entrepreneurs do have risk-taking in their blood, but if they gamble too much, they often lose their minds, causing things to deviate from their original intentions. In business operations, examples of irrational and aggressive behavior are common: chain stores are expanding feverishly, threatening to open 10,000 stores in 5 years; my competitors have opened 20 stores, and I will open 30; my competitors are hiring talents with an annual salary of 500,000, and I Recruiting consultants with a monthly salary of 50,000 yuan; there is even a farce of price reductions of 10 cents per catty for your eggs and 10 cents per catty for my fresh fish. The final result is that both parties are struggling to cope, and the company's vitality has been damaged from "external injuries" to "internal injuries". The assets and capital structure are seriously imbalanced until the company finally collapses. "Mr.": Qin Chi's Twelve Achilles' Heels: Going public by following the trend

Going public to raise money is very tempting for any company, but regardless of the cost, blindly following the trend of listing is really not acceptable.

Before listing, as long as the company pays taxes according to regulations, no one will interfere with the internal operations of the company; after listing, the company becomes a "public company", and everything needs to be operated transparently, and financial status must be announced regularly. The company's operating income, gross profits, profitability, investment plans and other business secrets are therefore made public. Not only will shareholders know these business secrets, but competitors will also know them, which will bring about many adverse factors. After Shenyang Feilong Pharmaceutical paid 30 million yuan in evaluation and other expenses, its listing plan finally fell through. At the same time, the government's supervision of the securities market is getting stronger and stronger, making it increasingly difficult to make money by going public with a speculative mentality. "Martyrs": The thirteenth "Achilles heel" of Shenyang Feilong lacks integrity

Many fake and shoddy products: black cotton, industrial oil and salt, moldy rice noodles, bleached vegetables, paper-shell "leather shoes", life-threatening drugs, It seems that they all have some connection with private enterprises. In order to pursue profits, some companies are reckless about the consequences. In the end, they were "fatally hit" by the government's crackdown, and the companies fell into a desperate situation.

Although the products of some companies do not belong to the "black-hearted" series, their quality is mediocre, but the companies brag about them, and their advertising slogans are endless, and their products seem to be omnipotent. This "crash" marketing strategy is understandable, but sesame seeds are not watermelons after all. Once the public is "fooled", they will spread the word about it, and soon everyone will no longer play with you, and the product will basically be finished. The phenomenon of "each taking the lead for three or two years" in the health care products and health equipment markets is a typical example.

Business tactics such as fabricating business results, falsifying corporate data, making money from listings, manipulating funds, and deceiving shareholders also occur from time to time. But it is unsafe to wrap fire in paper. Once out of control, it will definitely catch fire and burn yourself. Companies and entrepreneurs who lack integrity will not be recognized by the public and will eventually be eliminated.

"Martyrs": Some health products and health equipment companies, listed companies that make false accounts.