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The dilemma of business strategy

annual selection of the world's most respected entrepreneurs in the authority of the reason is because the selection is well-known by the world nearly a thousand large companies decided to vote for CEO. We are masters of doing business, the big circle in the corporate world, who's performance how to make a good performance by any means, it is easy to understand each other, and nobody who could not cheat.

years ago, Welch was elected as the world's first CEO, a total of more than 900 companies involved in CEO selection activities. In the selection of standards, more than 900 CEO, 40% of the voters selected their business strategy as the first standard.

In essence, the world economy, not by the Heads of State, Treasury decision, but by that decision nearly a thousand large multinational corporations. CEO of these companies have confused the enterprise business strategy as the most critical success factor.

reason why business strategy is value of global business leaders, is because: First, companies do, how to do it, by the business strategy decisions. The company's organizational structure, market competition strategy, also began in earnest in business strategy. The performance of enterprises for a number of internal and external factors, the higher summer temperatures, air conditioning, usually the better the performance of enterprises; winter, the longer the duration, the lower the temperature, heating equipment sales, the better. However, a company's long-term sustainable growth, is not accidental by external factors, which depend on internal factors - that is their business strategy.

multinational CEO who value the business strategy of the second reason is that the enterprise business strategy development, there can be no ready-made copy book knowledge in the business reality, has always been faced with multiple choices, which choice is likely to be an invisible trap. Privileges, in particular, decision-makers in the intelligence and willpower test.

GE that are not related diversified businesses, business span is too great, can not use the smaller space clearly its business strategy. We chose a small span of a domestic good business enterprises - China Vanke, to explain the company's business strategy in the development of the dilemma faced by.
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Wang has always been professional as their strategic goal, the Vanke as a successful example of business and professional pride.

However, I Wanke business strategy in the research process, have found that Wang on the business blog business management strategic management sharp battle lines in the awkward environment.

specialized, diversified and in corporate strategy, the only business of that enterprise. A business is the only Real sense of

issue of economics is sometimes research industry, where the economists, it can be understood from the perspective of diversification of the industrial chain, and professional issues. But economists such studies, the implementation of business strategy, the basic no avail.

diversified business strategy, professional issues, mainly based on the enterprises in the occupied part of the business chain by doing based on the amount.

real estate business chain, including: planning and design, development, construction, renovation, sales and property management and other areas. In Western countries, all links are from different professional company to do the. The main role is to act as investors, developers, generally do not own construction, sales and property management.

and Vanke,[link widoczny dla zalogowanych], at least in the real estate business occupies the three links in the chain, namely, development, sales and property management. In this sense, Wang said, Vanke is not it, is the professional management companies. Vanke is essentially related diversified businesses.

this regard, the level of awareness of international giants is clearly much higher than domestic entrepreneurs. Intel CEO Craig Barrett recently in CCTV's Dialogue program, put Intel called the Diversified Enterprises. Intel's business has been focused in the semiconductor industry, all chips, Barrett why his company is called diverse enterprise? The reason is that Intel's chip division by function, there are three broad categories: First, the chip used in the calculations; two chips for mobile communications; third is for the network chip. These three chips are facing three different types of markets and customers, different technical standards and industry agreements.

Wang in the economic sense, rather than from the perspective of corporate strategy business structure to understand the problem, in fact, has made the strategic Vanke lost in a realm.

date, Vanke has developed more than 10 provinces in the country real estate, most recently, into the towns of Wuhan generous, in Wuchang, Hankou and Hanyang full bloom.

big money developers have been making big money,[link widoczny dla zalogowanych], easy money, the property management business is steady and small funds make money, but also takes all Vanke down. This has deviated from the principle of specialization, not a purely professional. Meanwhile, the big money to make small money, slow money, but also contrary to the concept of capital efficiency. To resolve this dilemma on business strategy, indeed the test of the wisdom of Wang and his management team. The problem lies, Wang and Vanke Management also did not realize strategic business dilemma.

a single business with a variety of business enterprises, in the organizational structure and business processes are completely different. In general, single business management can be used vertically, and a variety of business enterprises should adopt a flat horizontal structure to manage. Wang always thought Vanke is specialized enterprises, then the concept of confusion, will inevitably lead to operational chaos.

Vanke will never be assured that your real estate property management to the development of other professional companies to operate,[link widoczny dla zalogowanych], in my opinion, the reasons for not that much profit property management are attractive, but because the market are not standardized and the industry in bad faith, Vanke can trust to find a professional property management company is difficult. The quality of property management, will eventually be either positive or negative affect Vanke's brand. Vanke As a developer, should have been big money make big money, fast money, as deeply involved in property management, where it developed, it must be where to fight a protracted war. Vanke is now developing real estate in more than 10 cities, and make steady money, property management, will make the front a long time, China Vanke very long, very taut.

Vanke in ten years of operation the competitiveness of trained, mainly in two aspects, one of its brands (followed by a strong sales ability); Second, it service capabilities, its high standard of property management. If the mature market economy environment in accordance with professional standards, defined as the developer China Vanke, the sales and property management business spun off, then would lose the competitive advantage of China Vanke was erased. If Vanke continued development, sales and property management operating in three business areas, then, the existing structures and processes to face the full adjustment pressures. Vanke complaints in recent years, large areas repeatedly hit the surface, the quality and management problems, but their root causes, but it is originated from the confusion on the corporate strategy.

In fact,[link widoczny dla zalogowanych], out of the strategy to the plight of China Vanke,[link widoczny dla zalogowanych], the possibility still exists. I think, Vanke in business strategy, the focus should be on the development of this link, to keep big money make big money fast money approach; cater to the sales cycle in the near future; while a new capital strategies and local real estate professional companies to establish joint ventures, property management to achieve With a local business on the maturity, Vanke gradually completed from the holding, holdings, to withdraw from the process. The best result, Vanke property management with their own standards, develop a professional franchise Vanke, the local property management company of the chain.

economist Dr. Zhong Wei, after having read my point of view, put forward his views: property management can be spun off by MBO approach. Dr Chung is right also. Is an alternative path.

I respected entrepreneur Wang Shi, Vanke in my mind, is the rare good business. However, even excellent domestic enterprises, business strategy development, is still facing a dilemma. And our many domestic enterprises, and now the business strategy does not realize it.

2003 年 6 月