The NVC that the employer could not buy
Before the rebellion, Wu Changjiang had no absolute right to speak on the shareholding structure.
NVC, which is listed in Hong Kong, has the largest shareholder Saifu holding 18.48%, and the third largest shareholder, Schneider, holds 9.2%, which together exceeds Wu Changjiang's 18.41%.
At the beginning, Wu had tried his best and turned his face to drive away the founding partners who occupied the company's big head. This shows that this person attaches importance to the controlling power. Why is the company gradually diluted and become a minority shareholder?
Now everyone knows the answer: In addition to the shares, Wu Changjiang has another chip to fight and bargain with the capital. This is the channel, the core value of NVC.
The leader of Saifu has repeatedly thought that Wu Changjiang is engaged in “value transferâ€. The so-called transfer target is the channel of NVC. If you, Saifu, Schneider, and Goldman Sachs eat into the stock to control the board of directors, as long as the channel and Wu Changjiang are a community of interests, it is a heart, Wu Changjiang has a flop of chips.
It is this well-known that Wu Changjiang will be so bold in allowing the capital to continuously inject capital and take control of it, which is unfamiliar to the employer. Although Wu Changjiang is acting like an idiot on financing issues, in the industry issue of NVC Lighting, just as Wu Changjiang said, "Nobody knows better than him."
He knows how to use "righteousness" and "profit" to tie the dealers firmly together, and even to become a spokesperson for the interests of dealers. This makes Wu feel that Wu Changjiang is a bit "eat and climb outside."
I only know that Wu Changjiang engages in "value transfer" and sees the phenomenon of the problem, but does not see the essence - from the perspective of the employer, the acquisition is the enterprise, and the distribution team is only the auxiliary of the enterprise, therefore, on behalf of In the view of the board of directors of shareholders' interests, Wu Changjiang has some “eat and climb outsideâ€; in Wu’s eyes, the distribution team is the “li†of the enterprise, and the board of directors representing the interests of the employer is “outsideâ€.
As far as the essence of business operations is concerned, Wu Changjiang sees more thorough than the employers.
Transaction costs that cannot be ignored
A complete enterprise consists not only of “inside†assets such as production materials, factory rent, management team, but also “external†assets of all facilities and teams under the distribution system.
The “internal†assets of an enterprise mainly include the “production cost†of the production of the product, while the “external†distribution system of the enterprise is related to the “transaction cost†of the enterprise – selling the goods to consumers through a dense sales network.
Production has costs, and there are costs to sell. This sales cost is the "transaction cost" proposed by the new institutional economist Coase. Of course, "transaction cost" includes not only the cost of the seller, such as the establishment of the distribution system, the platform, personnel, management, service costs, and the cost of the buyer, in order to achieve the transaction, such as: the convenience of purchase, easy Screening, trusting, spending less time thinking, etc., in other words, the words "you have to buy me"!
The current rapid decline in e-commerce is due to the significant reduction in transaction costs. In addition to eliminating the cost of renting a store in a physical store, the e-commerce can save money to consumers. Consumers can also save time in physical stores, select products through similar rankings and user evaluation records, and save time and labor costs for consulting products.
Most domestic companies pay attention to the control of “production costs†and ignore the control of “transaction costsâ€.
A complete enterprise must be built around “production costs†and “transaction costsâ€. Only those who have “production platforms†and “transaction platforms†are called enterprises. This is the essence of the enterprise.
Therefore, do not regard the distribution system as the outside of the enterprise, it is the core resource of the enterprise.
The Enlightenment of Hong Kong's "Running Single Gang"
Coase stated in the book "The Nature of Business" that the nature of an enterprise consists of two points. The first is to control production costs, and the second is to control transaction costs.
Hong Kong's "running singles" in the 1960s was a group of individuals between the European and American markets and Hong Kong processing plants, but these individuals already have the nature of a business. He has to overcome the "transaction costs" of different clothing needs in the European and American markets: Spend time and effort to collect many orders, and distribute different orders to many small plus workshops, and control production costs and monitor product quality.
Although “running single gang†is an individual, it is essentially a micro-enterprise, completing the two core parts of the enterprise – production cost control + transaction cost control.
In this sense, most companies in China are processing plants, not companies. Only companies with production capacity are at most half a company, not a complete enterprise.
Most of the time, companies and distribution systems are mostly partnerships, not affiliations, which makes us less accustomed to see the distribution system as an important part of the business. Unless this distribution system is directly controlled by the company, we always regard the distribution system as “the periphery of the enterpriseâ€.
The acquisition of NVC by the employer is actually half of the acquisition of NVC, which is the “internality†of the enterprise, and Wu Changjiang also holds the channel of “the externality†of the other half of the enterprise.
Many people regard Wu Changjiang, the enterprise side, as a victim of the wolf's entry into the room. I don't know if it is the victim of this out-of-control situation for the employer.
The victim’s victim is that he does not understand that the “externality†of Chinese enterprises is even more important than the “internality†of the enterprise. The employer mistakenly believes that controlling the “internality†of the enterprise controls the enterprise, and the fact is that the enterprise’s “externality†Sex is the core resource of an enterprise. Especially for industrial capital like Schneider, it is equivalent to buying half of the commodity at full price.
Before the rebellion, Wu Changjiang had no absolute right to speak on the shareholding structure.
NVC, which is listed in Hong Kong, has the largest shareholder Saifu holding 18.48%, and the third largest shareholder, Schneider, holds 9.2%, which together exceeds Wu Changjiang's 18.41%.
At the beginning, Wu had tried his best and turned his face to drive away the founding partners who occupied the company's big head. This shows that this person attaches importance to the controlling power. Why is the company gradually diluted and become a minority shareholder?
Now everyone knows the answer: In addition to the shares, Wu Changjiang has another chip to fight and bargain with the capital. This is the channel, the core value of NVC.
The leader of Saifu has repeatedly thought that Wu Changjiang is engaged in “value transferâ€. The so-called transfer target is the channel of NVC. If you, Saifu, Schneider, and Goldman Sachs eat into the stock to control the board of directors, as long as the channel and Wu Changjiang are a community of interests, it is a heart, Wu Changjiang has a flop of chips.
It is this well-known that Wu Changjiang will be so bold in allowing the capital to continuously inject capital and take control of it, which is unfamiliar to the employer. Although Wu Changjiang is acting like an idiot on financing issues, in the industry issue of NVC Lighting, just as Wu Changjiang said, "Nobody knows better than him."
He knows how to use "righteousness" and "profit" to tie the dealers firmly together, and even to become a spokesperson for the interests of dealers. This makes Wu feel that Wu Changjiang is a bit "eat and climb outside."
I only know that Wu Changjiang engages in "value transfer" and sees the phenomenon of the problem, but does not see the essence - from the perspective of the employer, the acquisition is the enterprise, and the distribution team is only the auxiliary of the enterprise, therefore, on behalf of In the view of the board of directors of shareholders' interests, Wu Changjiang has some “eat and climb outsideâ€; in Wu’s eyes, the distribution team is the “li†of the enterprise, and the board of directors representing the interests of the employer is “outsideâ€.
As far as the essence of business operations is concerned, Wu Changjiang sees more thorough than the employers.
Transaction costs that cannot be ignored
A complete enterprise consists not only of “inside†assets such as production materials, factory rent, management team, but also “external†assets of all facilities and teams under the distribution system.
The “internal†assets of an enterprise mainly include the “production cost†of the production of the product, while the “external†distribution system of the enterprise is related to the “transaction cost†of the enterprise – selling the goods to consumers through a dense sales network.
Production has costs, and there are costs to sell. This sales cost is the "transaction cost" proposed by the new institutional economist Coase. Of course, "transaction cost" includes not only the cost of the seller, such as the establishment of the distribution system, the platform, personnel, management, service costs, and the cost of the buyer, in order to achieve the transaction, such as: the convenience of purchase, easy Screening, trusting, spending less time thinking, etc., in other words, the words "you have to buy me"!
The current rapid decline in e-commerce is due to the significant reduction in transaction costs. In addition to eliminating the cost of renting a store in a physical store, the e-commerce can save money to consumers. Consumers can also save time in physical stores, select products through similar rankings and user evaluation records, and save time and labor costs for consulting products.
Most domestic companies pay attention to the control of “production costs†and ignore the control of “transaction costsâ€.
A complete enterprise must be built around “production costs†and “transaction costsâ€. Only those who have “production platforms†and “transaction platforms†are called enterprises. This is the essence of the enterprise.
Therefore, do not regard the distribution system as the outside of the enterprise, it is the core resource of the enterprise.
The Enlightenment of Hong Kong's "Running Single Gang"
Coase stated in the book "The Nature of Business" that the nature of an enterprise consists of two points. The first is to control production costs, and the second is to control transaction costs.
Hong Kong's "running singles" in the 1960s was a group of individuals between the European and American markets and Hong Kong processing plants, but these individuals already have the nature of a business. He has to overcome the "transaction costs" of different clothing needs in the European and American markets: Spend time and effort to collect many orders, and distribute different orders to many small plus workshops, and control production costs and monitor product quality.
Although “running single gang†is an individual, it is essentially a micro-enterprise, completing the two core parts of the enterprise – production cost control + transaction cost control.
In this sense, most companies in China are processing plants, not companies. Only companies with production capacity are at most half a company, not a complete enterprise.
Most of the time, companies and distribution systems are mostly partnerships, not affiliations, which makes us less accustomed to see the distribution system as an important part of the business. Unless this distribution system is directly controlled by the company, we always regard the distribution system as “the periphery of the enterpriseâ€.
The acquisition of NVC by the employer is actually half of the acquisition of NVC, which is the “internality†of the enterprise, and Wu Changjiang also holds the channel of “the externality†of the other half of the enterprise.
Many people regard Wu Changjiang, the enterprise side, as a victim of the wolf's entry into the room. I don't know if it is the victim of this out-of-control situation for the employer.
The victim’s victim is that he does not understand that the “externality†of Chinese enterprises is even more important than the “internality†of the enterprise. The employer mistakenly believes that controlling the “internality†of the enterprise controls the enterprise, and the fact is that the enterprise’s “externality†Sex is the core resource of an enterprise. Especially for industrial capital like Schneider, it is equivalent to buying half of the commodity at full price.
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