In the past two years, it can be seen from the impact of the international and domestic environment on the industry that most domestic companies have significantly weaker ability to resist risks and their profitability has gradually declined. A simple comparison shows that what we lack is not equipment or talent, but our business and management philosophy. There are some concepts that we have become accustomed to and deeply rooted in, but they seriously affect our ability to make profits.
1 Mistaking advanced equipment for the introduction of advanced technology
Technology introduction can make the introduction party rapid To obtain mature and advanced technological achievements, there is no need to repeat the scientific research and trial production work that has been done by others. It is an indispensable and important way for countries around the world to promote mutual economic and technological development.
However, when many companies introduce technology, they mistakenly understand that the introduction of advanced technology is equivalent to the introduction of advanced equipment, and they spend huge costs to introduce expensive production equipment. Improve productivity and product quality, thereby bringing considerable profits to the company. When advanced equipment brings sweetness to an enterprise, it does make the enterprise complacent. It produces products that others cannot produce and creates profits that others cannot create. At the same time, it also feels that it has advanced technology and believes that the introduction of advanced equipment is equivalent to The introduction of advanced technology ignores the difference between technology and equipment, and ignores the problems of aging and obsolete equipment, thus resulting in low profitability.
People often generalize “technology” and divide technology into software technology and hardware technology. Software technology refers to technical knowledge, experience and skills, which is pure technology; hardware technology refers to physical technology such as machinery and equipment. Purchasing only machinery and equipment from abroad without purchasing software technology is generally called equipment import. If only software technology is purchased from abroad or some equipment is purchased at the same time, this behavior can be called technology introduction.
The purpose of technology introduction is to improve the manufacturing capabilities, technical level and management level of the imported enterprises. To achieve the goal, we can only achieve it by introducing software technology and through self-digestion and absorption. Therefore, only introducing advanced equipment does not mean introducing advanced technology. Only through the introduction of equipment and mastering, digesting, and absorbing the technology contained in it can we truly introduce technology and solve the problems of aging and obsolete equipment.
2 Focus too much on scale and ignore quality improvement
The continuous restructuring and expansion of the scale of China’s enterprises has made the scale of enterprises larger and larger, relying on Extension methods to expand scale are common. They expand scale by adding equipment, expanding factories, building new factories, merging and joint ventures, etc. As a result, their output increases and their superficial influence becomes higher and higher. It is believed that through scale expansion, It can expand production and reduce costs, thus improving competitiveness.
However, with the development of society and the intensification of competition, expansion of scale is not only impossible to bring about the desired results, but may even become the beginning of a burden for the enterprise.
At present, people’s needs are mainly personalized needs. The pursuit of novelty and difference has become the mainstream of society. Multi-variety and small-batch production are slowly attracting people’s attention, and the requirements for quality are even higher. has reached unprecedented heights, especially as people’s income levels increase, price is no longer the key factor in determining people’s purchases, so the price advantage brought by scale expansion is getting weaker and weaker; at the same time, the result of expansion is that production capacity has exceeded Large, exceeding market demand; due to lack of attention to quality management, the cost caused by quality problems is getting higher and higher, which further weakens the advantages brought by scale expansion.
For the same enterprise, if the enterprise intends to double its profits and income, if it adopts the method of scale expansion, the enterprise must invest funds, equipment, and equipment equivalent to the current scale. Land, personnel, etc. cost a lot; but if you adopt the quality improvement method, you only need to invest a small part of the money for quality improvement. According to the quality law, if the quality improves by 1 percentage point, its selling price in the market will increase. About 10%, and for the same production cost, if its selling price is 10% higher, its profit will increase by nearly 100%.
Therefore, if a company wants to obtain better profitability, it cannot rely too much on scale, but should first focus on quality and obtain greater benefits by improving product quality and reducing quality costs. The result of quality improvement is: on the one hand, it improves social credibility, promotes sales, and improves competitiveness; on the other hand, because the improvement of quality reduces scrap costs, rework costs, maintenance costs, and claim costs caused by quality problems, thus Improved corporate profitability.
3 Mistakenly believe that as long as the product is qualified, you can make a profit
As long as product quality does not meet safety and health standards, there is unreasonable dangerous, or the product does not have basic performance, or does not meet the express commitments made by the manufacturer or seller on product quality. If one of the above three conditions is met, the quality can be determined to be unqualified, and the product is a substandard product. ;On the contrary, as long as the products provided by the enterprise meet the above standards, they are qualified products.
It can be seen from the determination of qualified products that the products provided by most units are qualified, otherwise they cannot be put on the market for circulation. Then, the idea that you can make money by producing qualified products is untenable. Producing only qualified products is the most basic requirement for enterprises. Qualified products are not competitive and are easily attacked by competitors. The market that they have worked hard to build can easily be cut out.
The most critical thing is that because its products are not differentiated, it is easy to form a price war with competitors, thereby weakening the company’s profits. Therefore, we cannot just think that we can make money by producing qualified products, but we should provide high-quality and distinctive products to the society on the basis of qualified products. This will make it difficult for competitors to attack and the market will be stable, thus bringing profits.
In addition to macro factors such as the industry environment and economic environment that restrict corporate profitability, the company’s own philosophy also directly affects the company’s profitability. If textile enterprises want to achieve real profits, they should abandon incorrect ideological understandings and shift their thinking from focusing on technology, expanding scale, and only being satisfied with producing qualified products to relying on management, quality, characteristics, etc., to enhance their competitiveness. . </p
