Kazuo Inamori , a famous Japanese entrepreneur, philosopher, and one of the Four Great Business Saints. He founded two Fortune 500 companies Kyocera and KDDI from scratch. In his business practice, he summed up the " amoeba business model ". Through the amoeba model, he saved Japan Airlines , which was also a Fortune 500 company, and once attracted the attention of people all over the world.
What is the amoeba pattern?
The amoeba model can be explained like this: amoeba management is actually a management method, which divides the enterprise into small groups, and then conducts independent accounting . Through independent accounting, talents with operator awareness are cultivated, and finally a business model in which all employees participate in the operation is realized.
The amoeba model emphasizes maximizing sales and minimizing costs. How to maximize sales and minimize costs? In fact, all companies are trying to maximize sales. While maximizing sales, do costs also increase in the same proportion? This is the core of the amoeba business model. Under the amoeba model, the cost of maximizing sales cannot increase at the same proportion. To maximize sales at minimum cost.
There are obvious differences between enterprises under the amoeba mode and those under the non-amoeba mode. The work mentality of managers and ordinary employees is different. Employees under the amoeba model run their own business with the mentality of an operator, while corporate employees under the non-amoeba model are engaged in a job to support their families. Their intentions are different, their work efficiency is different, their work quality is different, and the results they produce are completely different.
Many people have misunderstandings about "cost minimization", and even sacrifice product quality, cut corners and reduce the cost performance of products in order to achieve cost minimization. Such cost minimization is not in line with Kazuo Inamori's business philosophy. There is a saying in Kazuo Inamori's business philosophy: "What does it mean to be right?" If we do something that harms our customers, we should ask ourselves, is this the right thing to do? Does it meet the requirements of the amoeba model? There is another sentence in Kazuo Inamori's amoeba model: "Altruistic heart." Amoeba Management advocates "altruistic culture". Altruistic culture is a link. Through the link of altruistic culture, all employees of the company are connected to form a powerful fighting group.
"Cost minimization" is the operating principle and principle of any enterprise. Enterprise resources are limited, and excellent managers use limited resources to create more output for the enterprise, thereby achieving high added value. To achieve this effect, all employees of the enterprise need to have operator awareness and participate in the daily operation and management of the enterprise.
There is a "pricing" link in the amoeba model. Kazuo Inamori once said that "pricing is management." Why is it said that “pricing is management”? Product pricing determines the operating costs of the enterprise. If the price is set high, the product will not be sold and the benefits will be poor. If the benefits are not good, the operating costs of the enterprise will become higher and higher. If the product price is set low, the company will not have reasonable profits. Without profits, it will be difficult for the company to hire high-quality talents. Without high-quality talents and advanced production equipment, the operating efficiency will be low. Low efficiency will naturally lead to high operating costs. Therefore, low-cost operation is the principle of enterprise operation, and achieving total cost leadership is the core of enterprise competition.
"Maximizing sales and minimizing costs" is the foundation of enterprise survival, but we need to understand cost minimization dialectically. While practicing cost minimization at work, we must be based on the Amoeba business philosophy, correspond to the ideas of "what is right to be a human being" and "altruistic heart" to correct mistakes, and prevent minimization for the sake of cost minimization, which will harm the interests of customers.
