The original The founder of Foxconn The founder of Foxconn publicly stated that : "The mainland cannot live without Foxconn. They are afraid of us. If we leave, their GDP will be one or two percentage points less, and Foxconn will give the mainland food to eat."
But during the epidemic, Foxconn became Wuxia Amon. Its factory in Zhengzhou Economic and Technological Development Zone not only saw a large number of employees resign, but even security guards chose to leave because their wages were too low.
Guo Taiming
In a recruitment information at the Zhengzhou factory, a rule that was never possible for Foxconn to appear in the past: If a new employee works for 90 days and has no less than 55 days of working days, the company will reward him with a bonus of 7,500 yuan.
This is a compromise move made when iPhone13 is about to be released and requires a lot of processing. Foxconn’s founder Terry Gou also had to pay for the wrong behavior of transferring business to India before, and wanted to turn around and return to the mainland to develop.
, and Guo Taiming's old rival Wang Chuanfu founded by BYD , during this period, not only took on OEM orders from domestic mobile phone brands such as Huawei , Xiaomi , and became a new giant in China's OEM factory. In addition, BYD also focused on independent research and development, and its development momentum in the automotive and battery fields was also unstoppable.
Wang Chuanfu
Terry Gou is so embarrassed. Looking back at the arrogant words at the beginning, it is a pity...
How did Terry Gou make his fortune? Why did Foxconn frequently experience "bounces from buildings" when it was in full swing? Why did Terry Gou give up the mainland market and turn to India? What was the result?
The way to make a fortune
1982 was a new start for Terry Gou. He renamed the company Hon Hai Plastics to Hon Hai Precision Industrial Co., Ltd., and also turned his attention to overseas businesses, striving to build Hon Hai into a powerful multinational enterprise.
Terry Gou
Before 1982, Terry Gou took the .7 million borrowed from his father-in-law with his rich second-generation wife. He had achieved a small success by making the knob of black and white TV , and made a profit of 2 million yuan in three years. In that era of underdeveloped economy, Terry Gou was already considered a successful person.
Guo Taiming is a business genius. While managing the company well, he discovered new business opportunities. His desire for capital made him dissatisfied with simply making knobs. In the 1980s, computer technology developed rapidly, and he entered the computer field without hesitation.
At the beginning of the day, Terry Gou once lived in an extremely simple hotel for 5 days in order to get an order from an American company, and only ate 2 hamburgers a day. After waiting for 5 consecutive days of anxiety, the client gave him merciful 15 minutes of meeting time.
Terry Gou
Sometimes the orders that were not advanced enough in the machinery and equipment, and the finished products produced could not meet the needs of customers.Terry Gou scolded the employees for their poor work ability, and at the same time, he would bring people to the door to apologize to customers. He didn't care about the chairman's airs.
But even if Terry Gou put his gaze down, the local American companies are still skeptical about Hon Hai's strength and don't really give many orders. The courage left by Terry Gou to the army to not break through the wall and not turn back, he would never let go of the big cake in the US market.
In 1985, in order to better adapt to the needs of the US market, Terry Gou established a branch in the United States and adopted a fashionable English name "FOXCONN" , which is Foxconn.
Terry Gou
For Foxconn, Terry Gou's efforts are much more than that. He is a workaholic and the number one person in Foxconn inline . According to statistics, he is the first person to go to work in the company every day, and the person who leaves the latest every day; sometimes even if he goes out to discuss business and flew back from another place at night, he has to rush back to the company to work overtime before going home. Often, it is already late at night when he gets home, and it’s time to go to the company again after not sleeping for a long time.
In the more than ten years since the company was founded, Guo Taiming's daily working hours exceeded
Foxconn's businesses, from computer motherboards, TV game consoles to connectors, have quickly opened up the market with the advantages of "large volume" and "low price", and have grown steadily with an average annual rate of 20% since then.
Foxconn has made a breakthrough in its annual revenue exceeding
Terry Gou and his "Office Empire"
If 1982 was the beginning of Terry Gou's life from the trough of his life and the failure of his entrepreneurship to success, then 1988 was the beginning of Terry Gou and his Foxconn reaching their peak.
In 1988, Guo Taiming came to Shenzhen alone with funds. He bought a 1500-acre mountain with a wave of money. Not long after, this mountain had a brand new name - Foxconn Factory.
Foxconn gave recruitment information for a monthly salary of 200 yuan higher than a middle school principal's monthly salary. In the early days of reform and opening up, a large number of hard-working farmers, who were not afraid of hardships and urgently needed to make money, were attracted by the high salary given by Foxconn and chose to join Foxconn.
Guo Tai remembers that most of the first generation of Foxconn workers are farmers. They have a strong desire to make money and love to work overtime. Everyone wants to get overtime salary 1.5 times more than 8 hours of working hours, and they also want to get overtime salary twice the weekend.
In this atmosphere where employees are eager to make money, the efficient work efficiency generated by cheap labor has gradually failed to meet Foxconn's development needs.
Only 5 years later, Terry Gou could point at the Longhua area near Shenzhen city without any pressure, and said to the government officials who came to visit the land with the same piece of land: "I want all the visible land" . The Longhua Science and Technology Industrial Park, covering an area of 1,500 acres, was born, and Foxconn's global OEM factory scale began to take shape.
Then Foxconn cooperated with BIM and Intel , and continued to win the almost monopoly OEM rights of Apple , and followed Apple's pace to become an OEM giant. In 2001, Hon Hai Group achieved revenue of
By 2002, Hon Hai Group's revenue doubled to NT$345 billion. Terry Gou built a "Office Empire" covering mobile phones, monitors, PC systems, motherboards, host cases, LEDs, routers and other fields, connecting the complete high-tech industry chain .
Terry Gou
Terry Gou
Terry Gou, who has billions of personal wealth, is a low-key boss in private. He never drives luxury cars or wears famous brands. Even the office desk is made up of several tables, and the small alarm clock on the table has been used for more than ten years.
is thrifty in life and work, but he is very generous in giving back to society. Terry Gou established the Yongling Foundation, a charity organization in Taiwan, and has been investing in the medical, education and technology industries to reach nearly 100 billion .
Guo Taiming
Charity has made Terry Gou gain a large number of favors, and it also brings greater benefits to his OEM empire. Around 2009, there were about 400,000 people in Longhua District, Shenzhen, while Foxconn had as many as 300,000 employees in Longhua Science Park. During the peak orders, trucks carrying goods could enter and exit 2,000 times in a day. These data pushed Guo Taiming to win the first place in the Taiwan Rich List and the Forbes Global Rich List ranked
Termine Gou
Termine Gou
Termine Gou is the object of envy in the light. Foxconn under his name is also thriving. Everything seems to be developing in a better direction, but in fact it is in an invisible place. The dark and depressing negative emotions in Foxconn make people feel panic and despair...
amazing "13 consecutive jumps"
May 2010 On the 11th, Zhu Chenming, a front-line employee of Foxconn Shenzhen Longhua Park, jumped down from the 9th floor of the dormitory building, and his 24-year-old life disappeared. Three days later, an employee named Liang in Longhua Park committed suicide by jumping from the dormitory building. Before that, he had committed suicide; on May 21, 25 and 26, an employee of , Longhua District, , committed suicide by jumping off the building. This time, the suicide of hibernating continued
At first, Foxconn attributed the suicide of employees to personal emotions. Guo Taiming once believed that since 2007, Foxconn's workers have changed from migrant workers who were "willing to endure hardships" to young people who would reach out to ask their parents for things. They want to go out and play often complain that they are too tired to work overtime.
After several suicides, Terry Gou was criticized all over the world. He had to use the TV that he rarely used before to apologize to the families of the deceased every day and to the entire people. At this time, all his apology was just sympathy for the deceased, and he did not find the root cause of the employee's suicide.
The solution that Guo Taiming, who deeply believes in Feng Shui and Numerology, did was to invite Wutaishan monks to perform rituals continuously in Longhua Park to break the suicide curse. In order to strictly prohibit employees from committing suicide again, he asked all employees to sign a "life and death clause" and would never allow anyone to hurt themselves in extreme ways.
Terry Gou
Such a ban on treating symptoms but not root causes will not only not ease the emotions of employees, but will also intensify their already nervous emotions. When the tragedy of "12th jump" of , Terry Gou finally reflected on whether his personal management methods and Foxconn's management system are reasonable.
At work, Terry Gou is a domineering dictator, and Foxconn is more like his private enterprise. Every employee must receive training to obey orders before taking up his post.
The orders issued by Guo Taiming to executives must be replied within 15 minutes at any time; and the project manager who is traveling abroad must also respond within 8 hours. Terry Gou asked the project leader, but once this person couldn't answer, he could only stand at the conference table and listen to the boss's scolding.
Termine Gou
Termine Gou has a soul-searching question. He often asks executives : "Is your urine yellow or yellow?" . If it is not yellow, it means not working hard enough, and it will bring a storm to the wind.
Although Guo Taiming is very strict with executives, he is never stingy in terms of salary. Foxconn's annual year-end bonus must be the highest in Taiwan. Some excellent employees and technical backbones can also get a valuable bonus or Foxconn's stock, which is also the reason why many senior executives are willing to stay at Foxconn.
However, in the "fourth-rate talents, third-rate management, second-rate equipment, first-class customers" concept that Guo Taiming advocates, there are only those diligent front-line workers, those front-line workers who have created Foxconn's huge wealth, who may never regard them as human beings.
Foxconn front-line workers have new work indicators every day. When a person completes today's indicators, he will get a new indicator with higher requirements the next day. If he completes it again, there will be another new indicator on the third day; if it is not completed, in addition to scolding, he must also complete overtime. Foxconn has challenged the bottom line of human efficiency again and again, and people are no longer humans but cold machines.
Foxconn employee Li Zhuowu, a reporter interviewed, said that his overtime hours per month exceed 100 hours, and at the highest time, he works overtime
At Foxconn, ordinary employees have low status, and sometimes employees are beaten by security personnel. They only have a basic salary of 900 yuan, and more wages have to be obtained by overtime. There is no color in their world, and repetitive work has made them lose their creativity. can only be like a ruthless tool, repeating, repeating, repeating...
spent 1 billion yuan, and the factory turned to India
13 The sad death of a fresh life, the dark side of Foxconn was exposed, facing the fingers of the family of the deceased. Due to the pressure from the media, Guo Taiming compromised. Foxconn opened a psychological hotline and an vent room to regulate employees' psychological problems; most importantly, the basic salary of ordinary employees increased from 900 yuan at the beginning to 2,000 yuan at the end. For Foxconn, which has 1.45 million employees, the monthly labor cost increased by 500 million yuan, and an annual increase of 5 billion yuan, which is equivalent to the eliminated profit .
The rapid increase in labor costs, Guo Taiming made the decision to move Foxconn factory to Zhengzhou , which directly led to a sharp reduction of employees from 450,000 to 100,000, and only retained the business of OEM-related products and the surrounding business orders.
With the development of China's economy and the rise in wages, Foxconn has to face repeated reforms in order to obtain continuous operation. Behind the reform is the increase in labor costs and the profits obtained by the company are decreasing.
Apple has removed 8 production lines in China and is considering mass production in India. Foxconn, which is tied to Apple, also chose to follow the pace of fund owners, and has turned its foundry to India and Vietnam with lower labor costs.
Indian officials promised a series of preferential policies to Terry Gou, and he spent 1 billion yuan to build a factory in one breath to Tamil Nadu, India.
But when the factory is really put into operation, Terry Gou regrets . Indians overall cultural level is low, and the preliminary training time is nearly twice as long as the employees in China. When the employee training is over and work is officially started, their work efficiency is far from the standards of Chinese workers. They are also casual in their work and are not only unwilling to work overtime, but also often have unreasonable strikes and disputes arising from the same salary between different surnames.
The efficiency problem of employees is still tolerated. India has poor infrastructure, supply chain and logistics chain often cannot keep up with the needs of factories, some raw materials cannot be delivered in time, and the finished products cannot be delivered on time. In addition, some import and export policies promised by India at the beginning have not been realized, taxes and logistics fees alone have greatly increased the costs.
Foxconn faces a situation that goes far beyond that. During the epidemic, a large-scale epidemic broke out in India, and Foxconn's factories in India were also swept by the virus. On May 12, 2021, the number of workers infected exceeded
Apple 's delivery volume at Foxconn could not be increased, and instead handed over a large number of orders to Foxconn's rival Luxshare Precision .
The successive setbacks caused Foxconn to suffer heavy losses. Terry Gou wanted to turn around and turn to the domestic market, but the Chinese people would not agree.
At the beginning, Huawei was targeted by the United States, and Foxconn gave up Huawei's orders and followed Apple. Such companies that make money in the mainland and still look down on domestic brands are typically forgetting their roots.
Terry Gou
Now, most of Foxconn's domestic businesses are divided by BYD, Luxshare Precision and other companies. It is not easy for Gou to go back and get a share of the pie. If he does not correct his attitude in time and believes that Foxconn is giving Chinese people food and food, rather than having a sense of awe, Foxconn's future path will probably be even more difficult.
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