As the battle for control of Inner Mongolia Horqin Cattle Industry Co., Ltd. (hereinafter referred to as "Horqin Cattle Industry") gradually became clear, the chairman (and founder) Li He, who was about to re-in charge of the company's management, was faced with a "Mess up": Workers leave, production is suspended, inventory is emptied, the 10,000-head cattle breeding plant is empty, and the supply of products in some areas is cut off. Although Li He has now found corresponding resources and solutions to solve the difficulties faced by the company, he will inevitably feel sad when he sees the current situation of the company.
Some supermarkets in Shenzhen have been unable to supply Horqin cattle products in time. In the past, "Korqin", which occupied the "first brother" status of beef shelves, only sold marginal products such as beef bones and tripe. The salesperson said that "Korqin" beef has been out of stock for a long time from time to time, especially in the past six months. On the shelves, Horqin beef faces double-sided attack from beef imported from Australia and domestic beef from Henan and other places.
Not only that, but some managers who have not left their jobs also notified dealers and retailers to stop supplying goods, affecting the normal operation of the enterprise.
(The senior executives who have not left their posts send documents to customers in the name of subsidiaries, which affects the normal delivery of orders of the company.)
Since 11997, the slogan of "good pastures are naturally good beef" resounded at home and abroad, from Shenzhen in the south, Shanghai in the east, and Da in the west. Xinjiang achieved sales of more than 3 billion in 2018, but now the status quo is "people go, cattle are empty, and workshops are idle". What is going on behind the scenes?
The hidden danger of power transfer
Ten years ago, Li He decided to withdraw from the daily operation and management of the company and completely delegated power to Wang Zhengtao, the general manager of the company.
"I came from the foreign trade department of the government. I dealt with foreigners in my early years. I saw the advancement and superiority of the European professional manager system. I always wanted to introduce the professional manager system into Horqin. There are many unsuccessful cases of professional managers in Chinese enterprises. The big factor is that the early players were a bunch of local brothers, and it was difficult for foreign professional managers to integrate. Therefore, I want to be a good boss. Build a supportive The professional manager management system for the long-term development of the enterprise. ” Li He recalled later.
Driven by this idea, he invited Wang Zhengtao, who was in the strategy department of Yili Group in his early years, as the general manager of Horqin Cattle Industry. The company's core business was gradually transferred to the professional manager team formed by Wang Zhengtao.
"During the period, in order to implement the professional manager system and prevent everyone's opinions on Wang Zhengtao and other professional manager teams from being reflected on me, and interfering with my thinking and judgment, I have a lot of time to stay on the side of the Beijing branch," Li said. He said, " My idea is to really delegate power and let professional managers let go. Often the development of private enterprises is because the bosses are not at ease and do not let go of power, so that professional managers cannot play a role in the enterprise, and foreign monks can't read the scriptures. , and I want to set an example. "
After decades of hard work, Horqin Cattle Industry has established the No. 1 beef brand integrating the entire industry chain of planting, breeding, slaughtering, processing, logistics and marketing, and a complete supply chain system. This made Horqin beef stand out in the industry in 2018. In that year, the company's sales were more than 3 billion yuan, and its net profit was close to 150 million yuan.
In the following two years, due to the African swine fever incident, the beef industry has ushered in a historic opportunity, but the highlight of Horqin cattle industry has remained in 2018.
The missed two-year golden period
After the full handover of management rights, Li He is mainly responsible for the company's strategy and financing, while Wang Zhengtao is responsible for the company's daily overall management.
Previously, Li He had made a comprehensive plan for industrial development trends, market consumption trends and corporate development strategies, including developing e-commerce, establishing a terminal retail network, and strengthening the development of semi-finished products and cooked food products.
However, Wang Zhengtao's series of operations in business management shocked Li He. " Wang Zhengtao did not follow my strategic vision to promote the development of the enterprise at all, " Li He said, In order to pursue short-term profits, Wang Zhengtao continued to sell assets and quickly cash out.
From 2019 to 2020, due to the skyrocketing pork prices, beef prices and live cattle prices are also rising. Wang Zhengtao abandoned the past intensive farming style of Horqin cattle industry and started trading pork, beef and beef cattle successively.
" At that time, selling pork was quick to make money, and the price of cattle often jumped up. Many people in the meat business were immersed in the carnival of making quick money, and they were not interested in raising cattle, slaughtering, reprocessing, packaging and selling. ' recalled a person from the Horqin Cattle Production Department.
"He even sold a lot of the company's forage and cattle, which is the foundation of Horqin!" Li He recalled bitterly.
After a series of struggles by the management team, the current situation of Horqin Cattle Industry is no longer optimistic.
The Horqin Cattle Industry's "Mess"
It is no exaggeration to use the words "devastated" to describe the current Horqin Cattle Industry.
There is no harm if there is no comparison. Take a look at the latest situation on the production chain of Horqin cattle industry (grass planting, breeding, production, and supermarket distribution). Comparing the previous prosperity of the company, many people who care about Horqin cattle industry will feel Sad.
(the former planting base, equipment and operation)
(the current equipment and forage warehouse)
(the former breeding plant)
(the current breeding plant)
(the former production situation)
(the current production situation)
(former supermarket and hypermarket product display)
(current inventory)
Beginning in 1997, Horqin Cattle, a grassland beef brand well-known at home and abroad with the slogan "Good pasture, naturally good beef", is now faced with " People go, cattle are empty, and workshops are idle."
During the peak period, the number of employees of Horqin Cattle Industry was as high as 2,279, and currently only 1,077 people are on the job; the peak annual sales also reached 3.16 billion yuan, but only 1.2 billion yuan in 2020.
It is easy to destroy trees and difficult to plant.
After 24 years, Horqin Cattle Industry has built a beef cattle industry chain from planting, breeding, production, processing and sales to the current situation. No matter the founder, management team, employees, shareholders, financial institutions or local governments, no one is the winner.
Although Horqin cattle industry is currently facing many difficulties, the company's brand awareness, market influence and consumer reputation are still there. As long as Chairman Li He and his team make appropriate adjustments, they are expected to further attack the huge Chinese beef market. City plunder.
According to the data of China Business Industry Research Institute, in recent years, my country's beef production has maintained a steady growth.In 2019, my country's beef output was 6.67 million tons, a year-on-year increase of 3.56%.
It should be pointed out that although the per capita consumption of beef in my country is increasing year by year, the per capita consumption is currently only 5.95 kilograms, which is still a long way from the per capita consumption of beef in overseas developed countries. Taking the U.S. market as an example, the U.S. per capita beef consumption in 2019 was 57.3 pounds, or about 25.78 kilograms. There is still a huge market space in the domestic beef market.
With the return of Li He, how Horqin Cattle Industry will further develop in the Chinese beef market has become the focus of attention of all parties.
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