With the economic downturn, all private enterprises have fallen into pieces. How can state-owned enterprises hold on?

In the 1980s, farmers envied workers for holding iron rice bowls in their hands, and even beautiful village flowers married disabled workers, they belonged to the farmer's family.

What is an iron rice bowl?

There are children's schools for education, there are employees' bathhouses when it's cold, and they go to the factory to run a cinema when they are bored. When they retire, they can still inherit their positions. When they are sick, there are employees' hospitals. When people die, there are units to help with their funerals. High welfare, big pot meals, egalitarianism, people are overly erect, enterprises become small society, and birth, old age, sickness and death are arranged in a comprehensive manner.

What is the result?

The non-operating expenses of state-owned enterprises account for more than 40% of the total management expenses! That is to say, putting aside other aspects, state-owned enterprises should pay more than 40% of their management costs in vain when competing with private enterprises.

In the past, state-owned enterprises were directly allocated funds by the government, but after the reform, they became the ones who took money from banks, and banks were almost emptied by a large number of state-owned enterprises!

It's really almost empty!

Historically, China issued 270 billion yuan of special government bonds in 1998 to fill funds for the four major banks, barely making the capital adequacy ratio of the four major banks reach 8%. Then, in 1999, four major asset management companies were established and 1.5 trillion yuan of bad debts of the four major banks were purchased, a large part of which were bad debts left by state-owned enterprises, and even the bad debts had not been filled.

It’s not that the country does not want to take care of the tens of millions of laid-off workers. It has been reforming state-owned enterprises since 1978, trying various methods, advocating various models, and making various reform pioneers famous. However, overall, the situation of state-owned enterprises is still unable to change, and the loss situation is even becoming increasingly serious.

According to statistics from 1995, the actual debt-to-asset ratio of state-owned enterprises has reached 85.15%.

The economic situation in 1997 and 1998 finally made the central government determined to cut off its arm and survive!

It is just a process of advancement and has become a tool for some people to make profits. There are two most typical phenomena:

The first is corruption. For example, the superiors have to compensate each laid-off employee 5,000 yuan, the leader only gives 2,500 yuan, and the rest are all put into their own pockets. The more laid-offs are laid off, the more the factory leaders earn, and they want to be laid off.

The second is the loss of state-owned assets. Workers are laid off, but the factory is sold at a low price, becoming the private assets of the factory leaders.

The central government has severely investigated and cracked down on these phenomena, but the scope is too wide and there are too many targets, so it is impossible to investigate at all. We can only catch a few typical examples and deal with them hard.

Because the local government wanted to get rid of the burden quickly, it turned a blind eye to it, and there were many people who helped secretly.

In a few months, there will be a lot of reports about laid-off workers. What are you picking up rotten vegetables and leaves for several consecutive months? What are you afraid of embarrassing? You can pick up garbage in the middle of the night and sell it for money? What are you giving up on yourself and committing suicide with your family... At first, people were talking about it, but later they became accustomed to it.

...

Shenzhou Technology has contacted several companies in Riben and will inspect and introduce equipment after the Spring Festival.

Song Weiyang, Lin Zhuoyun, Lin Wanzi, and Doudou returned to Rongcheng, spent an early life at the Lin family, and then returned to Rongping City alone.

Xifeng instant noodles have not caught up with the Spring Festival travel rush before the New Year, and can only wait for migrant workers to return to the city after the New Year. The competition in the domestic instant noodles market is already fierce, and the market has turned cold, and manufacturers have died one after another. Xifeng instant noodles can only open up the market from the railway system.

Of course, Shenghai Yimin Factory No. 4 has also taken over part of the sales channels, which can radiate to the entire Yangtze River Delta region.

Xifeng originally wanted to buy Yimin Factory No. 1, but they had already had a joint venture, and even the old brand of "Guangming" was hidden by Watsons. The boss of Zhengguanghe took advantage of the central leadership's inspection and obtained the "Guangming Brand" trademark at the end of 1997. "Big White Rabbit Milk Candy" was also continuously reduced by Watsons, and was about to face the fate of being hidden. Fortunately, he took this opportunity to be obtained by Guanshengyuan.

As for Yimin Factory No. 4, it was merged by Guanshengyuan. Xifeng Company bought the factory from Guanshengyuan. It includes land, factory buildings, equipment, brands and some channels. It has a total bid of 28 million yuan and has assumed several million yuan in debt. It is not a loss, but it has not taken any advantage. After all, the current economic situation can be used to pick up companies for free.

The instant noodles from Yimin Factory No. 4 mainly take care of the light-flavored market. Xifeng also built an instant noodles factory in Xikang, which specializes in the production of pickled peppers, pickled cabbage, spicy and other flavors.

When she returned to Xifeng Company, Song Weiyang got various reports from 1997, which was so overwhelming.

Yang Xin said: "Since October, we have been constantly developing small and medium-sized cities and township markets, and our market share has steadily increased. However, in addition to pure water, the annual beverage sales have dropped by 12% year-on-year compared with 1996. In the past, the beverage assembly lines of each factory were still in short supply. Now we only dare to drive the machine operation rate to 70%. If there are more, we will have a backlog of products."

Song Weiyang said: "I'm afraid it will fall further next year."

"It will definitely fall," said Yang Xin, "so we must launch new products as soon as possible, strive to bloom multiple lines, and use the idle assembly line to produce juice drinks."

Song Weiyang asked: "How is Wahaha there?"

"The food and beverage companies across the country are similar," Yang Xin smiled. "Wahaha has been desperately entering big cities in recent years, but the channel management is very chaotic. Take Shenghai Market for example. The entire city is only classified as two major areas of urban area and suburbs. There are endless stocks of goods, and the net profit of dealers is only 3%, which is not enough for PepsiCo's channel rebates. The person in charge of Shenghai of Wahaha has been replaced by seven or eight, which is useless at all. I don't know what Boss Zong thinks."

Historically, Wahaha broke through Sheng Beach in the Nutrition Express era, and how many years have passed.

This is the hidden danger of the general agency system. When encountering a relatively awesome regional general agent, you can naturally expand the market quickly. If you encounter a bad general agent like Wahaha, you can only worry. He can't even sort out regional dealers and ship them to you casually. The distributors are unlucky and always make a fuss. Violent competition leads to malicious price cuts. In the end, the dealers have no money to make money and the regional market is unable to open for a long time.

Xifeng Company's use of the 101 channel plan to consolidate the market will inevitably force many companies to death, and even Wahaha's development may not be so smooth.

Especially in the market recession, there is nothing to say about it.

Yang Xin asked: "Is it time to reduce advertising fees next year?"

"No, we need to increase our investment in advertising," Song Weiyang immediately shook his head, "The more we are, the more we need to carry out publicity. Even if we don't make money in the past two years, we must firmly occupy the market share!"

Yang Xin said: "What about train naming? I asked someone to conduct a market research. The effect of train naming is not very good, and the naming fee is getting higher and higher."

Song Weiyang said: "We can reduce the name of some trains in moderation, but we cannot say goodbye to the railway system completely. Our products will also go through the sales channels of the railway department in the future. Take the launch of instant noodles as an example. This is the most convenient way to open up the market."

"Okay, you have the final say," Yang Xin sighed. "The development momentum in the past few years has been so good. I am still ambitious to plan to go public. The market environment really changes. Regional managers whose sales fell by less than 5% last year, I even rated them as outstanding employees. The profits of various provinces are falling, so it's just about who has fallen less."

Song Weiyang smiled and said, "Just be content. I read a magazine some time ago and said that one of the color TVs produced in China could not be sold for every three produced. There are also some industries, and the shutdown rate even reached 70%, and the entire industry collapsed. No matter how unrest in making beverages and food, there are still people who buy them. To be honest, this is a good opportunity to clean up the industry. At least 40% or 50% of the beverage and food companies will be forced to death. Let's take the opportunity to eat a few more dollars in the market and be the leader of the industry!"

Living to the end is victory - Sima Yi.
Chapter completed!