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Talent Concept

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The market economy is a competitive economy. Enterprises operated under competitive conditions must have some kind of competitive advantages compared with other enterprises if they want to survive and be developed, that is, certain characteristics of the company are in the aspect of operation compared to their competitors. When facing the opportunities and challenges brought by the wave of economic globalization, the business concepts of enterprises should get innovated, in order to form their competitive advantages.

First, construct a new concept of high-grade humanized service.

Under the condition of a normal market economy, in order to realize the “breathtaking jump” of “converting to currency from commodities” and “jumping to gold from commodity”, companies have formulated various sales strategies, established a marketing concept starting from market, based on products, centered on customers’ needs, and aimed at achieving profit. Superficially, this marketing concept is totally in line with the actual condition of the market economy, and there are many successful examples as empirical support. However, if we carefully analyze this traditional marketing concept, we can find that there are obvious theoretical biases. To be specific, on the one hand, the “customer-centric” and “customer is God” proposed by this marketing concept are not really starting from the interests and needs of customers, but based on satisfying customer needs as a mean of realizing their own interests for enterprises. On the other hand, this marketing concept ignores the existence of negative external effects of production and operation of the enterprises and denies the company’s undertaking to social responsibility. Therefore, if Chinese enterprises want to continuously obtain and maintain their competitive advantages, they must construct a marketing concept of high-quality humanized services that focuses on caring for “people or people’s hearts”. This high-quality humanized service concept must achieve two satisfactions: one is to satisfy customers, that is, the products and services provided by enterprises must meet or exceed customer’s anticipations; the second is to satisfy society, that is to say, the products and services provided by enterprises to customers must also meet or exceed social anticipations.

Second, construct a new concept of high-efficient technological innovation.

Under the condition of a normal market economy, if an enterprise wants to continuously launch high-quality products to the market, it must not only rely on the support provided by capital operation, but also rely on the technical guarantee provided by technological innovation. Without technological innovation, any high-quality R&D and production will become hollow words. Therefore, in the fierce market competition, considering survival and development, any enterprise cannot belittle and ignore the role of technological innovation. In the context of economic globalization, due to the popularization of modern high-tech methods and the widespread use in production and operation, not only have product barriers been completely broken, but technical barriers have also been completely broken. As soon as a new product or technology has been developed and introduced into the market, products with the same attribute, or even higher, better products or technologies will soon appear, or even replace it. The emergence of this situation will not only greatly threaten the profit advantage of technology innovators and greatly shorten the profit time, but will also greatly reduce the profit space of technology innovators with the follow-up of large numbers of competitors, even lead to profit transfer. Therefore, in the fierce international competition, if enterprises want to obtain sustainable profits and control the commanding heights of the market’s excess profits, they must construct a high-efficient concept of technological innovation. This high efficiency is not only reflected in the strong ability and fast speed of technological innovation, but it is reflected in the strong ability and fast speed of converting technological innovation into real productivity.

Third, construct a new concept of highly-profitable capital operation.

To some extent, capital is the main driving force for enterprises to engage in product R&D and production. Specifically, in an ever-changing market, enterprises can rely on capital management, one of which is to transform into the development of multi-industrial operations from purely product management, in order to ensure the safety of business operations; the other one is to seek credit funds from multiple parties to solve the enterprises’ own problems such as idle assets and stagnant capital operations; the third one is the implementation of technological innovation and increased investment in technological transformation, and the expansion of modest production scale to obtain economies of scale which cannot be achieved by other means. With the development of economic globalization trend and internet information technology, on the one hand, Chinese enterprises can optimize the allocation of resources, adjust the product structure and industrial structure in the world, and seek extensive partners, so it is possible to provide products to consumers at the lowest price and highest quality; on the other hand, Chinese enterprises have to face the challenge of oversupply of products, decline in product profitability space, or even zero profit because of fierce competition. Therefore, if Chinese enterprises want to gain an advantage in the competition, they must construct a new concept of capital operation and properly handle the relationship between the economic development and economic benefits of enterprises. They must pay attention not only to market share, but also to the acquisition of high profits. They must avoid falling into “a black hole of commodities without profit” caused by that blindly pursues high market share and high growth rate regardless of its effectiveness.

Fourth, construct a new concept of high-quality product R&D.

Under the condition of a normal market economy, although the goal of production and operation of any enterprise is to make profits and maximize profits, the primary premise for achieving its purpose is to launch and provide high-quality products to the market first. If an enterprise cannot provide or can provide high-quality products that can’t meet the requirements of consumers, while it will be difficult to achieve the “breathtaking jump” of its production products; it will be difficult to maintain and increase the value of the production factors that have been put. Countless facts prove that whether a certain product can bring anticipated profits to production and operation ultimately depends on whether it can be accepted by consumers, that is, that a certain product can bring great profits to producers ultimately depends on the extent to which it represents the actual and potential needs of consumers. If Chinese enterprises want to remain invincible, they must continuously research and develop a series of high-quality products, which is not only reflected in the natural attributes and external forms of products such as utility, quantity, characteristics, and styles, etc., but also in aspects such as satisfying individual needs which helps to improve the social attributes and humanistic connotation of products such as quality of life; it is not only reflected in meeting and satisfying the actual needs of consumers, but also in understanding and leading consumers’ future preferences. Only in this way can Chinese enterprises win the long-term favor of consumers and maintain a steady growth of their economic benefits.

Fifth, construct a new concept of competition and cooperation with high profits.

In the context of economic globalization, on the one hand, the rapid development of science and technology and the rapid spread of information network technology have provided technical possibilities for enterprises to continuously launch high-quality products to consumers, and on the other hand, it has made the value-added actions of product value chain become more and more, and made the product structure become more and more complex, which has led to a sharp increase of the operating costs of R&D, production, and marketing of new products. Therefore, if Chinese enterprises want to be invincible in the international competition in the future, they must construct a new concept of competition and cooperation with high profits in accordance with the new requirements of economic globalization and new rules after China joined the WTO. On the one hand, this new concept requires Chinese enterprises to be willing to participate in international cooperation and be good at finding new profit growth points from cooperation based on the “win-win cooperation” principle of benefit sharing. The kind of competition concept with peasant ideology of “beggar-thy-neighbor” and “peers are the enemy” will severely restrict the pace of Chinese enterprises going global and participating in international competition and cooperation, and will be eliminated under the impact of the wave of economic globalization; on the other hand, Chinese enterprises are required to do well in taking advantage of their own strengths, concentrating limited resources, finding breakthroughs in one or some value-added actions of the product value chain, strengthening the core competitiveness of the main business, and constantly maintaining and developing their own competitive advantages.