Grow Stronger, Bigger, and Longer - A Deep Analysis of the DNA of Lu Guanqiu and Wanxiang Group

Author: Xia Boyao
Publisher:
Publish Date: 2005-09-01
Features: About Wanxiang: One of China's most renowned private enterprises, by the end of 2004, Wanxiang had employed 31,800 staff, with assets exceeding 15 billion yuan, revenue surpassing 20 billion yuan, and tax revenue exceeding 1.5 billion yuan. Its export earnings exceeded 500 million US dollars. Excluding the compensation for the general manager, the average income of employees in the group company in 2003 was 230,000 yuan. About Lu Guanqiu: An early mainland entrepreneur with only a junior high school education, a legendary figure who made a name for himself in the 1980s and 1990s, and a rare representative of the older generation of private entrepreneurs who remain prosperous today. In 2002, he was ranked fourth on Forbes China's list of the richest people in mainland China, with personal assets of 570 million US dollars. He was named one of CCTV's Top Ten Annual Economic Figures in 2001 and one of the 21 Business Leaders by the China Entrepreneur magazine. The Hangzhou Municipal Government awarded him 3 million yuan in cash for Wanxiang's outstanding contributions to the local economy. His son, Lu Weideng, the general manager of Wanxiang, was elected as a candidate for the Central Committee of the Communist Youth League of China. A book that Wanxiang had kept in the archives for three years, a book that would eventually gain Lu Guanqiu's forgiveness, a book that was accepted with enthusiasm ten times but reluctantly rejected nine times, a book that serves as a passionate warning to Chinese enterprises. Through the author's experience of three visits and three exits from Wanxiang Group, we are presented with a vivid and mysterious Wanxiang and Lu Guanqiu in a lively and vivid style. As one of the earlier professional managers to enter the development of private enterprises, the author found himself caught between the "big boss" Lu Guanqiu and the "little boss" Lu Weideng, experiencing the joys and sorrows of their difficult integration. The author provides a detailed elaboration and in-depth exploration of Wanxiang's refined management, its loyalty to talent, its strategic formulation model, and the evolution of its organizational structure. After five years of reflection, the author analyzes the principles behind Wanxiang Group's achievements despite its relatively low talent quality, reveals the bottlenecks that hinder Wanxiang's transformation from excellence to greatness, and extends to point out the common problems and weaknesses of private enterprises in China. Whether it is for Wanxiang, the Lu family, or for the broader group of private entrepreneurs, even state-owned enterprise leaders, this is a passionate and insightful warning book.