Grow Strong, Big, and Long (A Deep Analysis of the Genes of Lu Guanqiu and Wanxiang Group)

Author: Xia Boyao
Publisher:
Publish Date: 2004-06-01
Features: About Wanxiang: One of China's most famous private enterprises, by the end of 2004, Wanxiang had employed 31,800 staff, with assets exceeding 15 billion yuan, revenue exceeding 20 billion yuan, tax revenue exceeding 1.5 billion yuan, and export earnings exceeding 500 million US dollars. Excluding the compensation allocated to the general manager, the average income of the group's employees in 2003 was 230,000 yuan. About Lu Guanqiu: An early mainland entrepreneur with only a junior high school education, a legendary figure who shone 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 4th among China's mainland billionaires by Forbes magazine, with personal assets of 570 million US dollars. He was named one of CCTV's Top Ten Economic Figures of 2001 and one of the 21 Business Leaders of the 21st Century 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. A book that Wanxiang had kept hidden for three years, a book that would finally 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 exits from Wanxiang Group, this book vividly portrays a real and mysterious Wanxiang and Lu Guanqiu. As one of the earlier professional managers to join 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 meticulous 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 insights into the common problems and weaknesses of Chinese private enterprises. Whether for Wanxiang, the Lu family, or for the broader group of private or state-owned entrepreneurs, this is a passionate and heartfelt warning.