Grow Stronger, Bigger, and Long-lasting -- A Deep Analysis of the DNA of Lu Guanqiu and Wanhang Group

Author: Xia Boyao
Publisher:
Publish Date: 2005-09-01
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, and tax revenue exceeding 1.5 billion yuan. Its export earnings exceeded $500 million. Excluding the compensation for the general manager, the average income of employees in the group company in 2003 was 23,000 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 on Forbes China's list of the richest people in mainland China, with personal assets of $570 million. He was named one of CCTV's Top 10 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 a cash prize of 3 million yuan for Wanxiang's outstanding contributions to the local economy. His son, Lu Weideng, the general manager of Wanxiang, was elected as a committee member of the Communist Youth League Central Committee. A book that Wanxiang had kept hidden for three years, a book that would finally earn Lu Guanqiu's forgiveness, a book that was accepted with enthusiasm ten times and 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, this book vividly portrays a real and mysterious Wanxiang and Lu Guanqiu with a lively and fresh writing style. As one of the earlier professional managers to enter the development of private enterprises, the author navigated the complexities 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 philosophy of talent loyalty, 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 entrepreneurs, even state-owned enterprise leaders, this book serves as a passionate and urgent warning.