Mind

Author: Lang Xianping
Publisher:
Publish Date: 2006-03-01
Features: Thinking (International-Level Corporate and Entrepreneurial Strategic Thinking) discusses the new mindset Chinese entrepreneurs should possess: First, "abandon the superficial and pursue the essence," recognizing and grasping the core of things. Any strategic decision must revolve around the set goals, free from any distracting appearances. Second, the courage to seek opportunities in crises and turn disadvantages into advantages.
Lang Xianping's Viewpoint: Samsung's success is the success of Lee Byung-chul's new thinking. Lee Byung-chul grasped the industry's essence that "IT technology cannot be hidden" and recognized the reality crisis of "difficulty in surpassing the U.S. in IT and becoming a leading technological innovator." Therefore, he implemented "reverse engineering" in technology, closely integrated personalized needs in product design, and pioneered the "vertical production system," ultimately becoming a "market favorite."
The success of LG and Hyundai Motor proves the replicability of Samsung's experience. LG not only successfully replicated Samsung's innovative design model but also significantly improved product quality and reduced production costs by adopting the "Six Sigma" management model.
Sony and Nissan's problems stem from rigid thinking. Sony adheres to an obstinate "human-led" culture, while Nissan follows an indiscriminate "harmonious" culture. Notably, both companies hired Westerners to drive reforms, with the key idea being to change the entrenched business mindset.
The success of Mitsubishi and Canon's reforms is also a success of transformative thinking, proving that even without hiring Westerners, as long as one understands the essence of things, they can find opportunities in crises.