Distributor "Point General": Innovation of Home Brand's Market Chain

The famous institutional economist and Nobel prize winner Kos has interpreted a very interesting market economy phenomenon, that is, how companies are generated in a market economy. His theory is very deep, in order to facilitate the reader's understanding, the author interprets it in a general language and in plain language. The market economy is operated by trading, buying and selling, and price mechanisms, but in enterprises, it is operated by plans and administrative orders. For some small and medium-sized enterprises, it is operated by the company boss (including supervisors at all levels) issuing orders. of. Isn't this kind of operation mechanism of the enterprise contrary to the operation law of the market economy? Coase's core theory is that any transaction in the market economy has a cost. The reason why an enterprise exists is because the internal organizational cost of the enterprise is lower than the transaction cost on the market. Enterprises are managed by administrative means such as planning, control, coordination, and orders, while the market is managed by price mechanisms. The price mechanism is not free. In order to save market transaction costs, such as the cost of gathering market information, the cost of bargaining, the cost of identifying advantages and disadvantages, etc., companies have appeared in the market economy.

     To put it bluntly, the reason why the boss of the company is willing to pay the employee's wages and let the employee work within the company. The boss issues orders to obtain the employee's labor results, rather than obtaining the employee's labor results from the market. Because the cost of organizing employees into the enterprise is lower than the cost of buying in the market.

     According to the above statement, the existence of an enterprise is because the internal organizational cost is low, the enterprise is more efficient, and the output is greater. Actually, this is not the case as the company grows. The larger the enterprise, the more people there are in the enterprise, and the more likely it is that bureaucracy, individualism, mutual blame, bluffing, and the " big enterprise disease " in which people are in trouble. If employees within the company are mixed, their capabilities are degraded, and they are not customer-centric, if there is no countermeasure to deal with it, there will naturally be a worsening situation.

     This is why Haier, China's most famous company, has implemented SBU . The purpose of all Haier employees to implement SBU management is to overcome the disease of large enterprises and introduce the external market mechanism into the enterprise. Haier the 100 billion enterprise "elephant" can be to small businesses as dynamic, will "dance." SBU is the abbreviation of English STRATIGICBUSINESSUNIT , which means strategic business unit. That is, the principle of market transactions is simulated within the enterprise. Each process, each process, and each person in the enterprise is a market relationship. The next process and the next process are the " customer " and market of the previous process and process. Processes and processes earn income by serving their own " customers " and the market. If the service is effective, you can ask your client to pay according to the contract; if the service is invalid or the effect is not good, the client can claim compensation. Each process, each step, the relationship between the market by each mechanism "SST" nip together - i.e., the cable may be paid (S), the claim may be (S), which if there is no gate ring, financial It will trip (T) . Haier requires not only every business department but everyone to be SBU , everyone is " Little Haier " , Haier's 50,000 employees are 50,000 SBUs, that is, 50,000 bosses, everyone is an operator, everyone is Is the main body of innovation. In this way, Haier Group's strategy will be implemented to every employee, and each employee's strategic innovation will ensure the realization of the group's strategy. Haier's SBU is a very ideal management revolution, and no pilot success has been achieved so far. Even Professor Marshall of the world's top business school-Wharton Business School said that if Haier can achieve full SBU , Haier will be unique in the world of!

     Haier ’s SBU management revolution may not be successful, but Haier ’s core idea of SBU : simulating the establishment of market trading principles within an enterprise and creating a market chain mechanism internally can be learned and learned by many enterprises.

     At present, some leading companies in the home building materials industry have realized the necessity and urgency of creating a market chain within the company, and have begun to conduct market-oriented trials in some positions and functions.

     For the store post showroom designer post and store terminal trainer post that are common in the home building materials industry , you can try to allow dealers (external customers) to " point the order " to improve the level of store design and terminal training. For example, for a terminal trainer, you can let the trainer go to the terminal and develop a training courseware that is practical and practical for the terminal and can actually help the dealer. These trainers and the excellent courseware developed by them are clearly priced and recommended to the dealers, so that the dealers " click " and the dealers spend money to hire corporate trainers to give lectures. In this way, a benign competition and PK mechanism can be generated between the trainers. The training effect is good, and the trainers who are helpful to the terminal will definitely be more and more popular with the dealers, and the number of " point will " More, the personal income of the trainer is getting higher and higher, which also encourages the trainer to continuously improve his training level and develop more training courses that are popular with the terminal. This has achieved a " triple win " for trainers, enterprises and distributors. "The situation. Trainers who are not popular with dealers will be gradually eliminated by the market (dealers), and the situation of survival of the fittest trainers will naturally be achieved, rather than the internal training supervisor of the enterprise to decide the stay and promotion of trainers.

     If companies in the home building materials industry want to use this market chain mechanism for innovation and ensure the success of this mechanism, the author believes that the following aspects need to be done:

     One is to do a good job of ideological work introduced by the employee market chain mechanism. Before this kind of market chain mechanism was introduced, employees were eating " big pot " to some extent, and their income and promotion were determined by the direct supervisors in the enterprise, not by the market. Employees must have fear and resistance to this new mechanism. First of all, we must explain to employees that this mechanism is open, fair, and fair, and can achieve a win-win relationship between employees and the company; second, we must be afraid of employees ’internal competition PK , and we must state that “ playing chess requires recruiting masters ” , Internal competition PK , survival of the fittest, help everyone improve their professional skills, can be more competitive in the market, is beneficial to the long-term development of each employee.

     The second is that the market chain mechanism should be matched with the assessment and supervision mechanism. This market chain mechanism is not a matter of handing over the choice to the dealer. Dealers also have great limitations due to differences in location, experience, ability, and quality. Not all dealers' opinions and choices are correct. Moreover, sometimes the interests of enterprises and distributors are fundamentally conflicting. For example, distributors pay attention to short-term interests, regardless of long-term interests, and manufacturers must pay attention to long-term interests. Therefore, for the evaluation and assessment of the employees who introduced the market chain mechanism, the opinions of dealers can account for a large part, but definitely not all. The company itself must have regular (eg quarterly or annual) evaluations and assessments of its employees to correct possible problems and errors in the dealer's " point order " , and regularly publish these evaluation and assessment information to the dealer. The implementation of this mechanism should also have a corresponding supervision mechanism to avoid employees colluding with dealers in order to please dealers regardless of company standards and requirements.

     The third is to do a good job in preparing and cultivating talent echelon. The introduction and creation of this market chain mechanism requires enterprises to make adequate preparations for the cultivation and cultivation of talents . To avoid the occurrence of passive situations due to competition and PK , after the survival of the fittest, talents are out of date, and dealers have no " will " to point, so that the market chain mechanism is not running smoothly or forced to terminate.

     Fourth, the market chain mechanism should respond flexibly according to the actual development stage of the enterprise. The introduction of the market chain mechanism is applicable to household building materials companies that have reached a certain stage of development, have a relatively complete channel network, are relatively mature in their dealers, and have a relatively ample talent pool. In the early stage of development, if the network is not perfect, the dealers are immature, and there is a shortage of talents, it is not recommended to adopt the market chain mechanism prematurely, which may be counterproductive.

     Dealer "point" of the market chain mechanism, for most developing home building materials brand is concerned, is a good mechanism to be adopted. But when you adopt it, you have to act by chance. Do not " wear big shoes with small feet " . The best is the one that suits you.

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