Return to 78: Why are all the Americans panicking about doing scientific research?

"Comrades, I called everyone to a meeting as soon as I got back, mainly to implement three things."

"The first thing, as you have all seen, is that in the near future, Northern Machinery Company will invest a large sum of money to build a complete semiconductor industrial park in the southern coastal special economic zone."

"The semiconductor industrial park will integrate R&D, manufacturing, and product sales."

“Its birth is an important step for my company to go global.”

“It’s of extraordinary significance.”

All the people who were supposed to come had arrived, and Lin Kaifeng temporarily turned the office into a meeting room.

First, implement the first arrangement, relocation of the industrial chain.

Various local conditions have severely restricted the further growth and strength of Northern Machinery Company.

It is an inevitable result for enterprises to go global.

The layout of special economic zones should be the most critical link in Lin Kaifeng's business system.

The machinery company should not only move into the southern special economic zones, but also open branches across the country.

Northern Machinery Company can be found in Shanghai, Beijing, and other provincial capitals.

Lin Kaifeng will implement this work within two years.

By 1985, new changes will occur in the domestic economic situation.

A steady stream of foreign businessmen came to Longguo to invest and build factories, and the land in major cities became extremely valuable.

People's demand for housing has also begun to increase day by day.

Now is the best time to make plans.

Then, Lin Kaifeng proposed the second work arrangement.

We opened foreign language remedial classes and invited comrades from the foreign affairs and foreign trade departments to help the machinery company train its foreign-related team.

Being based in China is the foundation. Bringing sales personnel from China to foreign countries and playing the "Made in China" card is another development goal of the company.

To expand your business around the world, you must first understand foreign customs and local languages.

In such a large company as Northern Machinery, there are only a few people who know English.

There is not a single employee who can speak any other language.

Cultivating foreign language and foreign trade talents is an important cornerstone for the company to go global.

Everyone nodded, and no one raised any objections.

After several years of development, Northern Machinery Company has completed the integration of county and city resources.

In this county town which is neither too big nor too small, branches of Northern Machinery Company can be seen everywhere.

It's no exaggeration.

Almost all of the county’s population of several hundred thousand people have direct or indirect ties with Northern Machinery Company.

As for the urban area, a large number of enterprises provide OEM and supporting production for Northern Machinery Company.

Electricity is the main factor that plagues the development of desert countries.

It also has a crucial impact on Northern Machinery Company.

The most obvious feature of the semiconductor industry is its high power consumption.

The local power supply can only basically meet the normal production needs of chip factories.

If the factory expands in scale, it will introduce supporting upstream and downstream enterprises.

There will definitely be problems with the local power supply.

It is time to move the production lines and personnel of semiconductor factories and some supporting enterprises to Pengcheng Special Economic Zone.

By utilizing the land and electricity of Pengcheng Special Economic Zone, we can solve the energy problem that has plagued semiconductor chip production.

There was no opposition to the first two resolutions.

Lin Kaifeng proposed the third resolution, and Lu Changshun was the first to raise objections.

There are many people who share the same idea as Lu Changshun.

Niu Yonggui said with a complicated expression: "Kaifeng, everyone has no objection to your previous two decisions, but is the third decision too aggressive?"

"If we lower the price of a color TV to the level of a black-and-white TV, the company will lose money on each one it sells."

"It's not worth it to do this."

Lu Changshun continued, "Everyone agrees that we should lower the price of color TV sets appropriately to meet the needs of the domestic people for color TV sets."

"But no matter what, there should be a limit to price reduction. The price reduction you gave is almost the same as giving it away for free."

Just now.

Lin Kaifeng made a decision that surprised everyone.

Comprehensively adjust the domestic selling prices of color televisions.

At this stage.

Northern Machinery Company has several color TV production lines and is capable of manufacturing two models of TVs.

They are 21-inch and 14-inch color TVs respectively.

The two types of color TVs are exclusively supplied to Best Buy. Most of them are exported, and a small number are sent to Friendship Stores for foreign guests to purchase, helping the local area to obtain foreign exchange.

Lin Kaifeng's suggestion for price reduction is to reduce the price of 14-inch color motor from 1900 yuan to 900 yuan.

The price of a 21-inch color TV has been adjusted to 1700 yuan.

The price of imported black-and-white TVs is about the same.

"Everyone be quiet and listen to me."

Guessing that everyone would have objections, Lin Kaifeng said calmly: "Doing business is sometimes like playing chess. A good chess player will not always focus on the situation in front of him."

“Ordinary people play chess by looking ahead at one step, amateur players look three steps ahead at one step, and true masters look through the entire game at one step.”

"We want to be good chess players and not just focus on the small piece of land in front of us."

"Everyone is right. Lowering the price of TV sets to match the price of imported black-and-white TV sets is indeed a losing business. But please note that losing money now does not mean losing money forever."

"Only a small portion of the products produced by the company are sold domestically, and the vast majority are exported to earn foreign exchange. However, nothing is static."

"We export our goods abroad in exchange for foreign exchange, and foreign goods will soon enter our Dragon Country in large quantities."

Lin Kaifeng did not act on his own and force the implementation of the third arrangement as general manager.

Patiently explain to everyone why we are proactively lowering the price of televisions.

Why do a losing business?

The reason is simple: to seize the market.

At meetings attended by senior officials, Lin Kaifeng mentioned many times that the United States and island countries are transferring industries overseas.

Take advantage of cheap labor and material costs overseas to redevelop the manufacturing industry.

The overseas mentioned here naturally includes Longguo.

It won’t be long before a large number of manufacturing companies from foreign countries will begin to take root in Dragon Country.

When a large number of foreign companies have mastered cheap labor, the cost price of the goods they produce will inevitably decrease.

By that time, the word "luxury" will gradually fade away for imported goods that were once considered luxury goods by ordinary people.

Faced with mature home appliances from the West, what can Chinese companies use to compete with them?

"Everyone knows that the development of home appliances in both the island countries and the West is much faster than ours. They formed a complete home appliance industry chain more than 20 years ago, and the various appliances they produce have price advantages that we do not have."

"Once we solve the problem of high material and labor costs by investing in and building factories in China, it will be more difficult for us to compete with them for the market."

Lin Kaifeng told everyone earnestly that one must take a long-term view when doing business.

The current loss of profits is insignificant compared to the huge market in the future.