In the last few days of the last month of 2004, Fang Zhuo's last major activity before leaving the capital was to visit the production line under construction by BOE.
This is a fifth-generation TFT-LCD production line, which is expected to be put into production by the middle of next year at the earliest and by the end of the year at the latest.
Fang Zhuo and Ni Runfeng visited the construction together, accompanied by Chairman Wang Dongsheng. Originally, he also invited the heads of Konka and TCL, but they were politely rejected.
Panel screens are the upstream of the industrial chain, a market dominated by foreign countries, and an important cost component of LCD products. Such an invitation is different from the dispensable technical lineup of rear-projection TVs, and may involve major corporate strategic decisions.
Therefore, in the end, only Fang Zhuo and Ni Runfeng made the trip.
However, with Wang Dongsheng's introduction, Ni Runfeng also wanted to quit. Although Mr. Fang didn't say it explicitly, he did know something about this person's heart.
"Mr. Wang, my trip this time comes relatively suddenly. I am very happy that we also have a fifth-generation production line in China. Although the road ahead is difficult, I believe there will be a bright tomorrow."
"I hope we will have opportunities to cooperate in the near future."
Fang Zhuo visited and visited, ate and drank, but his final statement to Wang Dongsheng inevitably made him a little disappointed.
Wang Dongsheng felt that this was more like a cliche, but then he thought about it, Bingxin's project was also a more expensive project, and probably more difficult than his own BOE, so he put aside his disappointment.
On the way back, Ni Runfeng couldn't help but sigh: "It's too difficult, Mr. Fang. If you don't visit, you won't know. It's only after you visit that you realize how difficult it is."
Fang Zhuo knows what difficulty Lao Ni refers to. It is not the difficulty of production and construction, although this is indeed difficult, but the difficulty of the competitive situation faced by this fifth-generation TFT-LCD production line.
The chairman of BOE did not sugarcoat the situation in the decoration industry when he accompanied the explanation. The production line they built is mainly for 17-inch displays. When the line was built, the price per piece was around US$300, but now it has dropped to US$200 by the end of the year.
Moreover, this decline has no intention of stopping. It is foreseeable that when BOE starts production, it will face even lower product market prices.
This also means that the production lines built by BOE will inevitably suffer huge losses.
This is not a situation that can be reversed by manpower. It is a cyclical decline of the global industry.
Although BOE itself has learned from Japan and South Korea’s counter-cyclical investment construction methods, such a loss situation is still enough to shake people.
"It's really difficult. No wonder those two people don't want to come." Fang Zhuo said calmly.
Ni Runfeng nodded silently.
"They all saw some of my ideas. In fact, if possible, it would be best for domestic TV companies to take the lead in investing together. If the panel industry is suppressed by foreign companies, it will be shortened a lot." Fang Zhuo said thoughtfully.
However, this faces a most direct problem.
If you want to invest in a panel production line now, you will definitely lose money. Who can convince your board of directors to make such a major decision?
Even Ni Runfeng, who visited the company because of personal relationships, was not sure he would get such decision-making power when Changhong's strategic transformation failed to bear fruit.
Ni Runfeng did not answer the call.
Fang Zhuo was not angry at all, he just smiled and said: "The wave of LCD products is definitely getting faster and faster. When you are all hurt by the cost of panels, you will still think of BOE. There will still be a chance."
Seeing that Mr. Fang's mood was really okay, Ni Runfeng said, "Then let's leave it to the future head of Changhong to consider."
Fang Zhuo glanced at Lao Ni and gave a meaningful prejudgment: "This day will probably come sooner than you think."
Color tube TVs must be upgraded, either plasma or liquid crystal. At present, with the change of Changhong, most domestic TVs are basically on the side of liquid crystal.
However, the panel problem in the upper reaches of the industry chain cannot be solved, which will inevitably cause bone-breaking pain for domestic TV companies.
Just saying it is useless will actually make companies more painful and force them to find a solution together.
Fang Zhuo did not reveal a clear idea of taking the lead this time, but everyone felt like a mirror, so it ended without any problem.
In fact, he is not in a hurry about this. It won't hurt him if he doesn't do TV, and he will definitely have the opportunity to take the lead in doing things next time.
"Old Ni, do you think Zhang Xuebin is moved?" Fang Zhuo changed the topic to a lighter topic.
"I'm afraid it depends on the internal situation of Skyworth. I heard that Mr. Huang is actively dealing with legal issues." Ni Runfeng said, "If I were Zhang Xuebin, I would be moved when I hear what you say, Mr. Fang."
Ni Runfeng continued: "Although Changhong's position is a bit empty, it is definitely possible to start with General Manager Meiling. This is not just a matter of our attitude. In the end, whether it will work or not depends on his own ability."
Fang Zhuo thought about it and said: "This stage is quite good. If he is determined, he should come. Let's see when."
Ni Runfeng nodded. After the new year is the peak period for changing jobs.
"Lao Ni, before the Spring Festival, you can talk to Zhang Xuebin again. If you don't want to talk about anything else, just talk about today's trip." Fang Zhuo finally said, "Skyworth's current situation probably doesn't have the energy to consider the issues upstream of the industry chain. Regardless of whether Changhong can or not
Participation, your attitude and views on the industry are all very important signals."
Zhang Xuebin is different from Ni Runfeng. He is in his prime and should consider and think about the long-term industry.
Ni Runfeng agreed. He really admired this capable person at Skyworth, and it was not taboo to discuss Changhong's future position arrangements.
The two chatted all the way back. They did not continue to talk about Skyworth, but talked about the B2C e-commerce project for a while.
Dazhong Electric has provided nutrients for Tesco to incubate in advance. From now to the Spring Festival, the question for Fang Zhuo is how to better combine Dazhong and Tesco to create an effect of 1+1 greater than 2.
However, this matter cannot be done in a hurry. Dazhong Electrical Appliances has its own offline system, and Tesco B2C also has its original project plan. Rough pursuit of efficiency will not bring better results.
On the contrary, from a more mid- to long-term strategic perspective, the cooperation between Tesco B2C and manufacturers is more valuable.
Regarding this point, Ni Runfeng, an old expert, is the best person to discuss with. He has rich experience in cooperating with channels and is also one of our own to a certain extent.
B2C definitely costs money, but it also has to compete with manufacturers and other channels for the right to speak.
Fang Zhuo hopes that he can handle it better. When it comes to the success or failure of the project and reputation, he hopes that there will be no public controversy like this one. He will just forget about it. It is really harmful to the project.
On the last day of 2004, Fang Zhuo took a flight back to Shanghai. Some of Tesco's considerations still had to be discussed with project executives, and the company's key affairs had to be handled before the Lunar New Year.
However, in the afternoon when Fang Zhuo landed, he received a call from New York as soon as he arrived at Plaza 66.
Called from Sony's Stringer.
It was at this moment when he saw the number that Fang Zhuo suddenly remembered that he was still an external director of Sony Music, and this was also his liaison.
Stringer's phone call had nothing else to do. After a while of pleasantries, he talked about the changes in Sony's situation.
Fang Zhuo made some small suggestions with this person last time. Now, Sony, which is in chaos, has come up with a new power change plan after many parties.
Last time, there were voices within Sony asking Stringer to co-manage the group with current head Nobuyuki Dei. This time, as Sony's anniversary celebration was approaching and the shareholders' meeting was not far away, Nobuyuki Dei once again made concessions.
After the shareholders' meeting, Nobuyuki Dei will no longer hold a specific position and will only hold the title of consultant. Sony's highest power distribution is to make Stringer, who represents Western management, serve as chairman, Ryoharu Nakahachi as president, and Katsumi Ihara as president.
CFO.
This is a shocking plan.
If implemented, Stringer will become the first foreign chairman in the history of Sony Group.
Stringer was overjoyed when he heard this plan, and he was inclined to agree. His own team also suggested that he could accept it.
However, a day later, Stringer, who was a little calmer, remembered Fang Zhuo, who had predicted Sony's situation, and wanted to hear this kid's opinion.
"Well, it's a very good plan. Sony is willing to accept a foreign chairman." Fang Zhuo couldn't help but feel surprised as he pondered. He thought seriously, smoking while thinking about Sony.
Stringer on the other end of the phone patiently waited for his opinion.
"I feel that the bottom line that has been breached once will always be breached repeatedly." Fang Zhuo smoked half a cigarette, first gave this opinion, and then said, "Sony is willing to let you be the chairman. First, Sony Entertainment
The second reason is that they believe that modern Western business management can save Sony."
"This first point will not change. No matter what, Sony Entertainment is already outstanding."
"This second point will also not change. Sony, which is in decline, must have more modern management and management. I believe they have gradually reached this consensus internally."
"The only thing that will change is how much power they are willing to give you as the chairman."
"Stringer, I don't think you should underestimate the difficulties of the group's local and global businesses."
Fang Zhuo returned to the specific power plan: "Ryoji Nakahachi serves as president, and also succeeds Kuni Ando as representative director. This actually reduces the power of your position as chairman. You may not know that the representative directors here in Sony are different.
To your ordinary directors over there.”
Representative director is a unique system in Japan and South Korea. The reason why Nakahata Ryoharu can take over the seat of representative director is that he is now the executive director of Sony.
Simply put, the representative director must be selected from among the directors. He is a director among directors and has the right to represent the company.
That is to say, when Ryoji Nakaba is alone with the outside world, he can express his will independently, and this will can be regarded as the will of Sony Group.
So, on different occasions, it is not necessarily clear what Stringer, the chairman, and Nakahata Ryoharu, the representative director, should focus on.
After all, Nakahata Ryoharu has considerable influence in the group's homeland. His current position is vice president and chief operating officer in charge of the microsystems branch and EMCS, and he has strong personal abilities.
Fang Zhuo felt that Stringer may not know about the settings with Japanese and Korean characteristics. Such a "little chairman" would greatly divide authority, and the CFO of another high-level group leader is also the local Katsumi Ihara.
This is a continuation of her position, and her several years of CFO experience will obviously allow her to firmly grasp the financial power.
Looking at it this way, with the young chairman Ryoharu Nakahachi and the old CFO Katsumi Ihara, Stringer will have to spend a lot of time to fully control the Sony Group.
He really doesn't know about such a unique system.
Who has nothing to do to study this?
Fang Zhuo did a little research. The main reason is that this thing looks strange. Directors are directors and they have to be "representatives." Then take a closer look at what they actually represent.
"If you can't flex your muscles, why give up on the entertainment business, which is getting better and better now? If you want to flex your muscles and save Sony, you must be able to exercise your power smoothly. Otherwise, what do you have as chairman?
Use?" Fang Zhuo said, "The power that is stuck in the quagmire is meaningless to you."
Stringer was lost in thought.
It wasn’t that he felt it was meaningless at all, but he suddenly felt that a representative director with Japanese characteristics symbolized many subtle things.
A representative director appears. Is there more to it?
Is this the reason for Sony's current decline?
Therefore, Sony needs to carry out modern management reforms.
As the vice chairman of the group, Stringer has firmly established this understanding. The first step is to reorganize the board of directors.
"Fang, do you think I can get the position of president?" he asked after thinking about it.
"You are not required to be the president. Do they have any other candidates? Where is Kutaragi Ken?" Fang Zhuo asked.
I have previously studied the outstanding leadership of the Sony Group. Nakahachi Ryoharu and Kutaragi Ken are both key candidates. The latter is called the father of PS and is also a very eye-catching presence in today's decline.
Stringer was silent, this name seemed to have an impression on him.
"Fang, you are simply more familiar with Sony than I am." He spat out a sentence after a few seconds.
Fang Zhuo was very calm: "I am in China and I am too close to Sony. Many times, Sony is my learning partner."
"Do you think this Kutaragi Ken can replace Chubachi Ryoharu?" Stringer wanted to hear Fang Zhuo's evaluation of this person before asking about Kutaragi Ken.
"He is more technical. Compared with Ryoji Nakahata who can serve as a representative director, I think he is easier for you to completely implement the power of your chairman. As for the other CFO, there is no reason to sway her now." Fang Zhuo said.
said.
Stringer agrees.
"If we can win over Ryoji Nakahata, or at least his representative director, Sony's board of directors must be reformed to let the scientific light of modern management illuminate Sony again." Fang Zhuo sighed, "This will definitely not be easy."
It's not easy, of course it's not easy.
But who doesn't want to be a hero.
Stringer thought this way and made up his mind to resign again.
