Landsden's Law: Advice to Grain and Oil Family Enterprises

China has liberalized the grain and oil market and diversified the main body of grain and oil management. While reforming, streamlining and integrating state-owned grain and oil purchasing and marketing enterprises, and giving full play to its role as the main channel, we will vigorously support the development of private wholly-owned grain and oil enterprises, private holding grain and oil enterprises and mixed grain and oil enterprises.

After years of opening up of the grain and oil market, private grain and oil enterprises in full swing have sprung up, tens of thousands of private grain and oil enterprises all over urban and rural areas.

With the gradual standardization of China's grain and oil market, some private enterprises are growing day by day in the struggle, but more private enterprises are quietly submerged in the vast sea of grain and oil market economy.

By analyzing the private grain and oil enterprises that set up quickly and disappear more quickly, it is not difficult for us to find a very important reason, that is, the malpractice of the family management of private enterprises.

Lansden, an American management scientist, discovered a famous law: working with a friend is far more interesting than working under his father.

What does this famous law tell us?

Social commentators are right: honorable but not dear, but not respectable in the end; power without prestige, often lose power.

It has been a rule of Chinese folk for thousands of years for a son to inherit his father's work. The hereditary system of the ancient royal family, regardless of the age, ability and conduct of the heirs, must become the so-called "great cause".

China's folk skilled craftsmen spread the art inside and outside, but only the rules of their own families, and there are still many people.

The habit of thousands of years seems to be deep-rooted for some private grain and oil enterprises in today's era.

It is undeniable that private enterprises founded on their own can be said to be a collection of hard work and sweat, and every penny is hard to come by. When the first generation of entrepreneurs need to quit because of age and other reasons, they almost without exception leave the reluctant enterprises to future generations. For most people, there is nothing wrong with this practice of "fertile water does not flow to outsiders' land".

Family inheritance and career, in different times, different social changes, has an absolutely different outcome.

In the underdeveloped society or era, the rich (business owners, entrepreneurs) are in an absolute economic advantage, there is not much external pressure to inherit the family business, which makes sense.

In a society with a relatively developed market economy, although the rich (business owners, entrepreneurs) also have certain economic advantages, they are faced with an increasingly competitive pattern, so it is necessary to think twice before inheriting the family business.

"it is honorable but not dear, but it is difficult to respect it in the end." There is always a close relationship between father and son (mother and son), between the elders and the younger generation, and between the old and the young. This unbreakable kinship is the basis for maintaining a family and a harmonious society. Even if there is temporary discord sometimes, it will be solved easily in the end.

Respect for the elders of the younger generation is not only a fine tradition of the Chinese nation, but also the basis for maintaining the development of human society. However, in the development and inheritance of grain and oil enterprises, respect is always respected.

Without long-term painstaking efforts and little by little accumulated sweat, it would be impossible to establish decent private enterprises. The founders of private enterprises at the beginning of their establishment are either people who have worked in the grain and oil industry in the past, people who have been laid off from other industries, or rural residents who have started business while producing, and so on. No matter what kind of people they are, they don't have much capital at the beginning of their business. By starting to sell grain and oil, snowball slowly become big, register and set up grain and oil enterprises.

Without the spirit of long-term persistence, gathering sand into towers and gathering armpits into mickles, it would be impossible for grain and oil enterprises to become stronger and bigger. Closely related to the people's life, the state has always implemented an appropriate price policy for grain and oil commodities, that is to say, the market price of grain and oil should be below the level acceptable to the people for a long time. The profits of operating grain and oil cannot rise as high as some industries do. Fortunately, as long as grain and oil enterprises abide by national policies, do not make mistakes in decision-making, and work wholeheartedly, they will be able to embark on a big and strong road.

Without a high degree of social responsibility and dedication, it is impossible to maintain the sustainable development of private enterprises. In a sense, to be a grain and oil enterprise is to be a businessman with a conscience. Do not make much money, but invest a lot of capital; profit margin is not high, but pay a lot of labor; status is not high, social responsibility is not small. If all this does not have a high degree of social responsibility and only wants to make excess profits, it is impossible to stick to it.

As the future successors of grain and oil enterprises, they feel honorable for the great dedication and dedication of their parents. However, with the current superior life and endless new industries, they seem to be more and more marginalized to the traditional private grain and oil enterprises. Therefore, it is honorable to the elders, but not in the end.

It is precisely because the successors are "honorable, but not honorable" to their predecessors, which leads to the emergence of "power without prestige, often loss of power".

The ideal is different, the management idea is different, the decision-making direction will be in the opposite direction. The development of grain and oil enterprises, like all other enterprises in the market economy, also has its operation law. If we do not act in accordance with the operating laws of the grain and oil industry, but start a new stove and do whatever we want, it will be easy to bury the grain and oil enterprises. In recent years, many private grain and oil enterprises have disappeared not because of improper operation of grain and oil, but because their successors have failed to act in accordance with the operating laws of the grain and oil industry.

Looking at the secret of the enduring prosperity of private enterprises in developed countries, it is not difficult to find that only by making good use of ownership and management rights can private enterprises last forever.

For China's family grain and oil enterprises, it is often the head of the family who holds the ownership of the enterprise. He is not only the chairman of the enterprise, but also the general manager of the enterprise, with the right of ownership and management. The high concentration of decision-making and the firm and forceful implementation are highly efficient for the operation of enterprises. In this way, decision makers, for small businesses, can still produce high efficiency. However, for the enterprise to grow to a certain scale, it is inadequate.

Bill Gates, one of the down payments in the world today, is as rich as a country. But Bill Gates' actions are laudable.

Bill Gates officially retired on June 27, 2008, but remained chairman of Microsoft to ensure the operation of the company and donated $58 billion of personal wealth to the Bill and Melinda Gates Foundation. In his will, he announced that he would give 98% to the Bill and Melinda Gates Foundation, which is named after him and his wife, to research vaccines against AIDS and malaria and to provide aid to poor countries around the world.

On February 4, 2014, Bill Gates ceased to be chairman of Microsoft and took over as technical adviser, John Thompson took over as chairman, and Microsoft appointed internal executive Satya Nadella as the next CEO.

Bill Gates gave us a good inspiration that he began to separate ownership from management, and then simply stepped down. It turns out that Bill Gates' decision is incomparably right. Microsoft's development is still booming, and computer software, such as Windows operating system and OFFICES office system, is firmly at the top of the world.

Learning from the practice of private enterprises in developed countries and the interests of private enterprises in China, while paying close attention to the restructuring of family enterprises into joint-stock enterprises and absorbing social capital, we should separate the ownership of enterprises from the right of management. absorb social professional managers to do their best for the development of enterprises. In this way, as the founder of the family business owner, will have the power and prestige, the enterprise will also embark on the broad road of prosperity.