How to bring down eight hundred companions in a crisis in good times?
On the afternoon of September 18, 1997, the legendary Japanese company Yabaihan applied to the court for bankruptcy protection and declared bankruptcy. For a time, the news shocked the Japanese business community and became a big news that people talked about. People don't understand why Babaiban, which was in its heyday just a few years ago, fell into trouble making ends meet overnight.
In fact, before Babaiban went bankrupt, one crisis after another had already emerged. However, during the good times of Babaihan's rapid development, no one paid attention to these crises, which ultimately led to the fate of bankruptcy.
Babaiban has been developing rapidly since 1962. Since the early days of inheriting Yabaihan, Wada Kazuo has already started a business direction that is completely different from the previous one, which is to go abroad and go global. This business direction has enabled Babaihan to achieve great achievements in the Pacific Rim region in a short period of time, but it has also resulted in the company's disadvantage of not having a deep domestic foundation. Few companies can skip the steps of domestic market expansion and cope with the world market easily, and the same is true for 800band. Kazuo Wada blindly emphasizes the implementation of global strategies and invests heavily abroad.
In Japan, Yabaiban only owns dozens of medium-sized supermarkets centered in Shizuoka, with a small share. Its grasp of Japan's domestic business conditions and business opportunities is even more limited.
In order to maintain operations, Babaiban mainly relies on borrowings to carry out operations. It relies on huge turnover and cash flow to support its survival, leaving little room for capital operation. In 1994, the U.S. Federal Reserve raised interest rates six times in succession, which put great economic pressure on the Yabaihan Group, forcing it to try to reduce its debt and begin to sell some stores one after another.
At this time, Babaiban has already shown its initial crisis. This is a dangerous signal. If Babaiban can work more on developing the domestic market, it will definitely be able to lay a stronger foundation. Reduce dependence on foreign markets. However, this crisis did not attract enough attention from operators, and no corresponding measures were taken to address this situation. Yabaihan Company overcame the difficulties by directly raising funds from the financial market through the issuance of bonds.
However, as a company grown in Japan, it is obviously unrealistic to lack the cooperation of local banks. Yabaihan Company Although the method of issuing corporate bonds ensured the company's capital operation and seemed to be prospering and developing faster, it gradually broke away from the three banks it relied on in the past: Tokai, Sumitomo Trust, and Japan Long-Term Credit. A few years later, this crisis finally broke out. When Babaihan was short of funds, without the support of these three major banks, it fell into an isolated and helpless predicament and declared bankruptcy.
The Yabaihan Group has been in trouble since around 1996. In order to save itself, Yabaihan changed the group's logo from the "earth" pattern to the "eight" pattern, which takes the auspicious meaning of the eight characters. . Kazuo Wada was even forced to sell his mansion to ease the debt crisis, but these were only a drop in the bucket.
Beginning in July 1997, Babaiban's stock price plummeted. By early September, it had dropped from 200 yuan in July to 70 yuan. The Tokyo Stock Exchange announced on September 18 that it would stop trading in Yaohan Japan's shares from the 19th and would cancel the company's stock listing on December 19. On the same day, Eight Hundred Banner declared bankruptcy.
Babaiban has gone through ups and downs for 60 years, from the original small shop to the world, and from prosperity to a situation where it cannot make ends meet. During this period, there were signs of crisis more than once, but Kazuo Wada, the operator of Yabaihan, only saw the prosperity of the company's rapid development and paid no attention to the crisis. It was the good times that confused the eyes of the operators, and it was also the good times that confused the eyes of the operators. The crisis finally affected the building of Yabaihan.
In nature, natural disasters such as earthquakes, landslides, and tsunamis often cause huge losses to humans. In fact, there are precursors before every disaster strikes. Wolves are extremely sensitive to these signs. They either whine or move in groups to avoid disaster. It is precisely because humans cannot see these omens, or turn a blind eye to these omens, that they have suffered huge losses again and again.
The same is true for shopping malls. Crises are everywhere. In times of adversity, people are often more likely to see the crisis and will go all out to resolve the crisis and get out of the predicament; while in times of good times, people are often blinded by the great development situation and forget about the hidden dangers. . Therefore, in a sense, the crisis in adversity is not terrible. What is terrible is the crisis hidden in good times. This is the most deadly.
Crisis is inevitable for everyone. How to deal with the crisis determines whether and how a person can succeed. For an enterprise, seeing the crisis and preventing the outbreak of the crisis are important guarantees for the enterprise to continue to move forward. Crisis cannot be ignored. Sometimes the outbreak of a crisis is enough to bring about the demise of a large enterprise.
Wolves constantly change their thinking, so they can cope with different environments and gain the right to survive. In human society, only those who continue to change and resolve crises can make the tree of life of an enterprise evergreen.
The General Electric Company in the United States is an evergreen tree. This century-old store has continued to prosper and is still full of vitality to this day.
Since the establishment of the first stock exchange in the United States more than 100 years ago, there has been only one company that has been listed on the stock exchange and has survived to this day, and that is General Electric Company (GE).
Thomas Edison founded the Edison Electric Light Company in 1878. In 1892, Edison General Electric Company and Thomson-Houston Electric Company merged to form General Electric Company.
GE is the world's largest diversified group with a wide range of businesses, covering lighting, plastics, aviation, medical care, finance, media and other fields. GE has established a world-recognized leading position in many aspects. The company's businesses are spread all over the world, with more than 20 group companies and more than 340,000 employees. It operates in 156 countries around the world, with annual sales revenue of 130 billion and a profit of about 130. Around 100 million.
The company has the world's top business managers. Due to the company's excellent prospects and outstanding performance, it has the world's "most admired company" and "most respected company" honors. CE is also a well-known institution that continuously cultivates talents. Its Leadership Training and Development Center located in Croton Village, New York, is known as the "Cradle of CEOs."
GE's more than 100 years of development experience has become a legend, triggering people's continuous exploration of its business secrets. In this exploration process, people invariably focused their attention on the key figure Jack Welch.