Due to sluggish global demand, many Chinese companies have upgraded their brand and reformed internal structure to maintain sustainable growth.
CCTV’s Wu Lei heard from one such company about the management model it has adopted to turn things around.
To boost growth, Chinese business rebrands and restructuresDue to sluggish global demand, many Chinese companies have upgraded their brand and reformed internal structure to maintain sustainable growth.
In Guangdong province, the production line of Phnix is one of the largest heat pump manufacturers in China. Its founder, Zong Yi, said the company once relied heavily on producing for foreign brands, but due to the sluggish demand, he has restructured the company and built one of his own.
Changing the business model seemed like an essential move, but the restructuring involved has created its own set of challenges. According to Zong, management often has trouble satisfying the new needs of the company.
After one of his partners left the company to start his own business, Zong realized he needed to find a way to keep his managers on board.
Losing talent and a lack of innovation have been increasing challenges for many manufacturing companies. But this company has created a unique management mode called “Fission Entrepreneurship” to help solve these problems. Through internal competition, the management team has created over 10 spin-off companies.