Doomsday Management: The Wisdom of Corporate Survival
Analysis of the Doomsday Management Concept
In today's ever - changing business world, market competition is like a fierce war without gunpowder smoke. For enterprises, every operator and employee should deeply understand the cruelty of competition and clearly recognize that an enterprise is like a living being with a life cycle and there is a possibility of its "doomsday". Products also go through a process from birth to decline. This sense of crisis should not remain on the surface but penetrate into every decision and action.
Many enterprises have long been accustomed to the relatively stable "hotbed" of the planned economy. When transitioning to the market economy, they seem to be able to quickly adapt to its high - speed development rhythm. However, when faced with the requirement of steady development, they often find themselves inadequate. It should be noted that yesterday's success is just a thing of the past and does not represent today's or even future success. When an enterprise is at its peak, it is prone to complacency and relax its vigilance against market changes. This, precisely, may become the beginning of its decline, and the shadow of "doom" quietly descends at this time.
The "End-of-Days" Management Practice of Little Swan
Guided by the concept of "doomsday management," Little Swan has explored a unique business management model. They have unique insights into competition, believing that competition is not about fighting to the death with peers, but rather about racing against oneself and keeping pace with the times. To this end, Little Swan adopted a special comparison method to participate in competition, transforming the traditional vertical comparison into a horizontal one, thus acutely perceiving the potential "crises."
Compared with international famous brands
Little Swan actively benchmarks against international first-class enterprises, comparing its various quality indicators, business indicators, and production efficiency one by one with the parameters of world-leading companies. Although Little Swan washing machines have reached the international advanced level of 5,000 trouble-free operations and passed the ISO9001 international certification, there is still a gap in scale and output compared with international giants such as Panasonic. In terms of price, it is only two-thirds of similar Japanese products, and its competitiveness in the international market needs to be improved. In terms of the comparison between human resources and output, 1,200 employees of Little Swan produce about 3,500 washing machines per day, while the Shizuoka washing machine factory of Panasonic can produce 4,500 washing machines per day with only 450 people. More importantly, there is a significant gap between Little Swan and foreign enterprises in the early-stage product development ability. Through such a detailed comparison, Little Swan has identified the gap with the world level and found the direction of effort for striving to create an international brand.
Compared with domestic counterparts
Little Swan is well aware that domestic peers each have their own strengths and are role models for it on its path forward. Haier's "Daily Clearance and Daily Improvement" quality management method ensures product quality through highly efficient and rigorous management; the experience of Suzhou Great Wall in "steadily and surely" exploring the market provides Little Swan with ideas for steady development; Jiangmen Jinling and Hangzhou Panasonic have "a hundred flowers blooming" in new product development, showing the vitality of innovation; the concept of Zhongshan Weili in "going all out" to serve users emphasizes the importance of user experience; the measures of Hefei Rongshida in joining hands with Sanyo and Shanghai Narcissus with Whirlpool to jointly explore the market reflect the strategic vision of win - win cooperation. By learning the advanced experience of these peers, Little Swan continuously enhances its own competitiveness and maintains its leading position in the domestic market.
Compared with market demand
Although Little Swan holds a 42% market share in the domestic market, the competition in the domestic washing machine market is extremely fierce. In 1996, the national demand for fully automatic washing machines was about 2 million units, a 20% increase compared to the previous year. At the same time, imported original - assembled machines also flooded into the market, presenting a situation of "production exceeding sales". As China's accession to the General Agreement on Tariffs and Trade (GATT) was approaching, domestic washing machine manufacturers not only had to compete with domestic counterparts but also confront powerful international enterprises. Within a 500 - li radius around Little Swan, there were 8 Sino - foreign joint - venture brands such as Sanyo and Panasonic participating in the competition. Moreover, consumers' demands are constantly changing. If Little Swan fails to continuously innovate and meet the new market demands, the threat of doom will draw closer day by day.
Compare one's own weaknesses with others' strengths
Little Swan remains vigilant at all times to prevent self - indulgence and complacency. Although the enterprise has made some progress in management, there are still many problems. Some employees have developed a "self - complacent attitude after a small success". They are content with the status quo and lack the spirit of innovation. The rapid expansion of the enterprise has also led to a talent crisis, lacking mature middle - aged and young cadres. At the same time, there is also arrogance within the enterprise, and the enterprise is not cautious enough in terms of expenses. The employees of Little Swan understand that it is not terrible to discover a crisis. As long as positive measures are taken, the crisis can be turned into an opportunity for development.
Inspiration from Doomsday Management
People are the most core resources of an enterprise. Developing employees' intelligence and tapping their potential are the primary tasks of an enterprise. After all, the quality of products depends on the quality of people. Only with high - quality employees can high - quality products be produced. Talents are the most valuable assets of an enterprise. The reputation and image of an enterprise are created and maintained by people. If an enterprise wants to maintain its leading position continuously, it must boldly employ young people with a sense of market competition and decision - making ability to inject fresh blood and innovative vitality into the enterprise.
Implementing "doomsday management" is an important measure for enterprises to adapt to the ever-changing market. When any enterprise develops to a certain stage, it may face the problems of product aging and enterprise aging, and the "doomsday" seems inevitable. However, as long as an enterprise dares to innovate through reform and timely change its concepts and mechanisms, it can find opportunities in the crisis and have a bright future. It should be noted that implementing "doomsday management" is a long-term and arduous task. Enterprises should not just give it a cursory try but should persevere in integrating it into the enterprise's development strategy.