Enterprise principle 1: Coase's transaction cost principle-the enterprise exists because it reduces the transaction cost of society.

The second enterprise principle: Drucker's social function principle-enterprises exist for social purposes. Enterprise is a means, not an end. Enterprise exists to solve problems for society.

The third principle of enterprise: Schumpeter's principle of innovation and profitability-entrepreneurs can only make profits if they innovate. The profit brought by innovation is short-lived, because opponents will learn to catch up and even eliminate the profit brought by innovation. So if you want to make a profit, you need to keep innovating.

Three principles of brand

Brand 1 principle: social supervision principle-the essence of brand is a risk mechanism for social supervision of enterprises and protection of consumers.

Brand second principle: brand cost principle-the significance of brand existence lies in reducing three costs: first, reducing the cost of social supervision; Second, reduce the cost of customer selection; Third, reduce the marketing communication cost of enterprises.

The third principle of brand: the principle of brand equity-brand equity is consumers' cognition of the benefits that brands can bring us.

Three principles of communication

Communication principle 1: the principle of stimulation and reflection-many successful advertising slogans are the logic of stimulation and reflection, and the advertisements are clear, convincing and convincing. However, only convincing people, that is to say, consumers can act, is the ultimate goal.

The second principle of communication: broadcasting principle-broadcasting is to reverse the word communication. It's not that I broadcast a thing to let it broadcast, but that I broadcast a thing to let it spread itself.

The third principle of AC: the first principle of signal energy correlation, the stronger the stimulus signal, the stronger the cardiac reflex.

Huahua's method holds that all business operations are nothing more than the methodology of "serving the society" and the methodology of "innovation", and puts forward Huahua's corporate philosophy:

1. Enterprises exist for the sake of society, undertake certain responsibilities for society and solve certain problems.

2. Brand is the complete commitment of the enterprise to solve this problem.

3. The more complete the commitment, the lower the cost of social transactions through enterprises.

4. The more important the social problem is, the higher the market value of the enterprise and the more sustainable it is.

5. Enterprises make profits through continuous innovation.

Enterprise management is an economic activity, and economic activity is a matter of money. Money is two things-cost and investment. The cost is to study how to spend less money; Investment is to study whether the money spent can become an investment and an asset instead of an expenditure, and the enterprise can still receive its interest every day after 50 years.

Take Zhou Heiya and Juewei duck neck, the two giants in the duck neck category market, as an example. In 20 18, the sales of Juewei reached 4.368 billion yuan, up13.45% year-on-year; The profit was 6.465438 billion yuan, a year-on-year increase of 27.69%. Zhou Heiya's sales were 32120,000 yuan, down1.15% year-on-year; The profit was 540 million yuan, a year-on-year decrease of 29.09%.

The categories operated by the two companies may be the same, but the activities from production to sales are different. Juewei has laid out 23 central factories (investments) throughout the country, and achieved 24-hour delivery of cold chain fresh food. 98.3% of its products are fresh in bulk with a shelf life of 3 days. As for Zhou Heiya, there are only two factories in China, Wuhan and Hebei, so its products are in modified atmosphere packaging with a shelf life of 7 days. The product is different, and the customer unit price is different. Delicious food sold in bulk, the unit price is 30 yuan. Zhou Heiya sells modified atmosphere, and the customer price will reach 63.66 yuan.

In terms of sales organizations, 95% have joined, with 99 15 stores nationwide. Zhou Heiya is directly operated by 100%, with 1288 stores nationwide. Juewei can develop and join because it first invested in SAP information system (investment). When the annual profit is only 30 million yuan, invest 60 million yuan to establish SAP system and build information management capacity. In the management of franchisees, a franchise committee democratically elected by franchisees was established to realize the self-management of franchisees. These are delicious and unique business activities.

When we compare their business activities, we will find that their strategic positioning, that is, the combination of business activities is completely different. It is difficult for Zhou Heiya to imitate the commercial activities of Juewei, and Juewei can easily enter the dominant market in Zhou Heiya.

It is difficult for Zhou Heiya to imitate its unique flavor, and it is basically the difference between franchise mode and direct mode, which also confirms the principle of enterprise supremacy-transaction cost principle. The internal transaction cost of direct selling mode is too high. After more than 1000 stores, the increase of internal transaction costs exceeds the affordability of enterprises. In addition, the unit price of Zhou Heiya customers is higher than that of Juewei, which means its external transaction cost is also higher than Juewei. (20 19 1 1 Zhou Heiya started to join)

Enterprises exist because they can provide some special services to the society, and the essence of enterprises is to solve problems for the society. There can only be one correct thinking path, that is, what problems to solve for society and how to solve them with the best solution.

The solution to social problems is enterprise strategy, which is embodied in business combination and product structure. Product structure is product strategy, which means what products the enterprise provides and what products it does not provide.

The product strategy under the guidance of "fully committed to solving a social problem" is not based on market performance and financial indicators to choose the development of products and services, but on taking social responsibility and solving social problems. In this way, enterprises will not only retain unprofitable business, but also provide completely free services subsidized by enterprises.

Take 360 as an example. In 20 12, 360' s main business strategy is to make mobile phones, and it is cooperating with Huawei to supply 360 special machines. China and Huawei 360 have made a new strategic positioning-Internet security. There are two reasons for locating Internet security:

First, the major problems and needs of society are both the pain points of customers and the pain points of society.

The second is the brand gene and resource endowment of 360.

As far as the major problems and needs of society are concerned, it was entering the era of Internet of Things, and everything was online. For example, as Zhou said, cars are big mobile phones, and planes are also big mobile phones, so there is a risk of being manipulated by cyber criminals. Internet security will become more and more serious and urgent. Home appliances, curtains and door locks are all online, which can be controlled by your mobile phone and of course by cyber criminals. Therefore, network security will become a major social problem.

As far as the brand gene and resource endowment of 360 are concerned, 360 security guards started from free antivirus, and mobile guards can also intercept spam messages and harassing calls. 360 has the brand gene of Internet security, which is closest to this positioning. According to the methodology of "Trinity" of corporate strategy in China and China, corporate strategy = corporate social responsibility = corporate mission. China and China put forward 360 Corporate Social Responsibility-Protecting the Internet Security in China. 360' s Business Mission-Protecting Internet Security in China.

After establishing this strategy, China Digital's first action was to plan the China Internet Security Conference. China Internet Security Conference is also a strategic service product developed by 360 for China to solve the Internet security problem in China. This is not a 360 project, but a national project, so the team of organizers is getting bigger and bigger. Now it is jointly sponsored by internet society of china, China Cyberspace Security Association, China Friendship Promotion Association, China Cryptography Society and 360 Internet Security Center.

Schumpeter said that only innovation can make a profit, so the problem comes. Most enterprises have no innovation, but they also have profits, but the profits are relatively meager, and they are only sad every year. Schumpeter said: the meager profit without innovation is not profit, but the "manager's salary" paid by society to enterprises. For example, if you make stools, I won't give you any profit without innovation. No one will produce shit next year. I'll give you a profit. There's no need to pay so much. Anyone can do it anyway. So the society will pay you a little manager's salary to keep you reproducing.

According to the Huazhong method, the key to management lies in pricing power. As long as you have the pricing power, you have the bargaining power for the downstream, and with the bargaining power, you will have huge profits. The key to pricing power lies in the strength of competition, which only exists on the premise of product homogenization. As long as your products are different from others and innovative, there will be no competition, and you will gain pricing power and huge profits.

Tarde, a French sociologist, wrote a book called "Imitation Rate", saying that all social behaviors are mutual imitation between people, and being kind to others. Seeing Si Qi is the driving force of social progress. Imitation has become the driving force of social progress, and maintaining profits and anti-imitation have become the only way, that is, after I innovate, I should improve the imitation difficulty of my opponents and extend my innovation bonus period. The only way to keep profits is to persist in innovation. When innovation stops, profits stop.

Take the innovation of Xibei Youmian Village as a case. Xibei Youmian Village has experienced two positioning plans before:

For the first time, it was positioned as northwest cuisine;

The second time, I was positioned as an expert in cooking sheep, that is, an expert in cooking mutton.

The first time did not bring any benefits to the business, because it was only a statement and there was no substantive innovation. The second time caused great losses, and quickly stopped the loss. Why? Because the experts who cooked sheep for the second time not only changed their views, but also substantially changed the products. When the dishes are concentrated on mutton, the unit price of customers increases, the number of customers decreases, the gross profit margin decreases, and less money is made, resulting in losses.

On 20 13, China China made an inventory of Xibei from the perspective of marketing 4P. First, let's see what it was like at that time. In order to improve its marketing, we finally got innovative results. The first p is the product. What is Siebel's product? Northwest cuisine or sheep cooking expert? Neither, not the food, but the whole store. This shop is a product of Xibei, with several private rooms, big tables and 100 dishes. The second P is the price, which is probably the unit price of 60 yuan money. The third P is the channel. What is Siebel's channel? The channel is where its store is, and the street is its channel, because its store is on the street. As mentioned earlier, opening a shop on the street is to get the traffic of this street, and at the same time, it also gets one thing: advertising space on this street. A building, your building is your advertising space and your media. The fourth P is promotion, that is, it grafted the beef and mutton in the grassland and the whole grains in the countryside to China on the tip of the tongue.

When Huahua began to adjust this 4P, the first thing to adjust was the channel. Why? Because the channel environment has changed, it is the rise of shopping mall. Therefore, the success of Xibei from 20 13 to now is first of all the success in the channel. It is the shopping center that drives the rapid development of Xibei from 20 14 to 20 18. The innovation of this channel can correspond to "a new market" in Schumpeter's five major innovations. At that time, shopping mall was a new market that was about to grow rapidly. The channel has changed. According to the new channel, we must develop new products. It turned out that it opened a 4-story 3,000-square-meter store with many private rooms for dinner. But when cooking dinner, you can't adapt to the new fast-paced lifestyle of opening a shop in a shopping mall and eating together by two or three people. Therefore, Huahua turned the New Year's Eve dinner into a delicious meal anytime and anywhere.

Xibei has developed from a 3,000-square-meter shop on the street to a 500-600-square-meter shop in a shopping mall, with a table for three or four people and no private rooms. A 3000-square-meter store has a private room, but a 600-square-meter store has no private room? If there is a private room, its efficiency will be reduced and the efficiency of the private room will be very low. Moreover, people's lifestyles have also changed. There are more business centers, and the radius of people's activities is actually smaller. In the past, there was only one commercial center in a city, but now there are many commercial centers in a city; Seven or eight people used to order a big table of dishes and call it a restaurant. Now at noon, two or three or four people near the company are looking for a place to eat. Therefore, the development of new stores and products in shopping centers is the key topic of Xibei 20 13. Therefore, when China and China study Siebel's 4P products, they are not studying whether it is beef, mutton or oat noodle, but whether its products are its stores.

One thing happened on 20 14, that is, Wang Longlong, general manager of Xibei Beijing Company rented a 288-square-meter storefront in Fortune Plaza. At that time, his colleagues laughed at him and said that our kitchen alone would cost 300 square meters, while your whole store was only 288 square meters. How to open this shop? How to drive? Then there was no kitchen, and it became a simple Ming kitchen. A simple kitchen can't carry out complicated processing, but can only cook some dishes that are cooked in the central kitchen and then brought here for simple processing to serve. This cuts the menu from 100 to 33 dishes, which is the biggest change of the product. Use dishes that can be cooked in the central kitchen and then simply processed in the store to serve.

At the beginning, many old customers complained that they couldn't order their usual dishes. Is this still Siebel? Everyone is worried. Only the chairman Jia is the most determined. He said it didn't matter if he didn't want to come. If he doesn't want to come, he's not my client. Giving up before choosing is the basic principle of the art of war. If you want it, you have to give it up first.

Therefore, the change of this product is from a large store of 3000 square meters to a small store of 300 square meters, from a private room to a private room, from a big round table to a small square table for four people, from 100 to 33 dishes, and then to 44 dishes. It is precisely because of these 44 products that Siebel has expanded so fast in recent years. It is precisely because 100 has turned into 44 dishes that we can promise to "close our eyes and everything is delicious". 100 How can you make this promise with more than one course? The change of this product is not over yet, and the weight of each dish should be reduced from large to small. This is not the style of northwest cuisine, because eight people used to eat at a table, so each dish is very heavy. Now two people and three people eat at a table, and each dish is not heavy, so it should be sold by the roots. The weight has become smaller and the roots have been sold. Do you think about it? Has the customer's unit price increased? This is the principle of "small but expensive snacks" put forward by Jia at that time.

Therefore, product innovation is the foundation of Xibei's success!

Product innovation1:3000m2 to 300m2.

Product innovation 2: there are private rooms to no private rooms.

Product innovation 3: big table to small table.

Product innovation 4: 130 dishes to 33 dishes.

Product innovation 5: large parts become smaller parts. Innovative products, innovative channels, innovative production methods, central kitchen production, simple processing in the store, to achieve unique value-close your eyes, everything is delicious; The total cost is ahead, and the customer unit price is also increased.

Siebel succeeded.

Schumpeter's innovation theory mentioned that the dividend of innovation is short-lived, because competitors will quickly imitate learning. The advantages of innovation are gone, and we need to innovate again. Then, from 20 13 to 20 14, Xibei's innovation basically took shape. How long is the dividend period? The result of observation is that by 20 18 years, it will last for about five years. Five years later, 20 18 began to appear, and 20 19 was obvious. From the perspective of product innovation, in addition to the characteristics of dishes, the model of "small shop, small table, snacks, small drinks and small expensive" is widely imitated and has no characteristics; In terms of channel innovation, the new market-shopping malls five years ago-is no longer a dividend market. On the contrary, there are too many shopping malls now, and the number of people in a single shopping mall is declining, so we need to find new markets. There is no end to innovation, because the dividend period of innovation is short.