Enterprises Through The Marginal Profit Of Pesticides
Chinese Academy of Social Sciences published the "2005 report on the competitiveness of Chinese enterprises
," pointed out: If you push forward from 2004, China's industrial profits have been maintained for 6 years of high growth, but entered in 2005, the situation has changed?? to the end of September, the national industrial enterprises above designated size (all state-owned enterprises and in products Sell Income of 500 million over the non-state-owned enterprises) profit 988300000000 yuan, up 20.1%, while the average of the first 6 years is 40.5%, up a sharp 19.7% drop. Drop magnitude that our industry has entered the low-profit era, as did 45% in the first 6 years of high growth era of the industrial profit margins probably be gone. Increase corporate profits fall, losses rise, marking the company entered the low-profit times, and now we can say that the arrival of profit era has become inevitable. Of course, China Pesticide Industry as Industrial Economy Not an important part of coming of age from low-profit, it can be said from the current situation of pesticide industry in the times to see the low profit figure. Although in recent years, China's pesticide industry in a good momentum of development, but China's pesticide industry is facing from the macro- Economy Environment, electricity shortage, land shortage, labor shortage and environmental protection, raw materials, government Service Increased costs, there are indications that China's pesticide is in a sharp increase in the phase factor cost, combined with pesticide companies increasing global competition, leading to pesticide marginal profit is rapidly approaching. First half of 2005, China's pesticide industry due to raw materials, Energy Transportation price increases and other factors, cost of product sales increased 24.9%, the product cost of sales increased 38.0%. Some time to come, the Chinese pesticide industry, probably after 2006 times, and small profits. As a result, the Chinese enterprises to enter the marginal profit of pesticides has become inevitable.
Raw materials in recent years, Accessories , Energy, transportation and other costs are still rising, this pressure can not possibly rise by the retail prices of pesticides to solve. Well, the Chinese pesticide companies how to deal with the coming era of shrinking profits? Into the marginal profit of the Chinese pesticide companies how to survive in the fierce competition and development? Of course, the scale, specialized, intensive and continuous innovation is that people mentioned most. In fact, times, and low-profit or low-profit era, indicates that the management of Chinese pesticide companies coming boom boom and innovation. If a pesticide companies relying solely on prices and rely on highly profitable monopoly, then, the Chinese pesticide companies would not be a business management and the Dynamics of Innovation; only market to a low-profit times, and only a spur of the pesticide enterprises to strengthen management, management and innovation can become a craze. Therefore, the Chinese enterprises should first of all to the management of pesticides to be effective, then to the innovation to be effective.
To management for efficiency mainly in cost control. In the low profit era, the increase in expenses during the operational efficiency of each stage of the delay will likely result in cost multiplied. Since last year, Fuel , Chemical raw materials prices the way, has not stopped many varieties of signs up, which became an important pesticide costs by the factor. At the same time, some species of tax-free cancellation policy, so that the net cost of some varieties of rose high about 5%; further implementation of the transport system and other charges associated weight factors, so in 2006 to deal with various pesticide companies profit by this fall factor. Therefore, effective control of the relative cost-effectiveness can only maximize. It appears that the importance of cost control is more prominent in the marginal profit. To control the rising cost to the enterprise core competitiveness is not too high. Once upon a time, talk about cost control in the enterprise was considered its limitations. It seems that only extravagant to spend money to show the strength of enterprises. However, the fact that, Xuan He previously were written Deal or No Deal has been devoid of a time no trace of the enterprise. In fact, China began to change in recent years, some pesticide companies lavish habits, conduct Energy Saving to reduce costs, some companies insist on the implementation of Cycle Economic projects, build a conservation-oriented enterprises, the enterprise has a number of indicators among the international advanced level.
Harvard Professor Michael Porter In his famous "competitive advantage" of market competition in the proposed three basic strategies: cost leadership, maverick and objectives of the gathering and said: "There are two basic competitive advantage Type: cost leadership and maverick. the cost advantage of the two companies may have competitive advantages.
Enterprises Through The Marginal Profit Of Pesticides
By: hotxueboy
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