Read the background information below first and then summarize it yourself!

Wal-Mart:

Review of Wal-Mart History

Like the first store, today's Wal-Mart is still driven by three basic beliefs. Although Mr Sam has left us, his thoughts and philosophy will always lead us to success. Wal-Mart's success today stems from the fact that it is never satisfied with the status quo of the company. Wal-Mart is a visionary company. It cherishes its past very much and is good at summing up experiences and lessons from it, but it will not rest on its laurels. The following sequence of events reflects the development of Wal-Mart.

The total number of Wal-Mart stores worldwide is 7,262.

Wal-Mart USA 4, 14 1

Wal-Mart Store 97 1

Walmart supercenter 2447

Sam member store 59 1

Wal-Mart Community Store 132

Walmart International Department 3065

At the recent "2008 Sustainable Development Summit", Wal-Mart announced a new and stricter procurement strategy aimed at establishing a global supply chain responsible for environmental and social development.

McDonnell Douglas, vice chairman of Wal-Mart, said that Wal-Mart has formulated a new supplier agreement, which requires all manufacturers to promise to abide by local laws and regulations, meet strict social responsibility and environmental protection standards, and provide relevant certifications and certificates. The agreement will be first implemented within the scope of suppliers in China on June 5438+0, 2009, and will be extended to global suppliers on June 20 1 1.

Wal-Mart promises that by 20 12, the energy efficiency of 200 major suppliers in China directly purchased by Wal-Mart will be improved by 20%. By 2009, Wal-Mart requires all direct importers and all self-owned and non-brand suppliers to declare the name and address of the processing plant. By 20 12, Wal-Mart also requires all direct suppliers to purchase 95% products from factories with the highest level of environmental protection and social responsibility. Wal-Mart also announced that it will strengthen the implementation of environmental protection measures in shopping malls, making Wal-Mart a leading enterprise for sustainable development in China. By 20 10, Wal-Mart China will design and open a new environmental protection demonstration store with 40% energy saving and reduce the energy consumption of existing shopping malls by 30%. In the next two years, Wal-Mart will focus on reducing the water consumption of all its stores, and achieve the goal of saving water by 50% through hardware construction, system development and water resources education for employees.

Three kinds of people think he is very picky.

Supplier: It's hard to become a supplier of Wal-Mart! Because under normal circumstances, Wal-Mart will try to bypass middlemen and deal directly with manufacturers. If you want to enter Wal-Mart, you must accept strict and serious qualification examination and provide detailed enterprise and product information. At this time, Wal-Mart will desperately lower the supplier's purchase price until the other party accepts it, otherwise it can only give up entering this "retail empire". If the supplier pays bribes to the buyer of Wal-Mart, he will never have the next contact with Wal-Mart. The supplier's "pain" is exchanged for Wal-Mart's ultra-low operating costs.

Employee: It can be said that Wal-Mart is very critical of all employees, and the top management is no exception. The CEO of Wal-Mart only drives a Volkswagen Beetle. In order to save money, he shares a room with others when he is on a business trip. The same is true for employees. The message "Call 17909, long-distance calls can save money" can be seen everywhere in the office lobby of Wal-Mart. In the window where Wal-Mart collects samples, there is a prompt that "the label cannot be used for other purposes". In Wal-Mart's simple office building as a hypermarket, employees have been told more than once to bring back pens issued by the company when going out for meetings, because pens need to be replaced. ...

Advertiser: According to statistics, Wal-Mart rarely advertises in the United States or anywhere in the world. Generally, large department stores in the United States advertise on TV or newspapers 50 to 100 times a year, while Wal-Mart only does 12 times. Not only that, Wal-Mart's advertising is also unimaginably simple. Just a few pieces of black and white paper and few color pages. Besides, not everyone can get such advertisements. Customers can only get one if they spend 100 yuan on shopping! What's even more surprising is that the models in the advertisement are also "fat and water don't flow outside the field", and most of them are children or relatives of Wal-Mart employees. Advertising is so economical that it is rare among the famous global top 500 companies.

Generous in three aspects.

Invest heavily in information technology: Wal-Mart is one of the first retailers in the world to invest heavily in information technology. As early as 1978, a satellite was launched with the assistance of Hughes Company of the United States for the information management of Wal-Mart's global business system. The transmission system and computer control center of Wal-Mart chain headquarters in the United States are also the most advanced in the field of chain commerce in the world, with a cumulative investment of more than one billion dollars. This system, which has invested a lot of equipment, can let Wal-Mart know what customers are buying, and can also make statistics and analysis on the sales of each product at any time to screen out the best-selling products and unsalable products so as to make necessary adjustments.

Big public relations: Although Wal-Mart made the advertisement shabby, it did not hesitate to use big public relations activities. Wal-Mart actively plays the role of a friendly neighbor in the community. In order to play this role well, Wal-Mart employees go to nursing homes to take care of the lives of the elderly, donate teaching equipment to rehabilitation centers for deaf-mute children, and set up scholarships in schools ... Wal-Mart's praise for these "good deeds" cannot be calculated by money.

Staff training is very willing: Wal-Mart regards how to cultivate talents, introduce talents and train and resettle existing talents as an important task. Wal-Mart has made a training and development plan for employees, so that employees can better understand their job responsibilities and encourage them to bravely meet the challenges in their work. Although these trainings will increase the operating costs, Wal-Mart is still willing to invest, because smart Wal-Mart values the rich returns brought by long-term investment.

The art of balance between meanness and generosity

If Wal-Mart wants to realize the promise of "parity every day", it must do everything possible to save costs, and good and cheap goods can attract Wal-Mart's attention most. And office expenses are also an important part of "throttling". Wal-Mart knows the truth that "sand makes a tower", so in daily life, they try to save as much as possible. In advertising, Wal-Mart seems a little shabby, but its "making the best use of everything" in public relations has established a good social image for it, and at the same time reduced the required expenses as much as possible.

It is in the balance of "saving money" and "generosity" that Wal-Mart has realized its commitment to customers and achieved rapid development. In 2003, among the top 500 enterprises in the world, Wal-Mart ranked first again with an annual turnover of nearly 250 billion. Its brilliant achievements cannot be said to be due to the lack of balance between "stingy" and "generous".

Wal-Mart (China) has cut prices for the third time since it started to cut prices in June 5438+February 2008. As a global chain retail giant, Wal-Mart's price reduction promotion has naturally attracted much attention.

How should we evaluate Wal-Mart's price reduction promotion and predict its strategic future?

Crisis is opportunity.

The latest issue of Barron's Weekly writes that whenever the American economy is hit hard, Wal-Mart can get development from it.

In the first quarter of 2008, the price of crude oil soared to more than $65,438+000 per barrel, and the price of gasoline exceeded $3 per gallon. Rising energy prices mean rising prices and living costs, and consumers are more inclined to go to Wal-Mart to buy cheap goods. In the first quarter of last year, Wal-Mart's share price rose by 65,438+00%, making it one of the best performing stocks on Wall Street.

When the financial tsunami broke out, the federal government used tax rebates to stimulate consumption, and each American family could get an average tax refund check of $65,438+0,250. Usually, Wal-Mart is the first choice for American families to cash tax refund checks.

Investment banks and brokers raised Wal-Mart's stock price expectations.

JPMorgan Chase even published a research report saying that Wal-Mart has three positive factors: First, the psychological satisfaction of Wal-Mart consumers has begun to improve, and the improvement of consumer satisfaction will help Wal-Mart's sales when the store retail is obviously better than before. Second, the loss of profits in the international market will be conducive to the expansion of the overall scale, especially in Japan. Third, the repositioning of asset allocation will significantly improve the cash flow and return on investment in 2009.

Wal-Mart's three-wave price reduction promotion in China seems to echo Wal-Mart's headquarters at a distance, verifying Wall Street's prediction.

Chen's "Revolution"

Wal-Mart is not invincible. In 2006, Wal-Mart successively withdrew from Korea and Germany. Despite years of expansion in the Japanese market, its performance is not good.

Wal-Mart, which entered China from 65438 to 0996, has been depressed in China. Compared with Carrefour and Trust-Mart, its expansion speed is obviously slow. When Wal-Mart acquired Trust-Mart in 2007, the number of Wal-Mart stores was only 73, and Trust-Mart entered the market with 10 1

Chen took over Wal-Mart (China) in February 2007, which changed the traditional style of Wal-Mart and made a thorough revolutionary change. Chen's revolution generally includes three aspects:

First, high-level exchange of blood, middle-level layoffs and slimming; The second is to change the past "everyday parity" into regular discount promotion, push "special goods" and fight price wars; Third, the pace of expansion has accelerated.

In 2005, Wal-Mart opened 13 stores in China and 15 stores in 2006. In 2007, the speed increased significantly, reaching 23, and 20 new stores were opened in 2008. It is reported that in the next few years, Chen's goal is to open 50 stores every year, with total sales reaching 654.38+00 billion.

In 2007, Wal-Mart's sales in China (including Trust-Mart) were RMB 26,543.8+RMB 300 million. It is conceivable that Wal-Mart (China) will open new stores and conduct mergers and acquisitions very frequently in the future if it wants to achieve its goals.

Dance on the blade

There is no doubt that Wal-Mart has brought advanced business model and business philosophy to China. It has brought management support to more than 20,000 suppliers in China and trained a large number of small and medium-sized enterprises. Only by improving cost control, quality management and logistics supply chain management can enterprises become suppliers of Wal-Mart. Wal-Mart does not adopt the usual result management of domestic enterprises, but adopts process management based on data analysis. It always helps its suppliers and logistics partners to provide suggestions for improving the process.

The question is, where is the basis of Chen's rapid expansion and big price war?

I admire his predecessor, American Joe, more than Hong Kong resident Chen. Perhaps China truly abides by Wal-Mart's core ideas and basic values.

As an airborne soldier, Chen parachuted into Wal-Mart on June 5438+065438+ 10, 2006, and took over from Zhong in February the following year, taking charge of Wal-Mart's business in China. Previously, Chen worked as an executive in Hong Kong Milk Group.

Before retiring, Zhong admitted that Wal-Mart's business expansion in China lagged behind Carrefour for three reasons: first, suppliers; second, logistics system; and third, talents.

In terms of logistics cost, Wal-Mart's logistics cost in the United States is 4%, while it is as high as 16% in China.

How can Wal-Mart (China) effectively reduce costs and support its price war? This is a big question about Wal-Mart's core values!

Adventure China market

To be fair, Wal-Mart (China) has many ways to reduce costs. Lower supplier prices, delay payment, close rent, etc. Can be a means of pre-selection. Just like Gome and Trust-Mart.

Take Gome as an example. In 2008, its total payable to Kelon was as high as 70 million yuan, and its payment to Skyworth was generally close to this amount.

With Wal-Mart's strong brand, suppliers simply don't have much bargaining power, so they can completely occupy the funds of suppliers for low-cost expansion and realize the rapid growth of Wal-Mart (China).

The advantages of chain retail such as Wal-Mart are reflected in three aspects: first, the size of stores (single store), second, the size of chain stores (sufficient number of chain stores), and third, an efficient logistics distribution system. These three advantages eventually lead to low cost and low price. But this is America.

In China, most local retail chains operate in debt, using bank loans and suppliers' funds to maintain false prosperity. If you pay off all the bank loans and accounts payable, you may not last a day.

Therefore, it is simply wrong for Wal-Mart to promote industry reshuffle through price war in China. This value chain in China is very distinctive. Strong channel providers owe money to manufacturers, strong manufacturers owe money to parts suppliers, and those small and medium-sized parts manufacturers owe workers wages and social security benefits.

When Wal-Mart's price war continues, you will also find that there are many peers who can accompany you shopping at a price below the cost. It is Wal-Mart itself that can't persist.

The core value to return.

Domestic critics attribute Wal-Mart's success to cost control, which is not comprehensive. In fact, Wal-Mart's success is created by the interaction of two factors: the first is its excellent business model, and the second is its faithful implementation of the core values of corporate social responsibility.

We usually think that Wal-Mart is very harsh in price negotiation, but we don't pay much attention to its corporate social responsibility inspection mechanism and factory inspection system. No matter how much profit it will bring to Wal-Mart, you will never dare to touch low-priced labor reform products and child labor products. Its ex-factory inspection indicators include environmental protection, labor protection and work safety.

Once sweatshops, child labor products and reform-through-labour products are involved, powerful non-governmental organizations, media and churches will launch a boycott movement, and Congress may hold a special hearing, and you will be condemned.

In fact, Wal-Mart, Hewlett-Packard, Apple and Nike all need to walk a tightrope between performance and social responsibility.

I have no doubt about Chen's fighting ability. He can expand at low cost and high speed, and he is fully qualified to launch a price war and achieve beautiful short-term results. He can pass on the extra cost generated by the price war to the supplier. When suppliers can't bear the cost pressure and don't want to lose Wal-Mart's orders, they are often the most prone to accidents.

Maybe this is why Zhong is conservative.

Today, with great pressure on performance, what Sam, Arkansas needs is turnover and profit. When NGOs are in full swing, SAMs will find it is time to return to core values.

Gome:

Chen Xiao entered Gome as an acquirer, and without any Yongle employees, he became the "loneliest president" of Gome, but was eventually mainstreamed. Besides coincidence, Chen's own characteristics are also one of the reasons. If the "Huang Guangyu era" saw the large-scale expansion and extensive management of Gome, the "Chen Xiao era" opened a period of refined management of Gome.

After two months of turmoil and anxiety, Gome (0493.HK) officially ended the "Huang Guangyu era" and started the "Chen Xiao era".

Gome recently announced through the announcement on the website of the Hong Kong Stock Exchange that Huang Guangyu's resignation as chairman of Gome's board of directors took effect on June 65438+ 10/6; Gome CEO Chen Xiao was appointed as the chairman of the group; Re-appoint Wei as executive director; Members of Gome Nomination Committee and Remuneration Committee have also made corresponding adjustments.

Although the outside world was worried about Gome's cash flow and questioned its relationship with suppliers and banks, Chen Xiaoyi burned "three fires" when he took office: building a professional management team; Strengthen the cooperative relationship with suppliers; Optimize store network resources.

"moderate" foreign policy

"Chen Xiao and Huang Guangyu have different personal styles. The latter is very domineering, and the former is more peaceful and pragmatic. " Yi Lee (pseudonym) is a former Yongle executive, and Chen Xiao is his former boss.

Li Yi told reporters that because of personality reasons, Chen Xiao's relationship with suppliers has been very harmonious. Before Yongle was acquired by Gome, this company was considered as the best supplier among the household appliance chain enterprises in China.

In 2006, M&A, the largest household appliance chain in China, settled down. Chen Xiao, the former chairman of Yongle, has changed from a "boss of a listed company" to a professional manager who works for others. Shortly after the merger, Chen Xiao became the president of Gome.

Since then, in the industry, Chen Xiao's "peace" and Huang Guangyu's "domineering" have been talked about. Chen Xiao himself once said that his personality and Huang Guangyu seem to have a natural complementarity and tacit understanding. Now that Huang Guangyu is gone, Chen Xiao's "peace" has become mainstream.

He, vice president of Gome in charge of culture and brand communication, told the reporter of China Business News that one of the important tasks after Chen Xiao took the helm was to optimize the relationship with suppliers. "The core strategy is that we will take several supporting measures to maximize the input-output ratio of suppliers."

"Suppliers who are dissatisfied with Gome are mainly concerned with profits and payment. Recently, we obviously feel that payment is more timely than before. " Julian (pseudonym) is the account manager of a computer manufacturer's 3C store in Shanghai. In his view, the new Gome team led by Chen Xiao can consider the input-output ratio for suppliers, which is a good sign for the home appliance chain industry.

Two years ago, when Chen Xiao became president of Gome, people began to predict when he would leave. When "Huang Guangyu was arrested" gradually changed from a rumor to a reality, Chen Xiao was pushed to the first power core of Gome in a short time. Under the aura of "Huang Guangyu", it is not clear whether Chen Xiao can really open his own personality era.

He said that what Gome wants to build now is a professional and specialized management team with Chen Xiao as the core. I hope to make corporate governance more perfect and management more transparent.

Internal "very good"

"He gives the impression of being steady and elegant, not aggressive. But in fact, he is quick-thinking and innovative. " Han Jianhua, Secretary-General of Shanghai Communications Household Appliances Business Association, said.

Chen Xiao is known as the "iron abacus" in the industry, which means that he is not only well versed in the home appliance chain market, but also smart as a Shanghainese.

After Chen Xiao took the helm, Gome quickly formulated the strategy for 2009, which not only optimized the cooperative relationship between suppliers externally, but also optimized the network resources of stores internally. That is, in the new stage of development, Gome will no longer rely on the growth of the number of stores, but improve the quality of single-store operation.

"We believe that Gome has completed the network layout and has 1300 stores. When the network layout is basically completed, it will no longer rely on opening stores as growth, but enter the optimization stage. " He told the reporter of China Business News that in 2009, Gome will close some stores with poor benefits, unreasonable network coverage and little room for future growth, and at the same time increase some flagship stores and high-quality stores. The number of stores remained at 1300 or increased slightly.

This seems to mean that if the "Huang Guangyu era" is an extensive feature of large-scale expansion, then entering the "Chen Xiao era" will enter an era of refined management. In order to focus on the quality of single store operation, Gome has completed the corresponding organizational structure adjustment and support.

It is reported that Gome has reformed its business management department and established three independent categories, including traditional business centers, mainly refrigerators, washing machines and televisions. Headed by Vice President Li Juntao; 3C Center, mainly computers and mobile phones, is in the charge of Mou Guixian; Home appliance center, mainly for small household appliances, kitchen appliances and so on.

He said that 3C and home appliances have great room for growth, so the status of these two categories in Gome stores will be strengthened.

In addition, Gome has set up a store reengineering center at its headquarters, with 50 or 60 employees, to study how to maximize the benefits of stores, including the shape and layout of stores, the display of goods, the introduction of products, various processes, consumers' demand for products, shopping experience, etc. Such a large amount of analysis shows that Chen Xiao, the "new head" of Gome, attaches great importance to the benefits of stores.

Han Jianhua believes that at present, the home appliance industry has gone through the stage of extensive development. In the face of relatively slow market growth and deteriorating external economic environment, it is a desirable strategy to emphasize the operating efficiency of a single store.

Double-sided evaluation

Such shrewdness stems from a deep understanding of the industry.

In fact, after the merger of Gome and Yongle, Chen Xiao has two completely different evaluations in the industry. One view is that Chen Xiao is the most forward-looking and adaptable person among several industry giants. In order to revitalize China's home appliance industry, he sacrificed many personal interests. After the merger, China household appliance chain industry entered the era of duopoly competition between Gome and Suning.

Looking at it from another angle, in China's home appliance retail industry, Chen Xiao is a "big fish" who once swam the fastest, but finally couldn't swim. He changed from a prominent "boss" to a "migrant worker" After entering Gome, he was the loneliest president, managing Gome as a "loser".

"Put aside personal opinions and return to the business itself. From the home appliance circle, Chen Xiao is a very suitable candidate. He has the mentality of a professional manager, which helps to standardize the governance structure of listed companies. At the same time, he will pay more attention to professionalism and career, at least not real estate. " A veteran of the home appliance chain industry commented.

From a penniless Chaoshan guy with no background to the richest man in China, Huang Guangyu really established a Gome empire in the field of household appliances circulation. In the field of home appliance retail chain in China, Huang first discovered the financial potential of this industry and brought it into full play. But sadly, the practice of trying to play the edge ball everywhere has made Huang Guangyu, and finally it was ended by this model. "Every time there is an important policy, he always wants us to find it in the first place." A retired Gome executive told Global Entrepreneur. However, Huang studied policy loopholes and warned his subordinates that what the public recognized was often impossible and what the public thought was impossible was often possible.

To some extent, Gome's dilemma is beyond its control, and its business model puts it in deep risk.

Where is the secret of Gome's low-cost expansion of stores? A senior Gome official revealed to this magazine: When a new store opens, Gome will require the property to provide at least 3 months rent-free period, while the decoration before its opening only takes 2 months, and it only takes one day to prepare and distribute goods. This can save 1 month's property leasing fee. In the early stage of renovation, Gome does not need to pay any fees-it is paid by the construction party. Due to the opening speed of as many as 200 stores every year, Gome has absolute strength in the negotiation of advance payment. As far as we know, the longest account period of Gome's project funds is 6 years. At the peak, Gome only owed more than 2 billion to 3 billion for renovation projects. When opening a store, Gome has charged various entrance fees and new store opening fees to upstream manufacturers, which largely offset the property fees.

Once he understood the secret of home appliance chain-financial attribute, Huang Guangyu took the capital+advance fund model to the extreme according to the nature of "having three points to grasp and do", and constantly put new stores into listed companies to realize capital. By September 2008, the number of installed stores of Gome, a listed company, had increased by 1 1 times, reaching 847.

This radical approach is also manifested in the high-pressure management style. In the specific management, Gome prefers to use "negative incentives" to mobilize the enthusiasm of employees. In order not to be the last few in the performance appraisal, Gome was sent from 300 yuan to 400 yuan. Employees and managers with low incomes (generally 1000 yuan/month) and managers (generally ranging from 2,000 yuan to 4,000 yuan) will try their best to fill the performance of the day, and even more, they will seek extra income. For example, without consumers' knowledge, the cashier is too busy or temporarily out of stock, selling at a higher promotional price than the manufacturer, or simply bypassing Gome to sell privately. "This situation is not uncommon." A Gome employee revealed.

Militarized management is the best interpretation of Huang Guangyu's own style, and it is actually the key to determine the competitive situation of Gome, Yongle and large and medium-sized circulation giants.

Zhang Dazhong, the founder of Dazhong Electric, often makes private visits anonymously. When he meets customers and promoters who are arguing over the price, he is willing to make decisions in person and surprise customers. Zhang also likes to stand at the entrance and exit of the store, light a cigarette, quietly observe the flow of people, and then make strategic adjustments according to the observation the next day. Compared with the sales report on paper, the 60-year-old home appliance retail giant prefers the smiling faces of customers and the lively atmosphere of the crowd, and enjoys the corporate culture of "shop assistant".

But the ultimate winner is Huang Guangyu. Huang's strategy is not to be the first in every region, but if Gome enters more regions with its strong coverage, they will occupy a dominant position in the country. In the end, Hawkeye Culture collected the "No.2 Store", Yongle, which is famous for its "good relationship with suppliers", and Shandong household appliances circulation leader with lightning speed.

Huang Guangyu also interpreted "small profits but quick turnover" and "scale effect" to the extreme. However, when this low price is based on the infinite demand and conflict for the upper end of the industrial chain, the rapid expansion of Gome is actually beggar-thy-neighbor.

Everywhere you can see that Gome wants to seize the cash account period. On March 5 last year, Gome, Yongle, Dazhong, Black Swan, Golden Sun and other stores under Gome Group also started to launch the "Anjiabao" extended warranty project. According to the product category and other factors, the extended warranty period is 1 to 4 years, and the extended premium is about 4% of the product price. In order to promote this method, Gome stipulates that every time you sell 10 goods, you must have two extended warranties, and the clerk will be fined at least 100 yuan for failing to complete the task, which makes almost every customer face the promotion of promoters. "Shop assistants complain the most about this, and some even prefer to be punished and not sell." A large and medium-sized manager said.

For Gome's financial statements, extended warranty is indeed an extra windfall. According to the above sources, 40% of the deferred premium will go to Gome, which will become the net profit of Gome; Another 40% goes to the warranty company and 20% goes to the insurance company. And the actual cost is extremely small. By the third quarter of 2008, Gome's extended warranty profit exceeded 67 million yuan, and the extended warranty rate of the whole product was 3.8%, accounting for nearly 4% of its overall profit.

The introduction of extended warranty actually reflects Gome's thirst for funds. The beginning of 2008 is a critical time window for the rise and fall of Huang Guangyu. At that time, in order to acquire Dazhong and Sanlian Trading Company, Huang Guangyu paid at least 4 billion yuan. Here, it has been entangled in the action of Zhongguancun Science and Technology, and it also cost nearly 654.38+0 billion yuan. At the end of 2007, Gome's cash reserve was only 6.2 billion yuan. By the third quarter of 2008, Gome's cash holdings had dropped by 50%. At the same time, Gome's inventory increased by 50%, and Gome's accounts payable and notes receivable also increased by 20%, reaching 654.38+065 billion yuan.

3.6 billion cash acquisition of Dazhong is the largest cash payment since Huang Guangyu started his business. According to the agreement of both parties, the house purchase price will be paid in five installments, with the last payment of 600 million yuan on September 1 2008. An executive of Dazhong Investment (the entity used for investment after Zhang Dazhong sold Dazhong Electric Appliances) confirmed to this magazine that Gome has not paid for Dazhong's acquisition so far.

In Gome, if there is a dispute between the clerk and the customer, the clerk will be dismissed immediately as long as the customer complains. "Gome is eager to improve its service and completely forgets its employees. It is very eager for quick success." A Gome employee complained.

In Gome's top-down task, the details that the retail industry needs to emphasize are often ignored, and performance indicators are always passed on to stores, not the details of implementation. Therefore, the management level and service quality of each store vary greatly. However, the complexity and confusion of Gome's internal institutions and the frequent changes of managers at all levels have also caused management confusion. Sometimes, the contents of documents issued by various functional departments are not uniform, and the implementation efficiency is greatly reduced in the retail industry that emphasizes rapid response. For example, a store in a southern city asked the branch for a detailed rule in the extended warranty business, and the feedback given by the management of the branch was that they were also very confused.

In 200 1 year, Gome began to prepare for the construction of ERP system, which was completed in 2003 after two years of integrated construction. By June 2007, Gome successfully completed the integration of Yongle ERP system, covering 49 first-level branches and 18 1 2 second-level branches of Gome system. For this system, Gome has mixed opinions. The advantage is that everything has rules to follow, and every financial entry and exit covering more than 200 cities is in Huang's insight; The downside is that the grassroots vitality that Gome is famous for is clamped down everywhere.