What happened to the rising sun group?

The rising sun: the pain and thinking of change

Starting from 1993, Xuri Group, based on supply and marketing cooperatives, invested 30 million yuan. After just a few years of development, it has become a beverage giant with sales of up to 3 billion yuan. However, from 200 1, the rising sun, which is thousands of miles a day, slipped into an unimaginable "dying" orbit. In the second half of 2002, the rising sun stopped distributing goods. The "rising sun", which once had infinite scenery, has gradually become a "blue memory" in people's hearts.

There are different theories about the decline of the rising sun. However, people familiar with the matter believe that a series of "management changes" within the Rising Sun Group have really killed it since 2000.

rise

In the history of beverage development in China in 1990s, The Rising Sun is an indispensable page.

Hebei Rising Sun Group was formerly known as jizhou city Supply and Marketing Cooperative. In the early 1990s, the supply and marketing cooperatives found another way to make a fuss about the traditional beverage "tea" in China, and took the lead in introducing the concept of "iced tea". 1993, Hebei Jizhou Supply and Marketing Cooperative was renamed as Rising Sun Group. During the period of 1994, Xuri Group invested 30 million yuan to produce iced tea on the market, and soon gained millions of yuan in market returns.

At the beginning of its business, Rising Sun Group sent hundreds of Jizhou employees to major cities in 29 provinces, municipalities and autonomous regions. Through carpet distribution and intensive sales, 48 Rising Sun marketing companies and more than 200 marketing branches have been established, connecting countless wholesalers and retailers, forming a "Rising Sun" marketing network that blooms everywhere. Overnight, it dominated the tea beverage market in China.

1995, the sales of sunrise iced tea reached 50 million yuan. 1996, this value suddenly rose to 500 million, doubling 10 times. At the peak of 1998, the sales of Rising Sun reached 3 billion yuan.

The power of concepts is infinite. Some analysts pointed out that the success of Rising Sun is because it chose a breakthrough point that people are familiar with but the market lacks, and created a brand-new concept of "iced tea". 1999, Sunrise Group recognized "iced tea" as the unique name of Sunrise Group's products, and registered it with the State Administration for Industry and Commerce, monopolizing the concept created by itself with trademarks as barriers. At that time, it seemed that with this trademark, Sunrise could finally sit back and relax.

dusk

The great success of The Rising Sun attracted many competitors to follow suit. In the siege of a number of "iced black tea" and "iced black tea" such as Master Kong, Uni-President, Coca-Cola "Blue Peak" and Wahaha, the exclusive business of "iced tea" was quickly imitated by opponents, and the concept created by Rising Sun was gradually diluted and weakened.

In 200 1 year, the market share of Rising Sun dropped rapidly from the initial 70% to 30%, and the market sales also dropped from 3 billion yuan at the peak to less than 2 billion yuan. When the first-Mover advantage gradually weakens or even disappears, management problems are exposed, especially the rapid expansion of production and sales scale, which makes the company's system and talent guarantee lag behind more and more.

According to people familiar with Sunrise Group, when building sales channels, Sunrise Group sent locals from Jizhou without exception, no matter which city it entered or what position it held, but the corresponding system norms were not established. There is only an incentive mechanism between the headquarters and the outlets, and there is no restraint mechanism.

Rising Sun Group adopted the management idea of evaluating work according to the amount of payment, but neglected the refined construction of market access. It is reported that many salesmen of Rising Sun Group originally came out of Jizhou to reach a "gentleman's agreement" with dealers in order to cooperate with the assessment of enterprises: as long as you promise my repayment requirements, I can promise your rebate conditions; Moreover, I can ask the group company for policies and even let you sell expired products. Many branch managers and salesmen simply don't care about distribution, distribution and supervision in the market. Instead, they live in hotels contracted by dealers. In addition to dunning and impossible "bold" promises, they also cheat enterprises with dealers.

change

At the time of internal and external troubles, the management of Rising Sun began to change dramatically.

The first step is to make a big change to the top management of the enterprise, aiming to change the original extensive and empirical management into quantitative and standardized management. It is said that at that time, the Rising Sun Group introduced more than 30 doctors, post-doctors and senior engineers, all of whom were young experts in strategic management, market management, brand planning and product research and development. Among them, the deputy general manager of group marketing was the sales director of Coca-Cola China Company.

In the second step, more than 1000 salespeople were assigned to the production department, trying to change from plane management to vertical management. The group headquarters has established three vertical management systems: logistics, finance and science and technology, which directly supervise regional companies, and each regional company vertically manages its subordinate provincial companies. This is the biggest transfer since the group was established eight years ago.

The third step is to re-divide the structure of Rising Sun Group into five divisions, including beverage division, iced tea and red wine division, tea division, capital management division, textile and other divisions, so as to realize diversified operation.

This method can be described as "big break and big stand". Unexpectedly, the tragedy was born from this.

Self-examination/introspection

Dramatic reforms have not yet made the market performance of products "stop falling and pick up", and the organization is chaotic first.

When the "airborne troops" entered the Rising Sun Group and occupied important positions, the gap between the old and new teams increased day by day, and the management of the company never expected such an embarrassing situation. The successful transplantation model of "foreign leaders" who came back from abroad hit a wall with their elders, and their empirical decision-making hit a wall with newcomers.

Because the company did not have a clear equity certification at the beginning, everyone did not want their share to be underestimated. The elders think that "my contribution was greater than yours", and the new people think that "my contribution is greater than yours today". Enterprises without cohesion, like a makeshift grass-roots team, are easy to collapse.

According to informed sources, Rising Sun has transferred more than 1000 business personnel who used to work in the front line back to the production department after the high-level adjustment. From this level alone, we can see the change zone.

How shocking it is. He believes that the sharp adjustment of personnel is not only related to the reshuffle of personal interests within the enterprise, but also related to the stability and sustainability of sales channels. The value chain of enterprises has changed greatly due to the reform. As a result, contradictions inevitably become sharp, and enterprises are out of control and split.

Foreign management experts have a view that business leaders must refrain from throwing boulders at enterprises when considering implementing changes. They must encourage employees to keep throwing pebbles into the pond. Only in this way can we carry out the required large-scale changes, and at the same time, we can ensure that the healthy body of the enterprise is minimally damaged.

Sunrise's failure in change management has left us with many problems worth pondering.