Chen Xia’s policy for these more than 20 factories is to reward 5% of the annual profits to the management.
As long as you have the ability, the management can be one person, and the 5% profit will belong to you alone.
If you feel that you do not have the ability, you can seek partners, 2 people or 5 people are fine. At the end of the year, the 5% will be divided equally among everyone, or you can coordinate internally.
Of course, if you suffer losses for two consecutive years, the management will be replaced and you will no longer be given opportunities.
They almost feed you mouth to mouth, but still suffer losses despite such good conditions. The managers are either extremely corrupt or idiots. No matter which one they are, they are not worthy of trust and training.
The above policy only applies to the descendants of the Chen family and is not open to the outside world for the time being. There are differences in closeness and distance, so Chen Xia certainly cannot treat everyone equally.
However, this 5% profit is a bit inflated. What these 20-plus factories actually earn is just a "processing fee". How much can the processing fee be?
Because they are going to be "exploited" by the two companies.
One is the "Four Seasons Department Store Head Office" where Chen Qiaogu is the general manager.
The small department store head office is responsible for the procurement of raw materials, order allocation, and product sales of so many factories, and a considerable portion of the profits generated go to the head office.
This profit is far from being called the "big head".
The real profit maker is not the "Four Seasons Department Store" but the "Four Seasons Trading Company" located in Hong Kong.
In theory, Wal-Mart places orders with Four Seasons Trading Company, which then places orders with small department stores and textile companies in the mainland.
Finally, small department stores and textile companies place production orders to their factories.
After the mainland factories produce the goods, they are shipped to Hong Kong by "Four Seasons Department Store" and "Four Seasons Textile Company", and then shipped to Walmart supermarkets in the name of "Four Seasons Trading Company".
Walmart then pays the payment to Four Seasons Trading Company.
The payment for the goods was all in US dollars, and most of the profits generated flowed into Chen Xia's overseas account in the Cayman Islands. This was not only a reasonable way to avoid taxes, but also to ensure the free flow of profits in the future.
The benefit of doing this is not only that the profits can be kept overseas, but more importantly, he can control all orders, all factories, and every level of links.
What if... there really comes a day...
At worst, he can just give away all these factories and give them all to others, but he won’t give the orders to others. If you have the ability, you can sell them yourself.
If the factory has no orders, what good is it? If the factory closes and so many workers lose their jobs, who will suffer the most?
After all, small department stores and textile industry are not Chen Xia's main business, so it doesn't matter if he gives up this side business. If he really feels the pain, he can invest and open a factory in Southeast Asia. As long as there are orders, how much trouble can it take to build a factory?
I'm about to cough again. This is a bit ZZ incorrect.
Chen Xia drove his Land Cruiser and took Chen Qiaogu to the sporting goods factory. As soon as they arrived at the door, they heard the lively roar of machines in the workshop.
Chen Xia asked quietly, "Hey, is my uncle really a member of the management here? Does this fat boy understand?"
Chen Qiaogu covered her mouth and chuckled: "I am working very hard now, and not only my uncle is here, but my great-grandfather, great-grandmother and their whole family are working here."
"Oh my god, how can we let grandparents work? This is exploiting the elderly."
Hahaha, Chen Qiaogu laughed so hard that she fell over. These grandpa and grandma were only in their 40s, 20 years older than Chen Xia, but they were three generations older than her.
Just as Chen Xia and Chen Qiaogu were joking at the door, Chen Yulan, oh no, it should be called Song Yulan now, saw it and ran out quickly.
"Brother Xiaoxia, Sister Qiao, you are here."
Looking at the little girl in front of him who was only 150cm tall, Chen Xia thought of the famous little internet celebrity Fan Sisi on Douyin in later generations. Paired with the 180cm tall Chen Shengrong, they really didn't match each other no matter how you looked at it.
"Yulan, long time no see. By the way, what are Shengrong and uncle doing?"
Song Yulan smiled and pointed to the workshop.
"See? That guy with a face covered in oil is Shengrong. He's working really hard now, studying the machines every day. He says if something breaks, he can fix it himself, so there won't be any downtime or delays in production."
Chen Xia looked at him and nodded. The rough boy had finally grown up and matured. He was no longer the Chen Shengrong who almost killed someone in the rapeseed field.
Chen Qiaogu asked, "Why is only Shengrong here? Where is my uncle?"
Song Yulan brought the two of them to the office again. Through the window, she saw Chen Yize using an abacus with one hand and flipping through account books with the other, with great dexterity.
"Xiao Xia, Sister Qiao, my uncle-in-law graduated from junior high school, so he's the one who does all the accounting for the factory now. He's pretty good at budgeting, and now we're keeping our costs very low."
In fact, the head office arranges accountants to come to these factories every week, but they are only there to check the accounts and cannot interfere with the factory operations.
The factory management has an internal assessment of the cost and profit ratio.
The higher the cost, the lower the profit will be when settling accounts; correspondingly, the lower the cost, the higher the profit will be when settling accounts at the end of the year.
In the sporting goods factory, Chen Shengrong is in charge of production, while Chen Yize is in charge of finance and costs. The two work together very well, and each has a clear position, which will lead to fewer conflicts in the future.
Most relatives who try to start a business together don't end up well.
This was also a test that Chen Xia and his fourth grandfather discussed. If brothers and relatives of the same clan can do business together and cooperate well without quarrels or conflicts, then these people will be reused in the future.
If after only one or two years of partnership, several members of the management team start to quarrel and become disloyal to each other, this management team will be passed over and will not be reused in the future.
So don’t underestimate some details. Often details are an important factor for leaders to evaluate you and determine your future prospects.
Chen Xia and Chen Qiaogu did not disturb them and visited the factory production situation accompanied by Song Yulan.
Because of the sharp increase in orders, they are now working overtime. Chen Xia saw the legendary little grandpa and little grandma, and the couple were also working hard on the production line.
Likewise, Chen Shengrong's parents, Chen Guojian and his wife, and Song Yulan's adoptive parents, Chen Guoxian and his wife, also worked on the assembly line.
These are all Chen Xia's elders. Even if Chen Xia is a big boss, the rules must not be abolished.
If he dared to act like a big boss in front of his elders, Fourth Grandpa would definitely beat him to death.
"Grandpa and Grandma, Uncle Guojian, Uncle Guoxian, are you all busy?"
Everyone looked up and saw that the big boss had arrived. They quickly waved and smiled, but did not stand up. The production line was running, with each person at a post. If they left, it would affect the subsequent processes.
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