As Lu Feng spoke, he clapped his hands, and the audience erupted in applause.
As the applause subsided, Lu Feng looked at the crowd and said, "Our main weakness this year is Wepuda TVs. This was something we anticipated at the beginning of the year when we predicted Wepuda's losses. The market feedback has taught us a lesson: without R&D, we are nothing. R&D is the father! R&D is the mother! Only by developing new products can we lead the market forward."
Lu Feng looked at Liu Cheng and continued, "The R&D company has grown very rapidly this year. President Liu has done an excellent job in this regard. The new Wepda TVs are on par with any domestic manufacturer in terms of product strength, and we have found our own path. The 100 million yuan spent this year was very worthwhile. Next year's budget will be increased again. I can say this: there is no limit to the budget for R&D as long as we can produce something!"
The crowd clapped, but their gazes toward Liu Cheng were not filled with blessings. A company's profits are limited, and with numerous subsidiaries and departments, there are many areas that require budgeting.
Liu Cheng gets paid more, while other departments get paid less. With less money and more work, they are harder to manage their subordinates. Their departmental budgets are ample, and they are very generous with travel allowances, social gatherings, salary increases for key employees to win people over, and small gifts for holidays.
“Um… Mr. Lu!” Zhu Lidong couldn’t help but say, “Next year, Weipuda will be relaunched, and we will increase our advertising investment, improve our offline channels, and cooperate with transportation companies to conduct comprehensive transportation negotiations. The budget may be quite large.”
"Prepare a report for me later, and I'll take a look." Lu Feng said to everyone, "Our company makes a lot of money, but spends even more. There are still two months left in the year. Judging from the current situation, a profit of 400 million should be no problem. Having 400 million in the account is indeed quite comfortable for many companies."
“But we can’t do that. The land for the group’s building is under approval and construction is about to begin. I feel that the bank won’t provide much in the loan. It’s not impossible for us to put in tens of millions or even a hundred million ourselves. Next year, we will be on two fronts: the domestic front and the overseas front.”
"This year has been tough, but I'm telling you, next year will be even tougher, ten times tougher than this year!"
Upon hearing this, everyone looked up and stared at Lu Feng. This year has been difficult enough; will next year be ten times more difficult?
Panic was written all over everyone's face. Would they even survive next year?
Only Zhu Lidong remained remarkably calm. Even when Lu Feng said that we would all be transferring to Mars next year, he wasn't surprised. Everything that came out of this man's mouth seemed so ordinary.
“The domestic home appliance market will be fiercely competitive next year, but I think it shouldn’t be my responsibility anymore. If I continue to manage it, it will be a disgrace to you, Zhu Lidong.” Lu Feng looked at Zhu Lidong and said, “You’ve been with me for so many years, and I’ve basically been the one teaching you how to do things. You need to have your own understanding of the big picture and learn how to compete in the market.”
"President Lu, I will certainly live up to your expectations, but this next year's marketing department budget..."
“The market channels are already very extensive, and channels in all major provinces have been established. What’s left is advertising. We need to learn to utilize internal resources and cooperate more with media companies.” Lu Feng took out a cigarette from his pocket, lit it, and said, “We won’t work on the overseas market department for now. I will be in charge of it myself. Next year, we need to work hard, work extra hard, and work ruthlessly. Domestically, we need to achieve first-class results. Internationally, we need to go global and seek new markets.”
"As for the issue of being strangled in foreign trade exports, it's not a big deal. If nothing unexpected happens, I can handle it myself by the end of this year. Also, regarding the group structure, I will change the nature of the company soon to Jiafeng Electronics Holding Group Company. We will move into the rented office building as soon as possible, and all the subsidiaries will be settled by the end of this year."
Lu Feng knew that once a group was formed, it meant delegating power to its subsidiaries. The general managers of each factory became like local warlords. This model was most prone to losing control, with the management of subsidiaries colluding with the finance department to falsify accounts and manipulate company assets.
"In terms of finance, we'll expand a department at the group headquarters, set up an audit team, and recruit some outstanding auditors to conduct unannounced financial audits of our subsidiaries," Lu Feng said in a deep voice. "Doing this is not only being responsible to the company, but also to our investors!"
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