since p>1993, a rising sun group, which started with a supply and marketing cooperative and invested 3 million yuan, has developed into a beverage giant with sales as high as 3 billion yuan through just a few years of development. However, since 21, the rising sun, which rose by a thousand miles a day, has slipped to the track of "dying" unimaginable. In the second half of 22, 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 since 2 really killed it.

Rising

In the history of beverage development in China in 199s, "Rising Sun" was an indispensable page.

Hebei Xuri Group was formerly known as jizhou city Supply and Marketing Cooperative. In the early 199s, the supply and marketing cooperative developed a new way, making a fuss about the traditional beverage "tea" in China, and took the lead in introducing the concept of "iced tea". In 1993, Hebei Jizhou Supply and Marketing Cooperative was renamed Rising Sun Group. In 1994, Rising Sun Group invested 3 million yuan in the production and listing of iced tea, and soon gained millions of yuan in market returns.

In the early days of its establishment, Rising Sun Group sent hundreds of employees to Jizhou to major cities in 29 provinces, municipalities and autonomous regions. Through carpet distribution and intensive sales, it established 48 Rising Sun marketing companies and more than 2 marketing branches, connecting countless wholesalers and retailers, and formed a "Rising Sun" marketing network that blossomed everywhere. Overnight, it dominated the tea beverage market in China.

In p>1995, the sales volume of Sunrise iced tea reached 5 million yuan. In 1996, this value suddenly rose to 5 million, a tenfold increase. In 1998, the peak of market sales, 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 is lacking, and created a brand-new concept of "iced tea". In 1999, Rising Sun Group decided that "iced tea" was the unique name of Rising Sun Group's products, and registered it in the State Administration for Industry and Commerce, and the concept created by itself was "monopolized" with trademarks as barriers. At that time, it seemed that with this trademark, Sunrise could finally sit back and relax.

Late in life

The great success of Rising Sun attracted many competitors to follow suit. In the siege of a group of "iced black tea" and "iced green tea" such as Master Kong, Uni-President, Coca-Cola "Lanfeng" 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 p>21, the market share of Rising Sun dropped rapidly from the initial 7% to 3%, and the market sales also dropped from 3 billion yuan at the peak to less than 2 billion yuan. When the advantages of the first Mover are gradually weakened or even gone, the 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 the rising sun group, when building the sales channels, the group dispatched local people from Jizhou without exception, no matter which city it entered, no matter what position, but the corresponding system norms were not established, and there was only an incentive mechanism between the headquarters and outlets, but no restraint mechanism.

the rising sun group has adopted the management idea of evaluating work assessment according to the amount of payment, while ignoring 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 the dealers in order to cooperate with the assessment of the enterprise: as long as you promise my repayment requirements, I can promise your rebate conditions; Moreover, I can also ask you for policies from the group company and even let you sell expired products. Managers and salesmen of many branches simply don't care about the distribution, distribution and supervision in the market. Instead, they live in hotels that are contracted by dealers. Apart from dunning and impossible "bold" promises, they cheat enterprises with dealers.

change

at the time of internal troubles and foreign invasion, the management of Rising Sun began to make drastic changes.

the first step is to give a big change to the top management of the enterprise, aiming at transforming the original extensive and empirical management into quantitative and standardized management. It is said that at that time, Rising Sun Group introduced more than 3 doctors, postdoctoral fellows and senior engineers, all of whom were young masters in strategic management, market management, brand planning and product research and development. Among them, the group's deputy general manager of marketing was once the sales director of Coca-Cola China Company.

the second step is to arrange more than 1 salespeople in the original front line 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 technology, which directly regulate the regional companies, and each regional company then vertically manages its subordinate provincial companies. This transfer is the biggest one in the eight years since the establishment of the Group.

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

this kind of means can be described as "breaking through and making great achievements". Unexpectedly, the tragedy was born from this.

Reflection

The drastic reform has not made the market performance of products "stop falling and pick up", and the organization is in chaos first.

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

Because the company didn't have a clear equity certification at first, everyone didn't want their share to be underestimated. The elders thought "I contributed more than you at the beginning", while the new people thought "I contributed more than you today". Enterprises without cohesion, like a makeshift grass-roots team, are easy to collapse.

According to informed sources, Rising Sun has transferred more than 1, business people who used to work in the front line back to the production department after major adjustments at the top. From this perspective alone, we can see how great the shock brought by the change is. He believes that the substantial 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 change has made great changes in the value chain of enterprises. As a result, the contradiction inevitably became sharp, and the enterprise became out of control and split.

foreign management experts have a point: business leaders must exercise restraint when considering the implementation of changes, and do not throw boulders at enterprises. They must encourage their employees to keep throwing pebbles into the pond. Only in this way, the required large-scale changes can be carried out, and at the same time, the healthy body of the enterprise can be guaranteed to suffer the least damage.

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