Lack of supervision

The lack of integrity is related to the lack of effective supervision of the business operations of the company. Corporate integrity cannot be just talked about. A complete set of supervision mechanisms must be used to promote behavioral norms. Integrity is the foundation for enterprises to survive under market economy conditions. As far as Nanjing Guanshengyuan is concerned, media exposure is just a fuse. There must be many internal problems, otherwise it would not be so vulnerable. Just like Enron in the United States. One-sided pursuit of profits and no attention to the construction of integrity may lead to the crisis of overturning the building once it is impacted. If a company does not keep its word, the more well-known the brand, the greater the "retaliation" it will suffer, which often makes it difficult for the company to recover in the short term. It is understood that in 1992, Temple Holdings invested 8 million yuan in a joint venture with Nanjing Guanshengyuan Food Factory to establish Nanjing Guanshengyuan Food Co., Ltd. However, according to insiders, this American company was just a company registered in the United States by Wu Zhenzhong, the later general manager of Nanjing Guanshengyuan. Since the joint venture, the company's equity structure has changed several times. Later, 60% of Nanjing Guanshengyuan's shares controlled by Wu were transferred to a Taiwanese businessman. Wu alone has the final say on many major business matters. Nanjing relevant departments People are not informed about many specific matters in corporate decision-making.

Wu Zhenzhong, the general manager of Nanjing Guanshengyuan Food Company and a Chinese American, has long since disappeared. Zhou Yulong, the former director of Nanjing Guanshengyuan Food Factory and now lying in bed at Southeast University Affiliated Hospital, told reporters that he has enough evidence to take Wu to court and hopes that the court will accept the bankruptcy of Nanjing Guanshengyuan. , and also hold them responsible for the loss of assets caused by poor management.

Zhou Yulong said that the leaders of Nanjing Guanshengyuan ignored the sales radius of seasonal products such as mooncakes in their business decisions, opened branches all over the country, and blindly expanded geographically. There was a disconnect between production capacity and sales. On the surface it looks like there are a lot of needs. Once something goes wrong with this weak marketing chain, the company will suffer particularly heavy losses. In addition, Zhou also believed that Wu Zhenzhong had some behaviors in his business decisions, such as selling off corporate assets, using public money for personal gain, and making unauthorized decisions to borrow money from corporate employees for business operations.

No innovation

Industry insiders in Nanjing’s food industry analyzed that the lack of innovation in product structure was also an important reason for the failure of Nanjing Guanshengyuan. In recent years, the mooncake market has increasingly shown signs of strong seasonality and saturated competition. Some other well-known companies in Nanjing, such as "Yuanzu" and "Sullivan", have developed a series of marketable new products to expand their business space. However, Nanjing Guanshengyuan has been insisting on mooncakes as its main business direction for many years, and mooncakes last for a season. In this regard, Zhou Yulong believes that product innovation has become the common sense for enterprises to develop markets. Nanjing Guanshengyuan has been unwilling to allocate a certain amount of funds for the research and development of new products, which is also inconsistent with the business operators who only want to expand the market. It has a lot to do with the short-term business perspective of recovering investment as early as possible.

Zhu Jinhai, director of the Consulting Center of the Shanghai Academy of Social Sciences, analyzed that the bankruptcy of Nanjing Guanshengyuan reflects some of the problems existing in the current market economic order. Although the current market order is much better than that of the 1980s and 1990s, there are still some loopholes in management and legal construction.

It is understood that Nanjing Guanshengyuan has had the problem of using old stuffing to make mooncakes since 1993. Why did it last for so many years until it was exposed by the media?

Information

●The founder of Guanshengyuan brand is Xian Guansheng, a Cantonese who came to Shanghai to do business in 1918. He was the first to deal in Cantonese tea, preserves and candies. In 1934, its brand of mooncakes hired actress Hu Die as its image spokesperson. The advertising slogan was "Only China has this star, only Guanshengyuan has this mooncake." The product became famous all over the country.

●Around 1925, Shanghai Guanshengyuan opened branches in Tianjin, Hankou, Hangzhou, Nanjing, Chongqing, Kunming, Guiyang, and Chengdu, and invested in setting up factories in Wuhan and Chongqing. Its Nanjing branch is the predecessor of the current "Nanjing Guanshengyuan".

●In 1956, Guanshengyuan entered into a public-private partnership. Guanshengyuan Co., Ltd., controlled by the Xian family, was disintegrated, and the Shanghai headquarters was "divided into three". Branch companies in various places were affiliated with local governments and had nothing to do with Shanghai Guanshengyuan.

●At present, nearly ten Guansheng gardens in Chongqing, Nanjing and other places have historical traces of Xian Guansheng.

There are also industrial Guansheng Park and commercial Guansheng Park in Shanghai. In 1996, with the support of the Shanghai Municipal Economic Commission, Shanghai Industrial Guansheng Park and commercial Guansheng Park merged to unify the name of Shanghai Guansheng Park and establish Guansheng Park ( GROUP) LIMITED. However, across the country, there are still many Guanshengyuan that do not have a unified brand name.

●Before the joint venture, Nanjing Guanshengyuan was facing bankruptcy due to heavy losses. After the establishment of the Sino-foreign joint venture Nanjing Guanshengyuan Food Co., Ltd., it turned a loss into a profit in the second year, with profits increasing year after year, and a cumulative profit and tax of 15.6 million yuan. It has developed from a small enterprise to one of the 240 large and medium-sized enterprises approved by the Nanjing Municipal Government.

●On September 3, 2001, CCTV reported that "Nanjing Guanshengyuan uses a large amount of moldy and returned fillings to produce mooncakes", which shocked the whole country. That year, companies in various places dubbed "Guanshengyuan" were deeply affected, with production reductions of more than 50%. Among them, Shanghai Guanshengyuan was the most affected.

●Just after the Spring Festival in 2002, Nanjing Guanshengyuan Food Co., Ltd. applied for bankruptcy to the Nanjing Intermediate Court.

The Guanshengyuan brand is expected to survive (link)

According to members of the "Nanguan" liquidation and verification team, currently only the Sino-US joint venture Nanjing Guanshengyuan Food Co., Ltd. has filed for bankruptcy. If the bankruptcy application is ruled, only the joint venture and the "Tianxi" registered trademark used will be cancelled. Although Nanjing Guanshengyuan Food Factory, the Chinese member of the joint venture, is currently just an empty shell, it still has enterprise qualifications and the registered trademark of Guanshengyuan with the word "Garden" (Guanshengyuan in Shanghai and Chongqing respectively own the word "生" brand and "guan" brand).

The Nanjing Municipal Commerce and Trade Bureau stated that it welcomes powerful companies and individuals to negotiate for paid use of the Nanjing Guanshengyuan brand. It seems that the Guanshengyuan signboard, which has been with Nanjing citizens for 70 years, is expected to continue to survive.