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          3. MEMBER

            —— 企業成員 ——


            Formed a business pattern integrating the cultivation of Chinese medicinal materials to the sales of medicines. Good nurses have been working hard to provide people with better and better services.

            Over the past few decades, the company has extended its operating chain, developed towards the front and back ends of its operations, and established multiple subsidiaries

            STEP 1

            Challenge the difficult enterprise to come back to life

            Zheng Jiyu


            Born in April 1963, Huanren, Liaoning. Communist Party members. Graduated from Benxi Electronic Industry School in 1984. He is currently the general manager of Liaoning Huanren Pharmaceutical Co., Ltd. Main achievements: Engaged in leadership work for many lines, strong political principles, good at starting from the overall situation, focusing on the overall situation, grasping the direction, working in a thoughtful, orderly manner, and able to successfully implement one by one; rich leadership and management experience, especially It has a high level of leadership skills in applying the principle of democratic centralism, running the leadership team, uniting comrades, etc.; is good at combining specific work with research, using theory to guide practice, and has accumulated rich leadership experience in the work; For the purpose of accelerating economic construction, I spare no effort to promote local economic development and the work of the unit; due to his outstanding performance and considerable contribution, he has been commended by superiors many times.

            STEP 2

            Find the problem and solve it

            STEP 3

            New integration, start again

            STEP 4

            Restructuring and reorganization have achieved initial results

            STEP 5

            Develop now and imagine the future

            LEADERSHIPA

            —— 企業領導 ——


            The original Huanren Traditional Chinese Medicine Factory is a state-owned enterprise with nearly 1,000 employees. It has a glorious history. Due to various reasons such as many changes in the management system, the enterprise has experienced many setbacks and fell into a development dilemma. By June 1999, the production of the enterprise had been at a semi-stagnation state, with a debt of 86.1 million yuan, a debt-to-asset ratio of 122%, arrears of taxes of 9.68 million yuan, a loss of 3.33 million yuan, and bankruptcy.

            At the beginning of his tenure, Zheng Jiyu found out the fundamental problems facing the company through in-depth and detailed investigation and research: First, the personnel thoughts were confused, the contradictions were intricate, and the problems were entangled; the second was the prominent problem of long-term arrears and occupation of payment by sales personnel, which seriously affected production funds. Turnover; Third, there are too many counterfeit products on the market, which seriously damage the image and reputation of the company; Fourth, the "big pot of rice", "iron rice bowl" and other problems caused by the malpractice of the system and mechanism seriously restrict the development of the company. After finding the "crisis", he took a series of measures to revitalize the enterprise.


            Building a strong, united and enterprising leadership team is the core and key to solving all problems. At Zheng Jiyu's request, the Huanren Manchu Autonomous County Party Committee and the county government reorganized the factory leadership team. He led the members of the new team to divide their forces and delegate the authority to solve the existing problems one by one.

            Reorganize the sales force. Zheng Jiyu adopts strong management and legal measures to focus on solving the problem of long-term arrears and occupational payments by sales personnel, which seriously affects the turnover of production funds. More than 30 sales personnel who violate disciplines and regulations are punished, fired, and dismissed, of which 9 were held criminally responsible, accounting for the original factory Nearly half of the sales staff accounted for more than 10 million yuan in debt. Reorganize sales companies, recruit and train sales personnel, reform sales management systems and systems, change "sales contract management" to "planned budget management", strengthen restraint and incentive mechanisms, and build a high-quality sales team. Rectify the market order. Zheng Jiyu led the relevant personnel to fight from the south to the north and worked tirelessly to crack down on acts that counterfeit our products and damage the corporate image and reputation. By the end of 1999, the company achieved an output value of 15.53 million yuan, an increase of 67% from the time when it took over in June 1999, sales revenue of 14.52 million yuan, an increase of 332% from the time when it took over in June 1999, and a tax of 1.21 million yuan, a step back to life. step.


            Problems such as excessive staffing, low labor productivity, and backward management caused by the disadvantages of the system and mechanism are the fundamental crux of restraining the development of enterprises. In order to eliminate employees’ worries about restructuring and unify their understanding of the importance and necessity of enterprise restructuring, Zheng Jiyu led the team members to hold meetings one by one in the workshop to conduct face-to-face discussions and heart-to-heart talks with employees, answer questions raised by employees, and do patient and meticulous ideological work . After more than two months of arduous and meticulous work, we finally obtained the support of the vast majority of employees. The restructuring plan was discussed and approved by the staff meeting and approved by the county party committee and county government. On December 1, 1999, Liaoning Huanren Pharmaceutical Co., Ltd., with 51% of state-owned holdings and 49% of high-level management and employees holdings, was formally established, marking that the company has entered a new stage of development. Challenge the risk to accumulate power for the development of the enterprise

            After the establishment of the new company, it continued to operate on the site of the original Chinese medicine factory, exposing various drawbacks that restricted the development of the enterprise: the site area was small and development was restricted; the equipment was outdated and technological transformation could not keep up. For the long-term development of the company, Zheng Jiyu proposed to relocate the company to the original Huanren No. 2 Pharmaceutical Factory on the north bank of the Hunjiang River (the factory was affiliated with the Huanren Traditional Chinese Medicine Factory, which was transferred to the new company in the form of state-owned equity net assets when the company was formed).

            However, this proposal encountered great resistance, and the company's board of directors failed to pass several discussions. Zheng Jiyu firmly believes that the opportunities for enterprise development after the relocation are greater than the risks, and the probability of success is higher than failure. On the one hand, he tirelessly explained to everyone the benefits of relocation, and on the other hand, he asked for support from the county party committee and county government. After understanding the situation, the county party committee and government expressed support for Zheng Jiyu's relocation plan and promised to borrow 3 million yuan to support the relocation. Zheng Jiyu immediately convened the board of directors, and as the representative of state-owned shares, the major shareholder of individual shares and the chairman of the board of directors, he rejected the consensus and decided to implement the relocation of the company. The new plant covers an area of 203,000 square meters, which is an increase of 3.12 times; the building area is 41,000 square meters, which is an increase of 2.73 times, which provides a broad space for the development of enterprises.


            While implementing the relocation, Zheng Jiyu decided to simultaneously implement the three major projects of park construction, technological transformation and GMP certification to improve the company's production technology and management level. GMP certification is an international standard "Good Manufacturing Practice for Drugs", which is inspected and accepted by the State Drug Administration. The standards are very high. Through GMP certification, the competitiveness of the company in the market will be greatly enhanced, thereby obtaining new development opportunities. In the case of severe shortage of funds, Zheng Jiyu, through the support of party committees and governments at all levels, won 15 million yuan in provincial technological transformation funds and 5 million yuan in bank loans to ensure the capital investment in certification work. On October 25, 2001, Huanren Pharmaceutical Co., Ltd. passed the inspection of the National GMP Certification Inspection Team and became the first Chinese medicine pharmaceutical company to pass GMP certification in our province; in 2002, it passed the drug packaging materials of the National Food and Drug Administration And the container SDA registration certification; in 2003, it passed the GAP standard certification of medicinal materials planted by the State Food and Drug Administration and the ISO9001 international quality system certification, laying a solid foundation for the rapid development of the company. Challenge yourself to seek a fundamental solution for the enterprise.


            After the first transformation of the enterprise, after a year of operation, the disadvantages of the system mechanism incompatible with the modern enterprise system and the market economy emerged again: unclear property rights, lack of autonomy for enterprises; heavy debt chains, severe shortage of development funds; employment Mechanisms, incentive mechanisms and distribution systems are not working, talents are scarce, and managers' enthusiasm is difficult to exert; employees are not strong in sense of responsibility, and sectarianism and nepotism gradually breed. These problems have once again become the shackles that hinder the development of enterprises. Facing new problems, Zheng Jiyu felt that only deepening reforms is the permanent solution.

            In December 2000, "Huanren Pharmaceutical Co., Ltd.'s plan for further deepening the restructuring and reorganization" was approved by the county party committee and county government. In March 2002, under the leadership of the county party committee and the county government, the company implemented the second restructuring in strict accordance with the law. After legal evaluation, auditing and property rights transactions, state-owned property rights and employee status were replaced, and a joint stock limited company was formed.

            On January 6, 2003, the completely private Liaoning Huanren Pharmaceutical Co., Ltd. was formally established. The new system gave the company a strong vigor and vitality. As of the end of 2003, Huanren Pharmaceutical's comprehensive economic indicators ranked first in the province's traditional Chinese medicine pharmaceutical industry.

            After the company completed the first restructuring, Zheng Jiyu set out to plan a capital expansion strategy, integrate county medical resources, expand the traditional Chinese medicine industry chain, seek strong partners, and build a group enterprise framework, basically forming a collection of medicinal materials planting, Chinese herbal medicine processing, An industrial system integrating Chinese patent medicine manufacturing, pharmaceutical packaging, medicine management, and new medicine research and development.



            Zheng Jiyu has set the company's long-term development goal to be among the top 50 Chinese traditional Chinese medicine industry companies by 2005 and the top 20 in 2010. He has formulated a five-year plan from 2003 to 2007 and a ten-year plan from 2003 to 2012. In order to achieve the set goals, he seized the historic opportunity of the country's implementation of the strategy of revitalizing the northeast and other old industrial bases, and formulated the "Chinese Medicine Industry Modernization System Engineering Project" with a total investment of 590 million yuan and a time span from 2003 to 2006. , And report to the National Development and Reform Commission for approval. In 2003, the first phase of the project invested 60 million yuan, which was supported by the country's 35 million yuan free interest discount for three years. At present, the newly purchased land of 83,000 square meters and the pipeline network transformation project have been completed, the new power workshop has been put into use, and the solid preparation workshop is under construction. However, such a large project is difficult to complete independently with the existing strength of the enterprise. As a result, he once again focused his attention on seeking strategic partners. After various investigations, demonstrations and negotiations, Huanren Pharmaceutical and Shanghai Industrial Holdings Co., Ltd. reached a joint venture and cooperation agreement, adopting the method of "incremental entry and stock transfer". Shanghai Industrial Holdings Co., Ltd. contributed 85 million yuan to Huanren Pharmaceutical. The company established a joint venture with the foreign party holding 70%, and changed its name to Liaoning Good Nurse Pharmaceutical (Group) Co., Ltd., which further strengthened the development of the company.

            With the growth of Zheng Jiyu and the expansion of his company, he has gone out to challenge life, surpass himself, and be willing to contribute. Whenever the conflict between the development of the enterprise and the personal future, the interests of the enterprise and the personal interests faces a decision, he always focuses on the overall situation of enterprise development, the long-term interests of the enterprise and the fundamental interests of employees. When he took over the Chinese medicine factory, Zheng Jiyu's "career" was in Shunda. He was worried that he might "smash" his political life and career prospects here, but he still chose to challenge. When the enterprise is restructured for the second time, in accordance with the "Company Law", as a promoter of a joint stock limited company, he must resign from public office. At this time, he was confronted with abandoning the enterprise that he had worked hard for several years and had just embarked on the road of revitalization, or returned to the county government to return to "the official career". Faced with the choice of life, Zheng Jiyu chose to resign from the "official". For the people, decided to take the road of corporate revitalization to the end. The joint venture and cooperation with Shanghai Industrial Group are another major test for Zheng Jiyu. Due to the absolute control of the foreign party, Zheng Jiyu's identity and status have undergone major changes, from chairman to general manager, from "boss" to "wage earner". For the long-term development of the company and for the fundamental interests of the employees, Zheng Jiyu actively strives for strategic investment cooperation, at the expense of his actual interests, willing to lower his power, status and identity, which is unimaginable and acceptable to ordinary people. What Zheng Jiyu considers is that the responsibility of an entrepreneur is to continuously make the enterprise stronger and bigger, benefit employees, and repay the society; and as a Communist Party member, for the benefit of the people, one cannot care about personal gains or losses. In the process of enterprise development, what Zheng Jiyu sees is not personal gains and losses and changes in power position, but a new development space for the enterprise, a new field of brilliant performance.


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