Hello everyone, colleagues and esteemed guests of GTAKE! At this splendid juncture of bidding farewell to the past and embracing the new, we converge to celebrate our accomplishments of the preceding year and anticipate the hurdles and prospects of the forthcoming year. Today, I would like to share with you some thoughts and insights on our entrepreneurial journey.
Starting from the end, continuous improvement
Our entrepreneurial enterprise is dedicated to meeting customer needs by leveraging industry insights and data-driven strategies to achieve high efficiency, low cost, and high quality, mirroring the success stories of leading companies in manufacturing and services. A beautiful day starts with continuous improvement, “this slogan was posted on the company wall. Continuous improvement is a daily endeavor that requires unwavering persistence, despite the inherent challenges. These challenges include the delicate balance between efficiency, cost, and quality, which often present conflicting demands. For instance, enhancing efficiency may increase costs, and improving quality could require additional resources, making it a complex task to harmonize these three prerequisites. To meet the needs of our customers, we must achieve the unity of these three contradictions.
The company’s inventory turnover rate is satisfactory, however, we must also assess whether our delivery operations are being conducted promptly. In the face of material shortages, it is crucial to avoid haphazardly sourcing components to fulfill delivery demands at Huaqiangbei, as this could exacerbate supply chain disruptions and lead to inflated prices. We frequently encounter the saying: ‘At all costs.’ This phenomenon is often observed in the military industry, where occasionally, products are manufactured without incurring costs.
Several years ago, I stumbled upon a motor factory in the industry sector that demanded high reliability, but incurred extremely high costs, hindering their ability to compete in the civilian market. Eventually, I discovered their method involved producing a batch of motors and subsequently selecting a handful of qualified ones for use.
Many people find it difficult to distinguish between aerospace and aviation. Essentially, aerospace pertains to rockets, whereas aviation concerns airplanes. China has long been a leader in aerospace, yet lags behind in aviation. The primary reason lies in the fact that rockets are launched successfully and do not return. Conversely, airplanes must prioritize safety and economy, demanding a high standard for repeated travel. Therefore, when I heard about the sixth generation phone, I wasI was extremely excited and even shared it on my social media, realizing how challenging it was to accomplish this. Therefore, sacrificing everything often entails reducing costs to fulfill demand, a process that is somewhat simpler.
When resources are plentiful, people tend to exchange them for efficiency in order to ultimately attain their objectives. For example, during the War of Resistance Against Japan, there were correct strategic choices such as “changing space for time” and “discussing protracted warfare”, and those who proposed these strategies became war gods.
In the realm of business, numerous companies, akin to renowned Internet giants and emerging automotive titans, lavishly invest to secure the precious moments that herald success. Upon achieving success, one ascends to the pantheon of management deities, yet, inevitably, there exist myriad tales of those who remain untransformed.
We have many general market service personnel, but our performance scale is not large. I reached out to them to discuss our performance concerns, and they explained that due to personnel allocation across provinces, we are currently limited to maintaining the basic configuration. For this, I can only give them a few copies of ‘On Protracted War’ to learn from.
Jokes aside, when a company attains a certain scale, it can embark on long-term and pivotal endeavors. The significance of time and efficiency diminishes somewhat.
In essence, balancing efficiency, cost, and quality to meet customer needs is a formidable challenge. Achieving breakthroughs in one area while accommodating other factors is indeed commendable. For instance, through the development of reusable rocket technology and the introduction of the Starship system, Elon Musk has dramatically cut the costs of space launches, positioning SpaceX as a pioneer in the aerospace industry.
Startup companies often lack resources and have to reconcile conflicts to achieve their goals. We cannot afford to do anything at any cost, as it may exceed our means. I always emphasize starting with the end in mind, as it guides our actions. Many people go wrong and forget the three prerequisites for achieving their goals. As soon as they arrive at the table, they are often missing one out of three, and the things they do often go in the opposite direction. To continuously improve every day Each day, viewed from its conclusion, amounts to engaging in the divine task—ordinary, yet profoundly significant.
Building collaborative mechanisms to stimulate innovation and efficiency engines
The realm of management is vast, and my focus is narrowed to pressing contemporary matters. Currently, the company’s management emphasis lies in fostering collaborative exchanges of information and knowledge within the framework of specialized labor division, posing both challenges and opportunities. Adam Smith also extensively introduced the importance of professional division of labor in his book “The Wealth of Nations”.
The Annals of Xiang Yu mentions two stories about Xiang Yu. When young, Xiang Yu witnessed the grand parade of Qin Shi Huang and exclaimed his ambition to usurp the throne, a foreshadowing of his future role in overthrowing the Qin dynasty. Secondly, Xiang Yu lacked interest in learning swordsmanship and refused to learn how to fight alone. Instead, he aspired to lead in battle, facing ten thousand enemies, believing that only through such challenges could he fulfill his ambitious goals. However, in the end, he failed to fully grasp the strategic brilliance of Han Xin. As a result, even though he had possessing the capability to “surmount towering peaks with unmatched vigor”, he was bestowed with the title of a “valiant soul” by future generations.
In the context of organizational management, the professional division of labor and collaboration often present as contradictions. Our management strategy aims to harmonize these contradictions, integrating them into a cohesive entity.
For example, In the exhilarating 4x100m relay race at the Olympics, a meticulous division of labor among participants is paramount. Some people start well, some have excellent cornering skills, some have strong sprinting abilities, and some run fast in straight lines. Only through seamless coordination among them can we fully harness our respective strengths.
Despite the exceptional individual talents of the US team members, they frequently falter in the relay handoff, either by dropping the baton or overstepping the designated area. Conversely, the Japanese team, though individually unremarkable, excelled in the relay transition, thereby reigning supreme in Asia for a considerable period.
Therefore, our current management focus is on the ‘handover baton area’. We must delve into how tasks can be effectively delegated among businesses and departments. Effective communication and knowledge sharing are essential for managing collaboration in a professional division of labor, as emphasized in best practices and real-world examples. Having clear processes and responsibilities is insufficient; instead of ‘punching each other,’ we should strive for harmonious collaboration through ‘handshakes’.
Once a new product is developed, following the production line closely and providing timely process guidance becomes crucial. This guidance must undergo thorough review by the R&D team and any on-site issues should be promptly addressed and corrected. Therefore, what we are talking about here is not knowledge information sharing, but work interface interaction and collaboration.
Managers face timeless challenges, unable to dominate all, nor to transcend the realm of transition. In essence, you must draw wisdom from those seen as adversaries, or you will remain a mere ‘captain,’ never ascending to the ranks of director or manager.
Overseas markets should promptly familiarize themselves with the rapid expansion and operational dynamics of China’s domestic new energy market, particularly the robust growth in electric vehicle production and sales. The trend of Chinese manufacturing expanding overseas is evident, with notable growth in exports and the strategic importance of this expansion as part of national policy. We need to follow up and learn from the domestic market, learn from customers’ overseas markets, and learn about products in order to achieve both internal and external benefits.
GTAKE’s quality and energy formula E=QC ²
In 2024, our performance grew by 50% and our market share continued to lead in important segmented industries. This leads us to believe that the penetration rate of new energy will surge dramatically within the next three years. While admiring the industriousness and bravery of the Chinese people, we must also feel a keen sense of urgency.
Therefore, I proposed this quality energy formula: GTAKE’s competitiveness is equal to the product of quality and the square of customers (E=QC ²). The square of the customer means that the customer is growing rapidly and their demand is also increasing, but our core competitiveness lies in quality. So, quality in GTAKE should become a movement for all employees.
During the War of Resistance Against Japan, there was a saying: ‘One inch of mountains and rivers, one inch of blood shed; one hundred thousand youth, one hundred thousand soldiers lost.’ The mere mention of it ignites one’s passions. In the pursuit of quality excellence, it is imperative to craft slogans that inspire and awaken the masses. Upon visiting the production department to address the condensation issue on that day, I discovered that not all individuals possessed a sufficient awareness of quality concerns. Our frontline managers need to go to On the front line, idle chatter undermines our nation’s progress, whereas diligent effort elevates our company’s standing. All employees of GTAKE should be responsible for quality. Our commitment is clear: by 2025, we are resolute in halving the failure rate.
In my youth, I embarked on a journey to Jiuxi Eighteen Streams, trekking all the way up to Longjing Village, where I finally grasped the essence behind its name. Along the winding mountain path, clear mountain springs frequently came into view, offering a refreshing sight. Despite the physical exhaustion, my soul felt invigorated. When reaching the top of the mountain, a pair of couplets from Longjing Village is particularly good: “The spring comes from the stone and the emotions are refreshing, and the tea comes from the peak and tastes more round. On the entrepreneurial journey at GTAKE, we embark with a clear vision, strive for constant betterment, and bravely confront hardships and unexpected challenges.
There is a Lingyin Temple at the foot of the mountain, and I am fortunate to receive an annual calendar here, a gift bestowed upon us, ordinary yet extraordinary. The abbot of Lingyin Temple wrote these four words: ‘I am delighted to see you ascend to the position of a high-ranking official.’. Shengqing, the elegant moniker for snakes, embodies a beautiful imagery of ascension, progress, and unceasing growth. Let us live up to the times, move forward with joy and courage, and wish everyone a happy New Year and all the best!
