Jiang Xipei SharesAbout “Enterprise Genes and Development”

     Recently, at the GFD Classmates Sharing Lecture held by Tsinghua University PBC School of Finance, Jiang Xipei, founder and Board Chairmanof Far East Holding Group, from multiple aspects such as ownership structure, administrative framework, business mode and enterprise culture, shared his opinions on “enterprise genes and development” with 2016 GFD entrepreneur classmates and was awarded with the honor of “GFD Sharing Entrepreneur”.

Jiang Xipei Shares His Ideas

Jiang Xipei Receives the Honor of “GFD Sharing Entrepreneur”

Ownership Structure: “Leader Team Determines the Enterprise’s Future”

    When we started our business, most of the partners were our relatives, friends and classmates, and we did not have a strict structure.However, different from 30 years ago, nowadays, most people will think about attracting which investor or jointly doing business, founding a company with which friend when starting a business. To some degree, your partners and the leader team decides the enterprise’s future.

    People might will not think too much when starting a business, but when their business grows bigger and reaches a certain scale, they should recruit a part of the most outstanding talents into the board of shareholders, board of directors and management team. With 50% of the shares of Far East owned by shareholders and the other half possessed by core staff and through the platform of business partners, the business of Far East is jointly undertaken by a group of aspiring and enterprising people.

      Administrative Framework: “Leadership, Executive Strength, Cooperative Ability” and “Law-, Sense- and Sentiment-based Administration”

    The administrative framework should not only demonstrate leadership, executive strength and cooperative ability and be in accordance with law-, sense- and sentiment-based administration, but also eventually embark on the road of normative development in line with laws and regulations.It is irrational and needs to be adjusted that many enterprises, especially enterprises at the nascent stage of entrepreneurship often put sentiment first, then sense, and law at last. It is very important to find someone that can make judgments independently, propose good suggestions and carry out implementations in the construction of a rational administrative framework based on actual conditions of different enterprises.

      Business Mode: “Market-oriented and Customer-focused”

    What an enterprise should do is to find solutions to problems encountered in production and life and provide consumers and customers with more and better experience.Generally speaking, it is tough for disruptive technologies at the beginning, but the future is bright one they succeed. The eventual goal of an enterprise, whether a market-oriented or innovation-oriented one, is to create products with better cost performance. The future of Chinese enterprises, especially manufacturing enterprises, is “based on market and centering on customers”.

     Spirit of Founder: “Sense of Mission, Responsibility and Emphasis on First-line Business”

    Founders and their teams lay a foundation for genes of the enterprises. The spirit of founder features a sense of mission, responsibility and emphasis on first-line business. However, an enterprise cannot achieve sustainable development without elements such as innovation, risk, cooperation, dedication, learning and integrity.Over two decades ago, Far East has put forward its principle of “five satisfactions": customer satisfaction, employee satisfaction, shareholder satisfaction, government satisfaction and society satisfaction.

     Enterprise Culture: “A Common Aspiration for Becoming Century-old Enterprises”

    Enterprise culture is an essential gene of an enterprise, while values and sentiments are core of enterprise culture.There is no enterprise that does not hope to become a century-old enterprise. Based on the culture of “harmony and flexibility”, adhering to the “five spirits” of “entrepreneurship, innovation, excellence, wealth and wellbeing”, sticking to the system-based and integrity-oriented culture and according to the philosophy of “sharing and win-win”, we are looking forward to a good operation in business of Far East; with mechanisms such as 361 performance evaluation system, excellent employees oriented system and business partnership system, we are aimed to maintain vitality of Far East and build it into a century-old enterprise.

     Risk Control: “All Would Be in Vain If Risk Control Went Wrong”

    Presently, many entrepreneurs have successful business and a happy family.However, the development of enterprises is faced with a series of risks such as legal risks, financial risks, employment risks and public opinion risks, and once something goes wrong, the entrepreneurs will lose everything they own. Entrepreneurs must take good control of risks, because they should be responsible for themselves, their families and society. Entrepreneurs should know well about their own ability. Sometimes faced with various opportunities, to catch them all, they may invest in long-term projects with short-term money, and thus circulating capital would become long-term investment, which might the hinder development of the enterprise and cause a number of bad consequences.

     Enterprise Inheritance: “Future Belongs to the Next Generation”

     It is quite right that our business will be passed down to the later generations, but we need to think how to increase or maintain the value of our wealth and further develop the enterprises.Our final goal is to create a “better future”, and we should always bear it in mind and never forget the reason of our beginning. People of our generation have made some achievements, not easy but worthwhile. Future belongs to the next generation, and we hope that through their own efforts, they could make more achievements and contributions to make our society more colorful, better and happier.

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