The Grandmother in the Siheyuan

Chapter 529 Integration
“Reducing costs is not something that can be achieved by simply cutting workers’ wages. Expanding production will naturally reduce costs as well. You are all sensible people and should know the ins and outs of this.”

"That's because when the volume increases, the cost of raw materials will be cheaper."

Some objected, saying, "With larger order volumes, I'll need to invest more in expanding production, which is also a cost."

The other bosses looked at this guy with speechless expressions. With this level of intelligence, you shouldn't be involved in production anymore. If you don't do production, there won't be any cost issues.

Isn't that cost your fixed asset investment? Among this group of cunning and calculating people, there's actually a cute little one.

"Academician Liu, would you be willing to provide funds for us to expand production?"

“It’s not impossible, but the funds I can provide are limited,” Liu Hua said with a smile. “As I said before, I’m here to streamline the supply chain, so I hope to integrate everyone’s companies.”

Some people felt a sudden surge of malice from the bottom of their hearts for no apparent reason. Could it be that someone was trying to harm them?

Liu Hua said with a smile, "We have been cooperating for many years and we know each other very well. I know that each of you bosses has your own strengths. Some of you are good at management, some are good at technology, and some are good at market development."

When it comes to management, some people proudly raise their heads; when it comes to technology, some pat their chests; when it comes to market expansion, some look down on others with disdain.

"To be honest, you are all scattered and competing with each other, which is a huge drain on your energy. What I mean is to help you come together. If you are willing, you can merge into one company. This will not only expand your production scale and capital scale, but also expand your advantages and enhance your competitive advantage."

Some people think this is a good thing, while others are disgusted.

A person who thinks it's a good thing has a full understanding of himself, knows his shortcomings, and can combine with others to learn from each other's strengths and make up for his weaknesses.

As for those who are sullen, they are short-sighted, only seeing their own little corner of the world, and thinking that they should share the company they have worked so hard to build with others.

Liu Hao could see it all clearly from above. It was safe to say that only a minority of people were happy; most looked unwilling.

“We’re not forcing you,” Liu Hua reiterated. “Whether you want to merge or not is entirely up to you.”

Since it's not mandatory, some people have gone back to smiling, saying that regardless of whether others merge or not, they themselves don't want to merge.

I started from scratch and finally built up a small business, hoping to pass it down to my children and grandchildren. Now you're just going to share it with someone else? What kind of good deal is that? Why doesn't anyone share their business with me?

Liu Hua didn't say one thing: when others merge, expand their production scale, and reduce production costs, those who merged will no longer have an advantage, and they will gradually be eliminated from Taitai Group's supply chain.

"Old Ma, you seem so excited. Are you planning to merge your company with someone else?"

The entrepreneur being asked smiled and nodded: "I do have that intention. I know my strengths. I like to study technology, but I don't know much about production management or market development. I was lucky to get involved with Taiyi Group and was able to develop smoothly to where I am today. We will face many challenges in the future, and I can't handle them by myself. I want to find a like-minded friend."

This Mr. Ma's company is larger than the one that asked the question earlier. The one who asked the question earlier started to have ulterior motives. If he merged with Mr. Ma, he could use some tricks to gain a huge advantage. "Mr. Ma, what do you think of my company? If our two companies merge, it will be a powerful alliance."

You're shrewd, but I'm not stupid either. Old Ma clearly knows what this guy is up to.

I, Lao Ma, am focused on technology, but that doesn't mean I'm ignorant of human relationships. With that lewd expression on your face, I don't need to guess to know you're trying to take advantage of me.

"Forget it, Lao Zhang, although you understand business management, I don't think you're that great. I want to find someone with outstanding abilities in this area to cooperate with, preferably someone who understands market development, especially overseas markets."

Old Zhang said unhappily, "Oh, so you, Old Ma, have your eyes on the overseas market?"

“Our spare parts have been exported for a long time,” Old Ma said matter-of-factly. “It’s just that foreigners take the initiative to contact me and deal with them, which is very troublesome. So I want to find someone who understands how to develop foreign markets to cooperate with, so that we can join forces to seize the foreign market.”

Old Zhang felt a bit resentful. He thought to himself, "How could you look down on someone as shrewd as me? You have no taste. If you deal with foreigners, you'll go broke."

Old Ma was still talking to himself: "Over the years, thanks to Taiyi Group, we have received a lot of technical guidance. The quality of our products is well-known, and even foreigners are attracted to them. If we can find a shrewd partner this time, we are guaranteed to earn more than before."

After saying that, he looked at Lao Zhang and said, "Lao Zhang, you are smarter than me and have also received technical guidance from Taiyi Group. Your products should be able to be sold at home and abroad, right?"

"Pretty much. We are also currently negotiating some overseas orders."

Old Zhang is stubborn as a mule. Over the years, he has been using his cunning to his advantage. He doesn't dare to mess with orders from Taiyi Group, but he always mixes in all sorts of odds and ends with other orders.

The only stable order for their company right now is from Taiyi Group. What he doesn't know is that if they don't seize this opportunity, they will lose even this only stable order.

After the meeting, a registration was done. Of the hundreds of suppliers, only a few dozen were operating together.

Other manufacturers who were unwilling to cooperate were also valued by Taiyi Group, and Taiyi Group personnel worked with them one by one to persuade them.

Some people were persuaded, while others were not. After politely sending away those who were unwilling to cooperate, Liu Hua and his team began to integrate the companies that were willing to cooperate.

Through resource integration and consideration of individual characteristics, the 62 companies willing to cooperate eventually merged into seven larger companies.

Since they were willing to cooperate, Taiyi Group was also willing to reciprocate and immediately offered seven larger orders.

Moreover, the order processing time is also very long because the companies have just merged and there are still many areas that need to be worked out. So at this time, we need to be patient and wait for them to sort things out before giving them more work.

Those companies that were unwilling to cooperate were also watching the show, wanting to see what would happen to these people they considered fools.
(End of this chapter)