Tech startup: I really do make mobile phones!

Chapter 228 Orange Town Phase II Planning
In Lancheng, inside the Orange Building office, the blinds let in the soft, bright sunlight of a typical Northwest morning.

Lin Xiaoxia had just finished reviewing the last channel report when she called out crisply towards the open office door, "Yu Bin, come in here for a moment!"

Yu Bin, still clutching the newly compiled inventory list for the new provincial direct-sale stores, strode in upon hearing the sound, his tone conveying the familiarity and decisiveness developed from long-term collaboration.

"Sister Xia, does the restocking plan for the Uru City direct-sale store need to be adjusted? I just confirmed with the store manager there, and we can send another 500 Orange Home second-generation power banks over next week."

Lin Xiaxia smiled and waved her hand, pointing to the chair opposite the desk: "Sit down first, it's not about restocking!"

Only after Yu Bin sat down did she speak slowly and deliberately, but her tone carried weight.

“I spoke with General Manager Zhao yesterday and gave him a comprehensive overview of the situation of the direct sales channels in the western region over the past six months. I also recommended you to him so that you could take over as the head of the direct sales channels in the western region and oversee all stores in the six western provinces.”

The list in Yu Bin's hand trembled slightly, almost slipping off the table. His eyes lit up with surprise, but he quickly suppressed his excitement, sat up straight, and listened attentively.

Last year, he resolutely followed Lin Xiaoxia from Shenzhen to this vast western market to expand his territory. From being unceremoniously kicked out by the property management when he first started doing business, he is now able to manage eight stores in Gansu Province on his own.

Yu Bin had always harbored a strong desire to deepen and solidify his distribution channels.

I just didn't expect this opportunity to come so quickly.

"Did President Zhao have any objections?" Yu Bin asked, feeling a little uneasy.

Seeing his tense yet expectant expression, Lin Xiaxia added a sentence with certainty.

“Your performance in Gansu Province over the past six months has been remarkable. You have laid a solid foundation in the distribution channels and even managed to take over the stores in the most difficult third-tier cities. I believe you are capable of taking on the responsibility of the head store manager.”

As soon as he finished speaking, Yu Bin immediately stood up, his hands unconsciously clenching into fists, his tone filled with barely suppressed solemnity and gratitude.

"Sister Xia, thank you! When I came from Shenzhen, I didn't know anything. You guided me step by step to explore channels, negotiate with customers, and taught me how to analyze store data and how to flexibly adjust the distribution pace."
If I am fortunate enough to accept the position of General Manager, I assure you that I will safeguard the western distribution channels and strive to expand to 60 new stores by the end of this year. I will not let you and General Manager Zhao down!

Lin Xiaxia looked at the determined light shining in his eyes and nodded with satisfaction.

"I value your steadiness and drive."

The job of the head store manager is much more complicated than managing provincial-level directly operated stores. It requires coordinating the logistics chain, working closely with the marketing department, and constantly monitoring the sales per square meter and per employee of each store.

If you ever encounter anything you're unsure about, feel free to contact me anytime!

Yu Bin nodded vigorously, and subconsciously folded the somewhat messy list in his hand into neat rows.

"I understand, Sister Xia!"
I will immediately begin handing over the work at the Gansu branch to my former deputy, and then quickly familiarize myself with all the responsibilities of the head store manager to ensure a smooth transition and that nothing is delayed!

As he spoke, his steps became noticeably lighter than when he came in. Reaching the door, he seemed to remember something and turned back earnestly, saying, "Sister Xia, don't worry! I will always firmly support your future work in the marketing department!"

Lin Xiaxia smiled and instructed, "I'll show you around the various procedures for the head store manager for another week, and then I'll return to Shenzhen with Fang Zhihui's inspection team!"

Yu Bin immediately replied, "No problem, Sister Xia! I will definitely familiarize myself with the business as quickly as possible!"

Shenzhen, 16th floor, Building B, Yuancheng Building, Orange Technology General Manager's Office.

Gong Yun walked out of the elevator lobby, nodded to Zhou Yumeng, and then walked into Chen Mo's office with practiced ease.

Chen Mo stood with his back to the door in front of the huge saltwater fish tank, holding a small pinch of fish food in his hand, intently feeding the colorful marine creatures inside.

His movements were casual and relaxed, as if at this moment only the tranquil blue sky and the swimming fish existed in the world.

Hearing footsteps, Chen Mo didn't turn around, but casually greeted, "Sister Gong, please sit down first, let me feed these few golden tangs that couldn't get any food!"

Gong Yun was already used to it, and smiled as she sat down on the sofa in the reception area, patiently waiting.

After a while, Chen Mo finished feeding the fish, clapped his hands, and then turned to walk towards the reception area to boil water and make a cup of hot tea for Gong Yun.

"Sister Gong, is there anything you need to report today?"

Gong Yun accepted the teacup, thanked him, and smiled gently yet with professional rigor: "President Chen, I'm here mainly to report to you on the company's recent financial situation and some important personnel developments!"

Chen Mo nodded, leaned back, and adopted a listening posture.

"Okay, tell me!"

Gong Yun opened the folder she carried with her and began her report in a clear and organized manner.

"First, let's talk about finances!"
Currently, all OEM orders for Orange 2 and Nietzsche 2 phones, as well as the production capacity of our own factory, have been completed.

The company's total revenue for this year is approximately 48.8 billion!
Currently, the funds in the capital pool amount to 19.52 billion yuan, with the remaining approximately 60% primarily invested in the construction and operation of our newly established direct-sales channels.

Upon hearing this, Chen Mo clicked his tongue slightly and exclaimed, "It seems that the cost of building your own direct sales channels is really a money-devouring beast! In the past, when we relied entirely on third-party channels, the channel cost was only about 30%."

Gong Yun lowered her eyes and smiled, explaining in detail: "President Chen, this is because we have invested a lot of money to purchase the property rights of shops in prime locations, which is a one-time heavy asset investment."

However, in the long run, once the channel network matures, our own operating costs can be reduced by about 20% compared to relying on third-party channels.

According to calculations, the cost of building a direct sales channel is expected to be fully covered by the savings in operating expenses within five years.

Chen Mo nodded knowingly: "So, as long as our directly operated store system operates smoothly for six years, it will basically be all net profit after that?"

Although Chen Mo's explanation was somewhat simplified in terms of the financial model, Gong Yun still smiled and nodded in agreement.

"That's a fair way to put it! Every penny saved for us by the direct sales channels will be directly converted into profit."

Next, Gong Yun steered the conversation toward future plans.

"In addition, regarding the 'Takigawa Guanlan Orange Town' project."

The first phase of construction has been basically completed and has been put into use as the confidential factory area of ​​'Chengchuang Materials'.

Next, we need to initiate the construction plans for Phase II and Phase III.

At the same time, it is also necessary to clarify the overall positioning of "Orange Town": is it intended to be a "research headquarters" or a "corporate headquarters"?

Chen Mo asked curiously, "What's the difference between the two?"

Gong Yun pulled out two preliminary planning drawings from the folder and gently laid them on the coffee table in front of Chen Mo. She drew clear lines on the drawings with her fingertips, her tone professional and organized.

"The main difference lies in the functional focus and the direction of resource allocation!"

“If it’s positioned as a ‘research headquarters’,” she said, her finger landing on the first image, “then the core will be building a technology-driven, classified R&D cluster!”
We need to plan more confidential laboratories and pilot plants, and introduce advanced material testing equipment and precision machining instruments.

At the same time, it is also necessary to reserve apartments for experts, a dedicated canteen for researchers, and a commuting system.

Subsequent investments will be significantly tilted towards 'technology research and development support,' as high-level scientific research activities have extremely high requirements for environmental stability and specifications.

She paused, then moved her fingertip to the second picture.

“If it is positioned as a ‘corporate headquarters’, the approach is completely different.”

The core idea is to centralize the management and strategic decision-making departments of all companies in the Orange Group here, creating an open headquarters landmark to enhance brand image and publicity.

The project requires the construction of a landmark headquarters office building, a large group conference room, a supply chain collaboration center, and supporting facilities such as employee dormitories and park commercial facilities (e.g., convenience stores, gyms), with the aim of improving the efficiency of centralized office work for employees of various companies and the convenience of cross-departmental collaboration.

Subsequent investments will be more focused on improving operational efficiency, such as building a digital office platform and optimizing traffic flow within the park, enabling headquarters to more efficiently coordinate production and channel operations across the country and even globally, and reduce cross-regional communication costs.

Gong Yun looked up at Chen Mo and added a crucial point.

"In addition, the policy inclinations are also different."

When we negotiated with the Takihawa Ward government, if we positioned it as a 'research headquarters', we could focus on applying for R&D subsidies and preferential policies for attracting high-end talent, such as tax breaks and settlement subsidies for core researchers.
If the business is positioned as a 'corporate headquarters', it can strive for tax incentives under the headquarters economy model, such as enjoying a partial refund of local taxes after annual revenue reaches a certain scale.

The two positioning strategies leverage different government resources and offer different focuses of support to the various companies within the Orange Group. The decision will need to be made based on our strategic priorities for the next phase.

After a moment of contemplation, Chen Mo concluded: "In other words, the research headquarters brings together our 'brains' and 'laboratories' to conduct closed-loop, high-precision research and development."
The corporate headquarters, on the other hand, brings together the 'management center' and 'command center,' showcasing an open and brand-strong corporate image. Right?

Gong Yun smiled and nodded, sincerely praising, "President Chen's summaries are always spot on!"

Chen Mo waved his hand and spoke with a smile.

"Sister Gong, please don't flatter me. Otherwise, I'll get so carried away that I'll lose my bearings!"

He considered it carefully for a while before making his decision.

“Shenzhen itself is a window to the outside world with complex information flow. Concentrating the core research headquarters here is indeed not conducive to technology confidentiality and closed management.”

Let's plan it according to the positioning of a 'corporate headquarters'!

Gong Yun nodded and noted it down, then offered her suggestions for the next step.

"Now that you, Mr. Chen, have determined the positioning of the company as a 'corporate headquarters,' a comprehensive and forward-looking plan and design are needed."

Currently, the Guanlan Industrial Park has approved 70 hectares (approximately 70 square meters) of land for us.

Should we launch a global tender to invite top architectural design firms to conduct overall planning and design for the 'Orange Town' corporate headquarters and develop a detailed phased construction plan?
After all, Orange Technology, Smart Orange Procurement, and Orange Home Smart Home cannot continue to share the current office building with Yuancheng indefinitely.

“Yes, that makes sense!” Chen Mo agreed.

Subsequently, Gong Yun asked Chen Mo if he had any specific ideas or requirements for the 70-square-meter "Orange Town" corporate headquarters.

After a moment's thought, Chen Mo put forward several core requirements.

"First of all, the planning and design should reflect the concept of our seven Orange Group companies being both independent and collaborative."

Secondly, the building should be distinctive, creating a significant landmark effect to facilitate brand promotion.

Then, the office and meeting functions need to be powerful and efficient.

Finally, we need a large-scale, technologically advanced internal exhibition center to create our own launch stage, where all future Orange series products can be showcased to the world!

The palace rhyme was recorded one by one, and expressed.

"no problem!

I will then refine these core requirements, add more functional conditions, and then send out invitations to tenders to renowned architectural design firms worldwide.

This is also a great opportunity to enhance the global brand awareness of oranges.

"Hmm!" Chen Mo nodded, then turned to the practical question: "Approximately what is the total budget for this 'Orange Town'?"

Gong Yun's fingertips lightly slid along the edge of the folder, her eyes revealing a clear calculation logic.

"If we estimate based on a three-year phased construction plan, the total budget would be between 28 billion and 30 billion yuan."

The focus and amount of investment will vary each year.

She explained in detail:

"The first year is mainly about laying the foundation, with a budget of about 8.5 million."

The construction of basic infrastructure such as the park's road network, water and electricity pipelines, and communication base stations needs to be completed. At the same time, the main structure construction of the company headquarters building, which is the core landmark of the park, needs to be started.

In addition, Orange Innovation's existing confidential factory area also needs to be upgraded, such as by adding ancillary facilities for a materials testing laboratory.

These are all mandatory investments!

"In the second year, the budget will rise to about 10 billion."

This year, the interior decoration and exterior landscaping of the main headquarters building will be completed, and the office areas for core companies such as Orange Technology and Zhicheng Procurement will be built.

At the same time, we will start the construction of the exhibition center that you have requested. This part requires sufficient floor height and load-bearing capacity, and must be equipped with top-notch lighting, sound and display equipment, which accounts for a relatively high proportion of the investment.

In addition, employee dormitories and basic commercial facilities within the park (such as canteens and convenience stores) also need to be developed simultaneously to ensure the basic living needs of employees after the headquarters moves in.

"The budget for the third year is approximately 9.5 million, mainly for 'finishing and improvement'."

The exhibition center needs to complete final commissioning and be put into use; the office areas of the remaining subsidiaries (such as the regional offices of Orange Home and Orange Technology) need to be completed;
Simultaneously, the overall greening and landscaping of the park, parking lot planning, and the construction of a digital management system covering the entire park (such as smart access control and office network) are being carried out.

At this point, the entire corporate headquarters can be fully operational!

She paused, then added, "This total budget already includes about 10% as a contingency fund to deal with unforeseen circumstances such as fluctuations in material prices and minor design adjustments that may occur during construction, ensuring the safety of the cash flow and the smooth progress of the project."

"Hmm!" Chen Mo calculated in his mind: "Starting next year, Yuancheng and Chengke are expected to pay about 50 billion yuan in patent licensing fees, which should be enough to cover the funding needs for the headquarters construction!"

Gong Yun nodded in confirmation: "Based on the current business growth trends of Yuancheng and Chengke, the patent fees they pay next year are likely to exceed 50 billion!"

After discussing finance and infrastructure planning, Gong Yun didn't forget to report on personnel matters.

"Mr. Chen, there's one more thing."

As per your previous instructions, the HR team has already found a senior executive with extensive management experience for the marketing department through a headhunter.

Would you like to meet him in person?

Chen Mo thought for a moment and then arranged, "When Lin Xiaxia comes back in a week, let her and this new candidate go hiking on Yangtai Mountain across the street with me."

There is exactly one candidate for the full-time position and one candidate for the deputy position.

This also puts some pressure on Lin Xiaoxia, letting her know that even if Zhao Tiezhu goes to further his studies, the position of marketing manager is rightfully hers.

Competition drives progress!

Gong Yun laughed upon hearing this, and said half-jokingly, "President Chen, shouldn't our logistics department also assign me a deputy? I'd like some pressure and to improve myself!"

Chen Mo smiled, his tone tinged with trust and a hint of helplessness.

"Sister Gong, please stop joking."

The logistics department can't function without you overseeing it.
If you feel too tired, I hope you can spend more energy training the people within our logistics department, such as the head of the personnel team and the head of the administration team.

Compared to bringing in senior executives from outside, I would much rather see long-term employees who have weathered the storms with the company continue to grow and stand out.

Ideally, no one should fall behind.

You know, I'm a rather sentimental person!

Gong Yun sensed the sincerity and expectation in Chen Mo's words, so she put away her joking expression and nodded seriously.

"I understand, Mr. Chen! I will do my best to train them."

Chen Mo also knew that this matter could not be rushed. Gong Yun was extremely capable and could handle everything in an orderly manner, no matter how small, just like a conscientious and all-encompassing general manager.

While this ensures the efficient operation of Orange's logistics system, it may also inadvertently suppress the opportunities for subordinates to take charge independently.

In contrast, Zhao Tiezhu of the marketing department, though not an all-rounder, knows how to delegate authority and make good use of people's strengths.

On the contrary, this has led to the emergence of key talents such as the "Four Heavenly Kings" and "Twelve Warriors" in the marketing department, gradually building a solid and capable talent pool.

Should we let a qualified all-rounder manage everything, or let "specialized talents" with different strengths perform their respective duties and manage their respective areas?
The underlying logic behind these two management models is something Chen Mo really needs to think about carefully.

(End of this chapter)