Holy Roman Empire

"Mr. Shroff, our proposal to establish a comprehensive food processing factory has not passed the review. The reason given by the government is that the market is already saturated, and Sarajevo is not suitable for the development of the food processing industry, and it is suggested that we change the direction of investment."

Fick Shroff frowned. Apart from arms, the best-selling supplies during the war were food, especially food that could be eaten by tearing off the package.

Compared with the high-end arms trade, food is still easier to get.The profit of food may not be as good as that of arms, but the sales volume is huge!

Austria is a neutral country and can export supplies to both Prussia and Russia at the same time.The total strength of the two warring parties has long exceeded 200 million, and the number of civilians enlisted is twice this number.

It is impossible for so many people to light a fire to cook every day, and in many cases, they can only use homemade dry food in order to catch up with time.

No one can bear to eat dry food every day.This requires a large number of "better taste" and "more nutritious" convenience foods, such as: biscuits, canned food, French fries, wine...

Schroff has calculated that the daily consumption of instant food by Russia and Prussia exceeds 2000 tons, with a total value of more than 28 Aegis.

Calculated based on the one-year duration of the war, this is a market of more than [-] million Aegis.This is only the most conservative. Shroff believes that this war will take at least two or three years before the winner can be determined. This is a market of [-]-[-] million.

During the war, the profits of trading were high, and it didn't need to be much. As long as he could get [-]% of the market share, he would need to get his investment back and make a lot of money.

After pondering for a while, Shroff said slowly: "Send someone to investigate who is targeting us. Also, arrange a time as soon as possible. I want to treat Director Danilo to dinner."

Shroff didn’t see the overcapacity. What he saw was that Russia and Prussia were waving checks to buy and buy. Where did the overcapacity come from?It's clearly in short supply, right?

Yanol explained with some trepidation: "Mr. Shroff, no one should be targeting us this time.

After the plan was rejected, I sent someone to investigate. Not only us, but the projects investing in the food processing field have not been approved recently.

It may be related to the risk warning issued by the Vienna government not long ago.Recently, the capital invested in the food processing field has soared, and the original food processing enterprises are also desperately expanding their production capacity.

It takes a certain amount of time from investment to production, and the market has not responded in the short term. It is too late for us to enter the market now. "

Yanol is opposed to entering the food processing industry. Even if there is no concept of food safety these days, investing in the food processing industry in the center of heavy industry is not a reliable business.

It's fine if the company is small. Once it becomes large, raw materials are a headache.

To be able to survive in this age of the weak and the strong, and live a good life, Shroff is naturally not a fool, he has already considered these risks.

Huge profits always go with risks, and there are businesses that can make a profit without losing money, but such a business has already been divided up by the big nobles, and it is simply not his turn to do it.

The overcapacity crisis, even if it is going to break out, will only happen after the war. During the war, both Prussia and Russia will desperately sweep up goods.

This is determined by reality, so they can't help but not buy it.If anyone does not buy, the supplies will fall into the hands of the enemy.If you don't rush to buy enough supplies, what will the frontline troops do?

It is better to buy more supplies and leave them in the warehouse than to have insufficient supplies, leading to the failure of the war.

The crisis after the war depends on who runs fast.Anyway, I am a dragon in the river, and I will leave as soon as I get it, and it is not my main business. Shroff does not pay attention to whether the industry is good or bad.

Shroff didn't care, but the Austrian government couldn't help it.If you can't pass the audit, as long as you comply with the law, you can also invest in building a factory, but the government's support is gone.

"If we can't get government support, how much will the cost of investing in the factory increase?" Shroff asked.

After contemplating for a while, Yanor slowly replied: "According to the relevant government regulations, the food processing industry is a key support industry, mainly including: the government provides free land for building factories, and the tax revenue is halved for the first three years.

According to our plan, about 158 ​​acres of land will be needed to build factories and warehouses. At the current land price in Sarajevo, about 12.6 Aegis will be needed.

Tax relief covers a wide range of areas, and it is difficult to determine specific figures. However, the tax rate for the food processing industry is relatively low, roughly equivalent to about 3.5% of turnover. "

After hesitating for a moment, Shroff sighed helplessly: "Forget it, the plan is cancelled. Use the funds to expand our production capacity of hardware accessories, and the speed must be fast."

No way, without free land use rights, the cost of land alone accounts for one-third of the total investment; without tax incentives, profits have dropped sharply, and risks and benefits are no longer directly proportional.

This is still industrial land, and the price is relatively low. If it is commercial land or residential land, the land price will increase significantly.

The Vienna government has not vigorously developed real estate, but with the continuous advancement of urbanization, land prices are still rising.

This is beyond the control of the government. In addition to state-owned land, Austria has the most private land.These lands follow the principle of free trade, and prices cannot be controlled at all.

The land price in Sarajevo is still moderate. In the center of Vienna, there is tens of thousands of shields per acre of land. Apart from the development of high-end residential and commercial real estate, other industries cannot afford it.

This is still the result of multi-polar development and the small population of Vienna, otherwise the land price will be even crazier.

……

Unable to get involved in the most lucrative industry, Shroff can only choose to settle for the next best thing and expand the original industry.In the face of the crazy market, all industries are making blood money now.

After hesitating for a moment, Yanol suggested: "Mr. Shroff, why don't we add some auxiliary business. For example: processing cans.

Now the canning industry is developing rapidly, and the demand for boxes is also increasing rapidly.With our technology, there is no problem in producing cans. "

Most of the cans these days are made of iron boxes, and glass cans are luxury goods.

It's not that the glass production technology is not good, the main reason is that the cost of glass jars is relatively high, and the transportation is difficult and prone to damage.

The cost has gone up, the price has gone up, and the market competitiveness has been lost.

Not to mention the war years, we must use high-quality and cheap iron box cans!Food safety, this has never been a problem, anyway, the big shots don't eat it.

Processing cans is only a small business, but mosquitoes are still meat no matter how small they are. As a qualified capitalist, Shroff never thinks he has too much money.

"Very good, Yanol. Your suggestion is very good, just open your mind.

Now that the market competition is so fierce, we must try our best to develop new businesses and increase corporate profits in order to survive in the future market competition.

Not only cans, wine bottles, kettles, we can also produce these small items, you can arrange it! "

Since Austria joined the free trade system, market shocks have occurred every day, and "crisis awareness" has gradually become popular.

If the Russo-Prussian War hadn't come in a timely manner, an industrial market competition affecting the European continent might have broken out.

Smart people know that war only delays this process, and what should come will still come. This cannot be stopped by individuals.

Either take advantage of this opportunity to soar into the sky, or sink in the competition.

While delaying the outbreak of the crisis, the Russo-Prussian War was also exacerbating it.The Austrian newspapers advertise it every day, and the capitalists will naturally not be unresponsive.

Some people choose to diversify, expand new businesses, and share risks; some choose to work hard to improve their competitiveness in the industry.

Shroff himself is also an advocate of diversification, and wants to take advantage of the opportunity of the Russo-Prussian War to expand his business to the food processing industry.

Don't look at the fierce competition in the field of food plus, but this is Austria's trump card industry, and all competitors in Europe are younger brothers in this field.

Under the free trade system, the dominant Austrian food processing industry has a stronger ability to resist risks than other industries.

However, the reality pulled Shroff back. There was no way that Sarajevo was an inland city after all, and the news was relatively closed. Shroff’s reaction was not fast enough.

Unable to expand into the food processing industry, he had to choose to deeply cultivate hardware accessories, and use this as the core to expand related businesses.

As for Austria's more competitive fields of electric power and internal combustion engines, it's not that Schroff has no idea, it's completely out of reach.

These fields that rely on technology for food are not something that ordinary people can participate in casually.

The era of playing copycats has passed, and Austria has already entered the era of patents. Without its own core technology, it is simply impossible to gain a foothold.

Chapter 241 The Importance of Information

The government's guidance still has not been able to resist the enthusiasm of capital. The benefits are always easy to get lost and the risks are ignored.

If you can’t get government support, then find a way to reduce costs, for example: put the factory in the suburbs or a small town with convenient transportation, and the land cost can be saved by more than half at once.

It doesn’t matter if there are no tax incentives, Russia and Russia are all buying, buying, buying, and now the factories are very profitable, not bad for those few points.

"It's hard to persuade a damned ghost with good words. Great mercy will never cross oneself."

Seeing the continuous influx of capital moths flying into the flames, Franz can only choose to see what he sees.

In addition to greed, the madness of the market has more serious social problems.The capitalist world economy once again suffered from overcapacity, especially in Britain and Austria.

The fact that the crisis did not break out has something to do with the international situation.From 1873 to 1878, the Second Near East War broke out successively, and the colonial war initiated by Britain, France and Austria to carve up the African continent.

The war consumed a lot of wealth and materials, and the prosperity of the market covered up the crisis of overcapacity.If the Russo-Prussian War does not break out, a new economic crisis will break out next year at the latest.

After so many years of accumulation, the surplus is not only in production capacity, but also in capital.

As the saying goes, the money spent is money, and the money lying in the bank is just a bunch of numbers.Under the background that most industries are saturated and surplus, capital needs new investment channels.

According to the practice of killing people, at this time, the stock market should be in trouble.A large amount of money poured into the stock market, creating an unprecedented boom, and then the bubble was punctured, and the excess capital was evaporated along with the bubble.

If a dead fellow is not a poor fellow, the conflict between Prussia and Russia will be exploited.Austria supported the Tsarist government, and Britain and France supported the Berlin government. In addition to political needs, they also played the role of capital.

Once the money is borrowed, the problem of excess capital will naturally disappear.The large number of orders brought by the war has promoted economic development.

The most important thing is that the industrial crisis that was originally mainly caused by the two industrial powers of Britain and Austria has spread to the entire European continent through the stimulation of the war, and no one wants to be alone.

Dragging everyone into the water together, starting from the national level, is not harming others or benefiting oneself.To be precise, this is called attacking potential competitors.

Economic wars are different from military wars. The countries that suffer the most losses may not necessarily be the countries that fight each other. It is more likely that the boss and the second will play a game, and finally kill the third, fourth, and fifth...

Under the free trade system, the global market is still very limited, and it is impossible to satisfy everyone's appetite. We can only compete in accordance with the law of the jungle.

The industries of Britain and Austria accounted for 29.8% and 36.5% of the world's total industry respectively, and the total import and export volume of the two countries accounted for 49.6 and 24.7% of the world's total export volume respectively.

Because of the relationship of interests, conflicts are inevitable.Capital eats people, and in this world where the weak eat the strong, the weak must be the first to fall.

Now speculators are flocking to make war fortunes. It doesn't mean that they are completely unaware of the risks, but that they are fans of the authorities. Many people think they can run faster than others.

As long as you find a successor before the crisis breaks out, you can make huge profits.

Vienna Palace

Palace Minister Mirabegron: "Your Majesty, as of now, we have successively sold 76 factories, and the rest are also under negotiation. It is expected that all of them will be sold within the next two months.

The stocks and bonds held are also being sold slowly. In order not to cause market turmoil, only about one-tenth of them have been sold.

Affected by the hot market, the income from the reduction of assets this time is somewhat richer than expected.Now 1.3 million Aegis have been harvested, and about 4.4 million Aegis can be obtained after all are sold.

However, our actions still attracted the attention of caring people.Follow-up actions may encounter certain troubles. "

Franz nodded, being discovered was inevitable.Selling assets at the hottest time in the market, such an alternative approach, is problematic if it is not noticed.

But there is no way, the royal family assets have grown like a snowball over the years, if they don't retreat earlier, they will not be able to retreat later.

The day before the crisis broke out, Franz could only say that he was living in a dream to find a high-priced receiver.

Where in the world are there so many fools?Among other things, as soon as the Russo-Prussian War is over, the value of these factories will be greatly reduced.

Perhaps during the war, the huge profits obtained can make up for the loss caused by the decline in corporate value, but it will not be easy to find a buyer at that time.

If there is no takeover, they can only fight hard, relying on their strong financial strength to survive the cruelest years of competition.

It seems to be nothing, anyway, these low-tech industries must be left with strong financial resources in the end, but they can't support the royal family's big stall.Franz didn't know if he didn't reserve some ammunition in advance.

After deciding to launch a dumping war with the British, Franz decided to completely abandon the food processing industry, textile industry, and primary processing and manufacturing industry.

Once the crisis breaks out, these low-tech industries will definitely be hit the hardest, and Franz is not going to die on it.

A one-time sale of 274 factories, covering more than 14 countries, such a big deal, can apply for the world Gillis record.

The factories are all gone, not to mention the stocks and bonds invested in, and it is easy to sell early.The money still has to be in the pocket, and the nominal market value is the most unreliable.

After thinking about it, Franz said, "Good job, the current market is too crazy, we don't need to be buried with them.

In addition to these asset sales, starting from May next year, we will gradually reduce our long-term investment in several listed companies.

Including the companies we hold, as long as the stock price exceeds the normal market value, we must reduce some of our holdings, and then repurchase them after the stock market crash breaks out.

In particular, overseas investment must be disposed of as soon as possible.For example: Investment in the Panama Canal, take the opportunity to find someone to take over!

This crisis is likely to be far longer than before, and it will last for a long time.The investment in the next two years will be mainly short-term and conservative. "

Man-made disasters are far more terrifying than the laws of the market. Once an economic war breaks out, it cannot be ended in a day or two.

If we don't eliminate a large number of backward production capacity and free up enough market, capital will not stop.

At this critical moment, the bigger the spread, the greater the final loss.

Most of the consortiums of later generations turned to the financial industry, and few of them died in the manufacturing industry. This is also an important factor.

The reality once again proves the importance of information. Franz has self-knowledge, and he has never been a business genius.

If it hadn't been for having first-hand information, grasping the investment opportunities, and avoiding the crisis in time, the royal family industry would have lost everything.

Of course, if there wasn't so much information, the royal industry wouldn't have spread so much.It is unscientific to invest in whatever makes money.

Even if it is a giant consortium, it is impossible to take care of all industries.The "Samsung" of the later generations is an example. The stall was too large, and the testicles were pulled. If it wasn't for the rescue of the whole country, it would have died.

For better development, it is inevitable to lose some baggage.Now is just the beginning, in the years to come, the royal consortium will give up more business.

Don't give up now, mainly because of the huge profits.Traditional fields and emerging fields are relative to each other. Today is a promising high-tech industry, but tomorrow it may become a traditional field.

Mirabegron asked in surprise: "Your Majesty, why don't you give up the shares in the Panama Canal now, without waiting for the final harvest?"

Franz shook his head: "There's no need. Judging from the current situation, I'm afraid we won't be able to wait for the final harvest moment.

Once the economic crisis broke out, the Panama Canal could not go on.It is not suitable for us to remind the French unless they take the initiative to close the net in advance.

The shares in our hands are limited, and even if we harvest early, the profit is very limited.Get out now, just to avoid the storm behind.

If the stockholders know that the canal they are looking forward to suddenly disappears, they don't know what will happen. "