Silicon Valley
Chapter 124 The Dilemma of Warwick Company
The Warwick Company of 1990 is not the Warwick Company of 2015, it is now a humble little company. It has neither strong contacts nor strong financial resources, and even faces the danger of bankruptcy.
There are many examples of successful development of Sino-foreign joint ventures in China. Whether it is Baidu, Alibaba, Tencent, Lenovo, etc., all companies have the most foreign holdings, but the management rights of the companies are on the Chinese side, and they are subject to the supervision of the Chinese government. This allows the company to grow and develop in China! ! ! Henry also developed in accordance with this model. In order to prevent others from discovering that Cisco absolutely controls Warwick, he also specially founded Aihua Holding Company, which controls Hong Kong Hong Nian Company and Kowloon Investment Co., Ltd. behind the scenes. striking!
Henry naturally knew that if Cisco wanted to point fingers and control the development of Warwick, then it would be good that Warwick did not become a giant telecommunications equipment manufacturer, otherwise it would probably arouse the strong disgust of the Chinese government, which would suppress Warwick.
Therefore, Henry had already considered very clearly before that the management rights of Warwick Company were handed over to the original team of Warwick Company, and Cisco was behind the scenes to hold the control and grab the wealth, and only need to send financial supervisors. Then use the huge amount of money grabbed from Warwick to invest in R\u0026D to stay ahead of the world in technology! ! ! !
Technology is the hard power! ! !
Of course, the equity incentive plan is a very important part of the company's development and growth. Every company under Henry's name will start an equity incentive plan and take out shares ranging from 10% to 20%!
For example, Cisco's CEO John Chambers, who personally owns 2% of Cisco's shares, is $2.4 billion in US dollars! As a later hired professional manager, not the founder, earning $2.4 billion is already the best among professional managers in the world!
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Warwick Corporate Headquarters.
Ren Zhengfei and others discussed it for an afternoon, but they haven't come to a conclusion yet.
At this time, they received news that Sun Zhehan of Hong Kong Hongnian Company went to two other switch companies in Shenzhen in the afternoon. These two companies are also agents of Hong Kong switches. They only do sales, not R\u0026D, but their scale and sales channels are much larger than those of Warwick. If Cisco invests in technology, then the shortcomings in technology research and development will be made up, and coupled with a far more complete sales channel than Warwick, once the product comes out, Warwick will undoubtedly suffer a disaster!
People in the entire Warwick Company were frightened when they heard the news!
The next day was another heavy blow for Warwick! ! !
Some customers who had booked small switches in the past have asked for refunds because other companies have promised them better and cheaper switches! The other companies are not other companies, but the two switch agency companies that Sun Zhehan contacted yesterday afternoon!
The Warwick Company was in turmoil.
The customer's money has been invested in research and development, and Huawei is already so poor that it can't get the money back to them.
The customer blocked the door of Huawei Company and shouted loudly: Huawei, refund my money!!!
Ren Zhengfei sat in the office with a sullen face, without saying a word, surrounded by the company's top management! Inside the house, the smoke was so smoky that it made people breathless! ! !
Mr. Ren, if this continues, those customers will rush in and smash things! An employee suddenly ran in in a hurry and shouted loudly.
Ren Zhengfei took a deep breath and asked in a deep voice, What kind of conditions did Sun Zhehan give there? Did they agree to cooperate?
Ren Ping, deputy director of intelligence collection, said: The specifics are not clear, but they are still negotiating!
Sun Yafang, a senior financial officer of Huawei, said: Sun Zhehan can't represent Cisco yet. Although Huawei is not big, we can independently develop switches. I think this is the key to Cisco's interest in us, otherwise Sun Zhehan would also The first stop if you don’t come to Shenzhen is to come to our Warwick company!!!”
Ren Ping said: That said, if our Huawei company does not agree with Sun Zhehan's conditions, then they may cooperate with there...
Sun Yafang said: This is just Sun Zhehan's trick, trying to force Huawei to agree to their conditions in this way!
Yes, that's right! Ren Ping nodded and said, However, others are conspiracy, even if we know, what can we do? Now the most urgent task is to find funds and solve the problem of customer refunds. Our Huawei switches have already The research and development is about to be successful, for the sake of Shan Jiuren, we can't fall short at the last moment!!!
There was silence in the office!
Ren Zhengfei looked up at Sun Yafang and asked, Sun Yafang, go to the bank and ask if they can lend us a loan?!
I'll go now... Sun Yafang nodded, then stood up and walked out of the office.
Ren Zhengfei sighed slightly: I have to do this first...Ren Ping, please go to appease the customer first, and say that our switches can be 10% cheaper; for those who insist on asking for a refund, you can say that we can do it soon. Get the money back to them, please don’t be in a hurry!” After a pause, he said, “Hey, let’s delay it as long as we can, and try to wait until the bank lends us a loan!!!”
Okay, I understand! Ren Ping responded and walked out of the office.
Ren Zhengfei said to the people around him: You guys also go out to help, I want to be alone for a while!
Okay, Mr. Ren...
However, in the past two days, Sun Yafang, the financial officer of Warwick, went to the banks in Shenzhen, but no bank was willing to lend to Warwick. In itself, bank loans are very difficult. Secondly, the bank sent people to understand the current situation of Warwick Company, and they dared not give it a loan. This loan may become a bad debt in the future, and the risk is too great.
Sun Yafang returned to the company disappointed, and Ren Zhengfei had already seen the result on her face.
No bank willing to lend to us?
Sun Yafang nodded and said dejectedly, That's right...
Ren Zhengfei nodded and didn't ask any further questions. In the past, if banks were willing to lend to Huawei, Huawei would not have to use the money from users to reserve switches for R\u0026D expenses. Now, many customers are blocking the door to ask for refunds, and banks still dare to lend to Huawei. Ren Zhengfei doesn't quite believe it... But as long as there is a glimmer of hope, he still has to try, but after trying, he still fails! ! !
Is there only one way for Huawei? Ren Zhengfei stared at the wall in a daze.
At this time, will there be a twist of the road? !
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