Extraordinary Genius

Extraordinary Genius Chapter 738 – Good Strategy

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BeidacangGroup was set up and had started operation. First, they had to settle the issueof letting those state farms invest in this company. There were more than 100state-run farms, and the land area of every farm and population were different.

Therewere too many small farms, and Beidacang Group had to change their strategy.The overseeing government agencies will set up their own companies. This way,the companies set up by the 9 Ministry of Agriculture bureaus will becomeBeidacang group’s subsidiaries, and after using their farms they own to investin the company.

Duringthe valuation, the state farms’ value was very low and lowered the proportionof shares the Ministry of Agriculture could own.

BeidacangGroup also could not get the forests they wanted. This was because a few yearsago, a state-owned forestry company was set up in Longjiang Pr…

Extraordinary Genius

Chapter 738 – Good Strategy

Support and tips welcome on or

!

BeidacangGroup was set up and had started operation. First, they had to settle the issueof letting those state farms invest in this company. There were more than 100state-run farms, and the land area of every farm and population were different.

Therewere too many small farms, and Beidacang Group had to change their strategy.The overseeing government agencies will set up their own companies. This way,the companies set up by the 9 Ministry of Agriculture bureaus will becomeBeidacang group’s subsidiaries, and after using their farms they own to investin the company.

Duringthe valuation, the state farms’ value was very low and lowered the proportionof shares the Ministry of Agriculture could own.

BeidacangGroup also could not get the forests they wanted. This was because a few yearsago, a state-owned forestry company was set up in Longjiang Province. Theprovincial government also knew about this company. But they wanted the supportof the Central Government to acquire this company.

But thissuggestion was strongly opposed by the State Forestry Administration. LongjiangForestry Group was China’s first pilot testing company in this industry, and itwas doing well. How can this company merge with you all?

In XuChangyou’s proposal, it had mentioned the development plans for the forestryindustry. This Longjiang Forestry Group was also part of the Longjiangprovince. The leaders from the State Forestry Administration felt that theycould implement Xu Changyou’s plans themselves. In the end, they will still bepaying the Provincial Government taxes.

Youmentioned the advantages of the merger and one management in your proposal. Butwe can cooperate. Our Longjiang Forestry Group can cooperate with BeidacangGroup. We are also developing building materials, furniture branding, forestryfood products, herbs, plantation, etc. now. We do not need Longjiang Provinceto interfere with our operations.

The setup of Beidacang Group had let Longjiang Provincial Government benefit a lot.They had gotten the funding from the Central Government and the control overthe state farms. Longjiang Forestry Group had also benefited from BeidacangGroup.

LongjiangProvincial Government had wanted to extend their authority over LongjiangForestry Group but was unsuccessful. However, Xu Changyou had gotten thesupport from some of the higher-ups. He was given permission to cooperate withLongjiang Forestry Group and authority as the final decision maker over theircooperations.

It willbe tedious to implement this plan, but luckily, the provincial government hadlots of talented staffs. They were able to set up the main frame of thisproposal. They forecasted that they would suffer some losses this year. But itwas more critical for them to set up their sub-brands now.

Everyonefelt the grains and meat products can just use Beidacang brand. The Beidacangbrand of Baijiu was also merged with Beidacang Group. All the smaller Baijiufactories were also acquired. This was to focus on and develop a single brand.

The ProvincialGovernment officials discussed and felt Beidacang brand should include beef,lamb, pork, poultry, flour, Baijiu, etc. products.

Therewere still a lot of agriculture product brands in the province. It includes Baobrand of Bean Paste, Wu Chang rice, etc.

But therewere different opinions for sugar and soybean cooking oil.

The localbusinesses all wanted their brands to be selected by Beidacang Group. Theywanted to eliminate the other brands and be the only brand left. But all thesebrands were not well-known at all. These brands were all unknown brands, evenin Longjiang Province, let alone in the Northeast region. Only some consumershad heard of their brands in their local cities.

What’sthe most well-known brand of soybean cooking oil and sugar in LongjiangProvince and the whole nation? Tai Hua Brand!

Becauseof Tai Hua Brand, the other local brands were unknown by the consumers. It wasalso because before Tai Hua Brand appears, these companies do not have theconcept of branding. To them, these products were all basic necessities, andconsumers do not need to choose the brands.

After TaiHua Premium Cooking oil and Tai Hua Pure Sugar appeared in the market, thesecompanies saw the effects of branding and started to develop their own brands.But it was too late.

XuChangyou was not happy with any of these brands. No one had heard of them, andwhat’s the difference between using their brands and setting up a new brand?They might as well use Beidacang as their brand!

Butsomeone opposed to this suggestion. Beidacang brand had too many products.Meat, flour, alcohol, and if they added sugar and cooking oil, it would be toodiversified. Also, there was another issue. They will be competing with Tai HuaBrand!

Tai HuaBrand was also selling cooking oil, sugar, pork and pork-related food products.They would be selling the same products and will have to compete with Tai Hua.They will face a big headache of how to compete with Tai Hua Processed FoodCompany.

Tai HuaProcessed Food Company had already set up branch offices in the 3 northeastprovinces and some of the southern provinces. Their distribution channels andbranding were way ahead of Beidacang Group. How can they win this company?

XuChangyou frowned. How come you did not mention about this before the set up ofBeidacang Group? How are we going to solve this issue?

No onecan answer Xu Changyou’s questions. They really have to compete with Tai HuaProcessed Food Company? Just look at Tai Hua Supermarkets, and you will knowhow famous Tai Hua brand is.

Can they evenwin such a famous brand? All of them knew that the boss of Tai Hua ProcessedFood Company was also one of the shareholders of Bing City Machinery Company.He is also Feng Yu’s father.

When allof them thought about Feng Yu, they knew they will lose. All of Feng Yu’sproducts were selling like hotcakes! They will surely be beaten.

It was apity Zhang Ruiqiang did not hold any positions in Beidacang Group. If ZhangRuiqiang could represent Beidacang Group to speak to Feng Yu, then this problemmight be solved. Everyone in the Provincial Government knew Zhang Ruiqiang andFeng Yu were close. This was an open secret.

If theyget Zhang Ruiqiang to negotiate with Feng Yu, despite the fact that he was notholding any position in Beidacang Group, it will show how useless they were.

At thismoment, someone raised his hand weakly.

“You haveany suggestions?” Xu Changyou was open to all suggestions.

“Can’t wecooperate with Tai Hua Processed Food Company?”

“Cooperation?How are we going to cooperate with them? Like Bing City Machinery Company?After we cooperate with them, they have become the main shareholder.” Someoneimmediately opposed to this suggestion.

Thisfeeling was like letting their child go to school, and their child changed hissurname to be the same as the teacher. Although the child became educated andwas able to make money, this child was no longer their son!

“How canthat be possible?! How much does our Beidacang Group worth and how much does TaiHua Processed Food Company worth? Furthermore, I am saying we cooperate withthem and not merge with them. It’s like how we are working with the LongjiangForestry Group.”

“Explainin more details.” Xu Changyou became interested.

“We cancooperate in developing the brand. Tai Hua Brand of sugar and cooking oil arefamous? Our sugar and cooking oil can be sold under their brand. Wait. Let mefinish first. We can add our Beidacang brand above Tai Hua brand on the packaging!This way, the consumers will think that Tai Hua Brand has been acquired byBeidacang Group. The consumers will be reminded of Beidacang Group wheneverthey buy Tai Hua products!”

Everyonein the meeting room clapped. This strategy might be evil, but if they succeed,it will solve all their problems!