Low-profit Times business where the Nuggets.docVIP

 PAGE \* MERGEFORMAT 9 ‘Low-profit Times’ business where the Nuggets ‘Low-profit era’ has become more and more and more business’s mantra. How to understand the ‘era of little profit’? Enterprises in the ‘low-profit era of’ how to compete? This is a business need to seriously consider. Critical Study of view ‘era of little profit’ I do not agree with ‘low-profit era’ formulation, mainly for the following five areas of understanding: One, regardless of ‘small profit’ or ‘huge profits’ are relative concepts. We are talking about ‘low-profit’ is actually for the past, especially ‘huge profits’ era is - because the original market environment, filled with a lot of opportunities, even if the resources can do. Now the current ‘low-profit’, but in relation to the past, the ‘windfall profits era’, margins declined. National Bureau of Statistics chief economist Yao Jingyuan said: ‘2005 years of China’s macroeconomic development, maintenance of stable and rapid growth in the basic state. As of October 2005, China’s industrial profits growth rate was 19.4%. ‘This rate and the rate of growth in absolute terms, are not low in the world, but our self-comparison to a problem, become a’ low-profit era of ‘the arrival of evidence. In China in 2003 this indicator was 38.1% in 2004 over the same period dropped by 20.3 percentage points, from 2004, if pushed forward 6 years, China’s average growth of profits of industrial enterprises was 40.5%, 6-year rate dropped to 21.1%. Although the society as a whole in 2005 profit growth was 19.4%, but profits were mainly concentrated in a few industries such as coal, oil, industry growth rates were 70%, and non-ferrous metals for more than 120% growth rate. If you go to get rid of oil and coal, two high-profit industries, then the entire profit growth rate of other industrial enterprises will be from 19.4% to 7%. Second, this ‘era of little profit’ is for our mode of operation for the. Extensive in the enterprise current mode of ope