Chapter 1755: The importance of cash flow

No matter how many orders are placed, it is useless.
After all, there is only a few money for the order, and a deposit is enough, and the full amount will never be paid.
At the time, Douglas Company did not refuse to come. As long as they placed an order, they would accept it. However, the company's production capacity was limited.
For an ordinary company, wouldn't it be great if the order has been placed several years later? It means that the company won't have to worry about not having work for several years, they can start work, and they can run at full capacity all the time.
If you are in peacetime, you can really think like this, but you should ignore the factor of inflation.
Inflation is a terrible thing, this thing will appear all over the world.
Ten years ago, my salary was two thousand. Now, my salary is four thousand. Isn't it a sense of happiness? But, look again, the current steamed buns, two yuan for two, are still small, and the previous steamed buns, four for one yuan, and a big one. This will tell you what, the purchasing power has not changed!
This is only for ordinary people, and for the factory, this has a more terrible ending. Their order three years ago was placed at the price at the time, but three years later, the plane went online. Now, labor is rising, materials are rising, everything is rising, and the price of the aircraft has exceeded the order price at that time!
What to do at this time? Do you want the other party to continue to add money? Of course the customer is unwilling. You have to add money. See you in the court. The order at that time was in black and white. It was clear.
The Grumman company was almost disabled that year. The Navy and their orders were fixed prices. Initially, the production of Tomcat fighters was profitable, but after that, inflation caused one to lose one.
The Grumman Company finally quit and asked the Navy to increase the price. Later, they lost dozens of aircraft before the Navy began to increase the price. If the Navy insisted on coming in accordance with the contract, Grumman might also have to go bankrupt.
The navy is still conscientious. After all, it has had a relationship with Grumman for decades. Those customers who order passenger planes have no relationship with them and must follow the order!
Douglas has no choice but to borrow money to get by.
They only have to spend this difficult time, make all the previous orders at a loss, and then increase the price to accept new orders, so that they can make money.
However, with their continuous borrowing, the company has fallen into an infinite loop, and eventually had to file for bankruptcy. Now, the customers quit.
Once the company files for bankruptcy, it will enter the bankruptcy protection procedure and will eventually be liquidated. The company is also insolvent. There is definitely no way for those airlines to order orders. Even if they can be compensated for the deposit, they will ask for it. Not a deposit, but an airplane.
So, when Douglas is about to go bankrupt, those airlines are in a hurry, and the losses are huge. They are still waiting for new planes!
Therefore, Douglas was about to go bankrupt, and other companies did not let it go. In the end, the banking industry proposed to find a specific company to close it, so McDonald's stood up.
In fact, the scale of McDonald's is very small, and it is not as good as Douglas in the world. Therefore, although Douglas was eventually acquired by McDonald, they were not convinced.
It took only 68 million Eagle Dollars to be acquired. It was a shame. They did not fail. They were eaten to death. Therefore, they secretly resisted this acquisition.
Even if the name of the company is changed to McDonnell Douglas, the two companies have not merged at all. This also shows that the McDonald company at the time lacked means. If kindness is not in charge, how can gentleness control a company?
Originally the company was going bankrupt, but was rescued. They were not grateful, only unconvinced.
MacDonald and Douglas are still two companies. Not only are the company's factories divided into two locations, but the headquarters are not together. McDonnell Douglas is headquartered in St. Louis, Douglas is in Long Beach, California, and the company has always been two sets of leadership teams. With two legs, the top executives of Douglas Company confronted the various orders issued by McDonald's.
What do you know, you are engaged in military aircraft, and you don’t understand civil aviation airliners at all!
In fact, McDonald’s company really doesn’t understand that military aircraft is a bidding. If the bidding is successful, there will be a profit. If the bidding is not successful, you can also subcontract the order from the company that successfully bids to maintain it. However, civil aviation aircraft is different. , And the market is complex and changeable.
Therefore, they are not united at all. If this goes on, it will inevitably lead to the downfall of the company. McDonald's acquisition of Douglas is a trick.
In fact, over the years, MacDonald also knew about this crisis, and they wanted to change, so when the Eagle Country industry launched a total quality management movement in the 1980s, he Saw this opportunity.
One of the core ideas in this reform is to emphasize "cooperative work."
At that time, Jr. MacDonald asked all the leaders of Douglas, including the vice president, to reapply for positions and to conduct a comprehensive review within the scope of leaders at all levels.
He also realized that Douglas did not obey the command and had to change. Unfortunately, he still couldn't make a big deal. If he felt that it was not possible, he had to replace it, or send his capable men over.
This is actually necessary.
Needless to say, a large company, even a small company, will have this kind of psychology after being acquired. In the face of the leaders who descended from the air, they are openly greeted, and secretly feel that they are old and need to engage in some small tricks. If you want to manage such a company well, you must make up your mind to completely dismiss the top executives and let the people below know that whoever is not obedient, then get out!
Only this kind of tough means can manage the company well.
Now, Qin Guan was already ready.
Of course, let’s fudge first. McDonnell Douglas seems to have a big plate, but McDonnell Douglas is heading for a dead end, because their cash flow is being consumed by Douglas’ passenger aircraft project, which they earned from military aircraft. Money is constantly being poured into passenger planes!
"Then what should we do?" Little MacDonald asked.
"Then it depends on your ideals. Do you want an Eagle Nation, or even the world's number one military aircraft company, or a mess that is constantly dragged down by airliners, and even be merged in the end?" Qin Guan said, "I think, For you, you must plan carefully, Douglas, the original acquisition was wrong, the other party should sell it!"