"The reason why the sacred tree in Alishan is so big was decided 4,000 years ago when the seed fell into the soil, and it was never known 4,000 years later." The domineering Kuo has reigned as Taiwan's stock king and become the country's richest man by lending his hand to such well-known brands as PS2, Dell computers, Intel motherboards and Compaq computers.
On Feb. 5, 2008, however, in his 50s, he announced that he would take a back seat from April 1, handing over Hon Hai Precision, which he had built up, to 12 general managers to lead, and that he himself would devote himself to preventive medicine and environmental protection.
King of OEM
Even if you haven't heard of Hon Hai Precision Group, at least you must know about IBM, Apple Computer, PS2, Dell Computer, Intel motherboards and Compaq computers. In fact, one out of every five computers in the world is now equipped with Hon Hai products. Over the past 10 years, Hon Hai Precision Group's revenues have grown by more than 50 percent annually. nbsp;#p#Subtitle #e# Guo entered the newly founded "China Sea College" at the age of 15 from a poor family. During the study period, in order to earn tuition fees, he worked in rubber factories, wheel factories and pharmaceutical factories. 1973 after military service, Guo entered the revival of shipping to work, and use the evening time to tutor English. A year later, he took the NT$200,000 his mother had given him and used half of it to get married and half to start his own business. 1974, Kuo invested NT$100,000 in a joint venture with a friend to set up Hon Hai Plastic Enterprises Co. In 1974, Kuo invested 100,000 yuan in a joint venture with a friend to set up Hon Hai Plastic Enterprise Co.
Kuo seized the opportunity of the rapid development of computer technology in the 1980s. 1977, Kuo purchased mold equipment from Japan to build a mold factory, and then set up a plating department and stamping factory, which enabled the company to quickly catch the flight of the personal computer industry, and enter the field of personal computer connectors.
At that time, Kuo wanted to OEM everything, computer motherboards, TV game consoles, connectors, etc. to "high volume, low price" to capture the market, Kuo's connector kingdom has since begun to establish. 1982, he invested 16 million yuan to enter the field of computer cable assembly and set up a branch office in the U.S., and also created its own brand "Foxconn", "Foxconn", the company's own brand. Foxconn" own brand.
Honghai insisted on being a parts supplier. He was keen to see that the global economy was adjusting, and large manufacturers were actively transforming themselves, outsourcing the manufacturing end of their business to the most efficient specialized electronics manufacturing service providers. His target customers are directly targeted at large international companies such as IBM, Intel and Compaq. Kuo said Hon Hai has "fourth-rate talent, third-rate management, second-rate equipment and first-rate customers".
Honghai's orders are not easy to come by. In order to get the order of Compaq, Kuo went to the United States alone, carrying a briefcase every day to buy connectors, and then simply invested in the headquarters of Compaq next to build a molding machine factory, Compaq's new design on the same day to see the model, and ultimately won the long-term orders of Compaq.
In the late 1980s, Kuo set up technology industrial parks in Shenzhen and Kunshan. Today, Hon Hai has 36 wholly-owned subsidiaries on the mainland, overseas manufacturing centers in Scotland, Ireland, the Czech Republic, Houston and Los Angeles, and more than 60 international branches around the world. Relying on the investment in the Mainland, Kuo has been able to implement the strategy of "Rooted in China, Global Vision", and become the world's largest PC connector, PC quasi-system manufacturers. In fact, Foxconn's Longhua base in Shenzhen has become China's largest exporter and the world's largest contract manufacturer of electronic products.
Low-key dominance
In fact, Hon Hai, which has a market capitalization of $43 billion, keeps a fairly low profile because its major customers don't want their parts suppliers to wind up too big. The $10 billion company also has a "three no's" principle of not accepting interviews, not attending public speeches or taking photos, and only shows up once a year at its shareholders' meeting. So even the company's headquarters, Kuo avoided the famous Hsinchu Industrial Park, and chose the unknown Tucheng Industrial Park.
Making a clear distinction between reward and punishment is Kuo's style. When choosing his future successors, he even asked his senior managers to prove their abilities by taking sole authority in their respective subsidiaries. He said, "In a fast-growing company, the leader should be a little more domineering." He also gives the impression of being domineering, with a string of rosary beads he wears on his right wrist that he got from a Genghis Khan temple.
Says Kuo: "I always tell my employees that the collective interest should be higher than the individual interest." And company managers are often asked to read and memorize a pamphlet called "Quotations from Kuo," who became the first Taiwanese company to set up a branch of the Chinese ****anufacturing party at Foxconn in Shenzhen in 2001.
Such a domineering entrepreneur is never shy about rewarding employees and technical backbones with huge sums of money for outstanding performance. In recent years at the end of every Hon Hai staff dinner, Kuo provided prizes worth up to hundreds of millions of New Taiwan dollars, the first prize up to tens of millions of dollars. nbsp;#p#Subtitle#e#Retirement
In 2008, Kuo announced that on April 1, he will retire from the second line, the enterprise's future by the 12 business groups of 12 general managers to lead, and the adoption of the federal system of the mode of gradual handover of the baton, and the future and then depending on the succession of the performance assessment of the second section of the succession. He also emphasized that he will continue to serve as chairman of the board, and that he will focus on medical and environmental protection.
Kuo said the future of his retirement in three stages, the first stage is to retire to the second line, followed by the second stage of federalism, decentralization of personnel, finance, technology development, business, manufacturing and other five powers, such as Hon Hai Group revenue of more than 100 billion U.S. dollars, Hon Hai will enter the third stage.
To the third stage, there may be several other approaches, one is to split Hon Hai into several groups, the second is to cut according to the technology, perhaps divided into molds, electronics, optoelectronics and other companies, or from the United States, Japan and other places to solicit the CEO of large enterprises of a similar size with Hon Hai as a successor, but do not rule out the cultivation of a successor from within Hon Hai.
He emphasized that he is "retired but not retired", and in the future will only be responsible for "speech", "merit" role will be handed over to others; Guo also said that after April 1 he The company also said that after April 1, he would "only answer questions of right and wrong, and no longer answer multiple choice questions".
Kuo said that overseas has long separated the chief executive officer (CEO) and chairman of the board of a company, and that from April 1 he will concentrate on being chairman. He explained that the company's internal organization and budget will be finalized around March, after which he will devote himself to preventive medicine and environmental protection. Medical business, he will work with the University of Taiwan *** with the development of technology, the construction of quantum centers, engaged in the prevention and treatment of medicine, and from the middle and lower-order medical equipment into, at least 5 to 7 years to see the results.