Chapter 51 Adjustment (The previous ones are blocked, I worked overtime to finish it, please support me)

Inside a large hospital in New York, America.

York is an ordinary white-collar worker. Today at work, she was sent to the hospital by her colleagues for surgery due to acute appendicitis. Her family also rushed to the hospital.

"Mrs. York, your husband is going to have surgery soon. Please sign for him." A doctor said to York's wife.

"After the operation, sutures will be needed. Our hospital has two kinds of sutures. One is cheaper and only costs $3, and the other is more expensive and costs $5. It is produced by Shennong Bio-Pharmaceutical Company. Which one do you choose? You know Shennong Pharmaceutical, right? Sulfonamides and Yunnan Baiyao are all produced by this company. Their products are of better quality." After Mrs. York signed, the doctor spoke again.

The current development of Shennong Biopharmaceutical Company can only be described as very stable. It has not launched any new products for a long time. Most of its products are improvements on existing products, either in terms of technology or production process.

Because they are willing to invest, the quality of their products is better than that of other companies. In addition, due to the company's brand value, the selling price is generally more than 30% higher than that of other companies.

The initial investment may be a little higher, but the actual production cost is often lower. Zhang Feng does not engage in price wars, but instead prices the company's products of the same type very high. First, he is unwilling to wipe out other companies and create a direct conflict. Second, he needs to maintain the status of Shennong Biopharma Company.

Now is the time for Shennong Biopharmaceutical Company to lay a solid foundation for comprehensive development. After each product is imitated, the original team will continue to conduct research on the next generation. For example, for sutures, after the catgut is produced, its team is studying chemical synthetic sutures and has made initial progress.

With the development of the chemical industry, the first synthetic thread in history was made of polyvinyl alcohol in 1931. Polyester thread was developed in the 50s, and later radiation sterilization for catgut and polyester was developed. Polyglycolic acid was discovered in the 60s and used in the manufacture of sutures in the 70s. In 1970, the first artificially degradable suture appeared, and the American DG company launched PGA suture.

The invention of a result is often accompanied by the development of other technologies. Therefore, if a research project of Shennong Biopharma Company has not made any progress, the experimental data will be sealed and the original team will be dispersed to other research teams. When there is a breakthrough in related science and technology in the future, the experimental research will be restarted.

There is still a long way to go in the research of sutures, from catgut - non-degradable chemical synthetic suture to degradable chemical synthetic suture - collagen suture, which is also called beauty suture.

Poor quality catgut will affect the absorption of human tissue, and catgut that is too thick can easily cause inflammation and infection.

The catgut produced by Shennong Bio-Pharmaceutical Company has been improved in these directions. Shennong catgut is thinner but stronger and easier to absorb. For other companies with good product quality, the difference may not be particularly large, but with the support of the brand, patients can accept a higher price and feel more at ease.

"I know, it's the company that produces the super gene medicine in Spider-Man. Doctor, let's use Shennong's. Their products are more reliable. As long as York can recover smoothly, we can accept the price." York's wife said. In fact, she didn't know what the difference was between the same things, but she believed in Shennong Biopharmaceutical Company more and it could give her a sense of security.

This is the importance of publicity and branding.

There is a reason why doctors recommend the products of Shennong Biopharmaceutical Company. Since Shennong's products are more expensive and have greater profit margins, the hospital can make more profit.

For example, if another company's product costs $1 and sells for $2, the hospital can make 50 cents by taking 50%. Even if Shennong Company's product costs $1.2 but sells for $3, the hospital can make 30 cents even if it only takes 54%.

Of course, this is just an example. In reality, Shennong Biopharma's costs are not much higher. In fact, some costs are much lower due to improvements in production processes and technology.

The products of Shennong Biopharma are gradually gaining popularity, and Zhang Feng has once again innovated Shennong Biopharma. In the past, many drugs were developed, and then a few volunteers were hired to conduct a round of tests. If the results were good, they were directly put on the market for sale without undergoing rigorous clinical trials.

One reason is that these drugs are ones that Zhang Feng is very confident in, or they are improvements on existing prescriptions, and there are basically no major side effects, which is normal in this era.

Secondly, because the company was in a hurry to make money at the beginning, there was not enough time and money to waste, so it could only simplify the process and do things cheaply. However, now that the company's brand has been established, it needs to be maintained and continued.

The company also needs to innovate, transform itself from bandits into a regular army, formalize processes, increase internal controls, and ensure that new drugs developed and marketed by the company in the future will not encounter uncontrollable situations that would affect the company's reputation.

Today, Zhang Feng came to Shennong Bio-Pharmaceutical Company for inspection again and explained the company's restructuring to Sharlock.

"Shalock, the company is currently developing very well and you have done a great job, but it is time for further optimization. The company needs to make constant adjustments during the development process in order to adapt to different stages of development so that the company can remain vibrant." Zhang Feng first praised him and then expressed his thoughts, hoping that he could understand and support him, otherwise he would have to replace him.

You have to understand whether you can understand or not. Of course, it is better if you can understand, as this will also better implement Zhang Feng's will. He does not want anything unpleasant to happen unless it is absolutely necessary, after all, he has helped him so much.

Currently, Shennong Company has more than 1200 researchers involved in the research and development of medicine, beauty and medical devices.

It has five large production plants, more than 5 employees, produces more than 1 kinds of products, and has an annual profit of approximately US$50 million.

"I understand, boss. I was just about to make a suggestion to you. The company is too large now, and I feel a bit overwhelmed by myself. I hope you can arrange a few more deputy general managers to share some of my work." Sharlock immediately expressed his opinion respectfully.

"Well, you arrange it yourself. The company is indeed very large. One of the optimization directions this time is to sort out the business and then set up separate business units, such as pharmaceuticals, medical devices, beauty cosmetics, brand image management, internal supervision, etc. Then we can recruit three more executive vice presidents to be in charge of some affairs. You can make a report on the organizational structure according to what I said just now." Zhang Feng nodded in agreement, but since Sharlock was so proactive, he let him do it himself. He just needed to let the people in the company know who the boss is.

"Also, the process of new product development needs to be regularized, following the process of preclinical research - clinical research - three rounds of clinical trials - submission of production application - company inspection and approval. No step can be skipped to ensure the quality of the company's future products and the company's brand reputation." Zhang Feng then said again.

"Okay, boss, I will definitely carry out your arrangements seriously." Sharlock said seriously.

"Well, what I have done is only part of the management adjustment and optimization. The rest still depends on you to organize everyone and work together to complete it." Zhang Feng said finally.

Shennong Bio-Pharmaceutical Company is Zhang Feng's most profitable company, so this is also the company he visits most frequently. In addition to declaring his sovereignty, he is also worried that the company is developing too fast and that problems will not be corrected in a timely manner, which will lead to big company disease, rigid system, low efficiency, internal struggles, etc.

Now the profits from his film company and stocking company seemed insignificant to him, and the bank and shipyard were supported by his own company's business.

The small bank acquired previously has now been renamed Maple Leaf Bank. Its main business is to serve Zhang Feng's companies and all their employees. The accounts of several companies and all employees are currently opened at Maple Leaf Bank.

The service provided to the company is to earn interest on savings for profitable companies and to provide loans to companies that are not yet profitable or need capital turnover.

For example, Shennong Bio-Pharmaceutical Company's working capital and all of Zhang Feng's assets were placed in Maple Leaf Bank, which lent the money to companies such as the Shipbuilding Company, Paramount, and Meihua Company.

In just one year, the debt owed by the China-Mei Company to the Maple Leaf Bank had reached a huge amount of 200 million US dollars. The ship manufacturing company survived on the orders from the China-Mei Company.

(End of this chapter)