There is also a way to win in the post foam Era

2022-08-07
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Stanley O'Neill, chairman and CEO of Merrill Lynch, said at the sixth round table of global asset management companies that he had found seven essential conditions for success in the "post foam era". Due to different business priorities, the application of these necessary conditions will change, but they do make many changes in Merrill Lynch

I. employ quick-moving talents

although the financial industry is a mature industry, there are still opportunities to be explored in some fields, such as fixed income securities, some equity businesses, consumer banking and credit businesses. As most businesses have been commercialized, intellectual capital (market knowledge, the ability to find growth opportunities, and the ability to reform and innovate) has become more important than ever. Once we find room for growth, we need speed and agility, and we need to integrate resources to make use of them. At Merrill Lynch, we have been adopting the full digital closed-loop control system process for the hydraulic universal testing machine produced by star high tech by simplifying the decision-making process, trying to make our organization more flexible, agile and quick. We have made major adjustments to our management to obtain the right talents and the correct procedures for dealing with problems. Those who put the best interests of the enterprise in their hearts will be put in a negative position and given the right to act quickly. They must also instill this sense of purpose and the power to act quickly throughout the organization

second, a strong capital base

this is even more true for enterprises that want to implement comprehensive strategies rather than opportunistic strategies. With the weakening of price power, our industry is gradually becoming a capital intensive industry. S. Sundaram and his colleagues demonstrated the use of 3D printing to manufacture flat electronic composites with specific area residual stress. In my opinion, investing in a new growth area for trade or predetermined loan targets requires a strong capital base. But using capital indiscriminately is not a strategy that will make you successful. Taking on the growing credit risk in order to gain share in a commercialized industry is like providing a commitment for debt. This exhibition will gather the world's top graphene teams and key enterprises in Changzhou, Jiangsu Province. SAIC Group and Ningde period held 49:5110 shares in SAIC during that period. The marginal profits of more than 10 companies are either decreasing or not at all, This is not a sustainable strategy. Of course, this does not mean that we will not try again. Although a strong capital base is important, scaling up for scale will not make you successful. In fact, sometimes it can be a hindrance. At Merrill Lynch, we have been constantly strengthening our capital base while substantially changing the business model and scale. Today, our balance sheet performs better due to lower financing ratio and higher liquidity. Now, we have a competitive advantage in terms of profitability and financial strength

III. Strengthening Risk Management

with the growth of venture capital in the whole industry, it has become very important to pay attention to all potential risks and how they are widely related to the foundation of the enterprise. In the past 13 months, we have employed a large number of people (about 400) to engage in risk related fields: mortgage transactions, asset securitization transactions, derivatives of securities and interest rates, portfolio transactions, foreign exchange transactions. A large number of intelligent talents have been introduced to help us cope with a wide range of risks of the enterprise and create value by providing services for our customers' increasing risk management needs

IV. customer relations and distribution channels

these are becoming increasingly important in an environment with little price power and customer segmentation. In establishing and maintaining customer relationships, first-class service quality is crucial. What really works is the customer relationship, not pure output. It is only a game of diminishing returns to achieve the goal of being the leader of this or that industry organization on the static market share data. Ranking is irrelevant in the establishment of distribution channels. Establishing and maintaining a first-class distribution network costs a lot of money and forms an insurmountable barrier. A successful strategy is to establish customer relations and distribution systems to provide the right products and the right level of high-quality services to the right customers. Look at what we have done in the field of private clients. It is a reflection of our way of thinking. We have been continuously investing to better communicate our suggestions and guidance to customers, rather than transferring this business to the platform. The purpose of this kind of connection is to reduce costs, which is a failed strategy. To a large extent, the consulting relationship is a relationship between people, which is transmitted through emotional communication. This is where we create added value. Through customer segmentation, we have established the best technical platform and ensured that we have the best education level and the most professional staff in the industry. At the same time, we have segmented products and provided the best services to customers

v. securities information technology

successful competitors, especially in commercialization activities, use technology to redesign workflow and reduce costs. This is also very important in every contact with customers and the continuous provision of high-quality service. When it comes to technology, I think what matters is not how much it costs, but how it is spent. We re-examine our numerous technical relationships and try to make sure that the technology we get from others is better than our own, and that what we buy can make us do better. The cooperation with Thomson and Dell in the new private customer platform is a model. Through the cooperation with these partners, I believe that our money is well spent, which enables us to minimize costs and greatly improve customer service

VI. operation rules of the company

as far as a mature business operation environment is concerned, if you want to pursue growing returns, you must not simply and indiscriminately spend money. You must focus tirelessly on costs and use your resources for the most promising opportunities. At Merrill Lynch, we have made efforts to understand the changes in the operating environment and take actions to control costs. Through this method, we can maintain a strong profitability in the case of declining overall industry income, but we still have the necessary resources for us to invest in specific goals under the best growth opportunities. More importantly, even as we strive to expand our business, the operating rules must be based on the focus on cost

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