The practice of amoeva post-pandemic sustainable business model in real estate - taking zhongliang as example

The origins of Amoeba.

The Amoeba model was founded by Kazuo Inamori of Japan. Amoeba originally means a single protozoan in Latin, which is soft and could extend pseudopods in all directions. The biggest feature of the amoeba is that it would deform as the external environment changes, and constantly adjust itself to adapt to the living environment. Due to its strong adaptability, this organism has existed on the earth for billions of years and is the oldest, most viable and sustainable organism on the earth [7-9]. The amoeba model refers to dividing an enterprise into different amoeba business units, and each amoeba chooses a leader to be the amoeba leader (AL), and through independent accounting of small business units, each amoeba becomes a single The profit center of the company can independently calculate costs and profits, and the transaction relationship between the various amoeba products is presented. At the same time, more employees of the company can obtain a platform for self-management, and use their wisdom to maximize sales and minimize expenses on different platforms, and ultimately win high returns for the enterprise group as a whole [1].

In 1959, Kazuo Inamori founded Kyocera Corporation with the kind help of several friends, and in 1984 established the second telecommunications company KDDI. The two companies have always maintained high profits and achieved sustained development. The reason is that they have adopted a business method called “Amoeba Management” based on a solid business philosophy and sophisticated departmental independent accounting management. Under the amoeba operating mode, the corporate organization can also continuously “deform” as the external environment changes and adjust to the best state, that is, a flexible organization that can adapt to market changes. Kyocera has survived four global economic crises and has survived and has continued to grow. In the late 1990s, after the Asian financial turmoil, many large Japanese companies encountered problems. The originally little-known Kyocera Corporation became the company with the highest market value on the Tokyo Stock Exchange. Experts and scholars began to study Kyocera Corporation, and later discovered that Kyocera's business method is very similar to the group behavior of “Amoeba”, so it was named “Amoeba Management.”

There are 3 characteristics of amoeba management

Fig. 1. Establish accounting systems for all departments directly related to the market [2-3]

The principle of the company's operation is “pursuing the maximization of sales and the minimization of expenses”. In order to implement this principle throughout the company, the organization must be divided into small units and departmental accounting management that can respond to market changes in a timely manner.

Cultivate talents with business awareness.

After the management authority is decentralized, the leaders of each small unit (AL) will establish a sense of “I am also an operator”, and then develop responsibility as an operator, and strive to improve performance as much as possible. In this way, everyone will change from a “passive” position as an employee to an “active” position as a leader. This change in stance was the beginning of the establishment of the awareness of managers. As a result, business partners who assumed management responsibilities together with Kazuo Inamori began to emerge from among these leaders [4-5].

Realize the operation of full participation.

If every employee can contribute to his own amoeba or even the company as a whole in his own work position, if the amoeba leaders and their members set their own goals and feel the meaning of their work to achieve this goal, then all Employees can find fun and value in their work and work hard. We must inspire all employees to participate in the operation together for the development of the company, feel the meaning of life and the joy of success at work, and realize the “operation of all employees”.

The most fundamental purpose of Amoeba's management is to cultivate talents and cultivate management talents that are consistent with the entrepreneurial philosophy.

Amoeba in China.

Professor PengJianfeng of Renmin University of China once said that the foundation and premise of a strong economic power is the power of talents. In order for China to realize its goal of becoming a powerful country with human resources, the key lies in whether it can improve the efficiency of human resources. The concept of Amoeba's business model “everyone participates in management” is to improve the efficiency of human resources and cultivate talents with business awareness through the joint participation of all employees in enterprise management.

After JAL successfully rebuilt using the amoeba business model, many Chinese companies began to learn and import the amoeba business model, especially out of manufacturing but most of the companies that practiced adopted the same method, and there were not many successful cases. For example, Xinyijia Supermarket Co., Ltd., once one of the leading enterprises in Guangdong Province, blindly introduced the Amoeba business model, which led to chaos in management, and finally ended in bankruptcy and liquidation. And those companies that have successfully introduced the amoeba business model have improved it according to China's national conditions and created a model similar to the “amoeba business”. For example, Haier's Rendanheyi, Huawei's employees Commonly held shares, Haidilao's front-line employees are properly authorized to operate independently, Baidu's humanized working environment, and Minsheng Bank's “two-rate assessment”, “ranked bank system”, and “three-card project” annual salary management system [6].

The Amoeba in Haidilao, a chain of hotpot restaurants, has a great success that there is a concept named Haidilao-type of restaurants, they are trying to duplicate the business model of Haidilao and creat the brilliance of other type of restaurants. The benchmark success of Haidilao can be attributed to the following 4 perspectives.

(1) Employee authorization.

In the fierce catering industry environment, Haidilao can stand out and form a certain reputation among consumers because of its humanized, high-quality and attentive service. In terms of service, Haidilao adopts a differentiated strategy and adopts different services for different customers, thereby forming a competitive advantage with itself. The formation of this advantage depends on Haidilao's full authorization of front-line employees, not “command”. the result of. The fundamental of Haidilao's differentiated services is to grant different authorizations to employees at different levels. The most important thing is that front-line employees have the right to match their responsibilities. For example, grass-roots waiters have the right to be exempted from orders. It also has financial autonomy below 2 million. Under a certain authorization system, employees give full play to their enthusiasm, use their authority to serve customers well, and implement the company philosophy of “service first, customer first”.

(2) Performance appraisal.

The performance appraisal under the amoeba business model stimulates the competition awareness of each amoeba by publishing the average performance, so that each amoeba understands its own operating conditions and existing problems, and at the same time forms healthy competition and improves amoeba. competitiveness and efficiency, so as to improve business performance and achieve the overall business goals of the enterprise. The unique feature of Haidilao is that it does not assess performance, whether it is profit or turnover. Haidilao believes that the level of profit depends not only on the subjective factors of employees, but also objective factors. For example, the location of a branch, the level of cost, etc. The cost of Haidilao in terms of location, dishes, pricing, and staff wages is determined by the headquarters. The branch has little control over the cost. Therefore, compared with improving the service quality, it can get more customers, thereby creating higher In terms of turnover, cost reduction becomes secondary. Because what the company evaluates, what employees will pay attention to. To this end, Haidilao has chosen qualitative assessment indicators: customer satisfaction, employee enthusiasm, and cadre training. However, Haidilao did not adopt the quantitative method of qualitative indicators, but conducted assessments through irregular inspections by the community manager. Since Haidilao's community managers are all waitresses, both customer satisfaction and employee enthusiasm are judged from an insider's perspective.

(3) Talent training mechanism.

The amoeba business model takes its name from a single-celled organism called an amoeba, which forms two new cells by simply dividing, a process similar to replication. Haidilao's mentoring system is like an amoeba, which speeds up the training of store managers through the perfect replication of old managers by new managers. In Haidilao, the apprentice is the “product” of the master. The “quality” of the apprentice must be proved in use, and the master must guarantee the “quality” of the apprentice. When the apprentice can be on his own, he will be promoted to the manager of the new store in the master's management area, and this is also the promotion channel for managers. The business of the branch is very good, so the manager has the opportunity to be promoted.

(4) Incentive mechanism.

In order to prevent amoeba organizations from competing for limited human, material and other resources, the business model of amoeba does not emphasize economic rewards, but adopts a variety of incentive methods based on various needs of employees: target incentives, demonstration incentives, respect incentives , participation incentives, honor incentives, caring incentives, etc. These incentives also reflect the “altruistic” idea of Amoeba's business model. Haidilao's incentive mechanism also reflects the idea of “altruism”. In order to motivate the “coaching behavior” of the old store manager, the floating salary part of his salary includes not only 0.4% of his own store, but also 3.1% of the profit of the apprentice store and 1.5% of the profit of the apprentice store [12]. Since Haidilao does not assess financial indicators, such an incentive mechanism not only improves the enthusiasm of the old store manager for talent training, but also urges the store manager to ensure the health of the financial operation of his own store to a certain extent. In addition, Haidilao also pays attention to the personal life of employees, children's education, etc. For the store manager and above, Haidilao will help contact their children to enroll and pay the enrollment sponsorship fee on their behalf. These mechanisms also reflect the “people- oriented” idea of Amoeba's business model.

When Haidilao introduced the Amoeba business model, it explored its own unique business model. The “people-oriented” idea of the Amoeba business model is fully reflected in Haidilao's employee self-management model, but unlike the Amoeba business model, Haidilao does not assess performance, and the incentive mechanism of Haidilao not only includes concern for incentives Financial incentives are also included [11, 13].

Purpose

Conclusion

The goal of this study is to decompose the Amoeba model in Zhongliang, a topping real estate company in China famous for Amoeba management, to find out the key factors of widespread use of Amoeba and the effect of the system in real estate industry in postpandemic period.

1. Amoeba is suitable for rapid scale-up when the environment is good.

This model is conducive to accelerating the expansion of the company's scale on the basis of the vigorous development of the market, but after reaching a certain scale, there will be obvious bottlenecks, and the company will inevitably need to transform, and too many amoeba units will become a disadvantage of transformation at this time. For Zhongliang, Therefore, amoeba model is more recommended as a phased main management method.

2. Amoebic individuals should be guided.

China's urbanization process has led to the outflow of population from third-tier cities, and the demand for the housing market has become smaller. Zhongliang is attracted by the high assets-to-land cost ratio of projects in third-tier cities, and the strategy is deviated.

Holding groups need to study the macro industry situation and form a strategic orientation to guide the business direction for regional groups. As a management platform, the main function of the headquarters is to grasp the strategic direction, ensure that the goals of each operating unit are consistent, and coordinate and solve problems and conflicts between various operating entities; provide sufficient resources and service support, empower managers and employees, and cultivate talents; formulate Standard rules, and supervise and guide each area/project. When amoeba units are divided according to geographic location or specific business situation, they do have a more intuitive and sensitive observation of the market, but at the same time their vision is limited. They are more inclined to focus on the small environment in front of them and ignore it. The trend of the overall situation may deviate from the company's business layout.

Conversely, there are too many amoeba units, which makes it more difficult for the holding groups to understand the overall situation of the company, and the direction and implementation of the transformation are even more difficult, and it strengthens the management capabilities of regional groups.

3. Supporting management team requested.

Vicious competition between Amoeba units, mutual plagiarism, short-termism, internal friction and etc. have become the criticisms of Amoeba by some entrepreneurs. It is necessary to equip the corresponding management team and mechanism, and feedback the problems encountered in the project operation to the front end, so as to appropriately promote the learning and reference between different amoeba units.

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