Yushengyuan new energythought that around lighting industries, about 90% of enterprises adopted the family governance model. Because the family
business, family members have blood relations and have the related resources of the community network, so family, friendship and kindness can be good combined and format a strong internal cohesion, quickly developed with low transaction.
However, successful and lost both because of one reason, with the rapid expansion of firm size, family management shortcomings exposed, the enterprise can’t deal with largescale management and can not adapt to the further development of enterprises. Academics say the main drawbacks of family business are nepotism, lack of rule, lack of motivation and decision making unscientific. It is the adverse consequences of inefficient, processes not clear and high
management costs. These shortcomings appeared in Yushengyuan new energy after growing.
Eventually a radical reform of Hong Lai photoelectric not just internal problems, the whole lighting industry environment had undergone great change. "Salesmen" are popular, shopkeeper increasingly haggard. After some discussion among a few founders, no longer hesitate, categorically declared that Yushengyuan new energy transited to modern business management. Because they recognized that only innovation, could to be evergreen, could create a hundred years enterprise.
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