А.С. Гладкова “Wahaha” – a Phenomenon of Success in China

А.С. Гладкова 3 курс, Высшая школа политического управления и инновационного менеджмента науч. рук. доц. М.В. Крат “Wahaha” – a Phenomenon of Success in China Zong Tsinhou started his business at the age of 42 by the sale of dairy products. He hasn’t got any higher education and even considered it superfl u- ous. He founded the company «Hangzhou Wahaha Group», in which he is a chairman and CEO at the moment. Having won the bulk of the soft drink market, Zong Tsinhou became one of the most successful entrepreneurs in China. The company «Hangzhou Wahaha Group» is a leading Chinese company producing a variety of drinks. Zong Tsinhou was born in the small town Zhejiang in 1945. His mother worked in a local school. According to him, mother’s salary as a school- teacher was not always enough even for food for fi ve children. He worked at the factory and he came back in Hangzhou when he was 30. At this time he gained valuable experience, which helped him in the future. Zong started the fi rst business in 1987. He received his license to sell ice cream and soft drinks in schools. It was 10 years before he began to sell one of his most valuable products − mineral water, which is important for China, where many homes still do not have running water. Then he was engaged in the sale of milk. Later, he began to sell fi zzy soft drinks, ice cream and paper. Together with two teachers he designed and began producing drinks from the milk. Through patience and diligence products have received wide popularity and spread throughout China. Zong Tsinhou sets up «Hangzhou Wahaha Group». In November 1988 the fi rst drink store was opened under the brand of Wahaha. The company’s slogan (“Wahaha helps appetite”) scattered around the country during a few months. Only for the fi rst year Wahaha earned 4.88 million yuan, the second − 27,120,000 yuan, the third year of sales exceeded 100 million yuan. Waha- ha, which means “laughing baby”, has become a leading company in China producing soft drinks. Business quickly took off after 1996, when Zong’s company formed a joint venture with the French “Danone”. In 1998, Wahaha launched a new product Future Cola − it was a challenge to brands “number one” in the world, the leaders in the market of soft drinks − Coca-Cola and Pepsi. More than a year the company was engaged in the development of the company’s own product, the taste of which, according to the head of Wahaha, had to remind Coca-Cola. The drink is called Fei chang (“very”) cola. But in 17 the big cities the idea of a “national” cola was unclaimed. The company failed to achieve the loyalty of the provincial government and the tender for supplying products in Hangzhou’s airport received Cola-Cola. Future Cola could achieve leadership in small towns and poor rural areas, where residents look primar- ily on price rather than on brand. Chinese metropolis is under the infl uence of Cola-Cola and Pepsi, Cola from Wahaha reigns in the Chinese countryside. Today Wahaha has large cash reserves. Last year, the company’s net profi t amounted to 8 billion yuan ($ 1.3 billion). Now the company is developing a new niche − a rapidly growing market of healthy food and juices. Zong Tsin- hou tries all new products and dedicates to it 16 hours a day. Zong Tsinhou’s wife, Shi Uotszyan, holds the post of head of the purchasing department in the company «Wahaha». The couple has a wide variety of property on the terri- tory of China and abroad. In addition, Zong Tsinhou is actively involved in the political life of the country. Since 2002, he has been a delegate to the Chinese People’s Congress. At the moment, his capital is 6.83 billion dollars. Библиографический список 1. URL: http://www.vedomosti.ru/management/articles/2013/04/26/milliardy_na_ vode (дата обращения: 21.04.2015). И.Р. Григорян 3 курс, Высшая школа политического управления и инновационного менеджмента науч. рук. доц. О.И. Натхо Financial risk management and its practical applications at modern enterprises Nowadays all organizations are forced to work under such factors as glo- balization, technological development, changing markets and competition. All this factors lead to uncertainty. For example, an organization may have a development strategy, providing access to the markets of other countries. Such a strategy, on the one hand, involves risks, and, on the other hand, provides op- portunities associated with the stability of the political situation in the country, the availability of resources, markets, infrastructure, labor and low costs. A term risk refers to the possibility of inadequate profi ts or even losses due to uncertainties, e.g., changes in tastes, preferences of consumers, strikes, increased competition, change in government policy, obsolesce, etc [1: 45]. The phenomenon of “risk” includes the following elements: the possibility of deviation of the intended purpose which it has been carried out for to another alternative; 18.

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