標題: The Forbidden City of Terry Gou - WSJ.com, Page 3 [打印本頁] 作者: happynevius 時間: 2007-8-15 06:00 AM 標題: The Forbidden City of Terry Gou - WSJ.com, Page 3
The Forbidden City of Terry Gou His complex in China turns outiPhones and PCs, powering the biggest exporter you've never heard of By JASON DEAN August 11, 2007,Page 3
In 1988, with orders surging and costs soaring in Taiwan, Mr. Gou set up his first factory in China, where land and labor were cheaper. Decades-old tensions between Taipei and Beijing were starting to wane, and China was a decade into a massive economic overhaul. Mr. Gou chose Shenzhen, a city next to Hong Kong at the forefront of China's market reforms.
He used his small-but-fast-growing Shenzhen operation in his sales pitch to prospective customers. In 1995, when Michael Dell was visiting southern China, Mr. Gou offered to arrange meetings with local officials he knew in return for the chance to drive the 30-year-old American to the airport, says Max Fang, who was then Dell's head of procurement in Asia. On the way, Mr. Gou made an unscheduled detour to show off his factory.
Dell then wasn't one of the world's top five PC vendors, and Hon Hai didn't yet make parts that Dell bought directly. But Mr. Gou "knew that Michael Dell was a star of tomorrow, so he wanted to meet him," says Mr. Fang, who has known Mr. Gou since 1979. Today, Hon Hai is one of Dell's biggest suppliers, analysts and industry sources say. Mr. Gou keeps a photograph of Dell's founder on a shelf in his Taiwan office.
That same year, Mr. Gou secured a larger plot of land that would become Longhua. When Mr. Fang visited a year later, it had fewer than 1,000 workers. Executive offices were housed in 20-foot shipping containers.
But Mr. Fang was impressed. At the time, Dell and other PC companies tended to buy parts from several suppliers and ship them to their own factories for assembly. Mr. Gou had created a production line that let him do most of the process himself, from procuring the raw steel for PC casings to putting together the finished product.
Over the years, Mr. Gou has expanded his portfolio to include a growing share of the PC's insides. Making its own components lets Hon Hai undercut competitors on the price of its finished products without reducing its overall margins, says Adam Pick, an analyst at iSuppli Corp., a market research firm in El Segundo, Calif.
By 2000, Hon Hai's work force neared 30,000 people and its revenue topped $3 billion. Mr. Gou was expanding his soup-to-nuts strategy to more products. That year, Hon Hai set up a subsidiary called Foxconn International Holdings Ltd., now the world's biggest independent cellphone maker. In 2003, Mr. Gou launched a company that is now a leading maker of flat-panel LCD monitors. Last year, Hon Hai bought a major producer of digital cameras.
Now, in some cases, Hon Hai builds much of a product and ships it to its client for the finishing touches. In others, it ships the final products directly to retailers or consumers.
In all, more than 450,000 workers are now employed at Mr. Gou's plants across about a dozen provinces of China. Thousands more work in facilities run by Hon Hai and its affiliates across the globe -- including Hungary, Mexico and Brazil -- as the company sets up plants closer to its customers' operations. The company is one of the biggest exporters in the Czech Republic, where Mr. Gou bought a castle several years ago. Hon Hai is also adding operations in Vietnam and India and expanding into other sectors, including auto parts.
As Hon Hai grew too large for one person to manage directly, Mr. Gou fostered a culture centered on his personality. Around Longhua, his image can be seen in large framed photos of him with Chinese officials, and on the Gou biographies stacked in the factory book store's window.
Executives say he leads by example to keep products coming out on schedule and to customer specifications. Known for his 16-hour days, the founder for years would cruise the Longhua campus late into the night in a golf cart -- modified with a large bicycle horn -- stopping to spot-check production lines or help repair equipment.
Company managers are expected to read and remember a document called "Gou's Quotations." (No. 133: "The important thing in any organization is leadership, not management. A leader must have the decisive courage to be a dictator for the common good.") At meetings, Mr. Gou often stands, and illustrates his ideas with black marker on a giant white paper pad. He encourages discussion, but if someone says something he considers foolish, he may order the person to stand at attention. "He'll say, 'I'm not punishing you, because I'm standing, too,'" says a senior Hon Hai manager.
Industry executives and analysts say customers often start outsourcing one product line to Hon Hai and then shift more there. "You get addicted," says Mr. Fang, who left Dell in 2002 and now runs a venture capital fund that has co-invested with Hon Hai in a company called Ugobe Inc., which makes robotic toys.