Sustainability requires five capabilities - technological innovation, product competition, capital expansion, corporate profitability, cash flow management capabilities

The sustainable development of an enterprise is actually a matter of how to become bigger, stronger, and longer. To achieve sustainable development in a fierce market competition, a company must have five capabilities.
The first is the ability of technological innovation. The vitality and sustainable development of an enterprise mainly come from its technological innovation capabilities. With today's rapid development of science and technology, if the company does not have the ability to innovate, the product will have no vitality and the enterprise will not be able to survive. The most direct manifestation of the enterprise's technological innovation capability is the development of new products and new technologies. Although many companies in China have a very popular product at a certain stage and have a very strong profitability, they do not have follow-up new products. In Japan and other developed countries, quite a few companies have reserves of their products even after decades. Their technological level and product level have always been at the leading position in the market.
The second is the product's competitiveness. The core competitiveness of an enterprise must ultimately be reflected in its competitiveness. In general, the competitiveness of a product is reflected in three aspects: first, technological advancement, second, reliability in quality, and third, reasonable price.
The third is the ability of capital expansion. Different from traditional self-development and self-accumulation, at present, mergers and acquisitions and restructuring of enterprises have become one of the effective methods for low-cost expansion of enterprises. Recently, the State Council is piloting and promoting the reform of the equity division of listed companies. This reform will have a major impact on the financing, governance structure, property rights structure, and corporate governance of listed companies.
The fourth is the profitability of the company. With products that are competitive, companies must also have sufficient profitability to develop further. The profitability of an enterprise is an important indicator of the credibility of an enterprise. It determines whether an enterprise can survive and develop. Even if there is a good project, the product has technical content, but if the company does not have a good profitability, it will not have the vitality. For the survival of enterprises, some people say that we must maximize the value of wealth, and others say that we must maximize the interests of shareholders, but all the maximization must be based on the maximum profitability of the company, or else there is no other maximum.
The fifth is corporate cash flow management capabilities. Some domestic companies are very interested in the scale of development and the pace of development. They also attach great importance to profitability, but they do not pay enough attention to the management of cash flow. The company has a good profitability, but because of your cash flow is not good, for example, the money can not be recovered in time, the distribution of funds in the production and operation process is unreasonable, it may cause the interruption of cash flow, it brings about very The big risk has even gone bankrupt. How can it be done for a long time?

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