The Magician’s Memorial - Chapter 40



Only Krnovel

Episode 40 Same dream (1)

Taewoo Group has always bought and used technology.

So, my grandfather knew very well how much money technology fees can be, and he even looked at the flip phone with love when he heard that he could receive technology fees.

“Of course, the operating profit margin cannot reach 30 percent with the flip phones made now. “Most of the parts that go inside are purchased from other companies, and you also have to obtain software to use them.”

“It says that even if you do that, the operating profit margin can be up to 15 percent.”

“It is a sufficiently possible number. “This is a much higher operating profit margin than TVs, washing machines, and microwave ovens produced by Taewoo Electronics.”

The home appliance market is huge.

However, there were many quarters in which Taewo Group’s home appliance operating profit margin was less than 5 percent.

In particular, in cases where competition was intense, there were many cases where the operating profit margin was in the zero range.

“It is said that the operating profit margin of mobile phones is high, but if competition with other companies intensifies, wouldn’t it be natural for the operating profit margin to drop like that of home appliances?”

“Having loyal customers solves that problem. “We plan to create customers who will unconditionally purchase our new products.”

“You want to do marketing. No matter how much money you pour into marketing, it is difficult to create loyal customers.”

I took out a document.

In it was written the name of Jonathan, who designed the flip phone, and the name of Steve, who oversaw the production of the flip phone.

“The mobile phone we created together with Apple’s key players is the flip phone. “What better marketing could there be than this?”

“When you say Apple, do you mean the American Apple that created the Macintosh?”

“That’s right. “By using the Apple name, we can differentiate flip phones from other phones and use a premium strategy.”

“The name still has value, but it’s not the Apple of the past.”

My grandfather didn’t yet know the value of Apple.

No matter how good my grandfather’s insight was, it was difficult to predict the possibility of Apple’s current comeback.

Not only my grandfather, but many experts also believed that Apple was so broken that a comeback was impossible.

“Think of it as being with Steve Jobs’ name, not with the Apple name. The world is still waiting for the innovative products he will create. And the first step is the flip phone we will make.”

“It’s very grand. “You seem convinced that flip phones will be Taewoo Electronics’ future business.”

“I value operating margins. “No matter how good your sales are, if you have a loss, it’s just a losing business in the end.”

Grandfather frowned.

I got that reaction because my thoughts were completely different from mine.

“Operating profit margins are good, but sales are also an important part of a company. The bigger our sales become, the more no one can touch us. Do you know the term ‘too big to fail’ in Baduk terms?”

“I know that cannabis never dies. “Are you trying to say that when sales grow, the company becomes a giant and never dies?”

“That’s right. If you want to start a business in Korea, you have to be a hemp person. “No matter how good the operating profit margin is, if it doesn’t turn into a hemp, you will be treated like a reed that gets hit here and there.”

I knew very well why my grandfather had such a philosophy.

In order to survive during the difficult military regime, a too-big-to-fail strategy was essential.

In order to survive, quantity was ultimately more important than quality, and that may be why they acquired and merged useless companies.

“The mobile phone market alone could be a big deal. “The mobile phone market is bigger than Taewoo Electronics, Heavy Industries, and Shipbuilding combined.”

“If the report and your thoughts are correct, that could happen. But that doesn’t mean we can withdraw from all other businesses.”

How can I be full after the first drink?

I also had no intention of advocating for withdrawal from other businesses right now.

Of course, it would be great if that happened, but in order to minimize the shock, we had to organize it step by step.

It all started with Taewoo Electronics.

“There is no need to withdraw from other businesses. All we have to do is to decide that Taewoo Electronics’ main business will be mobile phones.”

“Every year, Taewoo Electronics’ share of home appliances is increasing. “But we can’t suddenly put the home appliance business on the back burner and jump into the mobile phone market.”

“Then are you going to give away the flip phone you worked so hard to make?”

“Uh-huh! How could I give something my grandson made to someone else? Of course, it should be produced by Taewoo Electronics.”

You certainly know that flip phones are money-making products.

However, he was unable to choose and concentrate.

He was a grandfather who loved to hold both home appliances and cell phones.

“It is difficult to mass-produce flip phones with Taewoo Electronics’ current production capacity.”

“The flip phone you made is a very good product in my opinion. But that doesn’t mean it’s a product that will sell hundreds of thousands of units, does it? “I think Taewoo Electronics’ current production capacity will be sufficient.”

“What are you going to do when sales increase?”

“Wouldn’t it be okay to build an additional factory then?”

As expected, he was a grandfather who wanted quantitative expansion.

You have to cut the part that needs to be cut out and fill it with something new.

“I will follow what my grandfather says.”

“I want you to be interested not only in cell phones but also in home appliances. “Just like we created the flip phone, wouldn’t we be able to create innovative products in home appliances?”

“It is difficult with the authority I have. “To develop the flip phone, I used not only the technology research institute’s funds but also my own money.”

“Hehe, that would be troublesome. I’ll tell the technology lab to provide additional research funds. And let’s make sure that we have the authority to be involved in all of Taewoo Electronics’ products.”

Should I be satisfied with this level?

We were able to expand beyond the technology research center and into Taewoo Electronics.

If you take just one step further, you will be able to hold Taewoo Electronics in your hands.

To do that, I must first bring down Taewoo Electronics CEO Park Jin-hoon before I can take his place.

How to bring down the other person?

Confrontation and competition.

In a competition for rank between male lions, the winner becomes the leader, but the losing male lion is injured and exiled.

However, Taewoo Group was not a jungle.

Even if I were to lose, I would never be pushed out, but in the case of President Park Jin-hoon, the moment he was pushed out, it was over.

“I want to focus on mobile phones first. Please give me command of Taewoo Electronics’ mobile phone development department and other related departments.”

“Is it really necessary to do that? “If we just transfer the developed mobile phone to Taewoo Electronics, wouldn’t President Park Jin-hoon come up with a production plan on his own?”

“I want to take care of everything. “This is a necessary measure to prevent the technology leak of the flip phone that I worked so hard to create.”

“It must be difficult for me to decide on my own. “I’ll call President Park Jin-hoon.”

All power in the Taewo Group lies with my grandfather.

However, this did not mean that he could decide all matters of the affiliates.

In particular, if the authority of the president of an affiliate company is violated, there will be a backlash, so a conversation with President Park Jin-hoon was necessary.

“They say you can come here in just an hour.”

“Would you like to take a look at the report together? “There is more I would like to explain.”

Should we call it a kind of brainwashing?

I once again impressed upon my grandfather the importance of operating profit margin.

I have emphasized several times that we should quit businesses that do not generate much operating profit margin and focus on businesses that make money.

However, he did not suggest shutting down Taewoo Electronics or Heavy Industries.

I really wanted to, but if I did that, my grandfather wouldn’t listen to me anymore.

So, I explained the report by citing the operating profit margins of non-mainstream affiliates such as Taewoo Tourism and Taewoo Chemical.

“Chairman, did you call me?”

When it was time to read the report carefully, President Park Jin-hoon arrived.

When he saw me in the president’s office, his eyes trembled as if he felt something ominous.

Regardless, I secretly hid the prototype of the flip phone behind me.

“Director Kim said he had something to discuss with you, so I called you.”

“If you need to discuss something with me, don’t come to Taewoo Electronics.”

“The conversation continued and that’s what happened. “I apologize.”

I started off in a polite manner.

If you get to the point, your voice will naturally rise, so there’s no need to relax already.

“Director Kim says he wants to lead the mobile phone business.”

“I’m sure I’m busy just with lab work, but you’re talking about my cell phone as well?”

President Park Jin-hoon was good at hiding his dislikes.

Since the reason he sent me to the technology research institute was to exile me, he was displeased with my involvement in Taewoo Electronics’ work.

Then I have to throw the bait again.

A bait that you can’t resist biting.

“As far as I know, mobile phones account for very little in Taewoo Electronics.”

“There is no reason for us to enter the market already occupied by Samjin Electronics and large American electronics companies.”

“So, I would like to take charge of it. “We will produce visible results within one year.”

“I understand Director Kim’s desire to work hard. However, developing a mobile phone requires a lot of people and money. “It is an issue that may affect the production schedule of other products.”

“I am confident. “If I don’t achieve results within a year, I will never touch Taewoo Electronics again.”

The response came immediately from President Park Jin-hoon.

He raised his eyebrows and suppressed laughter.

Other companies have already taken up the entire mobile phone market.

But will you achieve results within one year?

According to his common sense, this would be completely impossible.

I even started acting to get him to take the bait.

I opened my eyes as wide as possible and raised my voice to look like an immature child full of blood.

“What’s wrong with cell phones? Why not just buy the parts from another company and assemble it? “The bonanza is in sight, but we can’t just leave it alone.”

“Hmm, Director Kim’s confidence is amazing. Chairman, what do you think? “I want to give Director Kim a chance.”

“If it’s good for President Park, I’d like to give it a try. “Shouldn’t we experience how difficult it is to develop and produce electronic products?”

Even my grandfather provided support fire.

He was an old man who knew that there was a chance of success because he had seen a prototype of a flip phone.

However, President Park Jin-hoon did not know that I had already succeeded in producing a prototype.

“Okay then. We will move the mobile phone development team to the technology research institute. We will also provide maximum cooperation from related departments.”

“I would like to ask you for a production plant as well.”

“I will stop all mobile phone-related projects and raise Director Kim’s project to first priority. “Once mobile phone development is completed, we will be able to produce it at our Incheon factory.”

“I understand that the Incheon factory is a small factory. We need a factory that can produce more than 1 million units.”

It was President Park Jin-hoon, holding back laughter again.

Samjin Electronics, which holds about 40 percent of Korea’s market share, was also selling about 200,000 units of a single model.

However, you will probably laugh because an immature kid calls out a million people at once.

“Then, we will take steps to ensure that the Incheon and Bucheon factories can also operate according to Director Kim’s wishes. However, since we are operating two factories, please understand that the risk of failure is very high.”

“I will definitely succeed. Also, please provide funds for mobile phone development.”

“I’ll give you the money to use for other projects.”

President Park Jin-hoon is very cooperative.

There was a reason for that.

This was because in order to completely poison me, they had to give me that much.

I tried to give at least one more since I could blame all the failures on myself.

There is no need to refuse if they give it to you.

Then shall I take more?