- Title
- Morning Letter 18th
- Date
- 2005/11/09
- Contents
In general, there are five stages of growth for companies: small company -> small/midsized company -> midsized company -> big company -> global company. A small company would have annual sales revenue that is less than $10 million. A small/midsized company would position in between $10 million and $200 million of sales revenue, whereas a midsized company would be in $200 million to $500 million range.
A recent study shows that the probability of a small company growing up to a midsized company is 17 out of 10,000 or 1.7 out of 1,000. In other words, if a thousand small companies started their business, only 1 or 2 of them would successfully arrive at the midsized company stage. It won't be exaggerating to say that the probability will be much smaller if we take all their effort and sweat for survival into account. The study does not include the probability of a midsized company growing up to be a global company, but we can easily assume that the situation won't be any different.
In order to achieve the revenue level of a midsized company, the company should already have fundamental competitiveness such as the organizational and financial strength, as well as specialized technologies. However, unlike the past, a grown company will now have to have a definite vision of the management team and a clear management strategy to compete with top tier companies in a global market. Otherwise, a big company will be an insurmountable wall.
This year, we expect our annual sales to reach $220 million, and this means that we have broken the 1/1,000 probability. We could arrive here with our "Can Do" spirit and mutual trust. In order to move on to the next stage of growth, we need to firmly establish our vision and management strategy.
Our vision is very clear: Becoming a world Top 3 PCB manufacturer.
It can be achieved if we work together and make sales revenue of $1 billion, 2-digit operating margin rate, and $1 billion market capital within 5 years. The management strategy for our vision can be summarized as below:
1. Core Value
2. Proven Leadership
3. Core Competence
First of all, our core value is 'Integrity' which we are well aware of at this point.
Secondly, 'Proven Leadership' has been emphasized many times in my previous morning letters and the TMT meetings. It is to listen carefully to your employees and team members in a humble manner, and to give them clear goals with much delegation.
Lastly, 'Core Competence' is understanding where our past and present strength are, and also looking for where we need to put our focus on in the future. This is why we had our MT at Songso Go-taek last week. With continuous SWOT analysis, we will keep on searching for the origins of our core strength and a pathway to the future.
Dear my beloved SIMMTECH members,
I have a dream. I have been dreaming the same dream hundred and thousand times for the last 18 years. It is to make SIMMTECH tree big and sturdy, so that we can all rest under the shade of that tree. If we pursue our vision with the management strategy that we all understand, every one of you will be compensated for the time and passion that you pour in.
Like I mentioned in the 10th morning letter, a CEO's dream is nothing but a dream, but our dream is a clear future to be realized.
Till the day we make it come true!
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