Chapter 192: Splitting the R&D Department
Ernst, having inspected the recent work of the Heixingen Daily Goods Company, summoned Antonio, who was Richt's immediate superior.
"Antonio, I've looked at the company's recent figures—they look great. Keep up the good work." Ernst lay on the sofa, speaking to Antonio.
"Your Highness, our business growth this quarter isn't particularly large; overall, it's fairly stable. Right now, we're focusing on the Tsarist Russia market, and we'll have to wait until the end of the year to see the results," Antonio replied respectfully, standing to one side.
"Alright, that's fine. Though the consumption level in Tsarist Russia isn't high by European standards, its large population makes it a market not to be underestimated. In particular, the Russian nobility greatly value keeping pace with Europe and place enormous emphasis on ostentation. They're extraordinarily picky about a product's quality and origin. You must do a good job with our product marketing. Your marketing department shouldn't be stingy with ideas—try to link our products to Europe's history and culture. In a place like Tsarist Russia, social behavior follows the lead of those at the top. If the high nobility recognizes our products, those below will be sure to follow suit," Ernst said.
"You're absolutely correct, Your Highness. Our marketing department's analysis of the Russian market led to the same conclusion. For the Russian nobility, we've adopted a 'less is more' sales approach, using top-quality materials. So far, the higher nobility in Russia have responded very positively to our products."
Antonio went on: "Our lighters, bicycles, faucets, belts, paper, shower products, and other industrial items have sold especially well in Tsarist Russia. However, textiles—such as bedding, clothing, curtains—continue to sell poorly."
"I understand. There's no helping it. There are far too many competitors in textiles, and Britain and France in particular have lower costs, better quality, and a longer-established reputation, not to mention a history stretching back quite some time. Textiles aren't a German strength. I think you can scale back a bit in that segment; don't devote too much effort to marketing textiles to Russian nobility. Maintain a small-scale operation. Let the Russians get the impression that German textiles are decent but not widely available.
Our forte lies in industrial products, especially those with practical and convenient features. Innovation is the foundation of our company. Back then, it was precisely practical, more convenient little inventions like the lighter that quickly earned me my first pot of gold, paving the way for the Heixingen Daily Goods Company we have today," Ernst emphasized.
"Yes, Your Highness. Innovation is indeed vital to the company's development, and funding for the R&D department has always been plentiful," Antonio noted.
"Speaking of the R&D department, I've come today specifically regarding that matter. Back in the day, your R&D department was on the same level as the Heixingen Science and Technology Research Center. At the time, in order to support the growth of the Heixingen Science and Technology Research Center, I temporarily integrated it into the R&D department of the Heixingen Daily Goods Company.
Now that the Heixingen Consortium is large enough, we can support the Research Center on its own. I plan to spin off certain units, projects, and personnel back into an independent entity. Any objections?" Ernst asked.
Good news indeed? Antonio instantly recalled that scientific and technical research was extremely costly. Back then, Ernst needed money for everything, and there were many affairs to handle, so he didn't have the resources to maintain the Heixingen Science and Technology Research Center's development. He had simply merged it into the newly reorganized Heixingen Daily Goods Company as its product R&D arm.
However, Ernst didn't want to discontinue many projects that were already halfway through, because giving them up was easy, but picking them up again would be very difficult. As a result, he handed them all over to the Heixingen Daily Goods Company's R&D department, creating a bizarre situation.
As a daily goods manufacturer, the Heixingen Daily Goods Company specialized in product development for related fields, yet it had to support a large number of researchers in completely unrelated areas. Because of this, senior management at the Heixingen Daily Goods Company had some complaints: these people and projects did nothing to generate profit for the company yet took up a lot of funds and diverted the company's attention. After all, the company had to oversee their progress, and Ernst wouldn't keep people who did nothing, but from the Daily Goods Company's standpoint, it was a lot of trouble for little benefit.
"Your Highness, I absolutely support your decision. Those scientific researchers and projects unrelated to the daily goods field have consumed a significant portion of our energy, and we're not skilled in that area anyway. Even overseeing them is quite the chore," Antonio said.
"Alright. I know you've had to put a lot of effort into keeping this research center here. Now that the group's growth is on track, we won't trouble you anymore. Keep only the researchers involved in the daily goods field, and send the rest to headquarters in a few days. And get Richt, from the R&D department, to come here," Ernst said.
…
"Boss! General Manager." Richt greeted them respectfully upon entering the office.
"Richt, you and your colleagues developed this 'Qingning' beverage, expanding the company's product line. Now, because I plan to spin off those projects and personnel in the R&D department that aren't connected to daily goods, everything else will return to the former Heixingen Science and Technology Research Center. As for you and the other researchers working in food and beverage development, I have other plans," Ernst said, hinting at something.
"Might I ask, Boss, what you intend to do?" Richt inquired.
"Well, you recall yesterday I mentioned that your team's research results will be produced in the Austrian food factory? Now that the consortium has founded a new Vienna Food Company on the same level as the Heixingen Daily Goods Company, I plan to assign you to the Vienna Food Company to establish its R&D department. What do you think?" Ernst asked.
Richt knew this was his chance and answered decisively, "Boss, I support your decision."
"Very good. But let me be clear: this is the Vienna Food Company, so the work will be in Vienna. You and your team will have to live there permanently. So in a bit, you should prepare your colleagues—two words: move house. Can you handle that?" Ernst asked.
"Don't worry, Boss. I'll take care of the staff's mindset. I guarantee we'll move every last employee from the food R&D workshop to Vienna," Richt assured him.
That confidence was hardly baseless. The Heixingen Consortium offered excellent benefits to people like Richt, and relocating for such a job was no big issue. Moreover, Austria was still part of the German sphere, so there was little psychological resistance. For Richt and others, it didn't even count as emigrating.
Antonio cast a knowing glance at Richt, who had finally made a name for himself. Within the Heixingen Daily Goods Company, Richt was merely a small subordinate leader under one of its departments; at the Vienna Food Company, he would basically become the mainstay of that firm's R&D department.
Back when the Vienna Food Company didn't exist, the Heixingen Daily Goods Company oversaw food-related work for the consortium. Antonio hadn't minded handling the food sector, since it was lucrative—particularly sales of alcohol and grains, which helped the company's business.
Even so, specialized tasks should be handled by specialists. Now that the food sector had split off, Antonio, putting himself in Ernst's shoes, had to admit it was a wise move.
In future consortium meetings, Antonio would gain new colleagues. As a founding member of the company, he was witnessing the Heixingen Consortium's step-by-step progress toward greatness.
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