African Entrepreneurship Record

Chapter 202: Chapter 190 Splitting the R&D Department

After inspecting the recent work at Heixinggen Daily Necessities Company, Ernst summoned Antonio, Richter’s superior.

”Antonio, I’ve reviewed the company’s recent data. The performance has been great, keep up the good work,” Ernst said to Antonio while lying on the sofa.

”Your Highness, our business growth this quarter hasn’t been significant overall, but it’s stable. We’re currently focusing on the Russian market, and we’ll see the results by the end of the year,” Antonio respectfully replied to Ernst.

”Hmm, it’s understandable. Although Russia’s consumer level isn’t high compared to Europe, it has a large population base. The market is not to be underestimated. Especially the aristocrats in Russia, who are keen on emulating Europe, are very particular about extravagance and are demanding regarding product quality and origin. We must do a solid job in marketing our products.

Your marketing department shouldn’t hold back on creativity. Try to align our products with European history and culture. In countries like Russia, trends flow from the top down. If our products gain the recognition of top-tier aristocrats, others will follow suit in purchasing,” Ernst said.

”You’re right, Your Highness. This is the conclusion from our marketing department’s in-depth analysis of the Russian market. For Russian aristocrats, we use a sales model that prioritizes quality over quantity, using genuine materials. Currently, the feedback from Russia’s top-tier aristocrats on our products is quite positive.”

Antonio continued, ”Especially our industrial products like lighters, bicycles, faucets, belts, paper, and shower products are selling very well in Russia.

However, textile goods, including bedding, clothing, and curtains, are still not performing well in sales.”

”I understand, it’s an inevitable situation. The textile industry has many competitors, and countries like England and France have lower costs, better quality, good reputation, and even a longer history. This isn’t a strong point for us Germans.

I think we can scale back in this area. Don’t invest too much in promoting to the Russian aristocratic groups; maintain small-scale sales just to create the illusion that German textiles are also good, but there’s not much of it.

Our strength lies in industrial products, especially in utility and convenience. Innovation is the foundation of our company. It was the practical, more convenient small invention of the lighter that enabled me to quickly earn the first barrel of gold, leading to today’s Heixinggen Daily Necessities Company,” Ernst emphasized.

”Yes, Your Highness. Innovation is an important direction for the company’s development. The R&D department has always had sufficient funding,” Antonio said.

”Speaking of the R&D department, I’m here today because of this matter. Initially, your R&D department was equivalent to the Heixinggen Science and Technology Research and Development Center.

Back then, to support the development of the Heixinggen Science and Technology Research and Development Center, I temporarily included it in the R&D department of Heixinggen Daily Necessities Company.

Now, the scale of the Heixinggen group is large enough to independently support the development of the Heixinggen Science and Technology Research and Development Center. I plan to separate some units, projects, and personnel again. Do you have any opinions?” Ernst asked.

Is there such good news? Antonio immediately thought. Scientific research and technological development require a lot of funding. At that time, Ernst needed money everywhere, and there were many affairs, leaving little energy to maintain the development of the Heixinggen Science and Technology Research and Development Center.

So, he straightforwardly merged the Heixinggen Science and Technology Research and Development Center into the newly restructured Heixinggen Daily Necessities Company, making it its product R&D department.

However, Ernst didn’t want to stop many projects that were already halfway through. After all, giving up is easy, but it’s challenging to pick them up again.

Thus, he packed them all into the R&D department of Heixinggen Daily Necessities Company, creating a very peculiar situation.

As a daily necessities company, Heixinggen Daily Necessities Company mainly focuses on product R&D in related fields, but it housed a large group of researchers from unrelated fields.

For this reason, the executives of Heixinggen Daily Necessities Company had many complaints. These personnel and projects couldn’t generate profit for the company and occupied a lot of funds and drained the company’s energy. After all, the company had to supervise the progress of their work. Ernst didn’t want to support freeloaders, but this was entirely thankless work for Heixinggen Daily Necessities Company.

”Your Highness, I fully support your decision. Those researchers and projects unrelated to the daily necessities R&D field have consumed much of our energy, and it’s not our area of expertise. Even overseeing them is quite burdensome,” Antonio said.

”Hmm, alright. I know you have to put extra effort because I placed this R&D center here. Now, the group’s development is on the right track, so naturally, there won’t be difficulties for you anymore. Leave the researchers related to daily necessities R&D, and send the rest to the headquarters in a few days. Also, call the R&D department’s Richter over,” Ernst said.

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”Boss! General Manager.” Richter respectfully greeted when he saw them sitting in the office.

”Richter, you and your colleagues developed the beverage ’Lime,’ expanding the company’s product line. Now, as I plan to separate those projects and personnel unrelated to the daily necessities field in the Heixinggen Daily Necessities Company’s R&D department,

all else is well. It will be restored to the original Heixinggen Science and Technology Research and Development Center. For you in the food and beverage research field, I have other arrangements,” Ernst withheld further information.

”I wonder how you’re planning to arrange this?” Richter asked.

”Like this, didn’t I mention yesterday that your R&D results would be manufactured in Austria’s food factory?

Now the group has newly established a Vienna Food Company, equivalent to Heixinggen Daily Necessities Company in Austria. I intend to assign you to the Vienna Food Company to establish its R&D department. What do you think?” Ernst inquired.

Richter realized his opportunity had come and responded decisively, ”Boss, I support your decision.”

”Good, but let me be clear first. Since it’s the Vienna Food Company, the work location will also be in Vienna. You and your team will need to reside in Vienna permanently. So, you must prepare for your colleagues’ mental transition. Two words—move. Can you manage?” Ernst asked.

”Don’t worry, Boss. I will certainly complete the psychological work for my colleagues and ensure all employees in the food R&D studio are relocated to Vienna,” Richter assured.

Richter dared to make this promise not without reason. The treatment offered by the Heixinggen group was quite good for people like Richter, and relocating wasn’t a difficult task for this job.

Moreover, Austria is part of the German region, so psychologically, we don’t reject it either. For people like Richter and others, it doesn’t even count as going abroad.

Antonio gave Richter a meaningful glance, acknowledging that Richter had also risen through the ranks. At Heixinggen Daily Necessities Company, Richter was merely the head of a subordinate unit in a subsidiary department. After moving to the Vienna Food Company, he would essentially be the backbone of its R&D department.

In fact, before the Vienna Food Company was established, the food sector of the Heixinggen group was also managed by Heixinggen Daily Necessities Company.

However, Antonio didn’t dislike working in the food sector because it also made money, especially in beverage and grain sales, which greatly helped the company’s business.

Still, it’s best to let professionals handle professional matters. Now that the food sector is independent, by thinking from another perspective, Antonio too would have made this move if he were the group leader.

In the future, there will be more colleagues at the group work meetings, Antonio thought sentimentally. As a veteran figure, he has watched the Heixinggen group grow step by step.