839 Establishing a Monopoly (2/2)
Jiang Chen paused for a moment and looked at Matthew with a smile. His fingers drew a triangle on the desk.
”Country F produces the raw materials and Moro processes the raw materials to finally serves Xin's market. We also plan to sell our products from Penglai city to the global market. I hope that the cash crops grown by Xin Ocean Agriculture are not just soybeans, tea, and coffee and cocoa beans; you must get involved with coconuts, rubber, and all other crops that Future Group can use. The priority is to meet the needs of the group, and the extras will be exported!”Find authorized novels in Webnovel,faster updates, better experience,Please click for visiting.
”...A Monopoly.” After listening to Jiang Chen's words, Matthew gulped and squeezed out a rather retro vocabulary.
The reason why it is retro is that in the modern society, this kind of monopoly of profiteering has almost disappeared. Even powerful consortia such as Morgan and Goldman Sachs do not dare to flagrantly monopolize an industry.
From the production of raw materials, to processing, to sales, and to the final distribution of profits, all are completed by one group. The highly integrated management structure would make each production link become a screw in the entire industry chain and it is all controlled by the same company.
The benefit is that the company's production costs will be extremely low.
Lower to the point where other companies simply cannot compete.
To give a very simple example. Coca-Cola's cost of producing a bottle of Coke was only about 70-80 cents, but if all the raw materials used for cans and aluminum were produced by Coca-Cola's subsidiary, the cost would likely be reduced by half.
Of course, no one knew how much the costs was reduced by and Coca-Cola would absolutely not do so. Rockefeller first established the first monopoly, monopolizing 95% of the refining capacity, 90% of the oil transportation capacity, 25% of the crude oil production, the result was the oil empire he built was tragically broken apart in the hands of Roosevelt and turned into 34 ”small Mobils.”
”Yeah.” Jiang Chen nodded and smiled bluntly. ”You can understand the nature of Future Group as a new type of monopoly. But there is certainly still a difference.”
From the outset, Future Group has grasped the army as a key institution, and forcibly established a living space for monopolies through the control of sovereign states.
In other places, in China, or UA, Future Group would not be able to gain the soil for development. Sooner or later, it will have to touch the bottom line of the state's tolerance on monopoly.
So far, Jiang Chen was most satisfied with two decisions he made. One was that he chose Xia Shiyu as the CEO without caring about personal grudges, and the second was moving Future Group to Xin.
”Got it. I'll have to revise the plan. Tomorrow...no, the day after tomorrow, I'll send the new one to your desk. Tomorrow I'll have to meeting with Xin Ocean Agriculture executives, if we have 15 million acres in Country F, then we have to go back to the drawing board.” Matthew shrugged, but the exhilarating smile on his lips could not be hidden.
”Go ahead, don't waste time here,” Jiang Chen replied.
After Matthew left, Jiang Chen leaned in the chair and called the office assistant. He asked her to make a cup of coffee. After that, he took a moment to think about the next direction of the development of the group.
The coffee cup was gently placed on Jiang Chen's desk. The female assistant peeked at the eyes of the president with eyes closed.
Her daily routine consisted of making coffee, occasionally assisting other assistants in organizing documents and issuing detailed information such as letters of introduction. Logically speaking, due to the nature of her work, she would spend a lot of time with Jiang Chen. However, on the contrary, Mr. President skipped work every few days, and sometimes went on business for one or two months so she seldom saw him.
To be honest, she thought about fantasies with Jiang Chen.
Only Jiang Chen did not display any intention at all.
After quietly organizing the documents on the table, she quietly left the office and closed the door behind her.