Financial Empire 2 How does the mining industry work?
As mentioned earlier, there are mining, planting, animal husbandry, manufacturing, retail, real estate, media, finance and transportation in this world. Finance and transportation are neutral, so we don't have to worry. Other industries will be introduced one by one below. 1. Retail: the easiest way to buy and sell. Retail is the most basic industry, and it is also the industry where you started your business first. It is an enterprise that directly faces the final consumer market, obtains gross profit through the difference between buying and selling, and then deducts maintenance expenses and staff expenses, and the training expenses are net profit. It generally has four departments: procurement, sales, trademarks, advertising and * * *. The trademark department is an OEM (mentioned later in the trademark section), and there are no other expenses, only staff expenses. The advertising department only has staff expenses, and the advertising expenses are counted in the head office. Here is the concept of department. Each company has 3x3 job vacancies, and up to 9 departments can be set up. If it is a factory, it can also be called a workshop. If it is a farm, it can also be called a livestock farm or farmland. Each department can be connected with adjacent departments in horizontal, vertical and oblique directions to represent logistics. For example, procurement-trademark-sales-advertising, these four departments are connected in this order, that is to say, the procurement department purchases goods, sends them to the trademark department to label the products, and then sends them to the sales department for sales. Finally, the advertising department is responsible for advertising the products sold by this sales department. Of course, you can connect with the advertising department without any advertising expenses. How to design this 3x3 position, especially how many products are produced by one raw material, or how many products are produced by several raw materials, or how many products are produced by several raw materials in a factory, how to make full use of space to produce as many products as possible, or how to maximize production capacity, is an intellectual game. Some reference schemes are provided in the game, but I am used to using my own design. There is a grade in this department. When you set a certain training fee, or organize a special training in the personnel department of headquarters, or the department works at full capacity for a long time 100%, the department will be upgraded to the highest level of 9. Except for farms, the working ability of departments will be improved after upgrading. The capacity of level 6 is about 3.5 times that of 1 level, and that of level 9 is more than 6 times that of 1 level. Due to the upgrading of the farm, not only the productivity is improved, but also the quality of livestock products and crops produced is improved. Although the tutorial says that the intensity of special training is too strong, it is counterproductive, but the result of my experiment is that there is no difference between training twice in a row and training again every 40-50 days when the game is suspended. The one-time maximum expenditure special training is 100K, and the sum of the two effects is slightly higher than that of the one-time special training, each time it is 50K. It takes about 250,000 for an employee to upgrade from 1 level to level 9. During special training, if the pillars of the usual training fees are supplemented, the effect of special training is twice that of each company. Because my special training is carried out during the suspension period, the setting of training fee usually does not affect the cost of special training, so I will make up the cost before the special training, and then adjust the setting of training fee back after the special training. I think this is also an algorithmic BUG. In addition, even if your employees reach Grade 9, they will still participate in special training, because special training is conducted by all employees, which actually causes waste. The level of the department will also drop. When you change the variety of goods you buy and sell, the grade will drop by one level; When you change the manufacturing content of the manufacturing department, the level will drop to1; If you change this department to another department, the grade will also start from 1. Therefore, the department level is your intangible asset. Retail includes specialty stores and department stores. Specialty stores include more than a dozen industries, from computers and cars to toys and sporting goods, but not the food industry. That is to say, all kinds of consumer goods except food have their own specialty stores, but there are several kinds of consumer goods that use specialty stores, such as watches, jewelry, electrical appliances and electronic products. Excluding the food industry, probably because it is difficult for the food industry to make high-quality brands. After all, successful people like Haagen-Dazs are rare in the food industry. In recent years, Japanese snacks seem to have opened a specialty store in China, and I'm not sure about the operation. Department stores include all kinds of department stores from convenience stores to large supermarkets. Except for the goods that department stores specialize in food, others are mainly food, and they also deal in goods other than food according to their size. The difference between specialty stores and department stores is that specialty stores are easy to attract buyers, while department stores have a large business scope. If a product is more popular in the market, the sales of specialty stores will be greater; If it is unpopular with the market, specialty stores will become chicken ribs, while department stores can improve other goods. In addition, in the competition, it is a basic strategy to use specialty stores against rival department stores. Retail stores need less investment, quick results and high return on assets, especially various department stores, because they can adjust the purchase at any time, which is an inevitable choice for each level. Department stores include convenience stores, small, medium and large supermarkets and department stores. Convenience stores and small and medium-sized supermarkets mainly deal in food (including desserts, snacks, staple foods, beverages and livestock products), medicines and daily necessities. Department stores are equivalent to medium-sized supermarkets in scale, while large supermarkets can run all kinds of products concurrently. The difference in scale not only determines the difference in business scope, but also determines the difference in construction cost, maintenance cost, number of employees and expenses, as well as the difference in sales ability. The game does not provide the radiation range of department stores and specialty stores of different sizes, and I can't see the difference in revenue of different sizes, so the choice of department store size mainly depends on cost considerations. I prefer to use medium-sized supermarkets and department stores, because the construction cost and maintenance cost are much less than those of large supermarkets, and the sales of large supermarkets are not outstanding. The only advantage is that the business scope is free, and it can be converted between food and non-food. Generally, a product (with 2-6 products in each category) is saturated with 3-8 sales points in a city. You can see the pie chart from the product details menu. In the case of saturation, if you increase the point of sale, there will be crowding out, either between you and your opponent or between your own store. It is not clear whether the total market demand will increase. But as I said before, cities will not grow because of economic prosperity, and residents' houses will not grow as much as those of maritime aristocrats and railroad tycoon, so I estimate that the total demand of a city is certain. There is a total population of a city on the small map, and this figure doesn't seem to have increased. In addition, the improvement of quality and the decline of price can increase the sales of a store, but it can't increase the total market demand, or I haven't found any evidence in this regard. So after you monopolize a market and the sales are saturated, you can consider raising the price appropriately. Price increases do not require monopoly. Each product has an overall evaluation. As long as your overall evaluation value is higher than other competitors' similar products, you can raise the price as much as possible. However, NPC price adjustment is very frequent, and soon you will find that your opponent's evaluation is higher than yours, so it is recommended to increase the price only for your exclusive products. The disadvantage of retail industry is dependence, no competitive advantage and no core competitiveness. Unless it is self-produced and sold, you lack control over the supply of goods. 2. Port: When it comes to retail, we have to mention the port. Each city has several ports, and the specific number can be set in the options. These ports are divided into two categories, one is to provide industrial raw materials and intermediate products to factories, and the other is to provide consumer goods to retail stores. These products represent imported goods and their sources are neutral. Port is a very important part of the retail source of goods. Retail stores can choose to buy goods from NPC factories, their own factories and ports. For players and NPCs, ports are neutral, and one port provides 3-4 products. Players will choose to buy goods from the port when they don't have the money to build factories, or the performance of products is not as good as that of port products due to low production technology, or the product cost of self-built factories is higher than that of port products, or they are unwilling to buy goods from NPC to strengthen their opponents. The last situation only applies when you face the competition of only one NPC, because when there are multiple NPCs, the competition and cooperation between NPCs will form an upstream and downstream industrial relationship. If the products of NPC are better than those of Apollo Tex, you won't buy them from NPC, and other NPCs engaged in retail will buy them from him, so you have a competitive advantage. This is a basic game principle. The supply of the port will change. The game has an option to control whether the port is continuously supplied, which means that the import of products will not be interrupted when you continue to purchase goods from the port. If your factory buys a lot of goods at one time, but it can't be used for a while, resulting in long-term inability to purchase from the port, the port will judge that there is no demand for this product and replace it. The supply changes regularly, and the specific interval is unknown. The new product seems to depend on a random list, and the position of your game in the random list seems to be decided at the beginning of the game. That is to say, the changes after each opening may be different, but the subsequent development of the same opened different saved files is doomed. The news system will inform you when the supply is interrupted. If your store or factory is ready to find an alternative source by itself, it will find another supplier. Can be set as the default option in the options. However, when looking for alternative sources of goods, you cannot give priority to your own company. This is a deficiency, so when the quality or price of other people's products or brands is better than your own, your shop or factory will ignore your own production company. In the setting of the Chief Operating Officer (Director of Operations), it can be set to find alternative sources from his own factory, but the AI of the Chief Operating Officer is only in the same city, and cross-city procurement will not be considered when there is NPC supply in the same city. The port power supply quality can be adjusted in the options, and it is divided into three levels: high, medium and low. Because the player's initial production technology is the lowest 30, and sometimes even no production technology at all, it is impossible to produce some products. However, NPC often has a certain research and development foundation from the beginning, and some products are mid-range. Therefore, the quality of port supply determines your different competition and development strategies, and determines your emphasis and order in R&D, construction and business direction. What strategies do different port supply levels need? I won't say much, leaving the fun of groping to readers. 3. Animal husbandry Animal husbandry refers to four kinds of farms: chicken, cattle, sheep and pigs. Provide egg and meat food (called animal husbandry products in the game) and industrial raw materials such as leather and wool. Animal husbandry does not need technology, or it has no technical content. The quality of products depends on the level of your employees, which has been said before. Egg and meat food was the main item of supermarket in the early stage because of its large demand, no technical content and simple production. Its competition focuses on quality and price. Quality depends on the level of your farm staff (mentioned above), while price depends on production capacity and freight. The demand of products, you can find a demand index in the product details, food is generally 80%, while clothing is generally 50-60%, electronic products are 40%, jewelry and perfume are 10-20%. This value is fixed, and cities will not increase the demand index for high-end consumer goods because of economic prosperity. Here is an introduction to the farm. There is no difference between farming and animal husbandry on the farm, that is, you can raise pigs and grow cotton in 9 departments of 3x3 on the same farm. Farms and factories are different in three dimensions: large, medium and small. The construction, maintenance, staff and training costs of small farms or small factories are much lower, but their production capacity is also much smaller. Moreover, according to the teaching course, the unit product cost is also high, that is, the same production process, such as the typical three-sector production line of "breeding (cattle)-livestock products (beef)-sales", small farms lack economies of scale. Therefore, what kind of scale to choose is very particular. There are two kinds of industrial raw materials for animal husbandry production, one is food industry raw materials, and the other is clothing industry raw materials. The food industry refers to chickens, eggs and milk, among which chickens and eggs themselves are livestock products that can be directly put on supermarket shelves; Clothing industry refers to wool and leather. Most products in the food industry are small profits but quick turnover, but the price of products is higher than that of livestock products, and the impact of freight is not so serious. Often one or two factories are sold all over the city, and there is no need to lay out 3-6 small and medium-sized farms in the city like livestock products. As for the clothing industry, its added value is higher, and the freight difference of raw materials is not so important. Therefore, large farms are often used for animal husbandry in food industry and clothing industry. In order to simplify management, a farm produces only one product as far as possible. Farms are also used for planting, but there is a problem of planting period and harvest period. A year is a harvest. The goods are kept in the warehouse for sale by the sales department all the year round, and the expenses during planting need to be prepared. Regardless of geographical factors, rubber can also be planted in Moscow, which is a simplification. Planting provides all kinds of industrial raw materials. Grain and wheat are used in food industry, and citric acid made from lemon can be used in food industry and chemical products. There are more than a dozen crops to choose from, and you can choose according to your own development plan. The factory can initially buy goods from NPC or port. In order to ensure the stable supply of your industry, the farm should be built as soon as possible, and once the harvest time is up, it will switch to its own products. Because the quality of the port may not be satisfactory, and NPC may also change its domestic sales policy. The quality of aquaculture products, like animal husbandry, depends on the level of employees. 5. Mining, that is, the exploitation of resources on the ground. Mining provides industrial raw materials, as well as animal husbandry and planting. There are two kinds of resources in the game, one is oil and the other is mine. In fact, there is no difference, just the difference between investing in mines and oil wells. Mining investment is divided into two parts: mine and land price. The mine costs 5 million yuan, and the land price depends on the mine. Because the quality of mineral products depends on the grade of mineral deposits, it can be said that it has been decided from the beginning and cannot be improved. Therefore, the high mine land price of mineral products is very high, more than ten meters, and the low mine land price of mineral products is only 1 to 3 meters, and the gold mine land price is also very expensive. Mineral resources have an index: reserves. The reserve unit is unknown, but it can generally be dug for more than ten years or even decades. Every year, some new mineral deposits are discovered. 6. Real estate Real estate refers to building a building or buying a building, and then renting or selling it. From office buildings to commercial and residential buildings, there are many specifications, corresponding to different prices and maintenance costs. The land price in the game, each small square has a basic land price, and then each building will affect the land price of several squares, and the influence will decrease with the increase of distance, and the maximum influence distance will vary with different buildings. Every city has a downtown, where there are three media buildings, investment banks and commercial banks, and a number of high-rise buildings. This is Ginza, and this is the king of land price. Real estate investment is concentrated in this area and spread around. Because in lots with high land prices, although the money spent on buying land is relatively high, the rent collected is also relatively high, and the more high-rise buildings are built, the greater the room for appreciation in the future, and it will be profitable to sell them. 7. Media industry There are three media companies in every city, and they compete with each other. Different media reports are different, so is CPM. CPM is the price per thousand people. Internet companies sell advertising space with CPM. The CPM of the advertising banner at the top of Sina's homepage used to cost up to $40. At that time, a friend of mine who was doing marketing in Johnson & Johnson said that their calculation and analysis found that the effective arrival price of the network was the highest compared with that of TV stations, newspapers and magazines. You have to balance the choice between coverage and CPM. Media coverage will change, and different products can also choose different media. At the beginning of the game, there were not many products sold, so the advertising expenditure was not much. All three media companies are losing money. With the growth of several companies, advertising costs are increasing, and media companies begin to make money, especially those that implement independent brand policies. Every product has to be advertised, so it must be fun for media companies to make money. You can buy one and leave all your advertising business to it, so that the water won't flow out. Only when the media is for sale can you have the opportunity to buy the media. The conditions for the sale are unknown, which seems to have nothing to do with whether the media is losing money. Media companies are bought at one time as a whole, and there is no concept of shares and holding. In the interface of media companies, you can see the pie chart of shareholding ratio. There is a translation error of Ubisoft. This is not the shareholding ratio of different companies and local media organizations, but the share of advertisers in sales. Gray refers to the time (or advertising space) when a neutral third party buys advertisements. If this pie chart has a white part, it means that the advertising space is not sold out; If it is full, you can consider raising the price. The competition between media mainly lies in the expenditure of program development and the price of CPM. The more investment in program development, the wider the coverage, and the comprehensive coverage and CPM determine the sales volume of advertising space. The competition among the three media is not a life-and-death competition like the ratings in TV DreamWorks. After all, reports from radio stations, TV stations and newspapers can be repeated in the real society. In addition, in the game, it has not been known whether the growth of media coverage has the same brand and loyalty factors as the manufacturing industry, and whether the audience will have the same consumption inertia as consumer goods procurement after continuing to invest heavily in making programs. Generally speaking, because we can't set up a new media company, and NPC seems to lack interest in buying media, the media industry is relatively simple, far less realistic and meticulous than TV DreamWorks. After all, the essence of this game lies in retail, manufacturing and overall business strategy. 8. Manufacturing China is now preparing to become the third world factory after Britain and the United States. Manufacturing is a factory. For those who have never been exposed to accounting and can only calculate the running account, the accounting treatment of trade is easy to understand, while the accounting treatment of manufacturing industry is extremely complicated. Don't be afraid, in Capitalism 2, there is no amortization and depreciation. Simplify what can be simplified, and the computer will calculate what cannot be simplified for you. The accounting of manufacturing industry has become the same as that of retail industry here, with only four factors: purchase cost, sales volume, period cost (maintenance fee, employee salary and training fee) and freight. When you upgrade your technology, you will add an equipment update fee. To tell the truth, when I first saw the profit and loss statement of the factory, I hardly felt angry. Is industrial accounting that simple? In Capitalism 2, the manufacturing industry is divided into two categories, one is the production of intermediate products, and the other is the production of final consumer goods. Except for individual products such as chip engines, the unit value of intermediate products is relatively low. The final consumer goods are divided into nearly 20 industry categories, each category has 2-4 products. Let's talk about the production of intermediate products. The production of intermediate products can be divided into two categories. One is the production of materials, such as glass, steel, plastics and textiles, which are characterized by: (1) processed from the output of mines or farms; (2) The unit value of the product is relatively low, and the added value of the production process is also relatively low. The other is the production of parts, such as electronic components, automobile bodies, etc., which are characterized by: (1) generally processed from previous intermediate products and are parts of final consumer goods; (2) The unit value of the product is relatively high, and the added value is also high. The final consumer goods can be divided into three categories, low added value, medium added value and high added value. The added value is low, and the typical representative is food. The price is also low, and the purchase volume is large. The freight has a great influence on the price, and consumers are very sensitive to the price. In this way, it can only be sold in the same city as the place of origin, and the best place of origin is in the city, reducing the freight. Of course there are exceptions. One lesson in the teaching course is chocolate, and the production process is perfect. Chocolate is a product that is sensitive to quality and brand and insensitive to price, so it can be sold across cities. The typical representative of medium added value is clothing, the proportion of freight to price is small, consumers are less sensitive to price, and the influence of brand and quality is greater. Generally speaking, it is sold in the same city, and it can be sold across cities when the quality is high. And high added value, brand and quality have the greatest influence, and the price is extremely insensitive. Typical representatives are computers and cars. Here is a supplement to the game's settings for consumers when buying, which are copied from marketing textbooks. Consumers will consider three factors when buying: price, quality and brand. The proportion of these three factors is different for different products, and the specific proportion value is probably set with reference to the real world. The three factors are weighted in proportion to get an evaluation value, which is compared with the evaluation value of products provided by other local companies, and then the consumer's consumption attitude is determined. Sometimes other NPCs don't sell similar products locally, and computers will set up a neutral local enterprise by themselves. Of course, its production technology is poor and its product quality is average. It doesn't sell products specifically, but it is used as a frame of reference by consumers. Sometimes the products you sell can't even be produced by this neutral local enterprise, and the local number is your number, so you desperately raise the price. After consumers decide a consumption attitude, they are also influenced by the brand awareness and brand loyalty of your products. Sometimes your evaluation is lower than others because the price is too high, but the brand awareness brought by advertising expenses and brand loyalty brought by high quality can still attract consumers. If the quality is too poor, it will lead to negative brand loyalty, indicating that consumers want to leave you very much. I once built an automobile production line, and all the production links were at the lowest technical level. As a result, the brand loyalty is -6 1, but there is no second company to supply it, so it sells well. After several years of technical improvement, brand loyalty quickly recovered. Another difference between low value-added and high value-added consumer goods manufacturing lies in the raw materials needed. The manufacturing of low value-added consumer goods often takes agricultural and mineral products as raw materials directly, while the manufacturing of high value-added consumer goods takes intermediate products as raw materials, and it takes 2-4 intermediate links from mining to finished products. This means that the manufacturing of high value-added consumer goods requires a large amount of investment in intermediate product factories, and intermediate products often have overcapacity. Another method is to directly produce the final product from raw materials through several manufacturing links in a factory, which saves the investment of the intermediate product manufacturing factory, but it will cause insufficient production capacity and fail to fully tap the market potential. This scheme is suitable for the initial shortage of funds. It is suggested that one factory should produce one product and one factory should be set up for each intermediate product, which is more cost-effective in terms of cost and capacity. Products with high added value depend more on technology than raw materials. The quality of raw materials has little influence, so it is very important to develop products with high added value first. And if you produce and sell when the technology is not good, you will often sell poorly, because you have not exceeded the local average (a neutral standard does not necessarily have product sales). In the first few years when the department level is not balanced, in order to increase the production capacity and reduce the unit product cost, the department design of the factory is often to produce a product and increase the manufacturing department as much as possible. Products that need a raw material can be discharged from six manufacturing departments in nine departments; Products that need two kinds of raw materials can be discharged from four manufacturing departments in nine departments; Products requiring three raw materials can be discharged from three manufacturing departments in nine departments. However, when the department level reaches 9, the production capacity is surplus to the sales capacity, and this design causes waste. Therefore, the balanced design should be that one manufacturing department corresponds to one sales department. Another advantage of planning a product from the factory is that there is no need to adjust the planning of the department, because the planning is universal and the production can be changed only by changing the purchased raw materials. However, the investment in training will be scrapped, so it only applies to 1 factory. For the planning of a factory producing several products at the same time, the game provides many reference schemes, and interested people can study it slowly by themselves. This scheme is often suitable for the initial lack of funds and technology, especially for the production of intermediate products. When a factory only produces one intermediate product, the demand of consumer goods factory is often not enough to absorb its production capacity. Because of this, the factory was built on a small scale, and it was designed to produce several products at the same time. However, in the later stage, it is necessary to build new factories to increase production capacity, and the management will be inconvenient because of the uneven demand of each factory.