Tycoon: From Rags to Riches

Chapter 211: Chapter 181: A Warrior’s Sacrifice

If Xingchuan International were merely trying to restructure and upgrade, it wouldn’t need financing. The capital they already have would be more than enough to achieve those two goals. Therefore, the core reason Xingchuan International is seeking financing is, in fact, expansion.

Tianmu, Purkinje, Xi Yue, Sound Wave, Tea Sense, and Roar Hall—Xingchuan International’s six major brands—will begin a full-scale expansion within the next two years.

Tianmu, Purkinje, and Xi Yue will officially expand beyond Ji Province, with the short-term goal of establishing a presence in the capital cities of the Four Northeastern Provinces.

Sound Wave, Tea Sense, and Roar Hall will officially expand nationwide.

In addition, Xingchuan International plans to build a top-tier, large-scale nightclub in Beichun next year to fill a gap in its portfolio.

The capital required to achieve these goals will be immense.

Without external financing, it would be impossible for Xingchuan International to achieve this goal on its own.

"Chairman Chu, I have no objection to Xingchuan International’s full-scale expansion."

Gu Heng slowly set the letter of intent aside. "However, I believe that before Xingchuan International undergoes a full-scale expansion, it first needs to further strengthen its internal management."

"What do you mean?"

Chu Zhengxiong asked Gu Heng probingly, his expression unchanging.

Gu Heng gestured to Zhong Hua, who immediately took the cue. He pulled another file from his briefcase and handed it to Gu Heng.

The file was thick; a rough estimate put it at nearly fifty pages.

"The Roar Hall branch on Central Avenue in Ice City."

"They have a long-standing practice of mixing counterfeit liquor with their genuine stock."

Gu Heng plucked three pages from the file and placed them gently in front of Chu Zhengxiong and Zhou Gang, then tapped the table lightly with his knuckle.

"The Sound Wave branch in the Fengtian Taiyuan commercial district."

"The actual foot traffic data is severely inconsistent with the numbers reported by the store manager."

Gu Heng pulled out another three pages from the file and, just as before, placed them in front of the two men.

The evidence on each page was laid out with absolute clarity.

Although Gu Heng’s words were brief, the evidence itself was merciless, leaving Chu Zhengxiong and Zhou Gang no room to save face.

"The Tea Sense branch at the Qingcheng Museum."

"Thirteen employees on the books, but only eight are actually working."

As Gu Heng presented these pieces of evidence to Chu Zhengxiong and Zhou Gang one after another, it became clear the initial cases were all related to corruption by store managers.

One after another.

Chu Zhengxiong’s expression grew darker and darker as he read, until his face was nearly the color of the bottom of a soot-stained pot.

"According to company data, the attrition rate for bathrobes at Celestial Bath Spring last year was thirteen percent, while the industry average is under three percent. Isn’t that rate a bit high?"

"Company data shows that the inventory turnover for craft beer at Tea Sense is over sixty days, while the industry best practice is forty-five days. Does our company’s partnered beverage supply chain need to be further optimized?"

"Company data shows that daily online orders for Roar Hall account for only twelve percent of its total daily revenue, falling far short of the industry standard of over thirty-five percent. Shouldn’t our company consider increasing its promotional budget in this area?"

...

The first set of issues concerned corruption among mid-level management, while the latter addressed systemic problems across the entire corporation.

Staring at the pages before them, Chu Zhengxiong and Zhou Gang felt as though they were being dealt one invisible slap after another.

As the chairman and president of Xingchuan International, they hadn’t even been aware of the myriad problems plaguing their own company, yet now, Gu Heng, an "outsider," had laid them all bare.

Expansion?

Growth?

Chu Zhengxiong and Zhou Gang thought back to their earlier grand, eloquent speeches and felt their faces burn with shame.

Gu Heng finished listing the numerous issues in an unhurried manner. He then picked up the Habanos GR he had placed on the Cigar Humidor and took a deep drag.

"Chairman Chu, President Zhou, a mighty dike can be destroyed by a single anthill."

Gu Heng said softly, "I think it would be best for us to handle all these problems first. It won’t be too late to discuss expansion after that."

This file was Gu Heng’s ace up his sleeve—the killing blow that could truly make the Wolf King, Chu Zhengxiong, feel the sting of defeat.

The issues he had raised first—the store managers suspected of corruption—involved men who were, for the most part, loyal followers who had been with Chu Zhengxiong since his humble beginnings.

Chu Zhengxiong was a man who valued loyalty and old ties. After he made his fortune, those loyal followers who had been with him from the start all rose to prominence as well.

Gu Heng hadn’t originally intended to reveal this file today. But since Chu Zhengxiong had tried to intimidate him right from the start, he saw no reason to be polite any longer and slapped the dossier down right in front of him.

You want to expand?

Fine!

Solve these problems first, and then we can talk about expansion.

It’s a choice between growth and loyalty.

Chu Zhengxiong now had to choose one or the other. If he chose growth, he would have to bite the bullet and kick those bad apples out of the company.

If he chose loyalty, then he could forget about expansion.

With Xingchuan International’s current management model of pure cronyism, they’d be lucky to maintain the status quo, let alone continue expanding.

Staring at the shocking evidence before him, Chu Zhengxiong took a deep breath. He understood Gu Heng’s message.

"Chairman Gu, rest assured."

"I will give you a satisfactory resolution on this matter."

"Anyone involved will be fired if they must be fired, and handed over to the police if the law requires it."

In a matter of seconds, Chu Zhengxiong had made his decision and clearly stated his position to Gu Heng.

Indecisiveness was never in his nature.

When the future of the company was at stake, everyone and everything else had to take a backseat.

Besides, it wasn’t as if he had wronged them first.

He had given those old comrades generous salaries and benefits, along with respectable positions and authority. But they were still not satisfied, resorting to corruption and deceiving him behind his back.

Since that was the case, they couldn’t blame him for disregarding their old ties.

’The company has to keep growing, and they truly no longer have the ability to keep pace. It’s time to send them all home to retire...’

Chu Zhengxiong’s mind raced as he quickly weighed the pros and cons of the situation.

Removing this old guard from their positions would not only allow him to replace them with a new batch of capable people, but it would also open up internal career pathways and boost employee morale and motivation.

Clearly, the pros of this action far outweighed the cons.

Zhou Gang saw the cold glint that flashed intermittently in Chu Zhengxiong’s eyes and knew many people in the company were about to suffer. Daring to dip their hands into Chu Zhengxiong’s own pockets... they must have enjoyed a comfortable life for too long, long enough to forget just how ruthless he could be.

At the same time, as he watched the young man before him—leaning back on the sofa, leisurely sipping tea and smoking a cigar—he felt a complex wave of emotion.

’He just met him, and he’s already forced Chu Zhengxiong to make such a painful sacrifice.’

’This young man is truly not to be underestimated...’

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