The practice of Amoeba post-practice sustainable business model in real estate – taking zhongliang as example

Abstract

This paper studies the practice of the amoeba model in China’s real estate industry, manage to analysis the advantages and disadvantages along the company’s development, taking the management case of Zhongliang as an example, which is a top 20th real estate development company, and considering the crisis in the post-epidemic market downturn environment. In conclusion, the article puts forward suggestions on the application of the amoeba model in the enterprise.

Research aim. With the study of previous research, we leave questions. Is it possible to effectively implement the Amoeba model in China, given the circumstances of cultural differences between China and Japan? The motivation for the study in this paper is to schedule the Amoeba model in Zhongliang, China’s leading real estate company known for Amoeba’s management, to identify key factors in Amoeba’s widespread use and the impact of the system in the real estate industry during the pandemic.

Results. What is Amoeba? The word amoeba originally refers to a single-celled amoeba whose body can protrude pseudopods in all directions, making the shape changeable, hence the name “amoeba”. The biggest characteristic of amoeba is that it can change with the changes of the external environment and constantly adjust itself to adapt to the living environment it faces. Kazuo Inamori introduced this idea into enterprise management, dividing the enterprise into several independent and tiny business units, each business unit realizes revenue independently, and conducts corresponding cost accounting, and then develops independent performance on this basis. Assessment. This advanced business model not only made the second electric power company he founded to become a Fortune 500 company, but also brought JAL back to life. Amoeba’s business model is not only refined management, but also enables enterprises to cultivate their own management talents. This model transforms large enterprises into small operations, which enables enterprises to maintain the advantages of large enterprises in scale and at the same time have the flexibility of small enterprises; at the same time, it improves the enthusiasm of employees to participate in operation, enhances the motivation of employees, and quickly cultivates talents for enterprises; through perfect accounting The mechanism enables enterprise leaders to grasp the actual situation of enterprise operation at all times, make correct decisions in time, and reduce the risk of enterprise operation.

With the development of the economy, the requirements for management methods are gradually increasing, and the extensive management model is no longer suitable for the management requirements of modern enterprises. The amoeba management method proposed by Kazuo Inamori meets the requirements of modern enterprises and is increasingly favored by strategists. In an era of vigorous development of the real estate industry and fierce competition, after introducing the Amoeba business model in 2015, Zhongliang has reached a rapid growth from 3.5 billion to 100 billion by 2018.

Conclusion. Zhongliang has been able to solve three main factors that could be the obstacles within its rapid growth path – structure, responsibility division and incentives for staffs. Firstly, with the rapid expansion of business and a large number of projects, the scope, difficulty and cost of group management and control have increased significantly. The headquarters has slow decision-making and low efficiency, and each functional department has a high degree of professional control and approval of everything; the service capacity is limited, and it cannot form a strong support for the project. Secondly, the project management team has unconsummated rights and responsibilities, lack of business awareness, and extensive project management leads to higher and higher project development costs, lower and lower project profit margins, and serious delay in the project development process. Last and the most important, with the introduction of a large number of excellent management talents, it is urgent to establish a corresponding talent development and incentive mechanism, to give all kinds of talents opportunities and platforms to fully display their talents, to fully stimulate their wisdom and potential, and to turn them into the driving force of enterprise development. Instead of a large inflow and outflow of staffs, human resources are wasted in the handover.