Today we would like to review the operating performance of the past year, major objectives for the following year, and hope that no matter how the economy changes, as long as we are committed to the genuine Far Eastern spirit of persistent transformation and excel in the application of new technology, we will become the ultimate winner just like James Bond!
Far Eastern Group registered record highs in consolidated pretax income and revenues in 2018. This year, our Group’s revenues ranked among Fortune Global 500, and profits ranked around the top 100 amongst global enterprises. In particular, Far Eastern New Century, the flagship company, listed No. 149 of the World’s Best Employers in 2018. In other words, Far Eastern Group has become a global player.
The Far Eastern Group is celebrating 70th Anniversary of its founding in 2019. Many colleagues are expecting to have joyous celebrations. However, given that the current social environment may not befit festivities, we have decided that each company will consolidate their past CSR efforts to allow better understanding of our commitments in this field, which includes the efforts and many contributions made through our hospital, schools, and Foundations throughout the many decades. Not to mention that our posts throughout the island including factories and branch department stores have always been dedicated to and promoting friendly relations with the local communities. While the Group Founder used to teach us to stay humble from our good deeds, it is necessary to demonstrate our contributions from time to time, so the general public can understand us. Our philanthropic works will also be published in booklets to mark important contributions from the FEG as well as demonstrating our dedication. In the future, these philanthropic steps will follow us everywhere along with our affiliates to the world.
Aside from celebrating the 70th anniversary, we should pay more attention to the direction of the Group for the next 70 years. Based on FEG’s current status, it can continue to operate for at least 5 to 10 years without transformation. But in the long term, this will not benefit the Group and will be replaced in this turbulent era. Many global players have faded due to their slow reactions. This not only reminds us that we have to stay vigilant, but it is also necessary to transform and reform in a timely matter in order to stay competitive. Top industry leaders, such as Ford or JC Penny, have to transform swiftly in this dynamic era. Each company would need to transform rapidly, especially the organizational structures. There should be complete succession of planning and policies.
In following the global expansion of FEG, aside from cultivating bilingual talents, each company will need to produce reporting that fulfils global standards in the accounting and finance fields, thus we can all communicate in the same language. Furthermore, the Group will need to develop a new blueprint for the future as we head into the 70th year.
On the supply side, each affiliate should know its role in its supply chain and its relation to other enterprises. Additionally, each company will need to reassess its business model now as well as how it should be adjusted in the future to enhance its competitiveness. The most important target in 2019 is to move up from the low value chain to the high one, from the linear road to multiple channels, from physical stores to online sales, from regional enterprises to a global player, from the traditional model to the new and innovative model, from the commoditized single product to the differentiated product, from the passive supply side to the active supply side.
In this new economy, each company will fully utilize the new technologies in an innovative mindset by bringing AI, Blockchain, Cloud Computing, Big Data, mobile technologies, and IoT applications to the supply chain and business model in order to expedite transformation.
During the transformation, there are six key issues worth noting. How will digitalization affect the current business model? What is the most suitable business model for the future? What is the competitive edge in this new economy? What are the best methods to utilize mobile technologies with IOT? Do we have the means and resources to restructure our organizations? Are managers on every level capable of leading transformation? Leadership is very important. They need to be capable of leadership in order to mobilize the transformation for the next generations.
There are multiple challenges ahead in 2019 that span from global competition, US and China trade war, Brexit, and domestic challenges in Germany and France, as well as economic slowdown in China. As long as each company seeks transformation and breakthrough and maintains strong connection with affiliates, we will be able to have a strong synergy in communicating with governments and the world at all levels. Far Eastern will be able to secure its position in this new economy and achieve its goal!#