Chapter 584 Telecommunications And Electronics Companies
This plan received approval from President Johnson and Congress.
Providing supplies for the war effort is a lucrative business. Even if it's just basic supplies, this venture could easily generate billions of dollars, with potential profits reaching hundreds of millions.
Given the scale of this opportunity, Hardy naturally took it very seriously. He immediately sent a telegram to the United States, instructing Andy to establish a dedicated department to manage this business and to dispatch a more specialized team.
Both teams would work in close cooperation.
The Hardy Chain Stores would play a major role this time. With thousands of suppliers, the chain stores could directly place orders for whatever supplies were needed.
In Japan, a similar model was in place. The team categorized the supplies needed by the U.S. military and assigned suitable factories to produce them. Once completed, these products were handed over to the logistics department, which was only responsible for inspection. If the products met standards, they were sent to the battlefield.
In this environment, whoever secured the contracts would earn substantial profits. Naturally, the seven major financial groups were eyeing a share of the pie.
In the Empire Hotel's conference room, A meeting of the seven major financial groups was underway.
This gathering included not only company representatives based in Japan but also high-level representatives and partners who had flown in from the United States—figures with significant influence within their respective groups.
The U.S. military's weapons, ammunition, and fuel also originated from these financial groups, although those were separate businesses. The current focus for the gathered individuals was on securing contracts for supplying the U.S. military's daily necessities.
This, too, represented a lucrative opportunity.
With such a huge business at stake, Hardy could not take it all for himself. He understood well that business is fundamentally a matter of distribution; only when everyone profits can business endure.
Moreover, his Japanese enterprises were in partnership with the seven major financial groups.
In fact, Hardy had become a representative for the seven financial groups in Japan, elevating his status considerably.
Whether in Japan or the U.S.,
When Hardy needed to discuss partnerships with the seven major financial groups, the conglomerates and families involved were bound to listen.
With this influence, there was no business that he could not undertake in America.
This is the power of connections.
Through careful maneuvering, Hardy had built a powerful network.
Hardy began by saying, "Gentlemen, the Department of Defense has provided us with a catalog of supplies for military use, comprising 11 major categories, 263 sub-categories, and over 20,000 items. Our purpose today is twofold: first, to allocate production of these materials; and second, to determine the best approach to supply them to the U.S. military."
No one spoke, knowing that Hardy likely already had a plan. They waited to hear his proposed course of action.
"We have numerous companies producing similar materials, so we need to allocate them accordingly. For instance, chocolate production involves multiple companies: Hardy Group, the Clark Group, and Mellon's Aike Candy Company."
"Then there are automobiles. There are numerous car manufacturers in the United States, as well as some in Japan. Which ones should we rely on?"
"Similarly, with products like meat, clothing, and pharmaceuticals, we need to assign specific production tasks."
Everyone in the room understood that whoever received the production orders would make money, while those left out would miss out on the profits. And the decision of distribution rested in Hardy's hands.
"The second point is about distribution. Currently, the U.S. military has designated Hardy Group as their supplier. I have two options for you to consider: the first is that you sell your products to the Hardy Group as suppliers to the Hardy Chain Stores, and then the Hardy Group provides these products to the U.S. military."
This arrangement, they thought, would allow Hardy to capture the margin, relegating them to labor providers. However, even as labor providers, they could still earn a substantial income.
Hardy continued, "The other option is for all of us to form a joint company, selling all produced supplies collectively to the U.S. military, with profits distributed based on our shares."
Everyone's interest peaked at once.
This idea was much more attractive, and they all nodded in agreement.
As a savvy businessman, Hardy was not inclined to relinquish his share of the profits without something in return; he had a plan.
"Gentlemen, forming a joint company essentially means the Hardy Group is giving up some of its profits, so I would like to receive something of equal value in exchange," Hardy proposed.
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"What do you want, Mr. Hardy?" someone asked.
"I want shares in certain companies I am particularly interested in, currently held by your groups. I've already purchased some of these stocks on the market, though only in small amounts, and I hope to acquire more from you," Hardy replied.
"What shares do you have in mind?" asked another partner from a financial group.
"IBM, the Telegraph and Telephone Company, and Motorola," Hardy said.
Hardy was aware of the future trajectory, knowing that many of America's future tech giants—Microsoft, Intel, Apple, telecommunications firms—would emerge from these companies. Although they were still in their infancy, owning shares now would significantly benefit the Hardy Group's development over the next several decades.
At present, these tech companies were not seen as vital assets by these financial groups. The American economy was still dominated by oil, steel, automotive, rubber, and chemical industries. The true potential of these tech companies would only become evident in the late 20th and early 21st centuries.
Hardy's investment might seem premature now, but it was also the easiest time to enter. By the 1960s, when telecommunications and electronics gained market traction, share prices would soar, and entering the market would be exponentially more expensive.
Hardy set forth his terms, and whether they accepted would be up to them.
The matter required internal discussions. After the meeting, representatives would consult with their superiors and partners, sparking a flurry of telegraph communications between Japan and the U.S.
In the end, business is an exchange, with each party getting what it needs. At this stage, those tech companies were seen as future investments with little current output, still in an incubation phase. In contrast, the military supply contracts represented tangible profits.