Chapter 760 Sponsorship of the 1976 Olympic Games

Chapter 760 Sponsorship of the 1976 Olympic Games

Chapter 760 Sponsorship of the 1976 Olympic Games
At this time, Logan next to him said, "Mr. Yang, Canada still has many top manufacturing companies, such as Bombardier, Alcan, and De Havilland. These are all listed companies. If you are interested in their stocks, our bank can buy them on your behalf."

"Not for now. Although these companies are large in scale, their rate of return is not high. They are suitable for seeking stable, low-risk investments, but not for me." Yang Wendong shook his head and said.

If a company is already a regional enterprise, then its room for growth is very small, unless it can successfully internationalize in the future, such as HSBC in Hong Kong;
The few companies that can still grow continuously, such as Coca-Cola and General Electric, are also very few, and this is still because of their American background;
Yang Wendong also knows that these top Canadian companies will basically be out of business in the future. One reason is that the high-end manufacturing industry is being squeezed by both the mainland and the United States. On the other hand, the manufacturing industry in Canada and even the Americas will gradually decline in the future.

Unless I can acquire these companies or part of their businesses, and then make use of their technology and the uniqueness of the mainland market, my future prospects may be limitless, but at the moment, I don’t have this opportunity.

Canada is still very strong in this era. It is unlikely that the top companies in its own country will be sold. You can’t buy them even if you have money, unless they are going bankrupt. Only the United States can use special means to kill Canada’s manufacturing industry.
Logan took another look at Magna's information and asked curiously, "Does Mr. Yang think highly of Magna International?"

"Let's wait until its detailed information arrives." Yang Wendong didn't say much;

For things like this, the more you talk about it, the more loopholes there are likely to be. It's better not to say anything since it's unnecessary anyway.

Two days later, Yang Wendong came to the Imperial Bank of Canada again, and the information about Magna International had arrived.

"Mr. Yang, according to the information I checked, Magna International is a parts company that mainly produces stamping parts and molds." David introduced: "It is quite large, with nearly 1000 employees, and its products are also supplied to some automobile companies in Canada and the United States;
However, the profit margin of stamping parts is not high, and anyone can make them, so their future does not look very good. Competition is fierce, especially since American automakers are now reducing costs, which puts a lot of pressure on them. "

The oil crisis had a huge impact on the United States. Japanese cars were fuel-efficient and immediately destroyed the German Volkswagen market in the United States, and then threatened the three major American automakers.

The three major auto giants have no choice but to find ways to improve their competitiveness. The most direct way is naturally to lower prices, which requires gradually sharing the pressure with suppliers.

"Do they make other auto parts? Are they on a small scale or are they still researching?" Yang Wendong asked.

From what he remembered, Magna seemed to excel in electronics.

David said: "According to the information my staff has investigated, Magna is currently researching automotive electronic modules. This field is very complex, and many large automotive parts companies have not made any efforts to get involved. Magna is quite courageous."

Yang Wendong smiled and said, "Being bold means you will gain something if you succeed, right?"

This matches my memory. The electronic industry was just developing in this era. It was not only about personal computers and game consoles in the future, but also traditional industries, such as home appliances, which also needed to upgrade their products according to the development of the times. If they could not keep up, they would be eliminated by the market.
The same is true for the automotive industry. In the early years, cars were purely mechanical structures, and there were probably few electrical components except for the lights. In the future, even if they are pure gasoline cars, they will have many electrical components, chips, etc. from the inside to the outside.
Whichever auto parts company can seize the opportunity in this era and enter the automotive electronics market first will be successful. Obviously, Magna's current research and development is the foundation for it to become a top auto parts company in the future.

Logan also nodded and said, "Yes, if you have the courage, seize the opportunity, and succeed, then your future will be limitless; Mr. Yang, then you are ready to invest in this company."

"I have this idea." Yang Wendong nodded.
David said, "Mr. Yang, this company is not listed. If you want to invest, you can only go to them."

Yang Wendong smiled and said, "How about I entrust this matter to your bank?"

Although Magna will be a top-tier company in the future, its current size is very average, at least compared to his net worth;
If he personally spent time and energy to invest in such an enterprise, it would be unreasonable and uneconomical. Moreover, he does not understand such professional companies at all, unlike consumer enterprises, where he can explain the reasons for investing.

Banks themselves also have an obligation to invest on behalf of their clients, not just in the stock market, but also in small unlisted businesses. In this regard, banks are definitely more professional. Even if technical issues are involved, banks can find the right people to participate. Moreover, this is Canada, so it is normal to hand over this kind of business to local banks. When he was in the UK before, he also commissioned Standard Chartered Bank to make some acquisitions.

"Okay, I'll arrange a team to take charge of this matter right away." David agreed immediately;
This investment is a small matter, but since Yang Wendong personally requested it, we have to do it well. Only when this small matter is done well will there be other cooperation in the future.

Yang Wendong smiled and said, "Okay, if this is successful, then if I have any other investments in Canada in the future, I will give priority to cooperating with your bank." Logan also smiled and said, "Haha, I hope we can have a pleasant cooperation."

When investing in a small company, you can leave it to a local bank, saving your time and energy. The bank's success rate may even be higher, and all you have to do is spend a little more on agency fees.

If you don't save small money, you won't make big money. In the future, there will be many companies similar to Magna, or some foreign companies that have already gone public. They can also entrust local banks to operate, so that they don't need to invest in small companies in person.

Unless it is a top company like Walmart, Intel, or Nike, and there is a huge cooperation with its own industries in the future, I might get involved in this type of company.

Time soon came to August 8th. Inside the InterContinental Hotel, Yang Wendong met his subordinates from Hong Kong, a team from the headquarters office, led by Wu Weiwen.

"Mr. Yang, 12 colleagues from the advertising department have arrived in Canada," Wu Weiwen reported.

Yang Wendong nodded and said, "Okay, then we will go to Montreal as planned, communicate with the local Olympic Committee, and purchase suitable advertising space and sponsorship opportunities. I want to use this Olympic Games as an opportunity to promote our products worldwide."

In addition to sightseeing and investment, there is another important purpose for this trip to Canada, which is the Olympic Games to be held next summer.
Today, when the entertainment industry is not yet developed, the Olympic Games are a major entertainment event that attracts the attention of people all over the world. Every time, many people watch it. Those who have TV watch it, those who don’t listen to the radio, and those in poorer areas read newspapers.

Developed countries in Europe and America, as well as some wealthy regions such as Asia and South America will definitely watch it. This is a golden exposure opportunity that any international brand needs to seize. Unlike decades later, the Internet is everywhere and a website can easily deliver advertisements to users around the world;

Yang Wendong naturally also wanted to take this opportunity to promote his company's brand. In many cases, even if the technology and quality are good, it still needs to be well-known.

The Olympics are held every four years, but next year's event will be his only investment opportunity in the past decade or so, because in 4, when the last one took place, his brands were not ready for large-scale international publicity;

Of course, this year is not completely ready, but time waits for no one, because the 1980 Olympics were held in Polar Bear, and for some reasons many countries did not participate, so as an overseas capital, it was not easy for him to buy advertisements.
As for 1984, that is too far away. Although there were greater opportunities in that Olympics, it is not time to consider the distant future now.

Wu Weiwen agreed, "Understood, Mr. Yang, I will try my best to buy enough advertising space, but we have many brands under our umbrella, and I don't know which one to promote first?"

Yang Wendong replied: "Red Bull is the priority, so you need to focus on buying videos of various heavy physical exercises such as running and weightlifting. It is best to convince athletes to drink our drinks after the game, especially champions with winning potential. You have to let them do so even if you pay them more."

In the advertising industry, there is often more than simple publicity, there is also intangible advertising, similar to product placement in movies.

For example, there was a rumor in the past that when a team of top football stars were accepting public interviews, Coca-Cola spent 600 million US dollars to put its own drinks on the table. The requirement was that the stars of the team just took a few sips while being interviewed.

As one of our own, Li Xiaolong would choose Red Bull when he was interviewed before, which also increased his exposure.

As a sports drink, Red Bull’s main purpose is to help with physical recovery after exercise, so it is natural that it is also necessary to seize the time when athletes are after the game.

"Okay, I understand. But this advertising space also requires competing with beverage giants, and it will probably cost a lot," Wu Weiwen reminded.

Yang Wendong said indifferently: "I will be willing to spend the money that needs to be spent, don't worry about that. What I am more worried about is that we are not famous enough, and those sports superstars may not be willing to accept us. As long as they are willing to negotiate, our bid will naturally be higher than that of other big-name beverage companies."

PS: Please give me a monthly ticket
(End of this chapter)