Chapter 11
Chapter 11: Heixingen Consortium
The challenges faced by the Danish government did not affect Ernst; in fact, the troubles of the Danes brought joy to Ernst during this time.
The Second Schleswig War proved to be a significant stimulus for the growth of the Hechingen Development Company, elevating its business activities to new heights.
The expansion of the war had heightened the importance of logistics for the coalition forces. Their successive offensives demanded a doubling of daily supplies, particularly tobacco, an essential war commodity. The Hexingen Tobacco Company capitalized on this increased demand and ramped up its production.
With new production lines in place and a continuous influx of orders, civilian orders had to be temporarily sidelined. The leadership of the Heixingen Company was invigorated by these positive developments. They had already made substantial gains, and the future seemed promising. After the war, Heixingen Company was poised to reach new heights.
This prosperity fueled enthusiasm throughout the company. With the promise of expanded operations, the establishment of new factories and units, and numerous new employment opportunities, motivated leaders had the chance to head these new departments. This grand vision inspired everyone to work harder, aim for better results, and gain recognition from the boss.
Even the rank-and-file workers were motivated, leading to increased production efficiency. The availability of overtime work with higher wages attracted workers, especially in a period when many industrial jobs required less physical labor but demanded proficiency with machines and meticulous attention to detail.
The 19th century saw Germany's population expand rapidly. As jobs created by industrialization struggled to meet local demands, German nationals began immigrating abroad, with North and South American countries becoming significant destinations.
Industrial cities burgeoned in the German region, driven by a burgeoning workforce and the spread of quality education. Despite historical divisions, Germany began to catch up economically with France, a process accelerated by the region's growing unity.
France, while still a major power, faced political turmoil with infighting between royalists and republicans. Napoleon III's rule was marked by constraints, as he sought to maintain a delicate balance in a politically turbulent France.
On the other hand, the German region experienced a surge in nationalism. Visionaries worked towards German unification, and shared interests among nobles and capitalists fueled economic development. While disputes existed between "Greater Germany" and "Lesser Germany" factions, the unification process in the German region moved forward.
Ernst, born into one of Germany's top noble families, stood to benefit from German unification, which could elevate his noble status. However, he still needed to address immediate challenges. As the industry developed, managing resources effectively became a top priority.
Ernst decided to establish a new business management center to oversee his expanding business. The Heixingen Development Company had grown into a large enterprise with a comprehensive daily necessities factory system. New product categories had emerged, and the company had established a dominant position in this field.
The company's leaders were excited about the prospects. They had already achieved considerable success, and with the war's assistance, they were making even greater strides. Ernst aimed to establish separate subsidiaries to manage the growing daily necessities sector.
Tobacco, a highly profitable industry, was separated to form an independent Hexingen Tobacco Corporation. Ernst assembled the troika of the Hexingen Development Company and also created a top strategic decision-making body above it, which would serve as the core of Ernst Industry.
Ernst formulated a comprehensive plan:
1. Establish the Hechingen Development Bank and create the Hechingen Consortium with the German region as its core through sole proprietorship and holdings.
2. Form an independent Hexingen Tobacco Corporation, with operations in the German region as well as sub-brand companies in other regions.
3. Create a new Hexingen General Commodity Corporation to take over all factories of the current Hexingen Development Company except the tobacco industry.
4. Establish the Hexingen Science and Technology Research and Development Center to guide product development in other departments and explore new markets.
With this structure, the foundation of the Heixingen Consortium, with the Hechingen Development Bank at its core, was laid. The Hechingen Development Bank would invest in and hold shares in emerging fields within Germany, such as electronics, internal combustion engines, and information technology.
These industries were on the cusp of the second industrial revolution, and Ernst was making strategic bets on scientific and technological advancements that were still in laboratories or minds of scientists and engineers. This was a pivotal moment, right before the outbreak of the second industrial revolution, and Ernst was positioning his company to take advantage of these emerging technologies.
(End of Chapter 11)