55: Chapter 55 Accidentally Entering the Imperial Family: The True Noble Male Supporting Character 16

In the following days, Qiao Chuxia's life became very busy and fulfilling.

She greedily absorbed that precious knowledge.

The day after she received the books.

Qiao Chuxia was quiet and focused in the library, with a copy of "Macroeconomics" spread out before her.

Frowning, she opened WeChat.

"Mr. Meng, I don't quite understand. Why do corporate managers choose to continue investing in projects they know are wrong? The book calls it 'irrational decision-making.' What does that mean exactly?"

The message was replied to instantly.

"It's not about rationality; it's about human nature. Imagine you are the president of an oil company, having spent one billion dollars drilling in a certain sea area only to come up empty-handed. When the board of directors questions you, do you admit to a decision-making error and bear the responsibility for that billion-dollar loss, or do you apply for another five hundred million, telling them 'We are only one step away from success,' and gamble on a slim chance of a comeback?"

"For most professional managers, admitting to sunk costs is equivalent to admitting their own failure. Continuing to invest, however, delays the confirmation of failure into the future. They aren't gambling on the project's success; they are gambling on their own careers."

Qiao Chuxia's brow immediately unfurrowed.

"I understand. Managers aren't the bosses. Applying for another five hundred million means the project keeps running and there is still hope, whereas admitting a mistake means potentially being suspended and held accountable."

"Your explanation is really simple and easy to understand. I get it."

"You are also very smart."

Conversations like this happened almost every day.

One was tireless in learning, and the other was patient in teaching.

Walking on campus, there were couples coming and going everywhere.

Yet Qiao Chuxia, like a girl addicted to the internet, only kept her head down looking at her phone.

"In today's management case study class, we discussed the principal-agent problem. Why is it that even with stock option incentives and strict KPIs, cases of executives harming company interests still emerge one after another?"

Meng Zhu's reply carried a hint of teasing.

"Because no matter how good the grass the shepherd provides is, it cannot stop the lead sheep from wanting to nibble on the freshness of the neighbor's wheat field."

Looking at this message, Qiao Chuxia couldn't help but laugh out loud.

Immediately, another message was sent over.

"Information asymmetry is the root cause. The principal's (shareholder's) goal is to maximize company value, while the agent's (executive's) goal is to maximize their own interests. KPIs and stock options just make their 'acting' more realistic. True top-tier games take place under the table. To solve it completely, the principal and the agent must be the same person."

Qiao Chuxia was lost in thought. No wonder those top entrepreneurs, while capable of employing others, always kept the power in their own hands.

Lately, the more she sought advice from Meng Zhu, the more Qiao Chuxia could feel the pleasure of knowledge flooding into her brain.

That feeling was very addictive.

Even on the way to school, the person in the back seat of the car was, as usual, only focused on her phone.

"Mr. Meng, good morning. May I ask a question? When venture capitalists evaluate a startup project, what is the most important factor they consider? Is it the business model, the market prospect, or the technical barrier?"

The vehicle had just driven out of the manor gate when the message was sent.

"Hmm, good morning. None of what you mentioned."

"The answer is people."

This answer left Qiao Chuxia stunned.

"You must understand that all business models can be copied, all market prospects can change overnight, and all technical barriers can be surpassed. In a startup project, the only thing that truly cannot be valued and cannot be easily replaced is its founder."

"Sometimes what we invest in isn't an idea, but the founder's cognition, vision, resilience, and knowledge. A top-tier founder, even if the project fails, can climb out of the ruins and create the next even greater company. But a mediocre leader, even if you give them the best resources in the world, can still ruin a good hand."

"Therefore, after learning how to analyze a business plan, the next step is to learn how to see through a person."

Besides the way to school, it was the same on the way back. Qiao Chuxia was always seizing every moment to ask for advice.

"Mr. Meng, I learned about 'brand premium' today. A watch might only sell for a few hundred, but with a certain brand logo engraved on it, it can sell for millions. I already know the value of a brand, but it seems there is more to it than that?"

This time, Meng Zhu did not reply for a long time.

After a while, he called.

The man's deep and magnetic voice sounded.

"Value is divided into two types. One is 'use value,' like a watch used to tell time. The other is 'consensus value.' It's not the function of telling time; it might be a legendary history, the life's work of a top craftsman, a masterpiece of regret, or a shared recognition of a brand's 'precision,' 'heritage,' and 'prestige.' It is a kind of social currency, a status tag, something that can convey its value without needing to speak."

"This kind of value is called 'consensus.' A classic example is diamonds. A certain brand endowed it with the symbol of love—'a diamond is forever'—which became a value recognized by everyone. And this is not brand value, because any diamond brand enjoys the benefits it brings."

Then, his voice carried a hint of imperceptible amusement.

"What you truly need to learn is not how to create 'use value,' but how to coalesce this 'consensus value.' That is the true art of turning stone into gold."

Qiao Chuxia nodded blankly in agreement.

She didn't know that at this moment, Meng Zhu, while on the phone with her, was watching surveillance footage on his laptop.

In the footage, one car was directly ramming into another.

The car was forced into the railing and stopped, and several bodyguards immediately swarmed over to tightly control the people inside.

The next morning.

Qiao Chuxia was looking at her phone in a cafe. A report about a 'snake swallowing an elephant' style acquisition by a tech giant made her fall into deep thought. The report portrayed this acquisition as a lopsided crushing victory.

But these days of learning had already allowed her to smell something unusual.

As usual, she discussed it with someone, but today, it still wasn't a text reply; he called back instead. Qiao Chuxia didn't think much of it.

"Hello, Mr. Meng. I just saw a report about the Leviathan Group acquiring Morning Star Technology. Everyone says Morning Star lost, but why do I feel like Morning Star used a 'failure' to exchange for an entry ticket into the core ecosystem of Leviathan, and that their situation has actually become better?"

At this moment, Meng Zhu was drinking tea while on the phone, but the laptop on his desk was showing surveillance of an interrogation in a basement.

"You've learned well lately. You've already learned to look at the cards under the table."

A simple compliment made Qiao Chuxia's heart race with excitement.

"You are right. In negotiations, this is called a 'strategic failure.' The CEO of Morning Star put on a brilliant performance. He deliberately packaged the loss-making business he most wanted to shed as 'the hope of the future' and 'an unshakeable cornerstone,' refusing to budge an inch over it at the negotiating table, even going so far as to show a stance of breaking off relations."

"Leviathan's negotiation team was successfully deceived by him. They spent a lot of energy and made many other concessions, eventually 'struggling' to take away this hot potato that Morning Star had long wanted to throw away."

"After being acquired, Morning Star seemed to lose face, but in reality, they obtained the real gold: capital, technical channels, and an ecological position."

Qiao Chuxia felt a slight chill run down her back, followed immediately by great excitement.

This was a real, cruel, and wise business game that could never be learned from textbooks. And she could already glimpse the clues.

"So this is psychological warfare? Letting the opponent feel like they've won, but in reality, what they've won is only what you wanted them to win."

"Correct. The core of business psychological warfare is not to make the opponent fear you, but to make them 'read' a script you have carefully written for them and believe in it deeply."

That evening.

Qiao Chuxia had just finished dinner.

She didn't originally have any questions to ask tonight, but Meng Zhu actually sent a message voluntarily.

"You have been learning for several days and have made great progress. Have you ever thought about what the essence of wealth is?"

Qiao Chuxia was stunned when she saw the message, subconsciously thinking this was an exam question prepared by Meng Zhu. She pondered it over and over.

"I can't quite explain it, but I vaguely feel that the essence of wealth is a kind of power."

In her mind, she couldn't help but think of the fall of the Sun Family and Ye Zhiming and his daughter kneeling before her.

"Correct. The essence of wealth is precisely an alternative form of power."

"It is the power to mobilize social resources, change the destinies of others, and realize one's own will. Manors, luxury cars, and bank deposits are just the external manifestations of this power; they are its by-products, not the power itself."

"Currently, you are only a consumer of these 'by-products,' but what you need to do is become a master of this 'power.'"

"I will show you something."

Following that, a file was sent over. It was exactly the car accident and basement surveillance footage Meng Zhu had been watching earlier, accompanied by some interrogation reports. The person being interrogated was none other than Ye Zhiming. The more Qiao Chuxia watched, the more terrified she became, cold sweat seeping from her back.