Haier Management at a Tactical Level

CASE ANALYSIS

HAIER: MANAGEMENT CONTROL ON A TACTICAL LEVEL

6/11/2015

O54529

Joyce Emmah Nabwire Mukhule

EXECUTIVE SUMMARY:

Haier Group, one of the world's fastest growing white goods companies is China's largest white goods manufacturer. Haier started out as a nearly bankrupt refrigerator plant in Qingdao, China, characterized with a group of low-skilled and in-disciplined workers, low productivity, inferior product quality and a financially burdened business with management issues. Zhang Ruimin, took over the company in 1984 which saw the introduction of corporate culture and rules. He believed that to become China’s first multinational brand and succeed internationally they had to dominate in the home market and move globally to compete with brands such as GE (General Electric).

Haier’s survival strategy was to compete with world giants. Globalization pressure was relatively weak hence Haier imported advanced technology in refrigeration from Germany and spent seven years building up a strong brand name in refrigerator production through a well-planned quality control system. Haier’s export, however, were limited and indirect through agents. The strategies adopted were subject to questioning as in reality it created possible loopholes in the organization. Haier should therefore undertake an analysis to determine whether they have completely utilized their strengths and opportunities while minimizing their threats and weaknesses.

Competition was the key driver and competitive-oriented foreign market entry is the major

motive of Haier’s internationalization strategy to compete with world giants. Haier did not

follow any ready-made rules but implemented its survival strategies very flexibly both in its

exporting and FDI. It follows its customer timely, meets competition bravely to build a strong market position and, exchanges threat and finally shapes the competition.

ORGANIZATION BACKGROUND:

The business strategy in Haier was revamped...