...Managing Performance at HAIER(A)Case ReviewSituation Analysis In 2006 Haier was ranked the 6 th largest maker of large kitchen appliance. Haier had 4%global market share and strong positions in the production of washing machine andrefrigerators. Haier became successful after the arrival of Zhang as a CEO in 1985. After thatHaier increased its revenue from RMB 3.48 million to RMB 104 million. Haier transformedinto a group of 240 plants and companies, having more than 50,000 employs.Haier has moved to this position in just two decades and the average age of five globalplayers in the household electrical market was 95 years. Zhang make sure that any productwhich is not up to its standard will not be produced. Haier evolved from one refrigerator to 86different product categories with over 13,000 specifications. Haier innovated to create theirniche markets. Another main reason for the success of Haier was their marketing initiativewhich emphasized quality. Performance management system at Haier Performance management system at Haier was a variant of forced distribution system. In thistype of performance appraisal system the top 10% were promoted and bottom 10% were sentback to the training at the expense of the company. After this training if they again comeunder the bottom 10% then they were again given leave and this time they went to trainingbut on their own expense. In the third review if they again come in to the bottom 10% thenthey were fired. According to...
Words: 357 - Pages: 2
...Case Analysis On Haier – Management Control on a Tactical Level INTRODUCTION * Haier Group is China's largest white goods manufacturer and one of the world's fastest growing white goods companies. * The company started out as a nearly bankrupt refrigerator plant in Qingdao, China, equipped with a group of low skilled and undisciplined workers, low productivity, inferior product quality and a loss making business. * Its current CEO, Zhang Ruimin, first took over the company in 1984 and established corporate rules and culture, revamped business strategy and set up an incentive-based management control system. All of these transformed Haier into a global player in less than 2 decades. * This case study examines the establishment of Haier's management control system and how it was adapted into the company's internationalization strategies, how it motivated employees to reach high performance goals and how it structured the business units to obtain optimal operational efficiency. SWOT ANALYSIS Strengths * Haier enjoy a well-known brand name and high reputation for reliable quality and first-rate customer service. * Its strength also lies in its innovation in both production and management practice. * Haier was ranked fourth among the global white goods manufacturers in 2004. * The Group successfully carried out product diversification to expand its brand beyond refrigerators, adding washing machines, air conditioners, and other items to...
Words: 3419 - Pages: 14
...INTRO: AN OLD CHAMPION PROBING INTO THE FUTURE In this group assignment, we analyze Haier Group’s strategic position and outlook in China’s home appliances industry. By only focusing on the most up-to-date articles and resources available, we have come to the somewhat surprising realization that Haier Group is at the forefront of maturing into a networks platform and a solution provider to an ever-segmented market. While this transformation seemed only logical to any multinational corporation under the sea change brought about by the Information Age and the new paradigm spearheaded by Google and Amazon, Haier Group’s strategic response to what time has called upon them has been quite elusive and subtle. We will demonstrate how Haier Group, with so many success stories from its past, along with the cultural baggage it could evolve beyond, should adapt to the present and fulfill its future promise. PART I. Environmental scanning and industry analysis The STEEP analysis in this section will focus on the most relevant aspects with Haier Group in China: Chinese consumer’s recent socioeconomic development and technological development; the two aspects obviously have huge cultural and political ramification which we also include in the scanning. Toward the end of this section, we will demonstrate these aspects have presented both challenges as well as solutions. 1. Socio-economic facet While we focus our analysis on one single country, China, we have to point out that China...
Words: 3440 - Pages: 14
...From: Clover Session 1: Focus on Haier’s HR strategy：self-managed teams As the first international brand rooted in China, Haier did an outstanding job. Haier has provided many new ideas in its management, marketing, and customer relation strategies, and Haier still faces challenges in improving its brand name especially in international markets, expanding its market share, and building effective channels in its new markets. However, what I’m pretty interested in is Haier’s HR strategy. Self-managed team is not a new term in organizational behavior, but Haier may be the first company that brings the term to live in China. It is an exciting sign for shifting trends in China. Session 2: Facts in Haier self-managed team implementation Chinese culture of hierarchy influences organizations profoundly, and Haier is absolutely a pioneer that breaks the traditional hierarchy-oriented organizational structure. * Self-managed team structure changes employees’ perception “I am my own CEO, and everything that I do can make a difference to the organization.” Feng Zhao, a leader of Haier’s self-managed team said. This is a valuable change of employee’s perception. Many research shows that employees’ perception can change their behavior, thus greatly influence their performance, which will ultimately make a difference in organizational effectiveness. In traditional Chinese organizations, especially in which hierarchy plays an important role, entry employees find it’s difficult...
Words: 1186 - Pages: 5
...Introduction Haier is famous as a white goods home appliance manufacturer. Haier Electronics Group Co Ltd. (Haier ELEC) which is listed on the Stock Exchange of Hong Kong Limited (stock code: 01169) is subsidiary of Haier Group. Its main business includes research, manufacture and sale of water heater and washing machines in China. Meanwhile, it is responsible for distributing other home appliance products such as air-conditioner, refrigerator and television (Haier ELEC Annual Report, 2010). Industry and SWOT analysis The home appliance industry has high level of rivalry. There are many different businesses, such as National Electrics, Chigo, Siemens, and Midea, compete in the industry. Therefore, the large amount of substitute products cause to a high bargaining power of buyers. Strengths | Weaknesses | 1. Good brand image and reputation. 2. Market leader in water heater and washing machine sales. | 1. Lack sound distribution and selling system, causing to a high level of distribution costs, which is defeated by many other companies. | Opportunities | Threats | 1. Haier has core technology in water heater and washing machine. Entering small house appliances is an opportunity for Haier because Haier can quickly master the technology of small house appliances due to its good ability of research and development. | 1. High level of competition. In the area of air-conditioner, television and refrigerator, market share is surpassed by other new competitors...
Words: 2574 - Pages: 11
...process, failing in the tougher market. It is come to an agreement that in a mature market, the crucial factor that whether a competitive enterprise enables to settle in the market is determined by the effectiveness of both its internal and external controlling. Controlling is the process of assigning, regulating resources and comparing work performance in order to do better correction to accomplish the organization’s goals. It makes plans effective and make sure that organizational activities are consistent, which plays a significantly decisive factor of the organizational performance nowadays. Former studies have gone into the details of an specialized sides of the controlling process, and these studies is limited to the description and analyze of the practice controlling cases. This essay will discuss how to achieve an effective organizational control from the three interdependent and integrated factors: the organizational system, culture and the correction process. First, I will elaborate the substance of organization and the patterns of the organizational control, then go into details to discuss how the organizational system and culture contribute to the effectiveness of controlling. And go through the effect of correction process to the controlling. This paper will illustrate from academic perspective and combined with the real life cases in order to build a...
Words: 2167 - Pages: 9
...Study (A Strategy Paper) on (for) HOME APPLIANCES & CONSUMER ELECTRONICS / WHITE GOODS Submitted by: Teofilo, Reymark P. 2009104355 As partial fulfillment of the requirements of EMG166 – Section T Strategic Planning & Management 3 Quarter SY 2014 – 2015 EXECUTIVE SUMMARY Haier in the Philippines are Corporation that the Filipinos embraced. It is a Home Appliances that gives comfort to the people that offers quality products. It is value for money, where normal people are looking for not like other competitors usually focuses only on their products. Haier is a corporation that brings life to your home. The corporation is still new to the market so it will be the focus of the strategy. Since the corporation is young compared to its competitors but they are different among their competitors having a variety of Home Appliance aside from having electronic gadgets. They aim to satisfy the needs and wants of their consumers that make them different among their competitors. Haier faces challenges and problems on how to penetrate since they only have one branch. They lack promotion that can help them to gain consumers and have the share in the market. With the help of the strategic plan one of the ways on how Haier will grow the market is that their marketing efforts should widened and strengthened. Along with the plan is the changing of the structure for the organization and marketing strategies to make their mark and to innovate their line of...
Words: 9401 - Pages: 38
...9/10/2010 | | Zhi Yun Tang | Executive summary The following report outlines the quality philosophy, system and approaches of Food and Beverage department in IHG and production process of Haier; discuss similarities and evaluate the differences of them. This report also concerns on how different quality system and approaches have impact on IHG in terms of innovation, change and competitiveness. In addition, recommendation given for IHG to overcome problems they are facing. Table of contents 1. Introduction 2. Compare and contrast the different quality philosophy ,systems and approaches 3. Analyse the differences and evaluate the impact of these differences on innovation, change, and competitiveness. 3.1 analyse the differences 3.2 evaluate the differences impact on innovation, change and competitiveness 4. Recommendations 1. Adopting an external measures 4.1.1 Adopting external measures impact on change 4.2 Training and Reward 4.2.1 Training and reward impact on innovation 2. Training and reward impact on competitiveness 4.3 Further area to consider 5. Conclusion 6. Reflection 1. Introduction Quality is “the totality of features and characteristics of product or service which bears on its ability to meet stated...
Words: 3630 - Pages: 15
...Recommendations for Change at Red Star An Analysis of the Haier Group (A) Case As Haier Group looks to Acquire Red Star, Zhang Ruimin must consider the strategy for change that he must implement. While the changes that need to be made may be obvious on the surface, the method he chooses to invoke change is critical to the initiative’s success. Zhang faces an organization that has suffered years of poor management, where no motivation exists throughout the business. Careful consideration of the circumstances at Red Star must be analyzed before employing Theory E, Theory O, or a synthesis of the two. The most effective conclusion to the method of change to be used as Haier Group acquires Red Star is a synthesis between Theories E and O; specifically, a focus on cultural change using a very programmatic plan. To be successful in his change effort at Red Star, Zhang must first consider what has worked well for him in the past. He has been through several campaigns for change while at the helm of Haier Group, originally known as Qingdao General Refrigerator Factory. His first effort started in 1984, on his first day at QGRF. Zhang chose to lead the organization because he saw it as a challenge. The company was suffering from poor quality and increased competition. Zhang saw the potential for a star in the industry and knew he was the right person for the challenge. The changes he made were both structural (Theory E) and cultural (Theory O) in nature. After...
Words: 3293 - Pages: 14
...[pic] FACULTY OF BUSINESS, ACCOUNTANCY AND MANAGEMENT COURSEWORK COVER SHEET COURSE: _________BBM___________ INTAKE: _September_2012__ |STUDENT PARTICULARS | Name: ________________Guo Yilun___________________ IC / Passport No: _________________G43528799______________________ Student No: _________________SCM-021053_____________________ Subject Name: _______________ Understand Markets_________________ Mode of Study: □ Full time □ Part time Name of Lecturer: _______________Ms Song_________________ Due Date: ___________________8/11/2012_______________ Declaration by student: 1, ______Guo Yilun___ hereby declare that the attached assignment is my own work and understand that if I am suspected of plagiarism or another form of cheating; my work will be referred to the Dean of Faculty who may as a result recommend to the SEGi University Examination Board that my enrolment in the programme be discontinued. I am submitting the following items: □ Coursework Cover (1 page) □ Hardcopy document (No of pages __) □ CD NOTE: 1. Students are reminded to keep a copy of all assignments / coursework submitted. 2. All LATE SUBMISSION will be DEDUCTED 10% a day up to a maximum of FIVE (5) days, where after that, the coursework will be marked ZERO (0). __Guo Yilun __ ___8/11/2012___ ...
Words: 2116 - Pages: 9
...Haier Case Introduction We will answer the group’s assigned question in two main parts; evaluating in the first instance the factors that led to the establishment of Haier’s competitive advantage in China over time followed by an analysis of the sustainability of the current position. Haier’s Competitive Advantage It is our view that the Haier company, under the leadership of founder and CEO Zhang Ruimin established a strong position in the Chinese market with respect to its competition. The company achieved this through a continuous evolution of a multi faceted strategy. Focusing firstly on on product quality and building a brand reputation, then adding in exemplary customer service followed by access to the remotest locations in China coupled with product localizations; the company was able to drive a continuous evolution of its value proposition. In parallel its focus on efficiency of production and operations drove cost advantages as it leveraged process improvements, economies of scale and scope. In the next section we outline the analysis of the sources of competitive advantage. Summary of Value Stick An essential element of the success of Haier in gaining and maintaining its competitive advantage was a deliberate and continuous approach to improving both cost and value drivers in its business. Each of the elements shown in the Value Stick comparison below were built on in key phases over time. Figure 1 - Value Stick Comparison Figure 1 - Value Stick...
Words: 1286 - Pages: 6
...2012 Liang, Marier, and Cui 55 S Y East Meets West P O S I U Strategic Human Resource Management in China: by Xiaoya Liang, Janet H. Marier, and Zhiyu Cui Executive Overview This paper outlines important ideological, institutional, and cultural contexts that shape what strategic human resource management practices are possible in Ghina. A detailed review of the main components of the high-performance work systems model suggests that when they are introduced into the Ghinese socioeconomic and political context, the cost-benefit calculus for high-performance work system human resource management practices is different from that in the U.S. context. Yet, in our review of Ghina-based strategic human resource management research we find the expected positive relationship between high-performance work systems and organizational performance in companies operating in Ghina. We conclude with a case example to illustrate how Ghinese firms might be both adopting and adapting the high-performance work system model to better fit their current cultural and economic context. T he Study of strategic human resource management (SHRM) emerged out of researchers' interests in understanding the relationship between human resource management and organizational performance (Delery & Doty, 1996; Kaufman, 2007). Since the late 1980s, most research evidence in this vein has been collected from firms located in the United States (see Combs, Liu, Hall, &. Ketchen, 2006; Huselid...
Words: 3037 - Pages: 13
...“WHAT IS THE RELATIONSHIP BETWEEN DIVERSIFICATION AND PERFORMANCE, PARTICULARLY IN EMERGING ECONOMIES? WHAT ARE THE FACTORS WHICH ARE RELEVANT FOR SETTING THE CONTENTS OF THAT RELATIONSHIP?” By João de Almeida Frazão Caro de Sousa Master Thesis Submitted to ESADE Business School in fulfilment of the requirements for the Degree of Master of Science in International Management ESADE Business School May 2012 Master of Science in International Management – ESADE Business School i Master of Science in International Management – ESADE Business School Table of Contents Introduction ..................................................................................................................................... 1 Theoretical Background 1. Diversification ......................................................................................................................... 5 1.1 General Observations ........................................................................................................ 6 1.2 Different types of diversification strategies....................................................................... 7 1.3 The costs and benefits of diversification ........................................................................... 8 1.4 Diversification Trends ....................................................................................................... 9 A. The Lack of Significant Relationship ................................
Words: 67131 - Pages: 269
...A Profile of Haier Group Founded in 1984, the Haier Group has been dedicated to innovation and creating a world famous brand over the past 26 years. Originally a small collective plant on the verge of bankruptcy, it has now grown into an international group which has more than 70,000 employees around the globe and realizes a turnover of 135.7 billion yuan in 2010. Haier has risen to be the world's No.1 brand of consumer appliances. In addition, it was selected as one of the world's Top 10 innovative companies issued by USA Newsweek's website. Haier aims to create a world famous brand in the age of the Internet, which features satisfying the personalized needs of users in a short time. What such a business needs is large-scale customization rather than massive production. Taking this opportunity provided by the Internet, Haier addressed this challenge and actively explored and practiced the "Win-win Mode of Individual-Goal Combination". Through "Inverted Triangle" organizational innovation and "End to End" ZZJYT construction, it realized the transformation from "selling products" to "selling services" and fostered differentiated and sustainable competitive advantages. Trend-leading R&D advantages ---- The Haier's patent applications total over 10,000- ranking first among Chinese home appliance firms. Haier takes the lead to make breakthroughs in international standards. It participated in the drafting of 51 international standards, 27 of which have been issued and implemented...
Words: 8703 - Pages: 35
...The Haier Group: U.S. EXPANSION I. Current Situation A. Current Performance * Organized into 6 Divisions: a. Haier China b. Haier Europe c. Haier America d. Haier Middle East e. Haier Spain f. Haier New Zealand * Top 100 Most recognized Worldwide Brand Name * 20 Year Old Company from China Produce Home Electrical Appliances * 18 Design Centers * 10 Industrial Parks * 30 Overseas factories and manufacturing bases * 58,800 Sales offices * 96 Product Group Categories To include : Refigeratorswashing Machines, Air Conditioners, Cell ph ones, TV’s * 2004 Global Sales $12 Billion * 4th in Global Sales revenue for White goods in 2004 * 21% Market Share China overall Appliances * 34% Market Share China Major Home appliances * 14% Market Share China small electronic appliances B. Strategic Posture 1. Mission To improve the quality of life, focusing on customers' needs 2. Objective Haier strives to create innovative and affordable quality products, to deliver sincere, delightful and caring services, in order to satisfy different customers 3. Strategies Three Stage Growth Plan * Brand Name Strategy * 7 years built strong brand name in Refrigerator products thru Total Quality control System * Products known for quality and innovation * Diversified Development Strategy * 6 years to diversify product catalogue * By 2004 13,000 products in 86 categories * Going...
Words: 1411 - Pages: 6
