...THE IMPACT OF GLOBALIZATION ON HAIER Name: Institution: Date of submission: THE IMPACT OF GLOBALIZATION ON HAIER Introduction People across the world have been interacting with other cultures in numerous ways, many of them for economic reasons. Integrating the insights of the past, one could envisage that it was difficult initially for people to communicate and do business together. However, these obstacles still subsist even in today in international business. Despite that, our world has become undoubtedly smaller in the last decades, cultural and geographical contexts still take place in shaping different societies and their methods of relations. The term globalization is the method of international incorporation arising from the exchange of worldviews, products, ideas, and other aspects of culture. There are several factors generating interdependence of economic and cultural activities which include telecommunications and transport infrastructure. Most recently, due to the industrial revolution and innovation in the transportation and communication, the units of international interaction resulted into multinational corporations who were finding materials, labor, and clients outside their own. It can be realized that multinational corporations are agents of globalization. Haier Group Company has10 industrial parks world wide and 22 other plants overseas and has been impacted by the global world. The reality of this branches from the fact that it has many subsidiaries...
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...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...
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...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 Home Appliances. 2 TABLE OF CONTENTS EXECUTIVE SUMMARY…………………………………………………………….i LIST OF TABLES AND FIGURES…………………………………………………4 INTRODUCTION……………………………………………………………………..5 Part I: ANALYSIS OF EXTERNAL ENVIRONMENT……………………………7 Definition & Overview of the Industry ……………………………………………...7 Drivers and Key Success Factors of the Industry…………………………..........7...
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...THESIS REPORT A Marketing Analysis of Household Appliances Market in Finland A Case Study for the Haier Group Na Wang Degree Programme in International Business May 2009 Supervisor: Shaidul Kazi TA MPERE 2009 TAMPEREEN AMMATTIKORKEAKOULU University of Applied Sciences INTER NATIONAL 2 B USINESS Writer(s): Study Programme(s): Title of Thesis Na Wang International Business A Marketing Analysis of The Household Appliances Market in Finland, A Case for the Haier Group Month and Year of Completion: Supervisor: May 2009 Shaidul Kazi Number of Pages: 57 ABSTRACT A company which wants to enter into a new market must first understand the target market’s business environment and how to create and retain customers by providing better value than the competition. As the environment changes, businesses must adapt in order to maintain strategic fit between their capabilities and the marketplace. The process by which businesses analyze the environment and their capabilities and decide upon courses of marketing action is called marketing analysis. A marketing analysis can help the company to make decisions based on the marketing information they have. The aim of this thesis is to form a marketing analysis for Haier Group on the basis of an analysis of its external and internal business environment. This involved evaluating the company’s different marketing activities. The business environment of Finland – Haier’s target market – has also been...
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...Contents Haier 2 Research on brands and branding 2 Strong in home market 2 Geographical balance in sales 3 Addresses similar consumer needs worldwide 4 Standardization vs. Adaptation 4 Marketing mix 5 Consistent positioning 5 Haier’s mission statement 6 Haier’s Vision statement 6 Consumers value the country of origin 6 COO theory 6 Product category focus 7 Corporate name 8 Branding and strategy 8 Extent of globalization 9 Analysis of the brand 10 Marketing metrics 10 Revenue metrics 10 Marketing programs performance metrics 11 Profit per customer 11 Bibliography 13 Haier Haier Group is a Chinese multinational home appliances and consumer Electronics Company which has it headquarter in Qingdao, China founded in 1984. It designs, develops, manufactures and sells a wide range of products which includes air conditioners, mobile phones, computers, microwave ovens, washing machines, refrigerators, televisions etc. Research on brands and branding International marketing today requires that the products used by the consumers must be branded and have good branding image. China created a portfolio of global brand champions. These features were presented by John Quelch in 1999 that were common in all the ten brands, which are as follows. Strong in home market In order to be successful on a global level, firms first of all need to have strong position in their domestic markets. If the cash flow and market share at domestic level is strong...
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...integrating paradigm for your business knowledge. The aim is to develop an understanding of the strategic challenges facing managers in competitive markets. Globalization, foreign competition, and rapidly changing technology have sharply increased the intensity of competition in most industries. We will learn how leading firms have devised strategies, structured, and managed their organizations to achieve competitive advantage in this challenging environment. Strategic management deals with uncertainty and unstructured situations. You will learn tools and concepts for putting some structure into your analysis of strategic issues. But most strategic choices require judgment. Case studies enable us to test our judgment and learn vicariously from successful and unsuccessful managers in a variety of situations. Hence, class discussion of the cases is a central part of your learning experience. Methods: We will combine cases, lectures, individual and group papers and presentations. Pre-requisites: First semester of Core. Textbook: Jay Barney, Gaining and Sustaining Competitive Advantage, Fourth Edition. Case Packet will be available. Assignments and Grading: 1. Participation: (15%) Attendance is required. Please inform the instructor in advance if you need to be absent. Participation means active involvement in the discussion of the case with evidence of preparation. 2. Article File: (5% for 1 brief, 5 minute, presentation) Once during the term you will come to class prepared to make a short...
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...International Management Culture, Strategy, and Behavior Ninth Edition Fred Luthans University of Nebraska-Lincoln •Jonathan P. Doh Villanova University Mc Graw Hill Education Table of Contents Part One Environmental Foundation 1 2 The World of International Management: An Interconnected World Introduction Globalization and Internationalization Globalization, Antiglobalization, and Global Pressures Global and Regional Integration The Shifting Balance of Economic Power in the Global Economy 2 4 6 6 9 12 Global Economic Systems Market Economy Command Economy Mixed Economy 19 19 19 20 Economic Performance and Issues of Major Regions Established Economies Emerging Economies Developing Economies on the Verge 20 20 22 26 The World of International Management—Revisited 30 Summary of Key Points 32 Key Terms 32 Review and Discussion Questions 32 Answers to the In-Chapter Quiz 33 Internet Exercise: Global Competition in Fast Food 33 In the International Spotlight: India 2 Globalization and International Linkages 34 The Political, Legal, and Technological Environment 36 The World of International Management: Social Media and the Pace of Change 36 Political Environment Ideologies Political Systems 38 39 41 Legal and Regulatory Environment Basic Principles of International Law Examples of Legal and Regulatory Issues Privatization Regulation...
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...“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 ................................
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...IBM Business Consulting Services IBM Institute for Business Value Strategy and Change Going global Prospects and challenges for Chinese companies on the world stage In association with IBM Institute for Business Value IBM Business Consulting Services, through the IBM Institute for Business Value, develops factbased strategic insights for senior business executives around critical industry-specific and crossindustry issues. This executive brief is based on an in-depth study by the Institute’s research team. It is part of an ongoing commitment by IBM Business Consulting Services to provide analysis and viewpoints that help companies realize business value. You may contact the authors or send an e-mail to iibv@us.ibm.com for more information. School of Management at Fudan University Fudan University was the first institution of higher learning in China to set up a department of business education, and was also the first in the country to resume its business education program after the reform and open-door was implemented in China. Over the past two decades, the School of Management at Fudan University has developed into an internationally well respected business school. This joint project with the IBM Institute for Business Value fulfills our mission to analyze business operations and national economic activities using advanced management theories, systematic methods, mathematics models and information technology. It is part of our commitment of timely research...
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...HBR.ORG The Globe F A Cautionary Tale for Emerging Market Giants PHOTOGRAPHY: GETTY IMAGES How leadership failures in corporate Japan knocked its companies off the world stage by J. Stewart Black and Allen J. Morrison ifteen years ago, Japanese companies accounted for 141 of the companies and 35.2% of the revenues of Fortune’s then brand-new Global 500 list. By 2000 their share of revenues had fallen to 20.8%, and by last year it had shrunk to 11.2%, with only 68 Japanese companies making the list. During the same period, U.S. firms’ portion of Global 500 revenues, which was 28.4% in 1995, grew slightly, to 30%. Firms from the European Union and Switzerland, meanwhile, increased their portion from 31% to 36%. Much of Japan’s loss has been a gain for firms from emerging markets. Since 1995 companies from the BRIC nations (Brazil, Russia, India, and China) have seen their combined share of Global 500 revenues leap from 0.9% to 10.4%. But will those countries lose their edge in the years ahead, as Japan did? Or will they find ways to remain globally competitive and protect their share—as the U.S. and Europe have done? To answer those questions, we first need to understand why Japan was unable to continue the meteoric rise it saw in the 1970s and 1980s, because the new generation of emerging-country multinationals bears a disturbing resemblance to corporate Japan in the 1990s. Over the past quarter century, we have tracked the rise and fall of Japanese business, and...
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...Perspectives on China's Outward Foreign Direct Investment Randall Morck University of Alberta School of Business and NBER Tel: (780) 492-5683 randall.morck@ualberta.ca Bernard Yeung Stern School of Business New York University Tel: (212) 998-0425 byeung@stern.nyu.edu Minyuan Zhao Ross School of Business University of Michigan Tel: (734) 647-6978 myzhao@umich.edu June 2007 * The authors are grateful for the helpful comments from William Allen, Tom Pugel, Myles Shaver, Jordan Siegel, and Changqi Wu. Perspectives on China's Outward Foreign Direct Investment Randall Morck Bernard Yeung Minyuan Zhao Abstract Recent economic data reveal that, at the infant stage, China’s outward foreign direct investment (FDI) is biased towards tax haven countries and South East Asian countries and are mostly conducted by State controlled enterprises with government sanctioned monopoly status. Further examination of China’s savings rate, corporate ownership structures, and bank dominated capital allocation suggests that, although a surge in China’s outward FDI might be economically sensible, the most active players have incentives to conduct excessive outward FDI while capital constraints limit players that most likely have value-creating FDI opportunities. We then discuss plausible firm-level justifications for China’s outward FDI flow, its importance, and promising avenues for further research. I. Introduction Barely thirty years ago, most would consider China a poor agricultural...
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...B2B Brand Management Philip Kotler ´ Waldemar Pfoertsch B2B Brand Management With the Cooperation of Ines Michi With 76 Figures and 7 Tables 12 Philip Kotler S. C. Johnson & Son Distinguished Professor of International Marketing Kellogg School of Business Northwestern University 2001 Sheridan Rd. Evanston, IL 60208, USA p-kotler@kellogg.northwestern.edu Waldemar Pfoertsch Professor International Business Pforzheim University Tiefenbronnerstrasse 65 75175 Pforzheim, Germany waldemar.pfoertsch@pforzheim-university.de ISBN-10 3-540-25360-2 Springer Berlin Heidelberg New York ISBN-13 978-3-540-25360-0 Springer Berlin Heidelberg New York Cataloging-in-Publication Data Library of Congress Control Number: 2006930595 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer-Verlag. Violations are liable for prosecution under the German Copyright Law. Springer is a part of Springer Science+Business Media springeronline.com ° Springer Berlin ´ Heidelberg 2006 Printed in Germany The use of general descriptive names, registered...
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...Managing the internationalization process Learning outcomes After reading this chapter, you should be able to: ➤ Understand the motives for internationalization. ➤ Apply the theories underpinning the internationalization process. ➤ Explain the Psychic Distance and Born Global concepts. 5 ➤ Advise a multinational firm on choosing an appropriate entry mode for internationalization. ➤ Advise a multinational firm on de-internationalization. 148 Global strategic development Opening case study Internationalization of a French retailer—Carrefour In 1960, Carrefour opened its first supermarket in France. In 1963, Carrefour invented a new store concept—the hypermarket. The hypermarket concept was novel, and revolutionized the way French people did their shopping. It moved daily shopping from small stores to enormous stores where customers find everything they want under one roof, in addition to selfservice, discount price, and free parking space. The first Carrefour hypermarket store was established at the intersection of five roads—hence the name, Carrefour, which means ‘crossroads’. Carrefour is the leading retailer in Europe and the second largest worldwide, with Exhibit A International development of Carrefour Year Country and mode of entry No. of stores (2009) 1969 1973 1975 1982 1989 1991 1993 1993 1994 1995 1996 1997 1997 1998 1998 2000 Belgium—Carrefour’s first hypermarket outside France Spain Brazil—Carrefour’s first hypermarket in the Americas Argentina Taiwan—Carrefour’s...
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...Best Global Brands 2013 Table of Contents JEZ Leadership is evolving. It must now be shared. CEOs, CMOs, and consumers all have the power to drive brand value. Brands are where business strategy meets reality. GINNI The New Rules of Brand Leadership 2 From Information to Intelligence 82 Best Global Brands 2013 Sector Leadership 86 BISH 10 Creative Leadership 70 Methodology 120 China’s New Brand Leaders 74 Contributors 126 Corporate Citizenship 2.0 78 MARK CHIEKO The New Rules of Brand Leadership By Jez Frampton In our globalized, hyperconnected age, one question persists in boardrooms, corner offices, business schools, and conferences all over the world: What is leadership and how has it changed in the 21st century? Driven by rapid technological advancement, the digitization of nearly everything, and the ever more intricate interdependencies of the global market, the business landscape has transformed over the past two decades. Operating in a bewildering new environment in which little is certain, the pace is quicker and the dynamics more complex. Those who lead today’s brands can no longer rely on once immutable truths or principles of leadership honored in times past. It is a new world. And as purchasing increasingly shifts from a physical experience to a virtual one and transaction-based interactions between brands and consumers shift to relationship-based interactions, new skills and sensibilities are needed. Leadership...
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...beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven economy to a demanddriven economy • To identify all the possible reasons for Korean Air ’s turbulent times and assessing whether they are controllable or not • To critically evaluate Korean Air ’s transformation efforts - in terms of growth, productivity and cost cuts, especially the efficacy of '10,10,10' goal in a family-run business • To identify various challenges...
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