Abstract

The case discusses the transformation of China based Haier Group from a bankrupt, government-controlled collective enterprise in 1984 into a global consumer electronics giant by the early 2000s. The case describes the business environment in China and Haier's unique work culture which helped the company emerge as the leading home appliance manufacturer in the country. It then examines Haier's efforts to gain a foothold in the global markets including the US, European and Asian countries. The case details the major strategies adopted by Haier in response to the business environment it operated in, pertaining to quality improvement, acquisition, diversification, technology upgradation and globalization. Finally, it explores the challenges that Haier could face in taking its globalization efforts further. The case will help students gain an understanding of the external business environment of a firm, importance of corporate culture, rationale behind globalization, globalization strategies and the challenges faced by firms in globalizing their operations.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Appreciate the role played by corporate culture in turning companies around
• Understand the importance of acquisitions and alliances in diversification and globalization
• Gain understanding on the factors that drive companies to globalize.

Keywords

Haier Group, Maytag Corporation, OEC Management System, 3E Evaluation Parameters, Brand Building, Organizational Culture, Product Design, Collective Enterprises, Worker Management and Chinese Home Appliances Industry