Rendanheyi - Driving Innovation through Corporate Entrepreneurship at Haier

Case Code: LDEN189 Case Length: 18 Pages Period: 2005-2018 Pub Date: 2022 Teaching Note: Available

Price: Rs.400 Organization : Haier Group Corporation Industry :Electrical & Electronics Countries : China Themes: Corporate Entrepreneurship, Leadership and Change Management, Strategies

Abstract Case Intro 1 Case Intro 2 Excerpts

Introduction

In 1985, ZHANG Ruimin (Zhang), Plant Manager of Qingdao General Refrigerator Factory in Qingdao, East China, instructed all the employees of the company to assemble outside the factory, where 76 refrigerators were lined up. Each of those refrigerators had a note pasted on it describing a quality problem with it, and the name of the employee responsible for the problem. Zhang took a sledgehammer and destroyed the refrigerators one by one. This came in the aftermath of a complaint from a customer that the refrigerator he purchased from the company did not cool well. Zhang went to the plant and found more defective pieces, which he chose to destroy..

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