STRM043 AS1 Individual Report Assignment


Table of Contents

1.0 Introduction. 2

2.0 Overview of Haier Group Case. 2

3.0 Features of Haier’s Internationalisation Strategy Since 1990s. 3

3.1 Comparison with Western Enterprises. 6

4.0 The Success of Haier’s Internationalisation Strategy. 7

5.0 Features of Haier’s Management System.. 8

5.1 Difference with Western Companies. 9

5.2 Lessons by Chinese Companies and Western Enterprises. 10

6.0 Conclusion. 11

References. 12






1.0 Introduction

Central to organisational effectiveness and competitive advantage is a strategy that outlines the collective actions and resources to steer its goals and objectives. As espoused by Feniser and Sadeh (2017), strategy defines the desirable brand for the company and is aimed at directing how it achieves its mission and vision in the future. Strategic thinking is also central to fostering success in the dynamic and competitive environment. Grant (2016) describes some of the key elements that characterise organisational strategy. These include consistent and long-term goals, a profound understanding of the dynamic and competitive environment, resources’ appraisal that is objective, and profound communication. Grant (2016) explains these characteristics from the two stories of Lady Gaga and Queen Elizabeth. In understanding the competitive advantage, for instance, ones should evaluate the political, economic, and social elements, among others, and how they impact the environment. These elements are vital, especially for firms that seek to explore foreign markets.

This report involves the internationalisation strategy for Haier Group. The key elements in the report are the main features of the company’s internationalisation strategy since the early 1990s and the difference from the western firms and the level of success of Haier’s internationalisation approach. Another element in the report involves the principal features of Haier’s management system and how they differ from the traditional deployed ones by western enterprises.

2.0 Overview of Haier Group Case

Haier’s transformation is atypical of the industrial growth and development in China. By 2015, the company had earned a global position that was elusive for most Chinese companies. Since its inception, Haier Group has transformed its strategy to become the leader in the appliance sector. As described by Grant (2016), the company is reputed for its innovativeness and product development. It has also established a strong presence in competitive and complex markets, including Japan, Europe, and North America, which have some of the leading technologies globally. The growth of Haier Group is profoundly reflected between 1984 to 2012 as demonstrated in figure 1. Zhang Ruimin, the firm’s chief executive officer (CEO), has developed strategies to foster the company’s growth throughout these years. For instance, in 1984, Haier built a strong presence within the home market through customer service and quality products. In 2005, the company transformed from product-driven to user-driven.

Haier Group Strategy Phases 1984-2015 (Grant, 2016).

Haier’s success can be attributed to its management strategy, innovation, and product development. Regardless of the company’s opaque structure in governance, its success is related to the CEO, Zhang Ruimin, who is the architect of the firm’s remarkable development. Zhang’s leadership qualities cover a wide range of elements, including building the brand, customer focus, and quality management. The company’s strategy has also been centred on embracing technology in its products and connectivity of the people. Another key element that characterises the company’s success is performance management, which is vital in promoting the employees’ competitiveness. The company has also embraced the use of information and communication technology (ICT), as reflected in its ‘Smart Living’ launched in 2014.

3.0 Features of Haier’s Internationalisation Strategy Since 1990s

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