introduction to management- assignment

8/9/2019 Introduction To Management- Assignment

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a) What are Haier’s vision and mission?

Haier’s main vision is to invent resources and global prestige. The resource

creation is based on innovation. The core competence originated from the innovation

can be benefited in critical situations where Haier may have fewer resources than its

competitors. The higher objective of the company is to achieve “worldwide prestige” ,

which is accomplished by satisfying the needs of customers from all over the world

hence making Haier a globally recognied first!class brand.

"s for the mission of Haier, it has basically three fundamental mission namely, to

be the world’s most renown brand, to always be customer! orientated and to contribute

in developing energy!saving, environmental friendly, fashioned and personalied home

appliances. #n comparison, $amsung should be taken into consideration. $amsung is

guided by a singular vision% to lead the digital convergence movement. #t aims to

develop innovative technologies and efficient processes that create new markets, enrich

people&s lives and continue to make $amsung a trusted market leader. Haier and

$amsung are basically in the same industry, they are both home appliance

manufacturers and digital companies. However, comparing the both vision and mission,

we can easily spot a big level!difference between the two companies. $amsung’s vision

and mission have a higher level concept than Haier’s. #n terms of its causes, they are in

the different developing phases and different strategies. $amsung has been the world!

famous brand for more than '( years, is has successfully completed its globaliation

strategy and constitutes its new development strategy.

However, Haier has to begin his arduous journey of globaliation and global

brand building if Haier wants to occupy a place in international competition and achieve

its vision and mission.


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b) According to Haier’s president, many people have negative perceptions on China-

based companies but Haier is able to be ranked No ! in home appliances recently "n

your opinion, #hat are the success $actors o$ Haier’s management? %&plain

)ublic may only describe most *hina products in just one word + duplicate. This

is because most *hina products are a copy from the original. However Haier is one of a

kind as it has a good public review although its origin is *hina. This is mainly because

of the originality of the design and features of its product produced in the market.

esides the user! friendly and local!orientated design of the product makes it the

“people’s favorite” home appliances. This is proven by the e-otic designs of home

appliances that vary in different parts of the world rat!proof appliances for china, large

volume refrigerator for "merica and heavy +duty washing machines for )akistan.

/oreover, the well!organied management will be another reason of the 'st

ranked home appliance. 0ood publicity and advertisements help the products to reach

the public. #n addition, e-perienced employees will help contribute relevant ideas and

suggestions for company development. esides, Haier’s innovative managements such

as uni1ue “23*”, “/arket!chain” and “$4” management methods have been

recognied worldwide, especially in many foreign educational institutes, including

Harvard 4niversity and 4niversity of $outhern *alifornia.

2n top of that, reasonable sales, unlimited discounts and gifts upon purchases at

normal times and festive seasons act as a magnet to attract customers. /ost

importantly, the goods sold are high in 1uality and has a satisfying lifespan.

5urthermore, their impressive after!sale service and customer service adds on the spice

in their flavor.


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c) Write do#n 'H(%% *) strategic ob+ectives o$ Haier in alaysia in order to

achieve . per cent gro#th in sales

The first strategic objective will be localiation. 6ocaliation is the process of

adapting a product or service to a particular language, culture, and desired local “look!

and!feel”. Haier has started its localiation strategy in /alaysian markets its theory of

this strategy is “Three!in!one localiation”, which means Haier should design the

products to meet local consumers’ needs and lifestyle, manufacture the products in the

local market and market the products in local ways. "n e-ample is that Haier created an

advanced “ero detergent washing machine”, which has a high re1uirement of water

1uality. Haier needs to obtain water samples from around the world, because the

washing machine must be designed to depend on local water features. The “ero

detergent washing machine” has a good sales result in /alaysia because of high 1uality

water in /alaysia. /y suggestion is that Haier should have the concept of globaliation,

but the action of localiation.

The second strategic objective is Haier’s local branding strategy which aims at

picturing the company as a local brand in /alaysia in conjunction with enhanced

product competitiveness and strong corporate operations. Haier’s local business

framework encompasses a network of design, procurement, production, distribution and

after!sale services. The way Haier implements local branding strategy is mainly forced

by local economic integration.

The third strategic objective is target market which is mainly the study of

customer coverage. $tudying from the segments of age, gender, income and benefits, #tcan be concluded that the target market of Haier can be%

7'8 3veryone, no matter how old, needs home!appliances and digital devices, especially the

young couples who get married need lots of home appliances in theirhomes

798 5emales always do the kitchen chores, they need home!appliances more intensively


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7:8 Haier should focus on consumers who at least have middle!level income.

7;8 5ocusing people who like high!1uality products, e-cellent services, convenient function.


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d) /escribe the strategies that Haier employed in global and becoming number

one in the home appliances industry

To be a global brand serving more than '(( million customers worldwide is notan easy task. #t re1uires a lot of hard work and skillful strategies which was efficiently

taken by Haier. Haier’s main strategy here is to satisfy the different needs of customers

from different places around the globe. #n conjunction, Haier conducted a study to

identify the right design of home appliances which is local!orientated and ability to

satisfy the basic need of the customer.

They started with their motherland *hina where they found that rats are a major

problem for their customers thus they invented home appliances that are rat!proof.

esides that, Haier offered and 6*> T?s with /o!*ard technology,

three!door refrigerators with smart message display, energy saving air!conditioners,

washing machines that use double drive technology as well as a number of other home

appliances like blenders and wine refrigerators.


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e) "denti$y and e&plain 'H(%% *) strategic #eapons Haier have applied in order to

penetrate international market and sustaining competitive advantage

To sustain a competitive advantage and to penetrate international market can

only be possible for companies with good standing and impressive strategies and it

would not be a hesitation to say Haier is one of them.

Their first strategy will be @2 $trategy! Aoint strategy and Transformation

strategy. #n this strategy, Haier reduces the negative effect of internal weaknesses by

taking in some e-ternal resources hence making a good use of e-ternal opportunities.

@ith the economic status in mind, Haier considered of making some mergers or joint!

developments with other competent foreign and domestic companies in hopes of

overcoming its internal weaknesses in capital, technology and management. "n

e-ample would be Haier has formed a strategic partnership with 4$!based B*omputing

in 9((C which enables Haier *omputing to e-pand in the 4$ market for the first time

and will also increase the company&s presence in more than :( countries. @e can see

from the e-ample that the establishment of successful partnerships can help increase

its efficiency and strength its market power. esides, another @2 strategy would be the

transformation on its internal weakness in international and global marketing. Haier has

already undergone a transformation in two aspects from 9((C.Their first transformation

was to evolve the main market focus from domestic to the international market. This

should not bring a wrong perception as Haier doesnDt mean to abandon domestic

market but to boost it through the successful e-pansion of global markets. This re1uired

Haier to integrate global resources and catch the international marketplace of ideas,

innovations, and human resources in order to satisfy customers Dneeds worldwide. Thesecond transformation was to transform itself from a manufacturer to a service provider.

This on the other hand gives more emphasis on marketing, logistics, and 1uick

responding to the market needs by providing personalied services to customers.


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The second strategy will be high pricing strategy. Haier completely displayed its

strengths to cope with threats from oppose competition and price war. Haier enjoys

superiority over its competitors in many aspects. The prestigious brand name and

reputation help distinguish itself among numerous appliance companies. esides, its

diverse product range also contributes to the e-panding of its business scope.

Therefore, Haier implemented the high pricing strategy by improving the product 1uality

as well as the customer service. Bot forgetting, to diversify its product range while not

lowering the price due to the pressures put on by other competitors. Haier has a strong

belief that customer satisfaction and reputation are more important than sales volume.

HaierDs high 1uality E high pricing strategy can strength its customer loyalty and attract

more potential customers without a loss in profits, which in turn aids during the current

ferocious price war.

The third strategy is called the 0local strategy. This strategy was carried out to

handle the threats from international competitors. D0local’ strategy states that the

company should think globally but act locally. "s what has been mentioned earlier, one

of its strength is its productsDglobal availability and companyDs multinational presence.

To put it more specific, Haier adapted their prices, products, and promotions to meet theuni1ue needs of each areaDs targeted customers. Their intention was also to consider

their spending power, product references and shopping patterns. Haier is strongly

convinced that the essence of globaliation is localiation and efforts are taken in

establishing a FThree!in!2neF operational framework% localiation of design,

manufacture, and marketing. #n fact, some programs, like the )* 2rdering >epartment

in /acedonia, demonstrated its ability to internationalie its business culture and adapt

to conditions in a global marketplace.


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$) "denti$y and e&plain 'H(%% *) strategy elements that are #ell-suited $or Haier,

a company in a matured stability) industry o$ electrical appliances

5irstly is technological strategic% Haier has been playing the leader role in the

production of C product in terms of domestic market shares, top : producer of

refrigerator, wash machine and air conditioner in the world market and the world!class

company in home integration, network appliances and digital E large scale integrated

circuits fields. Haier has also hosted and taken part in the modification of about '((

technological standards. "part from that, until the year of 9((G, Haier has obtained GC<

patented technology certificates where 9(G are for Haier inventions, and G


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Introduction to

Management

Assignment

1

Name Matrix

id Ganesh A/l Anuel Kumar 16238

Vinod A/l N.a!andran 1"#$6

introduction to management- assignment

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