CASE STUDY ANALYSIS

Case Study Analysis

Executive Summary

Haier manufactures electronic goods for the customers, and in 1997, the company announced “three thirds” goal to earn revenue equally from the goods that were manufactured and sold in China, the good that were sold oversees, and the good produced and sold overseas. With regards to the strategy, the company needs to implement changes in order to bring improvements in the management style and to ensure that revenues are attained. Therefore, as a consultant, I have suggested the management of Haier to conduct thorough market research and to opt for internationalization for which the company must segment the market properly by preparing customer profiles. Furthermore, brand differentiation has also been proposed to increase customer base, profitability and attain economies of scale. Besides this, one more important aspect that Haier needs to take care of is to focus on customer services and development of technology in order to provide innovative products to the customers.

Acknowledgements

I would like to thank my research facilitator, my friends as well as my family for providing me with the support and believing me and also by guiding me throughout. Without them, it would not have been possible for me to complete my work successfully.

Table of Contents

EXECUTIVE SUMMARYII

ACKNOWLEDGEMENTSIII

INTRODUCTION1

Background of the Study1

Statement of the Problem2

Research Aims and Objectives4

DESCRIPTION OF THE SITUATION5

Current Situation5

Scope of Study7

Future Situation7

PROBLEM STATEMENT AND PLAN OF ANALYSIS8

Problems9

Plan of Analysis9

Models and Concepts9

Source of Data and Ethical Issues10

Broad Strategies Required To Achieve This Forecasted Position11

Management and Leadership Approaches11

Action Plan to Achieve the Implementation and Its Resource Requirements13

Performance Monitoring System with Periodic Reviews14

Summary of Steps15

ANALYSIS AND FINDINGS19

Assessment of the Current Position19

Analytical Techniques21

Internal Analysis21

Industry and Customer Analysis22

Porters Five Forces Model22

Mechanisms24

Corporate Responsibility25

Law, Accounting and Auditing Measures25

Hierarchy of Needs25

Two-factor Theory of Motivation26

Market Research27

Competition27

Total Quality Management27

Innovations in the Product Offerings31

PROPOSED SOLUTION TO PROBLEM31

Recommendations32

Conclusion33

Scope for Further Research33

Limitations of the Study34

Proposed Business Plan34

Forecast of the Company36

Objectives37

Diversification37

Sales Forecast37

Resources37

Market Valuation38

REFERENCES39

Case Study Analysis

Introduction

Haier was founded by Zhang Ruimin in 1984 when he built the Haier Group after which it became the largest appliance maker in China. The company further launched its operations in the 1990's by developing a global expansion strategy. In 1997, the company announced “three thirds” goal to earn revenue equally from the goods that were manufactured and sold in China, the good that were sold oversees, and the good produced and sold overseas. The real gross domestic product of China has grown from 1980 to 2010 which has greatly reduced poverty and has crated urban middle class in China. Most of the houses in China were the owners of the white goods; however the penetration rate for the appliances of the people residing in the rural areas such as refrigerators was 58.2 units from 100 households which offered room for market growth to the company. Since 2007, China has been the market leader worldwide with regards to white goods. By 2011, Haier was considered as number one manufacturer of white goods in China since 2001. Moreover, it was also known as the leading manufacturer of refrigerators ...