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Haier S Strategy

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Haier S Strategy
Journal of Contemporary Management
Article ID: 1929-0128-2014-02-01-14

Submitted on 31/08/2013
Muzi HE, and K. C. Wong

An Analytical Study on Strategic Management of Haier
Muzi HE
Anglia Ruskin University, UK (MBA1)
Oxford Brookes University, UK (BSc. Hons)
CICPA2
PO Box 117, Geylang Post Office, Singapore 913804
Tel: +65-83300960 E-mail: muzihemba@gmail.com
Dr. K. C. Wong
MBA Project Supervisor / Mentor

Abstract: Qingdao Haier has been the world 's largest white goods manufacturer since 2010. Haier has built a portfolio of unrelated diversification through mergers and acquisitions and had decentralizing its operational risks. Haier is confronting few strategic issues which might be more rational and effective in its logistics structure, competitiveness, and the challenges of technological innovation when the unrelated diversification of its business units are into greater expansion.
In this study, the models like PEST, SWOT, Porter five forces, Boston Consulting Group (BCG)
Matrix, Value Chain Analysis shall be utilized as tools to identify the strategic management issues of Haier, and through financial analysis to examine the challenges of Haier’s strategy.
The aim of this research is to analyse and address Strategic Management of Haier from 2010 to
2012 through strategic analysis. Some recommendations improve various strategies of Haier based on the conclusion.
The significance of this study on Haier 's strategic analysis is to reveal the strategic issues of the
Chinese Multinational Corporation (MNC) in providing the global investors an accuracy of investment decision making.
JEL Classifications: M21, M16, O16
Keywords: China MNC; Strategic analysis; PEST (Political,Economic, Social and Technological);
SWOT (Strengths, Weaknesses, Opportunities, and Threats)

1
2

MBA Postgraduate studies in progress
Member of Chinese Institute of Certified Public Accountant

~1~

ISSN: 1929-0128(Print); 1929-0136(Online) ©Academic Research Centre of Canada

1. Introduction



References: [1] Carl W. Stern, Michael S. Deimler (2006), The Boston Consulting Group on Strategy: Classic Concepts and New Perspectives [2] Chengxiu Suo (2012), Globalization and the Rise of "Haier": An Organizational Discourse Study of a Leading China-based/Transnational Corporation [3] China Daily (2012), “The market share of Haier in 2012” (In Chinese) [Online] Available at: http://www.chinadaily.com.cn/hqsj/shbt/2012-12-28/content_7884221.html (Accessed on June 15th, 2013). [4] China Video Industry Association(CVIA) (2012), Blue Book of China 's colour TV research in 2011 (In Chinese), Beijing China: People Post Press. [5] Euro Monitor (2012), “Haier-SWOT” [Online] Available at: http://www.euromonitor.com/haiergroup-in-consumer-appliances/report (Accessed on June 15th, 2013). 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[11] iHaier (2012), “Haier Logistics Surface” (In Chinese), [Online] Available at: http://www.ihaier. com/site2/ (Accessed on July 11th, 2013). [12] John Jagerson, S. Wade Hansen (2011), All about Forex Trading (All About Series), New York: U.S., McGraw-Hill. [13] Keith Willetts (2012), Unzipping the Digital World (New and Revised Edition), Morristown, New Jersey, U.S., TM Forum, 2012. [14] Kenneth Rapoza (2012), “Barclays: China Source of High Inflation for Next Decade” [Online] Available at:http://www.forbes.com/sites/kenrapoza/2012/02/20/barclays-china-source-of-highinflation-for-next-decade/ (Accessed on June 15th, 2013). [15] Liming Wang (2012), Rising China in the Changing World Economy, London UK: Routledge. [16] Li Shuaida (2011), Why Haier wins: Haier 59 business achievements details (In Chinese), Harbin, Heilongjiang Province, China: Harbin Publishing. [17] Paul Midler (2011), Poorly Made in China: An Insider 's Account of the China Production Game, (Revised and Updated Edition), New York, U.S.: Wiley & Sons. [18] PRNEWS (China Business Press Release Newswire) (2011), “Haier is most involved in the development of industry standards”, [Online] Available at: http://www.prnews.cn/press_ release/41228.htm (Accessed on June 15th, 2013). [19] Qianinfo (2013), “Chinese flat panel TV market outlook survey analysis report in 2013” (In Chinese), [Online] Available at: http://www.qianinfo.com/products/33/4014925.html (Accessed on June 11th, 2013). [20] Qu Jianguo, Long Xiaobao (2009), New Credit: Bank Account Manager Operations Manual (In Chinese), Beijing China: Peking University Press. [21] Ren Xiyuan (2007), Haier daily work Act (In Chinese), Beijing China: China Truth Press. [22] Shaun Rein (2012), The End of Cheap China: Economic and Cultural Trends that Will Disrupt the World, New York, U.S.: John Wiley & Sons. 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[29] Xu Liang (2012), Zhang 's era: the road to China national industry Haier ideas and way out (In Chinese), Beijing China: Red Flag Publishing House. [30] Yan Jianjun, Hu Yong (2001), Haier, Made in China (In Chinese), Haikou, Hainan Province, China, Tri-cyclic Press. [31] Yasuhiro Monden (2011), Toyota Production System: An Integrated Approach to Just-In-Time, 4th Edition, New York, U.S.: Productivity Press. [32] Ying Zhu (2012), Two Billion Eyes: The Story of China Central Television, New York, U.S.: New Press. [33] Ying Zhu, Christopher Berry (2009), TV China, Bloomington, U.S.: Indiana University Press. [34] Yu Bo (2010), “Haier diversity analysis” (In Chinese), Journal of Northern Economy, Vol. 23, Pp.26-32. [35] Zhang Lei, Zhao Xin (2011), “Promote the sustainable development of electrical industry- Life cycle assessment principles, methods and software” (In Chinese), Journal of Household [36] Zheng Huyang (2012), “Diversification strategy of the company 's operating results - Haier diverse case studies” (In Chinese), Journal of Financial Times, Vol

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