1 / 0

Strategic Audit of Haier Group

Strategic Audit of Haier Group. Case 24 Strategic Management MGMT 436 Group 5 . Current Situation (Jw Hayes). Current Performance 2001 to 2004. Organized into 6 Divisions: Haier China Haier Europe Haier America Haier Middle East Haier Spain Haier New Zealand.

hien
Download Presentation

Strategic Audit of Haier Group

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Strategic Audit of Haier Group Case 24 Strategic Management MGMT 436 Group 5
  2. Current Situation (Jw Hayes) CurrentPerformance 2001 to 2004 Organized into 6 Divisions: Haier China Haier Europe Haier America Haier Middle East Haier Spain Haier New Zealand (L., and Hunger 24-2)
  3. Top 100 Most recognized Worldwide Brand Name 20 Year Old Company from China Produce Home Electrical Appliances 18 Design Centers 10 Industrial Parks 30 Overseas factories and manufacturing bases 58,800 Sales offices 96 Product Group Categories To include : Refrigerators, Washing Machines, Air Conditioners, Cell phones, TV’s (Jw Hayes) (L., and Hunger 24-1)
  4. (Jw Hayes) 2004 Global Sales $12 Billion 4th in Global Sales revenue for White goods in 2004 21% Market Share China overall Appliances 34% Market Share China Major Home appliances 14% Market Share China small electronic appliances (L., and Hunger 24-16)
  5. (Jw Hayes) B. Strategic Posture Mission To improve the quality of life, focusing on customers' needs Objectives Haier strives to create innovative and affordable quality products, to deliver sincere, delightful and caring services, in order to satisfy different customers ("Haier: about us," 2011)
  6. (Jw Hayes) Strategies Policies
  7. (Jw Hayes) 2. Corporate Governance Board of Directors (Bloomberg, 2011)
  8. (Jw Hayes) OTHER BOARD MEMBERS ON BOARD MEMBERS (Bloomberg, 2011)
  9. (Jw Hayes) Bloomberg, Initials. (2011, May 10). Industrial conglomerates. Retrieved from http://investing.businessweek.com/research/stocks/private/board.asp?privcapId=29621318 Haier: about us. (2011, May 10). Retrieved from http://www.haiereurope.com/en/haier-mission L., Thomas, and David Hunger. Strategic Management and Business Policy: Achieving Sustainability. Pearson College Div, 2009. 24-1-24-26. Print.
  10. III. External Environment (EFAS table) (John Lerch) A.Natural Environment Weather factors associated with shipping overseas (T) Long shipping times (T) B. Societal Environment Economic Lower production costs in China (O) United States market is the largest in the world (O)
  11. (John Lerch) Technological Rapid growth in electronics market (O) High initial costs for producing products with more features than (T) Political-Legal High cost of competitors duties by manufacturing overseas and selling in the U.S. (T) Socio-cultural Desire for new electronics in U.S. market (O)
  12. (John Lerch) C. Task Environment Rivalry high in the U.S. (T) Able to expand product lines through partnerships (O)
  13. III. EFAS Table(John Lerch)
  14. VI. Strategic Alternatives and Recommended Strategy (Shavera) A. Strategic Alternatives1. Stability Strategy: Pause/Proceed with caution.a. Pros: Enables the company to focus on new market strategies, and consider focusing on its core products. b. Cons: Possible loss of market share. 2. Growth Strategy: Horizontal Growth Strategy. Target niche markets in the U.S. by developing a wider range of products and services to satisfy their needs.
  15. a. Pros: Enables the company to more quickly capture and respond to local trends and increase competitiveness (Wheelen & Hunger, 2010).b. Cons: Aggressive competition (Shavera) 3. Retrenchment Strategy: Sell Out/Divestment Strategy.a. Pros: Allows the company to exit out of markets like the personal computers that are struggling and unprofitable. b. Cons: Loss of market share and a decrease in profits.
  16. (Shavera) B. Recommended StrategyRecommend alternative # 2 which is the Horizontal Growth Strategy. Haier Company needs to focus on niche markets in the U.S. to satisfy those customers’ wants and needs. The concentration should not be on diversification, but rather building a strong brand name and image in the U.S.
  17. (Shavera) Wheelen, T & Hunger, J. (2010). Strategic Management and Business Policy. 12th Ed. Prentice Hall.
More Related