Strategic Audit of Haier Group

Case 24 Strategic Management MGMT 436Group 5

I. Current Situation (Jw Hayes) A. Current Performance 2001 to 2004

Organized into 6 Divisions:

Haier China

Haier Europe

Haier America

Haier Middle East

Haier Spain

Haier New Zealand

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

B. Strategic Posture

MissionTo 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

Strategies

Policies

II. Corporate Governance (Jw Hayes)

A. Board of Directors

III. External Environment (John Lerch)A. Natural Environment

1. Weather factors associated with shipping overseas (T) 2. Long shipping times (T)

B. Societal Environment

1. Economica) Lower production costs in China (O)b) United States market is the largest in the world (O)

2. Technologicala) Rapid growth in Electronics market (O) b) High initial costs for producing products with more features than competitors (T)

3. Political-Legala) High cost of duties by manufacturing overseas and selling in the U.S. (T)

4. Socioculturala) Desire for new electronics in U.S. market (O)

III. External Environment Continued (John Lerch)

C. Task Environment1. Rivalry high in the United States (T)2. Able to expand product by partnerships (O)

III. EFAS Table(John Lerch)