Introduction Company Background Haier Group Corporation

STRATEGIC AND OPERATIONS MANAGEMENT –
878658

Contents
Introduction......................................................................................................................................3
Company Background.................................................................................................................3
Process Type and Layout Type........................................................................................................4
Haier Group’s Corporate Social Responsibility Policies.................................................................6
Concentric Circle Model of Corporate Social Responsibility.....................................................7
Haier’s Approach to Quality............................................................................................................9
Role of Technology in Haier White Goods...................................................................................10
Conclusion.....................................................................................................................................12
Bibliography..................................................................................................................................13

Introduction
Company Background
Haier Group Corporation is an electronics and home appliances company that is based in China.
The company was founded 34 years ago in 1984. The company has its headquarters in Qingdao,
Shandong, China and designs, develops, manufactures and sells mobile phones, air conditioners,
microwave ovens, washing machines, refrigerators, televisions, computers, etc. Apart from these
products, the company also deals in commercial heating and cooling systems. GE Consumer &
Industrial, Fisher & Paykel, Haier Electronics Group, Hotpoint America and Qingdao Haier are
the subsidiaries run the Haier Group Corporation in different parts of the world. The company
was listed as the world’s largest market share holder in the white goods market in 2014.
The company started expanding its business into different parts of the world since 1096 when it
opened up a production facility in Indonesia and Philippines and Malaysia in 1997 while the
company failed to enter the Thai market because of the completion that it faced from the local
electronic companies. The company expanded its business operations to the United States in
2000 by opening a production facility in Camden, South California in 2000. The company
reached worldwide revenue of $7 billon while the revenue from America reached USD $200
million.
The vision and mission of the company is to be industry leader and users’ first choice, as well as
being the obvious competitive solution provider and the employees of the company believe that
the user is always right. Therefore, they try to fulfill the expectations of their users by offering
quality as well as variety.
The objective of this report is to get a deeper insight into the company and to analyses its
strategies. The report contrasts the process types and layout types that the company employs for
its white goods and for its real estate industry division and assesses the Corporate Social
Responsibility of the company. The report also discusses the company’s approach to quality.

Apart from a strategic analysis, the report also contains an insight into the increasing use of
processing technology in white goods and how it can be beneficial for the company.
Process Type and Layout Type
As discussed above, Haier is a multinational company that has diversified its business to a great
extent. Not only does the company deal in white goods but has also expanded its business
operations in the real estate industry. Because of the increasing customer demands, in the field of
real estate and property, the company has developed Haier House. Haier House has five product
lines i.e. intelligent residential property, commercial property, industrial property, property of
regimen and Haier Yungu. Haier Real Estate, at present, has started expanding its business in
many other countries by building smart cities and homes. It aims at providing users with more
than a house, but a house full of wisdom by focusing on technology [ CITATION Hai18 \l
1033 ]. U-Home, which is an innovation of the company, allows users to use internet and
technology to connect their devices with their information sensing systems and keep in touch
with the situation of their home at any point of time.
On the other hand, the company has a huge list of electronic appliances that it sells to its
customers all around the world. Clearly, the company has diversified itself into a lot of
businesses that require different processes and layouts for becoming more efficient and
strategically competitive. The processes and layouts of white goods and real estate subsidiaries
of the company are discussed below:
The real estate division of the company, also known as Haier House, performs a wide range of
processes. These processes are discussed below:
- Research & Development
- Manufacturing/Construction
- Human resource management
- Sales & Marketing
- Finances
- Site Acquisition
- Lease Administration