PROBLEM STATEMENT How to develop and implement a performance management system which is effective in nations where Haier has its presence? EXTERNAL ANALYSIS Political 1. The operations of companies in china is monitored by Chinese government . 2. The policies implemented by Haier in china might not be applicable in other countries as there is a dierence in governance in other parts of the world. Economic 1. China is a source to both cheap and high quality products. It found a niche product in a market of highly developed countries with an advantage of low cost of production. 2. Haier’s globali ation could be seen by its increase in market share for !." to # percent $!%%& to !%%'(. 3. Haier’s products were available in North Americas top 1! retail chains and it has tied up with &! out of &" retailers. ". The overall e#ports increased to &.'billion ) by !%%* and to &*% countries+ this showed the increase in demand for its products. $ocial 1. The ,sian %ork culture is di&erent from the western culture. 2. -eviews are displayed publically in China+ whereas in other countries this might not be taken in the right spirit and could lead to dissatisfaction. 3. Chinese employees believe in team%ork where their main aim is perform outstandingly for the team+ whereas Haier was trying to implement its system focusing on individualism where team work could be destroyed. 'echnological 1. hirlpool+ /0+ 1osch posted intense competition to Haier in household electronic appliances segment. 2. 0erman 2uality was treated as the best and Chinese (uality %as treated inferior . )egal 1. *i&erent companies have di&erent labor la%s hence a centrali ed system might not work and legal implications might take place if needed. 2. The 3ublic display of reviews in other parts of the world might not be treated the same like in china and could result in legal implications.
PROBLEM STATEMENTHow to develop and implement a performance
management system which is effective in all the nations where Haier
has its presence?
EXTERNAL ANALYSISPolitical 1. The operations of companies in
china is monitored by Chinese government.2. The policies
implemented by Haier in china might not be applicable in other
countries as there is a difference in governance in other parts of
the world.Economic1. China is a source to both cheap and high
quality products. It found a niche product in a market of highly
developed countries with an advantage of low cost of production.2.
Haiers globalization could be seen by its increase in market share
for 2.5 to 4 percent (2001 to 2007). 3. Haiers products were
available in North Americas top 10 retail chains and it has tied up
with 12 out of 15 retailers.4. The overall exports increased to
1.7billion $ by 2006 and to 160 countries, this showed the increase
in demand for its products.Social1. The Asian work culture is
different from the western culture.2. Reviews are displayed
publically in China, whereas in other countries this might not be
taken in the right spirit and could lead to dissatisfaction.3.
Chinese employees believe in teamwork where their main aim is
perform outstandingly for the team, whereas Haier was trying to
implement its system focusing on individualism where team work
could be destroyed.Technological1. Whirlpool, LG, Bosch posted
intense competition to Haier in household electronic appliances
segment.2. German Quality was treated as the best and Chinese
quality was treated inferior.Legal1. Different companies have
different labor laws hence a centralized system might not work and
legal implications might take place if needed.2. The Public display
of reviews in other parts of the world might not be treated the
same like in china and could result in legal implications.
