Haier Case Study Summary

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Haier Fatal Flaw in Transition Mode

Business innovation is a first allocation of resources on the whole group, it is a systemic activation, rather than only relying on the vitality of the individual, fighting each other. The responsibility for corporate innovation and internal resources are distributed to individuals. This raises two questions: First, it means the staff and to assume the dual responsibility of corporate real pressure to survive and future development opportunities, but also within the assessment requirements of the internal market mechanisms, which will only lead to realistic and staff must first give up future, and eventually gave up reality together. As we all know, Haier is a huge international business in the world, …show more content…

However, what is Haier's strategy? What kind of enterprise business that Haier wants to be in the future? Although we can deeply feel that Haier is doing changes now, Haier tries to embrace the Internet era. But Haier really need to pay more attention on their Strategies.
Business strategy is always the priority proposition, innovation, transformation, change, recycling, and so on is subordinate propositions. Enterprises must change their strategy constantly, based on the demand of customer, based on the era. But they are must point to the strategic direction clearly. Because of innovations are only following the era changes and create a new organizational structure and team structure. The problem to be solved still the implementation and realization of strategy.
Haier's administration is more emphasis on the organization, they focus on structure and mechanisms within the team. Chief Zhang’s manage theory is also mostly concentrate on the "Organization and Individual" proposition to expand. And I found Mr. Zhang's thought is advisable, and this may be Haier's bottle neck, and also deserve for other enterprises to use for reference and avoid to making this kind of mistakes the same as …show more content…

It sounds like great, but here raises two more issues: First of all, in the "inverted triangle" organization, for individuals who are at the bottom of the organization to become decision-making person, that means they also assume the dual responsibilities of corporate real pressure to survive and future development opportunities, at the same time they also need to accord with the request of the internal market assessment mechanism. It will only lead to staff must first give up the future and focus on realistic life, and eventually they give up reality

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