International Dimensions Of Business - Essay Example

? INTERNATIONAL DIMENSIONS OF BUSINESS International Dimensions of business Background overview of the Haier Company Haier Company is one of china’s largest companies that deal with manufacturing of mainly home appliances brands. Briefly, the Haier Company came in existence by the year 1984 in a Qingdao, in the Shandong province. Following this, the company specifically does manufacture home appliances over 15,100 products. Consequently, the above data did basis on 96 categories of different specifications. Back in 2006 April, the Haier firm had come to 6,189 mark of original technology products that they had manufactured. To add on that the company did acquire software certificates of about 589 from intellectual property rights. Essentially, the Haier products in marketed their products in over 100 different countries. Apparently, the Haier Company sponsored the Beijing 2008 Olympics games (Nancy & Allison, 2008, p.90). In summary, the company has its headquarters in the Shandong province at a place known as Qingdoa in the republic of china. Additionally, the company has almost 50,000 employees worldwide and has over 240 subsidiaries. Concerning the financial status, the company has revenue of about 103.4 billion RMB that is global. Consequently, this averages to 68% annual growth between the year of 1984 and 2005.Haier Company is the most profound company that has undergone dynamic changes. Furthermore, it is now the most successful company globally. Therefore, it is important for one study the company. The company gathers a range of issues that are comprehensive for one to learn. Some of the subsidiaries that came to be on the list were Qingdao Haier Company, limited on the stock exchange of the Shanghai as well as the Haier electronic group limited that was listed in the Hong Kong stock exchange. As most companies, the Haier had to have business tock as follows: manufacturing and product development, trade, research on technology and lastly the finance services. Notably, the company did stick on its line of production for several issues namely; freezers, microwave ovens, washing machines, televisions, computers, mobile phones and lastly commercial air conditioners. In the summary of the introduction Haier Company came into existence in the year 1984, in the Qingdao city in the province of Shandong, and lastly, it is in china. It was the first white goods company of the china republic and eventually, it did distribute its products in five continents, which are 160 countries. The company had over 70 thousand employees over the world. Ranking Subsequently, during the year of 2006, Haier Company was in 86th position out of 500 of most prominent brands. Notably one of its achievements was that this is the only company that came to top 100 positions consecutively for three years. It is noteworthy that the company improved its reputation in that it was the first among the Chinese brands to acquire appropriate recommendations in its financial reports globally by the year 2006. The reports came in generation by the Canada state and in addition, the group got world climate rewards from the U.S.in summery, this is few achievements of the Haier Company. The productions of the Haier Company Following this, the Haier Company did manufacture a wide range of products from refrigerating cabinets, air conditioners, computers, water heaters, and home theater, televisions, and mobiles phones among the many that have not been in mention. Furthermore, Haier is leading in the technology domains of home furniture that are integrated by intelligence, digitization, and extensive integration of circuits. Haier’ global branding deal Company did aim at getting to a position of local brand in several markets worldwide in concurrence with the superior competitiveness of the product in relation to tough corporate operation. International business structure comprises of the universal design network, production, distribution and as far as procurement of after sale services (Shaw & Onkvisit, 2008). Currently, the Haier has recognized 15 complexes of industry, herein, the oversea marketing companies is 30 in numbers, designing centers are 8 and to curb it all, there is 58,000 sales mediator all-inclusive. Following this, product that is in demand is mainly three among the entire manufacturing. Herein, the products categories is the refrigerating cabinets, washing machines and air conditioning and generally, the products has 30% share in the market. According to European market, 12 of the 15 chain stores are products of the Haier Company as well as 10 in the chain stores of the U.S. Through localized design, sales processing and the manufacturing, Haier is about to get to its target in Europe and American markets. Extensively the Haier has set plants and production facilities in the Italy, Pakistan, and Nigeria and as far as the USA. Furthermore, Haiers has innovative principles of management, for instance, Haiers OEC model of management. Besides, Haiers has individual combination of the goal and the market chain management. In explanation, this system assigns incentives basing to responsibility of the staff. In fact, the responsibility of the staff is to ensure that the products’ exceptional quality is delivered to the customers. Hitherto, the staff members have high recognition of in institutes of management that is international. Services offered by the Haier Company The customer makes a concept of the foundation growth. In this case, Haier gives in full services to its customers. China Consumer association in conjunction with the china enterprise center of research did conduct a research on customer satisfaction. Amusingly, the Haier’s product did get the first position concerning overall satisfaction as well as customer satisfaction. Besides having home appliances of high quality, Haier also focus in giving out of its best breed service elucidation to the customers. The system service that Haier offers transverse the process of production, that is from design of the products, fabrication manufacturing, under sale, presale, and eventually after sales service. Consequently, over 5000 professionals are domestic and form a network of service to supply and convey service to customers in time. Recent news of the Haier Company In recent analysis, it is evident that Haier Company has so far customized the general sales network all around the universe. According to analysis, Haier has come up with partnership schedule with the following partners in standpoint market, and this is as follows: America: the company has cooperation with the following, top 10 retailers, PC- Richard, best buy, Wall mart, and target and brands mart. Europe: the company has in cooperation with the Carrefour, media market a lastly, the KESA. China: the company did form alliance with the Gome chains stores and the Suing. Japan: here the company did form cooperation with top 10 retailers like KOJIMA, TAMADA and JUSCO. The financial background of the Haier Company As far as seven years down the line, the Chinese interest increase in capital of the shareholders is not that high. Home appliances come into the market from Taiwan and Taiwan sale, and so haier did invest the money from somewhere else in the province. Ultimately, the Haier’s life was primarily, recognized in 200 million Yuan only which reflects the registered capita. Essentially, this was from 2002 to 2007 and which was the beginning of the initial five years. Consequently, Haier did register a profit of 220 million, and this was the capital increase. There came an increase in capita by twice the values in the year 2007, and this meant that there were two shareholders of 08million each of Yuan. For the first time in 2008, the capital did record an increase of two shareholders of 03million Yuan. The increase in the Yuan made it possible for the registered capital to change to 640million Yuan, and as time went by, there were an increase of about 800 million Yuan. It is essential to note that 2008 was the year of progress of the insurance company. According to the advancement of the insurance company that year, this revealed the state of the industry. Following this, during the end of the year 2010 the annual revelation was that the Haiers’ adequacy ratio was 103%. Eventhough, this can seem to be more that 100% it is 24% point’s decrease in comparison to the end of the year 2009. In general, the financial analysis has been not consistence as far from the pioneering times. The premium did increase slightly to 460 million Yuan’s during the year 2010 and so this is evident that the Haier’s life ownership does change, and its best income did fall to 470 million Yuan. To crown it all at the end of 2011, best income did fall to 420 million Yuan standing to 43. In summary of the financial background of the Haier company The overturn is evident in the year 2010 was 35.7 billion Yuan. If the same undergoes conversion, it amounts to 13.6 billion dollars. Consequently, this is possible since the company did win the annual growth of 9%.in the year 2011; the market share of Haier Company had an increase by 7.8%, still on the same there were an increase of 10.9% market share of the washing machine. Apparently, the branding of the Haier Company did amount to 85.5 billion yuan, which was almost to 8.56 U.S dollars. Business culture of the Haier Company and the innovation of the Haier organization The Haier Company has several cultures that form a driving tool to its success. Here, are some of the factors. The Enterprise cultures, this form the basis of sustainable advancement where, it entails the work for employee and their value that at the end creates production and enthusiasm. Enterprise culture is mandatory to any company that seeks success. Mainly, many companies Haier inclusive see spiritual or value by considering the employees first. It is pertinent that this achievement should be by caring the employees’ requirement, pay attention to talent foster, development, and lastly the focus on human value. According to research done by American, he a firms that culture of a company has immense blow on business that is of long term. Furthermore, culture of the company is a crucial factor that establishes the success or failure of an enterprise. Haier spirit The spirit of the Haier revolves around pursuing excellence and dedication in the company. The following four aspects come true when pursuing the excellence ability as follows: Eximious service, this are service that an entrepreneur gives to his/her customer and it entails service during the sale, per-sale service and lastly, the after service. Excellent product production The outstanding talents; the Haier company takes into account that human is the body of the company modern management. It follows that, Haier Company did form perception that talents should be cultivated in order to create famous brands. Lastly it the obvious profit Haier style Ultimately, Haier style also did form rapid reaction, it is in argument that culture for sole Haier do innovate the spirit. Currently, the competition on the Haier style is violent that ten times than previous and this leads company to face crisis that hitherto exists. The company rotates on the issue as goal in marketing innovation; method on other hand is technology innovation, guidance being the innovation and lastly, the current crisis being tackled Haier culture core Primarily, the core culture involves pursuing excellence dedication and again sincerity should be in observation forever. Consequently, the above issues are values and philosophy of the Haier. Haier narrates that consistent person career deal with Haier career all together (Garland et al, 2008, p.49). Herein, the core value above is the rule that personal value is higher that the value of the product. In addition, it states that individual value is not superior that the common value in the company. Lastly, the core culture of the Haier affirms that the profit value is lower to social value of the company. To crown it all, the company asserts that one’s single value is far less than the cooperate values. In addition, the company's culture entail research making on the human nature, that is will, intention, thinking capability and so on. A gain individual interest comes into consideration by the team spirits, individual ambitions and lastly each enthusiasm must be in mobility. besides, there is the most crucial and charismatic issues that Haier culture have and they are; encouraging a sense of one’s initiative and responsibility, the leeway of sustainable set-up and constant innovation, and again the company sees the need to meet ones needs and contribute to the society. In summary of the company’s culture, it is observable that; Everyone did work under certain authority and again there were supervision Employees had talent as well as used resources in a good manner and their wealth The talent that is seen today, is not necessary will be the same tomorrow. Without appraisal, most employees did not show competence in its maximum and again they did not show good use of their talent. Production of the haier company and the innovations Haier Company is one the major companies in the Chinese country that offers customer home appliances and other white goods. Primarily, the outstanding sale that the company does encounter is the sale of refrigerators that accounts to more than one-third of the company’s sale per annum. To add on that it offers a lead on the number of several appliances as the dishwashers and the air conditioners (Toyne & Nigh, 1999, p.120). Gradually, since the year 1990s there has been in expand in the range of products and this has lead to diversification of the company. Diversification is evident in that, the company does not sale things like computer and the cell phones. as much as the company do specify on the technology, it has aggressively followed the route of the globalization that is building a market network In more than 160 different states which has lead to emergence of more than 3800 worldwide retails outlets. In summery Hitherto, the Haier Company had its own innovations and following the same, here are some missions of the innovation strategy. The company had to improve the technical strength to meet the goals of the company, to make the advancement of the technology together in order to fit in the dynamic world. Besides, the company had to supply technical to Haier for global branding again it was mandatory for the Haier to supply database to its staff to get high-technical electrical productions. The advancement of technology should be together for proper manipulation and eventually the reduction of the cost of production to meet the required the end- products. However, in 1920, there was construction of the company that was to manufacture refrigerators in the coast of china. The government did take over the factory, because of the communist revolution of 1949. Consequently, the company did decline in the production of its products. By 1980s, the company had declined and so the Haiers did face heavy debt to the extent that its workers were unable to get their dues because of the bankruptcy of the company (Gertler & Gali, 2010, p.208). Hitherto, the company could only manage to raise 80 refrigerators a month. During 1980s more, foreign company did come in to seek for investment since they had seen an investment opportunity in Haier Company. The company got its revive when the city of Qingdoa did agree to get into partnership with the company. In services of the Haier, they did entitle in selling their prestige first which will automatically sale the real products. In the marketing arena, the Haier decide to have concert that was in a “slak session” other than slack session market. This could pave the way for the sale of the produce. Since the market rule was dynamic, the Haier did study the entire market for stability and did expand its territories over the same. Haier company deed up and down to prevent the customers from feeling unworthy with their services since in any given business, customers is the core drivers. Lastly, for a good business moving research of the market is mandatory. Here market research did help a lot since the CEO knew the market trends. Recent business news about the Haier Company In the recent business news, it is evident that the Haier company is growing to its familiarity since according to data, in the year 2010,the Haier came the 50th position among the top 500 corporate in the world. This was a recommendable position and is one thing that upraises the company to globe. While in china, Haier Company did become the first company among the 500 brands in the country. This was after six years of its existence, that is, from 2004 all the way to 2010.branding, it was the first in rate among China’s most valuable brands as per the announcement on 09/09/2011. Concerning the goods, Haier become first in the white goods and this was evident through the euro monitor research of 12/15/2011.the company did sponsor the Olympic games of the year 2008 in solidarity. Again, it was the only white goods in the same game that was official. The Haier group The Haier group was literally in the management of the philosophy who was again a businessperson and CEO of the Zhang Ruimin. By the time he joined in, Haier had already under gone the development process as follows, the diversification, globalization, and brand building. The fourth branding strategy development did come to media during its 21st anniversary. The recognition of the branding as official was in 1993. Gradually, when it came the year 2006, the Haier brand had the value of RMB 74.90 billion. From 2002 onwards, the Haier has been first in the row of China’s valuable brands due to the manufacturing of the 18 products. This did include the mobile phone, personal computers, and kitchen appliances and so on. According to china, state bureau the brand was among the top 10 global brands. Gradually, the brand got its fame and by august 30, 2005 it had come all the way to first position of the Chinese brands. This was evident fro the research done by the financial times according to Allison, (Allison, 2008). Looking at the domestic products of the china, Haier has been in a leading position among the 90 items of the home market. In the field of the world market, the Haier had three products. The products were the appliances of the market, integrated circuits that were in larger scale and eventually new materials. Frankly, in the satisfaction in the demand of worldwide consumers Haier had a good significance in the innovation of the same. Consequently, with the desire to improve technology, Haier have been in participation to modify about 100 standards of technological issues in the world. For instance, dual drive washing machines and the care water heaters are examples of what have been in the proposal to then IEC criteria. In conclusion, as much as the company is the most able and do sale both in china and the Europe part as far as America, it did come from a very humble environment. It is notably that the company could only produce 80 refrigerators a month and furthermore, its workers did not get their pay. it is important to lean that, for a company to move on smoothly, there is a need for the chief executives to get the sponsors who can boost the entire company in both marketing and production area (Litka & Blodgett, 2009, P.120). In summarization, Haier Company is prominent in China and the Europe market .furthermore the company has fit into the dynamic world, whereby they embark on technology. To summarize the whole story, Haier is a big and reliable company that most of the entrepreneurs in the world tent to fetch green pastures from the same. Bravo goes to the managerial department of the above “Haier” company since they did what it takes to make the company shine in the entire tight market of the world. It is not easy to get this far and so the managerial team have something that many needs to emulate. Reference Garland, J. S., Farmer, N. R., & Taylor, M. (2008). International dimensions of business policy and strategy. PWS-Kent Pub. Co. Gertler, M., & Gali, J. (2010). International Dimensions of Monetary Policy. University of Chicago Press. Litka, M., & Blodgett, M. S. (2009). International dimensions of the legal environment of business. South-Western College Pub. Nancy J. A, & Allison, G 2008, International Dimensions of Organizational Behavior,7th edn:New York , Cengage Learning. Shaw, J. & Onkvisit, S. (2008). International Marketing: Strategy and Theory. Taylor & Francis. Toyne, B., & Nigh, D.W. (1999). International Business: Institutions and the Dissemination of Knowledge. Univ of South Carolina Press. Read More