Group portfolio - Research Paper Example

The innovative attribute in Haier’s group is as a result of its greatly instilled culture among its employees, which interprets into the formation ofmeans and a platform for developing first class talents to endlessly generate value for customers. Due to the organization’s innovative and dynamic corporate culture, it has turned out to be one of the global industrial giants, despite numerous threatening challenges (http://focus.ie.edu/new-multinationals). As a result of generating a highly talented workforce, the company creates a win-win culture of individual-goal combination (Fisher, Bill, Lago and Liu, 2013).

However, the organization sticks to its beliefs that successful companies move with the time while still devoting to developing a healthy and dynamic enterprise. One of the core cultural values that Haier group has is the rights and wrongs sense whereby the product users are considered always to be right while the company need to regularly improve itself (Sprague, 2002). The culture acts as the driving force, hence forming value for the customers; the employees work their best to meet the customer’s needs in addition to generating a wide variety of choices that they can choose from.

The workforce has a mind-set, whereby, they feel the need to persistently advance themselves, which they perceive to be the only way they can continually refuse, dare and outdo themselves in order to realize their innovative character through change. The organization, in addition, has an adaptive culture that has led to its growth, whereby it maintains its pace with the social growth while maintaining an awareness of any changes occuring in the world. Its innovative character enables the firm to uphold a competitive benefit in the ever-changing market.

That is to say, the more radical the world changes the quicker the speed of customer’s variation, hence, the more lasting the inheritance turns out to be (Lin, 2005). In addition, the organization has employed the concept of two spirits, innovation and entrepreneurship, which are considered to be the genes for the company’s consistent culture. The genes ensure that all members of the workforce maintain their value in addition to guiding them in their individual development. It is also mandated for every employee to have the entrepreneurship and innovation spirits.

Entrepreneurship is considered to be the spirit of pioneering work in which the company persuades all employees to have it (Yi, Jinsheng and Xian, 2002). They are encouraged to transform from being supervised and instead become their own managers. On the other hand, innovation specializes on the creation of new value, which is majorly generated from the formation of new product users. Lastly, the interest theory of “win-win model of individual-goal combination” is another effective aspect that has made the firm to grow.

Employees, product users and stakeholders have their interests at the heart of the organization (Hawes, Colin and Eng, 2011). While the individual represents the employees, the goal means the product users and the company’s constant formation of business model innovations leads to win-win state in which both the employee and the user benefit. In addition, the company ensures that all of its employees join the ZZJYT, a group of various independent teams within the organization formed after Haier removed its middle management.

The teams are a way of the firm getting closer to its customers or attaining zero distance from customers. Therefore, when employees join these teams by signing a contract, they change from being managed to individual management and from being run to running themselves and it is a way of allowing the humanity to diverse. Hence, the employees are able to realize their innovative skills independently and the users benefit from these products. Consequently, with the employee’s creation of value for users within various ZZJYT departments while at the same time fulfilling their own values, the enterprise and stakeholder’s values are naturally fulfilled (Zhang, Xue and Zhang, 2014).

BibliographyHawes, Colin, and Chew Eng. 2011. "The cultural transformation of large Chinese enterprises into internationally competitive corporations: case studies of Haier and Huawei." Journal Of Chinese Economic & Business Studies 9, no. 1: 67-83. Business Source Premier, EBSCOhost (accessed May 27, 2015).Lin, Thomas W. 2005. "OEC Management-Control System Helps China Haier Group Achieve Competitive Advantage." Management Accounting Quarterly 6, no. 3: 1-11. Business Source Premier, EBSCOhost (accessed May 27, 2015).

Fischer, Bill, Umberto Lago, and Fang Liu. Reinventing Giants: How Chinese Global Competitor Haier Has Changed the Way Big Companies Transform. 2013. .Sprague, Jonathan. 2002. "Chinas Manufacturing Beachhead." Fortune 146, no. 8: 192B-192J. Business Source Premier, EBSCOhost (accessed May 27, 2015).Yi, Jeannie Jinsheng, and Shawn Xian Ye. The Haier Way: The Making of a Chinese Business Leader and a Global Brand. Dumont, NJ: Homa & Sekey Books, 2002 pg.54Zhang, Zhi-Xue, and Jianjun Zhang. Understanding Chinese Firms from Multiple Perspectives. 2014. . Pg.162 http://focus.ie.edu/new-multinationals