Essays on International Human Resource Strategy of Haier Group Case Study

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Generally, the paper 'International Human Resource Strategy of Haier Group" is a good example of a management case study. The origin of this successful company dates back in 1984 when Zhang took over a deteriorating factory engaged in the production of refrigerators in Qingdao, a Chinese Port city. It was previously known as Qindao Refrigerator Plant and since its decline to the verge of bankruptcy in the 1980s, this company has in the recent decades re-established itself into becoming a globally renowned brand in the production of white goods.

In present China, this company is the largest appliance producer with a wide alley of products ranging from refrigerators, microwaves, dishwashers, vacuums, freezers, televisions, air conditioners, computers, and cell phones among other products (Hunt, 2005, p. 1). Palepu et. al (2005, p. 5) noted that the market liberalization processes, or formerly the entry of China into the World Trade Organization (WTO) back in 2001 played a major role in adding pressure on Haier. This is founded on the fact that in the preceding years before this shift, the competition of this company was purely domestic but after the ascension of China into the WTO, this heightened the magnitude of competition at the international scale, with competitors like Siemens, Samsung, Sony, GE, Electrolux and GE among other global brands posing an enormous threat not only in the international market but also in the domestic market, previously dominated by Haier where they were trying to gain entry and capture a sizeable share in the domestic market. This meant a paradigm shift in the strategic approach of Haier moth in the domestic as well as in the international market which greatly featured aspects in the human resource aimed at maintaining a sustainable competitive advantage in the market.

Against this backdrop, this paper will critically analyze the international human resource strategy of the Haier group aimed at not only enhancing its performance but also maintaining a competitive niche in the market. Nonetheless, it is imperative to gain an insight into the background of this company aimed at gaining a comprehensive understanding of some of the dynamics shaping the international human resource strategy of this company. This is explored in the subsequent section. Background As previously mentioned, this company instigated its operations in 1984.

In this particular period, there were about 300 companies engaging in the manufacturing of refrigerators in China, but the majority of them were characterized by the production of poor quality products. Zhang saw this an ideal opportunity in the market based on the fact that he robustly believed that the consumers had the willingness to pay more for top-class quality products as well as services that were endowed with high reliability and effectiveness (Palepu et. al, 2005, p.

5). This called for a strategic approach which is best epitomized whereby Haier instigated with establishing technology licensing agreements with Liebherr, a refrigerator manufacturer Germany and the subsequent importation of freezer and air conditioner manufacturing lines from Sanyo in Japan and Derby in Denmark. In addition, the establishment of joint ventures (JVs) with companies like Merloni from Italy and Mitsubishi in Japan has been credited for being integral in the infusion of technological capital and designs into Haier Group (Palepu et. al, 2005, p. 2).


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