Essays on Firm-Level Factors and Country-Level Factors and the Success of the Haier Group Case Study

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The paper "Firm-Level Factors and Country-Level Factors and the Success of the Haier Group" is a great example of a business case study.     Most of the publications regarding the globalisation of multinational companies centre on firms that originate from nations of the triad including Japan, North America and the European Union. According to Marinov and Marinova (2015), the biggest trade exchange and investment capital flow in the form of FDI in the world occur between these regions. However, since the 1980s, novel MNCs originating from emerging economies have entered the world business environment.

Lack of market mechanism besides dependency on political decisions hindered firms from developing nations from entering the global markets. Most of the firms operating in the conditions of centrally controlled economies were ineffective economically and unable to compete efficiently with firms functioning in market economies. However, in the last two decades, several MNCs from emerging nations with an example of Haier has become successful in the international markets. This essay presents an analysis of the firm-level factors and country-level factors that contribute to the success of MNCs from emerging markets with a particular focus on China Haier.

The paper also highlights the major lessons international business managers can learn about the interplay amid country and firm-level factors in attaining success in the global market. The Haier Group Firm-level factors and country-level factors have enhanced the success and survival of Haier. According to Frynas and Mellahi (2015), the Haier Group started as an almost bankrupt refrigerator company named as Qingadao General Refrigerator in Qingdao, China. It is a home appliance manufacturer founded by Rumin Zhang in 1980s with its headquarters in Qingdao, China (Hipsher, Hansanti and Pomsuwan 2008).

The company centres on the quality of the produced products and its leadership have been able to turn the firm from a loss-making company to international success in a comparatively short period. Zhang Rumin was appointed as the firm director and he is currently the firm’ s CEO. Under the leadership of Ruimin, Haier has risen to become the biggest manufacturer of home appliances in the world. The firm employs over 80,000 employees in over a hundred nations across the world. Between 1995 and 2012, the firm’ s global revenue rose from RMB 4.3 billion to RMB 163-1 billion (Frynans and Mellahi 2015, p. 178).

Haier Group decided to enter the global market for different reasons that include Zhang’ s vision of becoming a member of Fortune’ s Global, the support provided by the government of China and the stagnation of the home appliances market in China. Haier Group established a US division in 1994 and opened a subsidiary in Hong Kong in 2005. The firm is listed on the Shanghai Stock Exchange and has factories in several African nations such as South Africa, Algeria, Nigeria, Tunisia and Egypt.

The manufacturing facility in the United States is situated in Camden, South Carolina and has factories in several other nations across the world. Recently, the firm announced its decision to purchase General Electric Co. ’ s appliance business for over 5 billion dollars in order to expand it's the United States and international presence (McDonald 2016). The acquisition of other firms in the global business environment is an indication of how successful the Haier Group has become in the international market.


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