born january 5, 1949 laizhou, shangdong, china married with one child a son ceo of haier group...
TRANSCRIPT
Born January 5, 1949 Laizhou, Shangdong, China Married with one child a son CEO of Haier Group from founding in 1992
Zhang Ruimin: What a Case!!
During the Cultural Revolution the Colleges Universities were largely closed. Zhang joined the Red Guards.
Education of Zhang Ruimin
Zhang finds employment in Qingdao factories Takes management courses at night Works his way up the management hierarchy
In 12 years Zhang becomes a Workshop Supervisor1982 Zhang is promoted to Deputy Manger of the
“Household Appliance Division” of the Qingdao Municipal Government
Forced to become Manager of the “Qingdao Refrigerator Plant” a failing Collective in 1982The company is $10 Million in Debt, their product is low quality and the workers demoralized.
After the Tumult: 1968
Zhang Ruimin Took a Sledge Hammer to 76 Defective Washing Machines in 1985 to Emphasize Qingdao Refrigerator Plant’s New Commitment to Quality
The Beginning of the Zhang Legend
Off to a Smashing Start
Zhang Discovers a 20% failure rate of appliances with dissatisfied customer.
Zhang brings out the sledge hammers! “If we don’t destroy these refrigerators
today, what is to be shattered by the market in the future will be this enterprise!”
Zhang Ruimin 1985 Qingdao Refrigerator returns to profitability
in 1986
Zhang Turns “Qingdao Refrigerator Plant” Around
Zhang was hailed as a turn around artist in Qingdao
Qingdao Microwave Electronic Plant Qingdao Air Conditioner Qingdao Freezer General Plant Qingdao Haier Refrigerator Company
Adopted Haier name derived from the German Partner Leibherr.
Acquisition in Qingdao
1970 - Joined the Communist Youth League 1975 – Membership in the Communist Party 2002 - Alternate Member of the 16th
Communist Parties Central Committee 2007 - Alternate Member of the 17th
Communist Parties Central Committee 2012 - Alternate Member of the 18th
Communist Parties Central Committee
Politics
Zhang Ruimin is one of Fortune’s World’s Top 50 Leaders (22nd)
His philosophy permeates Haier Group Branding, Expansion by Acquisition, Quality
The Sage of Qingdao
Company CEO
Haier CEO Legend
1985 2014
Zhang RuiminLeading the Rise of the Dragon
Qingdao China’s Great Collective:
1991 – 2014 and Beyond
Haier Group Corporation
Started As Qingdao Refrigerator Plant in 1984Qingdao was an in debt and failing collective
when Zhang Ruimin became the CEO.Signs in plant admonished workers to not urinate
or defecate on the factory floor.Started a partnership with Liebherr
Haushaltergäte a leading German appliance maker.
Technology alone would not save the company.Zhang introduces branding as a way to save and
build the company.
HAIER GROUP
1985 the great refrigerator smash, beginning of the push for quality and brand excellence.
Middle management fired and replaced by Teams: Catfish Management is born.
1986 Qingdao Refrigerator shows a profit. Sales increase 83% by 1987. Acquires Qingdao Microwave Electric in
1988 Appliances and increases its product line.
Qingdao Refrigerator turns around1985 to 1991
The Qindao Air Conditioner Plant and the Qingdao Freezer General Plant are acquired in 1991 and the Brand name Haier is adopted.
Product line increased by acquisition is the model.
Becoming Haier - 1991
Haier diversifies by buying failing Chinese companies. One product downturn buoyed by another product gain.
Dominate a niche market and then expand into universal markets.
Haier opens its first overseas manufactory in Indonesia in 1995.
Taking on the US market Haier opens a manufacturing plant in Camden, South Carolina in 1999.
Haier Goes GlobalThe 1990’s
Watch your back! Your Competitor is Certainly Watching!
The Big Fish Eat The Little Fish!
Catfish Management
“O” Stands for Overall “E” Stands for Everyone, Everything, and
Everyday “C” Stands for Control and Clear 2,000 zi zhu jing ying ti (ZZJYT) self managed
teams, each responsible for profit and loss ZZJYT’s must attract outside partners and
resources to exist “a free market in talent, so the cream rises.”
OEC Management Control System
Haier America – 1999 Haier Europe – 1992 Haier Australasia – 2009 Haier Middle East & Africa – 1993 The first manufacturing plant –
2005 Haier in Southeast and East Asia – 1993 Haier in South Asia – 2001 Haier China – 1992 from Qingdao
Refrigerator
Haier International
The appliance and electronics market is a tough one to excel in, but Haier has used a few key points to help them flourish.
Products Niche Marketing The standing market These three things have been the focal
point for Haier’s entry and success within the economy.
Tough Market
Haier offers a wide variety of household and commercial products.
Products
College Students, along with American households are a focal point for Haier marketing.
Niche Marketing
The existing market was difficult to break into but Haier used it to their advantage and broke out.
Market
982 Revenue = - 10 Million 2004 Revenue = $11 Billion 2013 Revenue = $29 Billion
Growth 2008 to 2016
Globe News Wire. (2014, March 20). Fortune Names Haier Group Chairman & CEO Zhang Ruimin Among "The World's Greatest Leaders”. Retrieved from GlobeNewswire: http://globenewswire.com/news-release/2014/03/21/620343/10073569
Haier Group. (2005). 2005 Environmental Report of Haier. Retrieved from UN Global Compact: http://www.unglobalcompact.org/system/attachments/1764/original/COP.pdf
Haier Group. (2014, January 24). About Haier. Retrieved from Haier Group Home Page: http://www.haier.net/en/about_haier/
Haier-UK. (2014, April 18). Haier surpasses $29 billion in 2013 revenue and achieves record growth in sales. Retrieved from Haier-UK: http://www.haier.com/uk/newspress/pressrelease/201404/t20140418
Bibliography
The Economist. (2013, October 12). Haier and higher. Retrieved from Chinese Industry: http://www.economist.com/node/21587792/print
Wikipedia. (2014, May 20). Zhang Ruimin. Retrieved from Wikipedia, the free encyclopedia: http://en-wikipedia.org/wiki/Zhang_Ruimin
Williams, D. (1998-2012). China Business Etiquette, Culture, & Manners. Retrieved from InternationalBusinessCenter.org: http://www.cyborlink.com/besite/china.htm
Wu, Y. (2003). China's refrigerator magnate. The Mckinsey Quarterly, pp. 1-7.
Bibliography continued