PROBLEM STATEMENT

How to develop and implement a performance management system which is effective in all the
nations where Haier has its presence?
EXTERNAL ANALYSIS
Political
1. The operations of companies in china is monitored by Chinese
government.
2. The policies implemented by Haier in china might not be applicable in
other countries as there is a difference in governance in other parts of the
world.
Economic
1. China is a source to both cheap and high quality products. It found a niche
product in a market of highly developed countries with an advantage of low
cost of production.
2. Haiers globalization could be seen by its increase in market share for 2.5
to 4 percent (2001 to 2007).
3. Haiers products were available in North Americas top 10 retail chains
and it has tied up with 12 out of 15 retailers.
4. The overall exports increased to 1.7billion $ by 2006 and to 160 countries,
this showed the increase in demand for its products.
Social
1. The Asian work culture is different from the western culture.
2. Reviews are displayed publically in China, whereas in other countries this
might not be taken in the right spirit and could lead to dissatisfaction.
3. Chinese employees believe in teamwork where their main aim is perform
outstandingly for the team, whereas Haier was trying to implement its
system focusing on individualism where team work could be destroyed.
Technological
1. Whirlpool, LG, Bosch posted intense competition to Haier in household
electronic appliances segment.
2. German Quality was treated as the best and Chinese quality was treated
inferior.
Legal
1. Different companies have different labor laws hence a centralized
system might not work and legal implications might take place if needed.
2. The Public display of reviews in other parts of the world might not be
treated the same like in china and could result in legal implications.