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  • 1pager Home Appliance v2 Group 11

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    SOHAN RAY
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    Haier and Whirlpool are major appliance companies. The document compares them on various financial metrics and strategic moves over the past decade. It shows that Haier has outperformed the industry median and Whirlpool on metrics like revenue, debt-to-equity ratio, R&D investments, capital expenditures, productivity improvements and gross margin percentage. Haier's growth and return on invested capital are also higher than Whirlpool and the industry median. The document indicates Haier has pursued an aggressive acquisition strategy and resources reallocation compared to Whirlpool's more traditional organizational structure.

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    1Pager Home Appliance v2 Group 11

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    Haier and Whirlpool are major appliance companies. The document compares them on various financial metrics and strategic moves over the past decade. It shows that Haier has outperformed the industry median and Whirlpool on metrics like revenue, debt-to-equity ratio, R&D investments, capital expenditures, productivity improvements and gross margin percentage. Haier's growth and return on invested capital are also higher than Whirlpool and the industry median. The document indicates Haier has pursued an aggressive acquisition strategy and resources reallocation compared to Whirlpool's more traditional organizational structure.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    5 views3 pages

    1pager Home Appliance v2 Group 11

    Uploaded by

    SOHAN RAY
    Haier and Whirlpool are major appliance companies. The document compares them on various financial metrics and strategic moves over the past decade. It shows that Haier has outperformed the industry median and Whirlpool on metrics like revenue, debt-to-equity ratio, R&D investments, capital expenditures, productivity improvements and gross margin percentage. Haier's growth and return on invested capital are also higher than Whirlpool and the industry median. The document indicates Haier has pursued an aggressive acquisition strategy and resources reallocation compared to Whirlpool's more traditional organizational structure.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    GROUP 11

    APPLICATION TO MAJOR APPLIANCE INDUSTRY


    Sub-Parameter Haier Whirlpool

    Revenue (Bn $ )[Top 25%] 35.5 21.2

    Endowment
    Debt (Debt to Equity Ratio)[Top 0.296 ( ￬ ) 1.134( ￪ )
    40%]
    R&D Investments (Bn $) [Top 1.2( ￪ ) 0.485 ( ￬ )
    50%]

    Industry Increased focus on digitalization & smart features enabled by apps & AI-

    Trends
    driven solutions. Merging with the Hi-tech industry.
    Geographic[Top 40% Nominal Reduced due to Geopolitical decoupling A major player in almost all
    GDP] with China. countries.

    M&A, Divesture[<30% Mcap, 10 Acquired Fisher & Paykel in NZ (2012) Last major acquisition in 2012 of
    yrs >30% Mcap] , GE in USA (2016),Candy in Indesit.(-)
    EU(2019).(+)
    Resource Reallocation Resources diverted to profit strategy Classical organization based on
    [Over 50% over a decade] based dynamic BU markets & products.
    Moves

    Capital Expenditure (Mn $)[Top 1,127( ￪ ) 525 (Stable)


    20%]

    Productivity Improvement[Top Able to leverage global scale for productivity enhancements.


    30%]

    Differentiation
    Parameter Industry Median Haier Whirlpool Improvement(Gross Margin %) + 30.99 +20.13
    [Top 30%]
    Growth
    6% 8% 1%
    (2017-2021)
    ROIC
    11% 15% 12%
    (2017-2021) Haier is outperforming the industry in both ROIC as well as growth.
    • HTTPS://WWW.WSJ.COM/MARKET-DATA/QUOTES/CN/XSHG/600690/FINANCIALS/ANNUAL/C
    ASH-FLOW
    • EUROMONITOR- IIMK LIBRARY
    • HTTPS://WWW.WSJ.COM/MARKET-DATA/QUOTES/WHR/FINANCIALS
    • HTTPS://WWW.MARKETSCREENER.COM/QUOTE/STOCK/HAIER-SMART-HOME-CO-LTD-6496
    829/FINANCIALS/
    • ANNUAL REPORTS – WHIRLPOOL & HAIER
    • HTTPS://WWW.REUTERS.COM/MARKETS/COMPANIES/WHR.N/KEY-METRICS/MANAGEMEN
    T-EFFECTIVENESS
    • HTTPS://CSIMARKET.COM/INDUSTRY/INDUSTRY_MANAGEMENTEFFECTIVENESS.PHP?IND
    =402&HIST=12

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