Haier

Enterprises must answer "3 Questions", have "3 Capabilities" and solve "3 Diffi.. Editor's note: Shandong Provincial Government convened a meeting, noted as the Meeting for Innovations of Shandong Large-size Enterprises, July 27 in Yantai, with an aim to set Haier as an example and to help develop Hair-style enterprises in the province. Haier CEO Zhang Ruimin made a theme speech. As all the participants were concerned about how Haier innovates, Zhang put forward the 3-in-3 Viewpoint. Enterprises must answer "3 Questions", have"3 Capabilities" and solve "3 Difficulties". Staff: The Meeting for Innovations of Shandong Large-size Enterprises was held July 27 in Yantai and Haier CEO Zhang Ruimin made a theme speech, titled Haier Innovates for Global Brand, attracting attention of participants.In the speech, Mr. Zhang briefed the 3-in-3 Viewpoint. Enterprises must answer 3 questions every day. What is our goal? Our goal is to develop global brand by qualified and competent staff. Who is our main competitor? Superficially, the main competitor is in the marketplace. Actually, the main competitor is ourselves. What are we dealing with? Superficially, we manufacture products, but in fact, we are working with consumers. Haier CEO Zhang Ruimin mentioned these three questions previously, but this time he stressed the significance of answering the questions every day. In international competition after China's entry to WTO, enterprises must be capable in 3 aspects: Growth: Enterprises must take part in global marketplace to gain truly global business scale. Profit margins: In the era of global economic integration and profit squeeze, enterprises should have to continuously expand business scale while ensuring profits margins by means of improving quality and efficiency, not price wars. Zero-cost working capital management: The Information Era requires efficiency, and information for purchase order fulfillment requires efficient performance of logistics and capital, and management system restructuring realizes ready cash for ready cargo. Business leaders must solve 3 difficulties. The difficulty to make consecutive policies after correct policies have been made as the marketplace is always consecutive. Consecutive policies can be made correctly upon precise understanding of the principles and characteristics of market competition. The difficulty to simplify complexity. Complex issues will become more complicated if the background information concerned is not realized. Simplifying complexity requires personnel proficiency and competence and job implementation efficiency. The difficulty to conquer ourselves, especially in the terms of concept. To help cultivate more Haier style brands On behalf of Shandong Government, Li Shukun, Director of Shandong Economic and Trade Commission, iterated that, 'Haier has long been committed to carry out innovations and created an atmosphere to cultivate employees' innovative ideas. Haier has become a truly global brand with its unique innovative spirit.' Li Shukun called on all attending representatives to work harder for more Haier style brands and more involvement and participation in world marketplace competition. Staff: "The China Enterprise Management Summit and 2004 Haier Management Theme Reports" was jointly held by the National Productivity Council of China and The National Productivity Council of China (Shandong) July 25 in Qingdao. Haier CEO Zhang Ruimin's theme speech echoed among attending representatives. Zheng Xinli, Deputy Directory of the Policy Research Office of the CPC Central Committee, iterated that, 'Haier broke China's records of industrial development history. Firstly, the swift development in 20 years; secondly, China's global brand; thirdly, product export and manufacture in Europe and the USA. Haier is China's first multinational with independent intellectual property rights and core competence'. Reflections A company manager is quoted as saying that, 'Haier CEO Zhang Ruimin's speech is very helpful in understanding the significance of innovation for business development. After China's entry to WTO, the market competition will become sharper. More attention should be paid by business management to improvement of business management and innovation throughout the whole process of business development and expansion.' Another attending representative said excitedly that, 'I have listened to Zhang's lectures many times and the deepest impression that I have had is that Mr. Zhang's thought is sharp and topics fresh. It has been always fruitful to listen to his speech.'