Haier

"Success makes Haier to be looked at with new eyes by global enterprises," said.. Georg Blume interviewed Haier CEO Zhang Ruimin on April 18, and started the interview by saying that "success makes Haier to be looked at with new eyes by global enterprises." This was how the journalist thinks about Haier. "It is of great significance that Haier decides to enter the world market." Georg Blume showed admiration toward Haier's successful performance in the world market. "It is not with cheap labor or low quality products, but brand products and reliable after-sales services, that Haier succeeds in the world market. I would like to know what made you to make such significant decision?"asked Georg Blume. Mr. Zhang Ruimin answered by explaining Haier's experiences in export, world market exploitation and sales promotion in developed nations first and then in developing nations for which Georg Blume shared common sense. Localized production in foreign countries is aimed at better promotion environment. "I have been told that a lot of Chinese companies set up production factories in foreign countries and close these factories not long later. Why has Haier been able to insist on production localization and to achieve world recognition of Haier brand?"asked Georg Blume. Mr. Zhang Ruimin talked about Haier's promotion strategies of production globalization, "It is important for us to manufacture in the place where I want to exploit market, for example, we established Haier (America)Trading Company and a production factory in the United States." The concept of Mr. Zhang Ruimin was believed by the journalist to be unique and practical. Three Historical Opportunities Unfortunately Missed by Chinese Industry Another question asked by Georg Blume, "How significant the ownership system is in changing Chinese enterprises?" "I would like to give you an example," continued Mr. Zhang, "Chinese enterprises are very much like a child who has never studied in "primary and middle schools"while enterprises in Western countries have graduated from higher education with doctorial degrees. However, many foreigners want Chinese enterprises to take exams for a university, or for a doctorial degree. In the world history, the so-called "primary school" is the period of industrial revolution when the Toylor Management was widely accepted by worldwide industries. China, not like Germany, was then in Qing Dynasty, a feudal society, and people wore hairs in plaits. The "middle school"is the period when Japanese quality management flourished, while China was suffering from so-called "Cultural Revolution". China missed these opportunities enabling industries to prosper. From the point of view, Chinese enterprises have been developed with a weak foundation, so ownership is not the only way, but an important way to solve these problems. China must take the "primary and middle school" programs before solving the problem of ownership system. "You are not an ordinary manager in China." "I have been told that you have never had a vacation over the part 18 years, is it true?" asked Georg Blume. Mr. Zhang answered, "A visiting German manager once said to me that, "you would die of overworking if you don't stop you working manner."The reason he said so is that in a German company, policy-makers and executives do different jobs. After the company policy is made, everyone in this company starts to work as instructed. However, it is not like this in a Chinese company due to lack of experience in industrial revolution and education. Employees are not as competent as they are expected. They often do not follow instructions even after policy is made. So, senior management has to deal with many grass-roots issues themselves." Georg Blume finalized the interview by saying, "You are not an ordinary manager in China. I wish every success to Haier and hope more overseas enterprises understand Chinese enterprises."