The Management System of Haier

China's Haier group has an outstanding management system. The research report pointed out “Haier Company was founded in 1984, is one of the most valuable brands in China and gradually developed into a national super-large enterprise.” ( Xu,Jin,Mei, 2011). The CEO of Haier company adhere to the people-oriented, innovative ideas to manage the company. The success of this decision has laid a solid foundation for Haier's future development.

The rest of the paper is organized as follows. The second section explains why Haier’s management system is important for economic prosperity. The third section presents the weakness and solution of the company management model. The fourth section studies and analyzes the challenges facing Haier Group in the future.

The purpose of this paper is to write Haier Group Management system because it represents the earliest known Chinese brand. It can achieve today’s success mainly depends on its management system, so I would like to give a brief introduction.

Main body

Today, Haier's achievement is undoubtedly due to its many strengths. Haier Group's innovative way mainly depends on the practice of Haier Group and experience derived. The researcher put forward "the theoretical framework of the emerging new paradigm of total innovation management (TIM)."（Liang,Zheng,Xu,2004）. From this, managers realize that the implementation of a management system can improve the business management level and the visibility of enterprises. This is one of the advantages of Haier Group-brand reputation, Haier vigorously establishes their product brand reputation, to ensure high-quality products and high service. For example, the product maintenance period, the general product maintenance period is three years, during which there are any problems with any products Haier will be the warranty, even if the distance is far away, will do their best to meet customer needs. Some articles point out that “Haier now has 62 distributors and more than 30,000 outlets globally, in more than 100 countries in the world to broaden the range of its brand.” (Wang,2002). Therefore, Haier's brand image is deeply rooted in people's hearts, many users will recommend the Haier brand to others, also will buy back Haier products, so Haier brand began to be widely known.

Similarly, Haier can develop into such a large enterprise, which also appeared a variety of weaknesses. " China's weak transportation, distribution, and retail infrastructures also make it expensive to supply goods all over the large country." ( Zeng,Peter J.2003) . First of all, the more serious drawback is that Haier product marketing is not well considered in remote areas, despite the high cost, but the remotest areas still very much need Haier's products. However, Haier Group only consider the current state of customers, and did not seek solutions. Second, "Haier evaded the market leader, for 5 years, it only attaches importance to the sale of compact refrigerators." ( Zeng,Peter J.2003). Haier is not paying enough attention to publicity, it is only dedicated to publicizing the most famous refrigerator. In recent years, Haier has also launched a number of ancillary products, such as pharmaceuticals, computers, mobile phones and so on. However, the visibility of these products is poor, some products have not even heard of, and there are no corresponding ads. This has led to a lack of competitiveness in the field of Haier in addition to refrigerators. Some researchers have realized that "brand reputation through the increase in product quality and customer value."(Hansen, Tan,Gal,2012).If Haier cannot find a solution to this problem, the future development of Haier company will be very unfavorable. Haier is also unable to better open up new markets.

The measure to address this weakness is the conduct of ICT. Some researchers have shown that "ICT refers to enterprises in an application of information resources and technology capabilities”（Liang，Zheng，Xu，2004）.This is the system of multi-level marketing (MLM) ability, and it relies on scientific and technological means to broadcast. Excellent information technology can effectively improve the marketing ability of enterprises. It needs to make an exciting advertisement or a picture to attract the attention of the masses, to achieve the propaganda power. “Haier Group is a pioneering enterprise, one of its characteristics is that the management structure is relatively smooth, can very quickly respond to market demand.”(J.Acs,2006) Although Haier managers have not been well aware of this, and its publicity model still stays in the more traditional part, It strongly habitual reactivity can able managers better master and focus on the Internet technology of multi-level marketing (MLM), MLM will enable enterprises to expand the scope of sales and brand reputation. It will benefit the business.

However, Haier in the face of opportunities will also face a challenge, which is inevitable. The current research illustrated that "since the most products' supply exceeds demand, the same industry has more intense competition.” (Wang,2002). After the diversification of the Haier center of gravity will be assigned in many areas, no longer just on the appliances. Peer home appliance competitors will reduce costs to attract more tourists, which means that Haier will face the pressure of domestic and international competitors. Some people do not deny that this is indeed the disadvantage of the Haier group, and even this weakness has been profoundly affecting the Haier group. If the Haier group does not look for measures to solve this challenge, it will be awful for the future development of their group. The study indicates that "Haier Group's CEO believes any challenge can be overcome."(Zhang,2007). This is due to the early Haier Group under his leadership struggle against difficulties and obstacles, therefore, he believes that as long as the use of the right management system, will be able to face the challenges calmly.

Conclusion

In conclusion, Haier's group is able to be successful, which depending on its management system. On top of which, management system also brings a lot of economic benefits to Haier company. However, it has some shortcomings, Haier's group marketing scope is somewhat limited, the propaganda department also needs to strengthen. On the other hand, Haier has some challenge to face, it should work hard to solve its problems so that it can lay a better foundation for its future development.