商务战略期末论文.doc

Strategic Planning for Haier - Evaluation Selection & ImplementationNAME: Shao Xiayu(20085878339) Zhang Yajie(20085878335)Liang Zhanning(20085878087)Yang Zheng( 20085878040)Laing Han( 20085878018)Zhou Weifeng( 20085878271) CLASS: International TradeMAJOR: Business Strategy TO: Will. Zhang DATE: May 27, 2010ContentsIntroduction3Section 1. Current Strategy Evaluation41.1 The current strategy41.2 Strategy evaluation41.2.1. Suitability41.2.2 Feasibility51.2.3 Acceptability61.3 Risk Assessment71.4 Objective and strategy91.5 Personal Risk Sensitivity Review101.6 A comparison with the major competitors strategy11a. the current strategy of the major competitor11b. the competitive advantages over the company12Section 2. Design or select a strategy or strategies for the company and evaluate it.132.1 Corporate strategy132.1.1. A chart of the strategy levels132.1.2 Retreatment strategy152.1.3 Objectives152.1.4 The resource requirement in implementing the corporate strategy152.2 The SBU strategy162.2.1 The growth162.2.2 The direction of growth202.2.3 Diversification222.2.4 Market entry strategy222.2.5 Competitive strategy232.2.6 Evaluate the resource requirements232.3. Functional strategy262.3.1 MARKETING262.3.2 R&D272.3.3 OPERATIONS272.3.4 HRM272.3.5 IT/IS282.3.6 FINANCE28Section 3. Make a detailed action plan283.1 Stages of strategy implementation283.1.1 The stage283.1.2Time scale:283.1.3. The objective293.1.4. Significant293.1.5. The key elements of success293.1.6 Risk303.2 the roles and responsibilities of the top managers30Conclusion33References34Appendices35Introduction This report is main to explain the Haiers development, and we make a strategy for future which depends on what we have collected. This report has three section, the first section is main to explain the Haier current strategy, and evaluate the strategy, this section has six parts, we has analysis the Haier current strategy in suitability, feasibility, and acceptability. The next section is main to let us design or selected a strategy for Haier. And chooses the appliance as a SBU to analysis, and make a judgment. The last section is explain the how to finish the future strategy. And we will finish it in three stages.Section 1. Current Strategy Evaluation1.1 The current strategyThe Haier current strategy is Global Brand Building Strategy Phase, Haiers design centers, manufacturing bases, and trading companies in over 30 countries will come together to share global resources through a single information platform. And the future is build a garden without fences, Haier is still based in China, radiating to the world; while in the Global Brand Building Phase, Haier aims to build a local Haier brand in each geographic area all around the world. The achievements of objective is integrating its centers around the world1.2 Strategy evaluation1.2.1. Suitability In the international market, with the development of the economic globalization. Haier do not want to be the brand of Chinas manufacture only. They want to be the one of the international market. Haier choose the difficult market for its target market. It fits the development of a well-known company. Furthermore, under the stringent requirement, can create excellent product. It has a high international competitiveness from it. Haier built factory overseas starting from 1995. build up a design center at Boston, marketing center at New York and building center at South Carolina in 1999. If Haier succeed in America market, it can get very valuable experiences. The change of Haiers developing strategy is correct. Haier suit the trend of international development quickly. Because of the financial crisis in Southeast Asia and East Asia in 1998, Chinas export has affected seriously. However, Haiers international strategy grab the market home and aboard. It create many profit and it is the base of Haier. When Haiers washing machine enter Europe in 1997, Haier is not familiar with Europeans habit of consumption. Because of the obstacle, Haier employ the local to manage the local market. In this way, the customers will accept the product produce by Haier more easily. It makes Haier enter Europe market quickly. Haiers refrigerator has already entered America market. Many American know that Haier is a refrigerator producer. Because of the brand effect, Haiers washing machine do not need too much promotion. People think that Haiers refrigerator is quite good. So, they are willing to buy other product produce by Haier. This method seize people consumption logo, it suit to promote a product diversification brand. In Europe, it needs about 1 year for a new product from design to build. However, Haier only need one month to release a new product. So, Haier not only satisfied European need on the product design. Moreover, Haier shows the quick reaction which is other company can not finish. It makes customers can use the newest product in the shortest time.1.2.2 FeasibilityHaier build information station and design subsection overseas. Haier information station filter and classified the information and send the useful information to decision-making department. Haiers director can easily grasp the needs of overseas market and decide the companys development. This kind of strategy provide many advantage for Haier. Haier use localization strategy in overseas competition. Haier has design, production and selling in America market. The purpose of this is to understand more about America market. Doing reaction more quick to the change of the market. Someone who familiar with the market to manage can let the company to do better. The different of the market require to exploit different product continuously. Haier depends on different district, different environment and different customers to exploit different product. It is because Haier always exploit products by the market needs. So, Haier has a good competitive advantage. Haiers strategy main concept is do the best, fight for the best and create the best. However, Haier has some not successful strategy. For example, computer and microwave. Because of the technique, Haiers computer do not has advantage in the same product. They do not have the nucleus technology. So, they meet the obstacle in IT. I think Haier should do a full marketing research to see whether it has competitive in the new industry or not before entering in the industry. Information age is an age of speed, company should do the product it has advantage. It is the key of a company to success. Haier daily delivery completion rate, monthly sale completion rate and annual performance standard rate block us to use hour and minute to clean the store and handed in to user directly. I think Haier can learn Dell. Set 2 hours for a selling cycle. Every progress is done for the needs of the user.1.2.3 AcceptabilityGlobal brand strategy is the market in each country to create localized Haier brand. Haiers global brand strategy implementation issues to be addressed are: improving product competitiveness and the competitiveness of business operations. And distributors-suppliers, customers, users achieve a double win profit. Cultural change from single to multi, and to achieve sustainable development, Internationalization Haier, should be realizes the design, the manufacture and the marketing all of them are localization, and can realize local financing, the locality melts the wisdom as well as the local fusion culture, establishes the Haier world-famous brand.Shareholders:This allows shareholders have a broader channel to raise funds, to revitalize the intangible assets to tangible assets, so that Haier will unknowingly increased assets to shareholders and stakeholders have been different levels of income. This double-win situation, in the long run, regardless of Haier Corporation, or the country, is a virtuous circle.Customers:Haier enter the international market, thats a good opportunity to make Haiers brand to obtain more spread, then it certainly will stress the product quality strictly, to be the customer of Haier products may use the high grade products, on the other hand, it also will meet their spirit needs, thats really kill two birds with one stone. Staff:Haier is started from a small workshop to be a large-scale multinational corporation which brand value has 82,000,000,000, this enable companys image to enhance, simultaneously their own value also has realized, and company will have the enough fund to construct and to consummate the working conditions, will enable the staff will have a good working conditions, on the other hand, staffs wage will also improve, so they are glad to do their jobs. Policy:Recent years, China and the worlds political situation are very steady, “peace and development” is the Contemporary Worlds two principal themes, so that Chinas current social is steady developing, it provides a good political environment for Hairs development undoubtedly. In industrial policy, China is in the eleventh five-year project, that means China pay more attention to the development of science and technology, so Haiers production of high and new technological products will be affected by the preferential policy.1.3 Risk AssessmentPhysical risk: The global warming is big issue to human, the Haier will produce the production with low-carbon. Everyone has right to protect environment, people prefer to choose the production with high carbon. The Haier should to produce the production with low carbon to competitive with others.Economic risk: World economic environment is not optimistic, while in the Global Brand Building Phase, Haier aims to build a local Haier brand in each geographic area all around the world. It is difficult to finish, Haier need to make a low price to win the market. Haire should strive for grasps the good market opportunity before the economic resurgence. Suggestion: In economic crisis, the price is in the low, We think this is a opportunity. Haier need to expend in economic crisis, if do that the Haier can gain the competitive in low price. the Haier has a competitive to other companies when the economic resurgence.Business risk: The Midea as a main competitive company, it take a expand strategy in appliance. And Haier take more attention in other industry, although the Haiers strategy would take an advantage to it in future. Because electrical appliances is at the saturated stage in present, and the growth movement slows down, Haier may obtain the rapidly expand through develop other profession, but Midea did not have the competitive power at that time. But the Haier has business risk in present, the Midea take a expand strategy would win the market share, it should influence the Haiers sale. Political risk: the world theme is “peace and development”, and the Chinese government has introduced reform and opening policy, and encourage exports, and Haiers strategy has adapt to the policy, Economic globalization is the background of the world, and Haiers global strategy is adjusted to the background. And no civil war in China, the China is peace. So the Haier not has the political risk.Financial risk: World economic environment is not optimistic, the power of purchase would decrease, it can influence the Haiers profits in foreign market, and the Chinese market is develop well, so the Haier should take more attention in Chinese market. And reduce the cost to remain the market share, and make a low price to satisfy the market.1.4 Objective and strategyRanking and scoring ObjectivesStrategic optionIncreased the profitsReduce dependence on suppliersMinimize competitive threatsbrandMarket shareScoreRankObjective weighting5347625Expand& stability strategy221stTalents strategy94thLow-carbon living, better homestead strategy153rdHaiers current strategy182ndCompare the strategy, we can find the expand & stability strategy is rank 1st in the table, it has consider the some aspects, and we think this strategy is fit to the Haier.1.5 Personal Risk Sensitivity ReviewSensitiveLOWHIGHdecisionLOW12HIGH34Shao Xiayu： I think I has belong to the 3, the low sensitive and high decision, as I learned knowledge is limited, I think my sensitive is low, but I want to prove this point in the future.Zhang Yajie：I think I am a high sensitivity and low decisiveness person, feeling very sensitive to subtle changes, regarding the choices will appear indecisive, but if I did some decisions, I will never change it and not regret.Liang Han：I think the sensitivity incarnate in perception of event. I consider sensitivity consist of precognition and make a response timely. However, I have remarkable performance in these points, so that my sensitivity is high. I think the Criticalness is a Positive word. It is not matter make a response timely but also to make correct decision. I can pledge higher proper rate to make decision in season. So, my Criticalness is high. The people who have high sensitivity means that he has precognition, this will contribute to Criticalness. Generally, the high Criticalnesss man will enter the stage of event in advance so that to enhance their own sensitivity from one side. Zhou Weifeng: When make a decision, I can take the responsibility, because if I want to do everything, I always think about the result it the action will unsuccessful. So I think I am a high undertake in risk when make a decision. As the limited experience, I always can not find the risk when want to something, so I think I need to care about the whole risks to make a right decision.1.6 A comparison with the major competitors strategya. the current strategy of the major competitorHaier, Midea and Gree are occupying pivotal status in the electrical equipment industry. Midea company implements the brand strategy, it hoped that can cover the whole electrical appliances profession, and becomes the most powerful in electrical equipment industry. Midea purchased Royalstar and Little swan-well-known brand and so on the one hand, it can consummate its industrial chain, on the other hand， it also can raise the market share.Gree company takes energy conservation and environmental protection as the important target to product quality, thats the enterprise survival development, and takes the energy conservation and environmental protection as the companys product brand important measure. Gree hoped that seize the air conditioning market，Gree Makes the shift frequency translation technology directly from the third generation to the fifth generation， and now Gree has been in develop a low frequency translation air conditioning, it is in the worlds leading level.b. the competitive advantages over the companyHaier compared with them, it also have some advantages, In 2009, the Gree, Midea, Haier three companies sell the business income respectively are 39.1 billion, 47.3 billion, 324 billion, Gree is compared to the same period impartial, Midea, Haier increases 4.3%, 8.4% separately compared to the same period, The growth source is in the refrigerator and the washer, Midea and Haier refrigerator revenue grew 25.8%, 22.4% separately, same time they in the air conditioning domain are the negative growth (respectively are 3.2%, 10%), Their performance can not compared with Gree, sales in the refrigerator, Haier is the boss absolutely, sales of 16.2 billion, that is 2.6 times than Midea. In 2009, strong sales of refrigerators, refrigerator industry is affected by the financial crisis small, and refrigerator exports is not as high as air condition, export little effect on consumption of the refrigerator, and more compatible in the rural market, go to the countryside of the refrigerator, is a great boost sales in rural, air conditioning market cultivation will spend some time. And Haier refrigerator has the super elevation rallying point in the high-end market, is already occupied in the cities 50% above, the product mixs change causes the high ratio of margin to be able to maintain (the whole year 31%). From analysis the data, we conclude that among the competitors, Haiers advantages still very obviously, for instance, the sales of refrigerators and washing machines have absolutely position occupied, but the market share is also continue to grow, so Haier companys prospect is quite optimistic.Haiers set foot in a lot of industry, so when the requirements of electrical household appliances market is saturated; it also has a growth point for Haier companys revenues, but Midea, Gree these two companies will face the prospect of bankruptcy.Disadvantage：Haiers quite a range of products, but it is in ITs development is not very well, on the one hand it will take up the companys funds, and also hinder the development of electrical household appliances industry, Midea and Gree are focused on a household electrical appliances, which would enhance the competitiveness of products, although haier occupy a dominant in the appliance industry, it might be beyond by Midea and Gree.Section 2. Design or select a strategy or strategies for the company and evaluate it.2.1 Corporate strategy2.1.1. A chart of the strategy levels Haier GroupApplianceReal estateBiologyITThe relationship among each SBU