“Haier” ---a famous company in China

Haier

---ethical and social responsibility policies---

“Reputation is more important than sales volume”
As to Haier, quality is the essence of a product, so as reputation to a business. A product should be deemed as acceptable only when it satisfies the customer very well. The point of marketing is buying rather than selling, that is, securing customer loyalty by building good reputation in the process of selling.

“Customer is always right”
In 1995, Haier put forth the concept of “Star Service” based on the principle that customer is always right. Their business relies on customers for success. The business is successful only when the customers are satisfied that.

“The aim of our work is your satisfaction”
At Haier, a technically acceptable product is not necessarily a qualified product. Only products of customer satisfaction are qualified. Products fail to meet customer needs are of little marketability and thus of little profitability. Therefore, the yardstick used to measure the performance is customer satisfaction. Never say “No” to customers.

---type of security and risk management---

“OEC Approach”
The "All-around Optimized Management Approach" was Haier's first major initiative in innovative management. First implemented in 1986 and later named the "OEC Approach", this management style entails clear and comprehensive control over all company functions. The purpose of the "OEC Approach" is to achieve each day's plan, evaluate that plan, and improve upon those daily accomplishments 1% better than the day before. The "OEC Approach" has been the cornerstone of Haier's management culture for more than 20 years. In 1993, then vice premiers Zhu Rongji and Li Lanqing, together with then secretary of the CPC Shanghai Municipal Committee Wu Bangguo signed a joint directive to promote Haier's "OEC Approach" nationwide.

“Individual-Goal Combination Management System”
Haier's "Individual-Goal Combination" management system means that every employee is an independent and innovative SBU with the goal of achieving primacy in the marketplace. The "Individual-Goal Combination" aims at creating a competitive market target for each SBU. Zhang Ruimin's management innovations have been recognized widely by international management institutions. In 1998, Mr. Zhang was invited by the Harvard Business School (HBS) to deliver a speech on his corporate philosophies. Haier's "Activate Shocked Fish" strategy, whereby a failing company's latent potential is realized and maximized, was used as a case study by HBS. In 2000, Mr. Zhang delivered another speech to IMD in Switzerland. Haier's strategy has also been studied at numerous institutions including the University of Southern California, IMD, INSEAD, Kobe University (Japan). Haier's "Market Chain" management was included in the European Union's case study database. Haier's "Individual-Goal Combination" management sytem is currently assisting companies around the world to better manage their storage and due receivable systems.