Born January 5, 1949 Laizhou, Shangdong, China Married with one child a son CEO of Haier Group from founding in 1992

Zhang Ruimin: What a Case!!

During the Cultural Revolution the Colleges Universities were largely closed. Zhang joined the Red Guards.

Education of Zhang Ruimin

Zhang finds employment in Qingdao factories Takes management courses at night Works his way up the management hierarchy

In 12 years Zhang becomes a Workshop Supervisor1982 Zhang is promoted to Deputy Manger of the

“Household Appliance Division” of the Qingdao Municipal Government

Forced to become Manager of the “Qingdao Refrigerator Plant” a failing Collective in 1982The company is $10 Million in Debt, their product is low quality and the workers demoralized.

After the Tumult: 1968

Zhang Ruimin Took a Sledge Hammer to 76 Defective Washing Machines in 1985 to Emphasize Qingdao Refrigerator Plant’s New Commitment to Quality

The Beginning of the Zhang Legend

Off to a Smashing Start

Zhang Discovers a 20% failure rate of appliances with dissatisfied customer.

Zhang brings out the sledge hammers! “If we don’t destroy these refrigerators

today, what is to be shattered by the market in the future will be this enterprise!”

Zhang Ruimin 1985 Qingdao Refrigerator returns to profitability

in 1986

Zhang Turns “Qingdao Refrigerator Plant” Around

Zhang was hailed as a turn around artist in Qingdao

Qingdao Microwave Electronic Plant Qingdao Air Conditioner Qingdao Freezer General Plant Qingdao Haier Refrigerator Company

Adopted Haier name derived from the German Partner Leibherr.

Acquisition in Qingdao

1970 - Joined the Communist Youth League 1975 – Membership in the Communist Party 2002 - Alternate Member of the 16th

Communist Parties Central Committee 2007 - Alternate Member of the 17th

Communist Parties Central Committee 2012 - Alternate Member of the 18th

Communist Parties Central Committee

Politics

Zhang Ruimin is one of Fortune’s World’s Top 50 Leaders (22nd)

His philosophy permeates Haier Group Branding, Expansion by Acquisition, Quality

The Sage of Qingdao

Company CEO

Haier CEO Legend

1985 2014

Zhang RuiminLeading the Rise of the Dragon

Qingdao China’s Great Collective:

1991 – 2014 and Beyond

Haier Group Corporation

Started As Qingdao Refrigerator Plant in 1984Qingdao was an in debt and failing collective

when Zhang Ruimin became the CEO.Signs in plant admonished workers to not urinate

or defecate on the factory floor.Started a partnership with Liebherr

Haushaltergäte a leading German appliance maker.

Technology alone would not save the company.Zhang introduces branding as a way to save and

build the company.

HAIER GROUP

1985 the great refrigerator smash, beginning of the push for quality and brand excellence.

Middle management fired and replaced by Teams: Catfish Management is born.

1986 Qingdao Refrigerator shows a profit. Sales increase 83% by 1987. Acquires Qingdao Microwave Electric in

1988 Appliances and increases its product line.

Qingdao Refrigerator turns around1985 to 1991

The Qindao Air Conditioner Plant and the Qingdao Freezer General Plant are acquired in 1991 and the Brand name Haier is adopted.

Product line increased by acquisition is the model.

Becoming Haier - 1991

Haier diversifies by buying failing Chinese companies. One product downturn buoyed by another product gain.

Dominate a niche market and then expand into universal markets.

Haier opens its first overseas manufactory in Indonesia in 1995.

Taking on the US market Haier opens a manufacturing plant in Camden, South Carolina in 1999.

Haier Goes GlobalThe 1990’s

Watch your back! Your Competitor is Certainly Watching!

The Big Fish Eat The Little Fish!

Catfish Management

“O” Stands for Overall “E” Stands for Everyone, Everything, and

Everyday “C” Stands for Control and Clear 2,000 zi zhu jing ying ti (ZZJYT) self managed

teams, each responsible for profit and loss ZZJYT’s must attract outside partners and

resources to exist “a free market in talent, so the cream rises.”

OEC Management Control System

Haier America – 1999 Haier Europe – 1992 Haier Australasia – 2009 Haier Middle East & Africa – 1993 The first manufacturing plant –

2005 Haier in Southeast and East Asia – 1993 Haier in South Asia – 2001 Haier China – 1992 from Qingdao

Refrigerator

Haier International

The appliance and electronics market is a tough one to excel in, but Haier has used a few key points to help them flourish.

Products Niche Marketing The standing market These three things have been the focal

point for Haier’s entry and success within the economy.

Tough Market

Haier offers a wide variety of household and commercial products.

Products

College Students, along with American households are a focal point for Haier marketing.

Niche Marketing

The existing market was difficult to break into but Haier used it to their advantage and broke out.

Market

982 Revenue = - 10 Million 2004 Revenue = $11 Billion 2013 Revenue = $29 Billion

Growth 2008 to 2016

Globe News Wire. (2014, March 20). Fortune Names Haier Group Chairman & CEO Zhang Ruimin Among "The World's Greatest Leaders”. Retrieved from GlobeNewswire: http://globenewswire.com/news-release/2014/03/21/620343/10073569

Haier Group. (2005). 2005 Environmental Report of Haier. Retrieved from UN Global Compact: http://www.unglobalcompact.org/system/attachments/1764/original/COP.pdf

Haier Group. (2014, January 24). About Haier. Retrieved from Haier Group Home Page: http://www.haier.net/en/about_haier/

Haier-UK. (2014, April 18). Haier surpasses $29 billion in 2013 revenue and achieves record growth in sales. Retrieved from Haier-UK: http://www.haier.com/uk/newspress/pressrelease/201404/t20140418

Bibliography

The Economist. (2013, October 12). Haier and higher. Retrieved from Chinese Industry: http://www.economist.com/node/21587792/print

Wikipedia. (2014, May 20). Zhang Ruimin. Retrieved from Wikipedia, the free encyclopedia: http://en-wikipedia.org/wiki/Zhang_Ruimin

Williams, D. (1998-2012). China Business Etiquette, Culture, & Manners. Retrieved from InternationalBusinessCenter.org: http://www.cyborlink.com/besite/china.htm

Wu, Y. (2003). China's refrigerator magnate. The Mckinsey Quarterly, pp. 1-7.

Bibliography continued