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Latest posts by Mariam Peyton (see all)

    On August 13 2018, US president signed into law the FIRRMA bill, a piece of legislation that many see as an anti-China bill designed to stop Chinese firms acquiring sophisticated US technology via merger or acquisition of US technologies and thus hurt US national security. In return, Beijing has also put restrictions on Chinese outward investment. These are some of the political factors coming from the external environment which can impact Chinese firms either positively or negatively. Using pestle and Swot, this report will examine the external macro environment currently affecting Haier, China’s leading manufacturer and retailer of household appliances and consumer electronics. It will also examine both key drivers of change not only in China but also other key markets including the USA where trade tensions continue to threaten Chinese business interests.

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    Haier Strategy Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:
    • Understand the broad macro-environment of Haier and the global household appliances industry in terms of political, economic, social, technological, environmental and legal factors (PESTEL/PEST/STEEPLE).
    • Use our swot analysis example to gain an overall understanding of Haier's strengths and weaknesses and strategic options arising from the opportunities and threats that have been identified from the Pestle analysis example on it's business environment.
    • To apply strategy business models and frameworks such as Pestle/Pest/Steeple, Swot etc to real company cases.

     

    Analyse the internal and external environment of Haier using SWOT & PESTLE 2017

    1.0 INTRODUCTION


    Haier is a leading global Chinese brand specializing in the manufacture and retailing of household appliances and consumer electronics. It was founded in 1984 and currently headquartered in Qingdao Shandong province of China (Haier.net) .The Company develops and designs a range of home appliances including refrigerators, microwave ovens, mobile phones, laptops, washing machines and even televisions. The company’s global revenue for the year 2017 was 241.9 billion RMB, a year on year increase of 20% from the previous year including a 25% rise in domestic revenue, while profits increased by 41% (Xinhua 2018).

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