“Inspired living”

HAIER PAKISTAN

INSTITUTE OF ADMINISTRATIVE SCIENCES 1

UNIVERSITY OF PUNJAB

THE BRAIN CHILD OF MR. ZHANG… MANAGER HAIER INTERNATIONAL

2

IN THE NAME OF ALLAH THE MOST GRACIOUS, THE MOST MERCIFUL

3

A project submitted to the Institute of Administrative Sciences, The University of Punjab in the partial fulfillment of 3rd semester masters program in year 2007-2008.

Submitted To MISS SABEEN IMRAN

Submitted by Attiya Saqib MPA-M-06-11

Usman Aleem MFIN-M-06-15

Sana Iqbal MPA-M-06-25

Mohummad Zubair Khan MPA-M-06-03

4

ACKNOWLEDGEMENT

We are greatly indebted to our project advisor MISS SABEEN IMRAN for her

continuous support and guidance in completing this project. Without her

encouragement, we could not have finished this job.

Besides this, we would like to thank the management team at HAIER PAKISTAN

with special regards to Mr. MALIK ASIM AMJAD and Mr. TARIQ; for supporting

our project by giving in their precious time.

Last but not the least; we would like to thank our parents and friends for their

unconditional support and encouragement to pursue our goal.

Attiya Saqib _________________________

Usman Aleem __________________________

Mohummad Zubair Khan __________________________

Sana Iqbal __________________________

5

INSPIRED LIVING

If you think you are beaten, you are.

If you think you dare not, you don't.

If you'd like to win but think you can't,

It's almost certain you won't.

Life's battles don't always go

To the stronger or faster man,

But sooner or later, the man who wins

Is the man who thinks he can…

 

6

Table of Contents

EXECUTIVE SUMMARY-------------------------------------------------------------------------2

MESSAGE FROM CEO,-------------------------------------------------------------------------3

INTRODUCTION-----------------------------------------------------------------------------------4

HISTORY--------------------------------------------------------------------------------------------5NATURE OF BUSINESS---------------------------------------------------------------------------6TYPE OF OWNERSHIP----------------------------------------------------------------------------8STRUCTURE (ORGANIZATIONAL HIERARCHY)------------------------------------------------9KEY PLAYERS------------------------------------------------------------------------------------10

STRATEGIC DIRECTIONS-------------------------------------------------------------------12

VISION AND MISSION STATEMENTS----------------------------------------------------------12ANALYSIS ACCORDING TO 9 COMPONENTS------------------------------------------------13GOALS--------------------------------------------------------------------------------------------14OBJECTIVES--------------------------------------------------------------------------------------14

STRATEGIC ANALYSIS-----------------------------------------------------------------------15

CORPORATE LEVEL STRATEGY---------------------------------------------------------------16KEY SUCCESS FACTORS:----------------------------------------------------------------------16CORE COMPETENCIES ANALYSIS------------------------------------------------------------16

ENVIRONMENTAL ANALYSIS--------------------------------------------------------------17

DEEP-LIST--------------------------------------------------------------------------------------18 SOCIAL RESPONSIBILITY AT HAIER -------------------------------------------------20

PORTERS MODEL-----------------------------------------------------------------------------21 SWOT ANALYSIS-----------------------------------------------------------------------------22

VALUE CHAIN ANALYSIS -----------------------------------------------------------------24COMPETITIVE ANALYSIS-----------------------------------------------------------------------31OTHER COMPETITORS-------------------------------------------------------------------------31COMPETITIVE ANALYSIS (CPM)--------------------------------------------------------------32

THEME WORK-----------------------------------------------------------------------------------34

PROBLEMS AT HAIER------------------------------------------------------------------------37

Recommendations-------------------------------------------------------------------------------36

7

APPENDIX:

8

Executive Summary

Haier Pakistan Private Limited is a famous brand name in the Electric and home

appliances market of Pakistan and rest of the world. This report will briefly

describe the history, nature of business, its strategic direction, is environmental

analysis, market analysis, different management aspects, the marketing

strategies, its SWOT analysis and financial strategies of Haier Pakistan (Pvt.)

Ltd.

In very short span of time Haier capture a good market share due to its high

quality products specially Refrigerators, Air Conditioners and Washing Machines.

Haier also deals in small and kitchen appliances like vacuum cleaners, Dish

washers, Juicers and cell phones. Haier’s “POWER OF TECHONOMY” gives his

customer best TECHNOLOGY on ECONOMIC prices.

9

Message from CEO,Mr. Zhang

Haier should be like the sea. Because the sea can accept all the rivers on earth,

big and small, far and near, coming all the way to empty into it.

Once in the bosom of the sea, every drop will function as a whole and rush

together pertinacious and dauntlessly, under the command of the sea, to a

common goal. They will rather be smashed to pieces than retreat as deserters,

hence the overwhelming force of the sea.

10

INTRODUCTION

11

History

Haier was incorporated in 1984 producing household refrigerators and

over the past 23 years, has grown and prospered as a transitional

company widely recognized in world community. Haier now manufactures

a wide range of house electrical appliances in 86 categories with 13000

specifications and exports products to more than 160 countries. Haier’s

international promotion framework encompassed globalize trading, design,

production, distribution and after sales service network. Haier footprint

stretches over 36000 sales points as well as electrical appliances factories

setup in America, Pakistan, Indonesia, Philippines, Malaysia, and India- to

name some of the market.

Haier In Pakistan

Haier Pakistan is the Pakistan Sales and Marketing division of the international

Haier group, a globally recognized manufacturer of world-class electrical home

appliances. The joint venture between Ruba general Trading Company and Haier

group of china has brought Haier to Pakistan with an initial investment of about

$35 million and a commitment to provide world-class innovative products based

on uncompromising quality to the Pakistani consumer.

The plant spreads over a vast area of 63 acres with a covered area of 0.6 million

square feet including a workers’ colony at Raiwand Road, Lahore. The project is

produce 0.9 million pieces of household appliances per year with plans to export

to the Middle East and all over Asia.

The roster of products to be launched immediately in Pakistan includes

Refrigerators, Air-Conditioners (Window and Split), Deep Freezers and Washing

Machines, Microwave Ovens and Small Appliances with Dishwashers, Vacuum

Cleaners, Televisions sets and Mobile Phones to follow shortly.

12

Haier has entered a local market with commitment to help its consumers reap the

benefits of modern lifestyle and to provide them world class innovative products,

unmatched nationwide customer support, a vast dealer network and a steadfast

after- sales-service thought the country.

Haier has been developing Cfc-Free technology and Industrial Waste treatment

systems, so that in addition to providing excellent value for money there is a

simultaneous improvement in the quality of life. Haier’s production and

management system restricting has enabled Haier to diversify internal and

external recourses. At present, Haier has put its worldwide logistics, distribution

and manufacturing facilities into efficient operation for customer demand

satisfaction. Haier’s goal is to obtain worldwide recognition and become one of

Fortune global.

Nature of Business

Haier was incorporated in 1984 only producing household refrigerators. Over the

past 23 years, the company has witnessed significant prosperity and is now a

transnational organization widely recognized in the world community. Haier

currently manufactures a wide range of household electrical appliances, 15,100

varieties of items in 96 product lines, and exports products to more than 160

countries. In 2004, Haier’s global sales hit RMB100.9 billion and Haier brand,

valued at RMB61.6 billion, topped all Chinese trademarks at a nationwide survey.

Haier was ranked first in the row of China’s Top 10 Global Brands August 30,

2005 on the Financial Times. Haier CEO Zhang Ruimin was placed 26th of the

World’s 50 Most Respected Business Leaders on 17th November, 2005 on

Financial Times. Zhang Ruimin was ranked 6th of the Asia’s 25 Most Powerful

People in Business on Fortune in August, 2004 and first of the 25 Most Powerful

Business Leaders inside China on the Chinese Edition of Fortune in April 2005.

Haier’s international promotion framework encompasses global networks for

design, procurement, production, distribution and after-sales services. Haier has

established 15 manufacture complexes, 30 overseas production factories, 8

13

design centers and 58,800 sales agents worldwide. From Zhongyikang Statistics,

Haier’s leadership position in Chinese home appliance industry has been

solidified by obtaining the domestic market share of 21% for overall appliances,

far ahead of all its competitors, 34% for white goods, exceeding globally

recognized domination line, and 14% for small electric appliances, overtaking all

previous competitive rivals.

In the world market, Haier has gained first place in the United States for sales of

compact refrigerators and wine coolers, in Iran for washing machines and Cyprus

for air conditioners.

From Euro-monitor Statistics, Haier is currently ranked fourth among the global

white goods makers by revenue and Haier’s goal is to play a leading role in the

world white goods industry.

On March 4, 2002, Haier unveiled its American headquarters in the landmark

neo-classical building, the former offices of the Greenwich Savings Bank, on

Broadway, Manhattan, New York, and an indication that Haier had moved into a

new phase for globalization of product design, manufacture and sales and had a

strong determination for long-term development in the United States. On August

20, 2003, Haier erected an electric billboard in the shopping district of Ginza,

Tokyo, symbolizing that Haier’s determination to reach Japanese marketplace.

Facing the challenges brought by E-commerce and China’s accession to the

WTO, Haier began a management restructuring program in 1998 backed by the

efficient Haier Market-chain System practice. During first 5 years, Haier focused

on the organization restructuring, management decentralizing with application of

advanced information and network systems in order fulfillment, Market-chain

performance, logistics, capital operation, after-sales service, product inventory

and operational cost reduction. During second 5 year period from 2003, Haier

carried out the SBU (strategic business unit) management to stimulate the

enthusiasm of every employee and to enhance Haier’s competitiveness in global

marketplace.

14

Over the past 23 years, Haier provided more than 100 million appliances to

worldwide consumers and paid cumulatively a total tax of RMB13.6 billion, of

which RMB2 billion in 2004. Haier has scheduled to finance 100 Project Hope

primary schools, of which 47 are put into operation. Haier has 51,000 full time

employees and hires 175,000 contract service personnel, providing a total of

230,000 job opportunities.

Haier’s management has been worldwide recognized. Haier’s experience has

been introduced in 16 case studies in business merger, financial management

and corporate culture by 7 foreign educational institutes, including Harvard

University, University of Southern California, Lausanne Management College, the

European Business College and Kobe University. Haier has been recommended

to the EU Case Studies by Lausanne Management College for Haier Market-

chain Management.

Type of Ownership

Private Ltd. Company

Location and Site Details

The plant spreads over a vast area of 63 acres with a covered area of 0.6 million

square feet including a workers’ colony at Raiwand Road, Lahore

Target Market: Upper and middle class Households of Pakistan and

Business of Pakistan.

Major Products

Haier has a wide range of products in home appliances. The roster of products to

be launched immediately in Pakistan includes Refrigerators, Air-Conditioners

(Window and Split), Deep Freezers and Washing Machines, Microwave Ovens

and Small Appliances with Dishwashers, Vacuum Cleaners, Televisions sets and

Mobile Phones.

15

Structure (Organizational Hierarchy)Board of Directors

Managing Directors

Advisor

G.M (C.E.O)

Deputy Marketing Mgr.

Area Marketing Mgr.

Senior Sales Mgr.

Regional Sales Mgr.

Assistant Sales Mgr.

Sales Executive

Systems

Flexible

Local Purchase

Technical Mill Manager

Imports

Production

Corrugated

Finance Manager

Packaging

Commercial

Industrial Relation

Manager HR

Marketing Manager

16

Management Flow:

Key Players

Mr. Zhang is the General Manager of Haier Group.

The Haier Pakistan (Pvt.) Limited is headed by a Board of Directors, the CEO of

Haier Pakistan (Pvt.) Limited is Mr. Shah Faisal Khan a decent man having a

good knowledge about business. Operational departments are headed by

Country Manager, Mr. Faraz Fayaz.

Mr.Shah Faisal Khan

Board of Directors

CEO

Country Managers

Departmental Heads

17

(CEO Haier Pakistan)

“We would like to work fast”. Haier is not only competing strictly on price but by

winning market shares through user friendly design, innovative features and top

service for a wide range of appliances and consumer electronics.

Mr. Faraz Fayaz

Country Manager (Haier Pakistan)

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STRATEGIC DIRECTIONS

19

VISION STATEMENT

“TO be a Leading and dynamic home appliances, business with the strong

products and a team of exceptional people focused on enhancing the

stakeholder’s value.”

MISSION STATEMENT

“Haier’s Mission is to improve the quality of life throughout the Pakistan by

offering high quality products with innovative features aimed directly to make our

users life easier, enjoyable and yet affordable.”

Analysis of Mission Statement according to 9 components:

A mission statement is the most visible part of the strategic management

process, it is important that it should cover all of essential components. Following

is the analysis of mission statement.

Customers: Haier, in its mission statement, focusing on customers by saying

that “to make our users life easier, enjoyable and yet affordable.”

Products: by saying “high quality products” Haier is covering the element of

product.

Technology: “innovative features” is indicating that they will focus on

technology as well.

Concern for survival, growth and profitability: this element is missing from

mission statement of Haier.

Philosophy: this part is also absent from the mission statement of Haier.

Self concept: this part is also absent from mission statement.

Concern for public image: the mission statement is also missing this

element.

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Concern for employees: Haier has discussed nothing about the employees

of the company so this element is also missing.

The analysis of mission statement is showing that only three out of nine elements

are present in mission statement of Haier. So it is advised to be revised so that

the entire element could be covered because a mission statement is very

important part of the organization as it shows the core beliefs and goals of the

company.

GOALS

To become a global recognizable brand.

To play a leading role in the world white goods industry.

OBJECTIVES

Haier Pakistan has the Following Organizational Objectives,

1. Profit maximization

2. High sales revenue

3. High market share

4. To achieve economies of scale

5. Reduce cost

21

STRATEGIC ANALYSIS

22

Corporate Level Strategy

Organization restructuring

Management decentralizing

To stimulate the enthusiasm of every employee

To enhance Haier’s competitiveness in global marketplace.

Key success factors:

Quality

Innovation

Pricing

Distribution channels

Brand image

Reliability

After sales services

Durability

Core Competencies Analysis

Haier has been developing Cfc-Free technology and Industrial Waste treatment

systems. CFC is a gas which damage ozone layer.

23

ENVIRONMENTAL ANALYSIS

24

DEEP-LIST

Demographics:

Customer Profile:

Middle Class/ Upper Middle Class

Male/ Female

Married/ Unmarried

Economical:

Rising Inflation.

Raw material prices increasing.

Rising electricity costs & petrol prices.

Ecological:

Industrial Waste treatment systems

Chloro fluro carbons (CFC)

Political:

Governments feasible policies for investors

Encouraging foreign investors.

Legal:

Government has imposed taxes like

Company income tax

Sales tax

Audit of accounts

Informational:

Increasing awareness regarding health consciousness

Increasing awareness regarding environmental protection.

25

Social:

Increasing Gap between rich and poor.

Decreasing purchasing power .

Increasing trends towards electrical home appliances.

Technological

Automated information system

Online services

Hotline

Innovation in products

SOCIAL RESPONSIBILITY AT HAIER

The company is fully committed to protecting the environment and has been

awarded a substantial grant by the World Bank to phase out ODS (Ozone

Depleting Substances) its production processes. This is an ongoing activity and

is being given all the importance it deserves for a timely and successful

competition.

26

Bargaining power of Buyers

PORTER’S 5 FORCES MODEL

Intra-Industry Rivalry

SBU : Home Appliances

Rivals: PEL, Waves

Dawlance

Bargaining power of Suppliers

Threat Of New Entrants

Threat of Substitute

(-)(+)

(-)

(-)

Washers (For washing machines)Coolers (For A/C’s)Home Maids (For Vacuum Cleaners)

Less no. of SuppliersSmall Scale SuppliersImporting Parts

Variety of ProductsLess Brand LoyaltyLow Switching Cost

High Profit IndustryLocal Electronics CompanyHuge Demand for ProductsLow Entry Barriers

27

SWOT ANALYSIS

SWOT analysis consists of internal and external variables of the company, it is

an important Tool for the strategic decision making, and it consists the Strengths,

Weaknesses, Opportunities and threats. By SWOT analysis we will be able to

evaluate the internal position of the organization as well as we can look forward

for the opportunities, company has.

Strength:1 Wide Product Range.

2 CFC-Free Technology.

3 Latest technology for production.

4 Industrial wastage treatment system

5 More than 20 regional Offices in all over Pakistan.

6 As a multinational backed up by Haier Global and Haier China.

7 ISO-9002 certification.

8 Separate website for Pakistan.

Weaknesses:1 Weak mission statement.

2 Weak distribution channel.

3 No publication of financial reports

4 Weak public relations

5 Absence of grading criteria for employees.

6 Flat type of management System, large amount of employees

supervised by a single person.

7 Less margins to retailers/distributors

8 I2neffective marketing activities.

9 Brand image

28

Opportunities:1 Product diversification and opportunities in un-served foreign market.

2 Growing sales of products specially split Air conditioners.

3 WTO.

4 New Joint venture in electronics with local manufacturers.

5 New project for plastic spare Parts.

6 New division for cell phones.

7 New Export Agreements with Afghanistan.

8 Conversion to public ltd.

Threats:1 WTO is the threat at same time.

2 Increased duty on raw material.

3 Smuggled Chinese electrical appliances.

4 Fast pace changing technology.

5 Increase in Taxes.

6 Increase in Logistics Costs.

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VALUE CHAIN ANALYSIS

Value chain analysis views the organization as a sequential process of value

creating activities. The approach is useful for understanding the building blocks

of competitive advantage. It describes two different types of activities as primary

and secondary activities.

Value chain analysis of Haier is as follows:

PRIMARY ACTIVITIES:

INBOUND LOGISTICS

Inbound Logistics represents one of the major business processes in value

chain analysis. Beyond excellence in operations, the main challenge is to

plan inbound logistics jointly with outbound transportation volumes to

increase consolidation where ever possible.

24 distribution channels are there to minimize shipping time.

The inventory control system at Haier is automated and monitors the

warehousing lifters.

The layout for the warehouses for unfinished goods is such as to

increase efficiency of operations for incoming materials.

OPERATIONS

It is the process of transforming inputs into finished products and services. At

Haier the process consists of two types:

1) CBU’s: Complete business units are imported from China and sold in

Pakistan.

2) CKD’s: Complete Knock down_ manufacturing parts are imported and

assembled at Haier.

80% of the work is automated and instructions are given manually.

30

OUTBOUND LOGISTICS

Outbound Logistics at Haier deals with the warehousing and distribution of

finished goods. The Warehouses for finished goods are of same sizes but

separate for each product.

Haier has:

Effective shipping processes to provide quick delivery and minimize

damages

Efficient finished goods warehousing processes.

Quality material handling.

Flow of products to the customer is as follows:

Factory Whole seller Retailer Customer

MARKETING AND SALES

Marketing encompasses everything that happens to a product from the time it

leaves the manufacturer until it reaches the consumer. This includes

determining channels of distribution, pricing, and developing the "brand”.

Marketing position and Attack Strategy

Market Challenger

Haier is operating its business as a market challenger in local home appliance

market. At this time, LG is a market leader followed by Haier and Dawlance.

Competitive Strategy Adopted

Frontal Attack,

Haier used frontal attack strategy. The company matches its opponent’s product,

advertising, and distribution. The principal force to use this strategy is that the

company with the greater manpower (resources) will win.

Haier has highly motivated and competent sales force and is all the time

looking for innovative approaches to promotion and advertising. Some of the

tools of promotion that Haier uses are as follows:

Newspapers

Bill boards_ Electronic Signboard

31

Television advertisement

Internet/interactive market

HAIER ONLINE:

The Haier Company has a homepage that can be found at

http://www.Haier.com.pk.  The homepage has many unique features such as:

customer support and services, product line and their feature, and information

about the company. It includes the mission statement and profile, achievements,

current news, and many other interesting features.

SLOGAN

“Inspired living”

LOGO, BRAND MARK, BRAND SIGNATURE, TRADE MARK

SERVICE

Customers are of prime value to Haier so effective use of procedures is done to

solicit customer feedback and to act on the information instantly.

Quick responces are generated according to the customer needs and

emergencies. For this purpose 17 service centers are situated throughout the

country that provide after sales services to the customers.

32

TOTAL QUALITY MANAGEMENT:

Haier’s ISO 9001:9002 certificate is the proof of their total quality management.

33

SUPPORT ACTIVITIES:

GENERAL ADMINISTRATION

Haier has effective planning system to attain overall goals and objectives of the

organization. It has excellent relationships with diverse stakeholder groups.

HUMAN RESOURCE MANAGEMENT

Human resource department anticipates the future according to the

organization’s needs as Haier is a growing organization. Human resource

management reviews how many persons are needed in each department and

then hires the required and qualified people for the organization and also trains

the existing employees for efficient work and high productivity. It insures that right

person is doing the right job. It performs the following functions in the

organization.

Current assessment:

Recruitment:

Selection:

Orientation:

Training:

On the job:

Off the job:

Performance management:

Compensation and benefits:

Motivation and incentives

34

Career development:

De recruitment:

TECHNOLOGY DEVELOPMENT

Haier has effective research development activities for process and product

initiatives.Technology is incorporated in all areas of value chain:

Inbound Logistics Technologies

o Transportation

o Material handling

o Material storage

o Communications

o Testing

o Information systems

Operations Technologies

o Process

o Materials

o Machine tools

o Material handling

o Packaging

o Maintenance

o Testing

o Building design & operation

o Information systems

Outbound Logistics Technologies

35

o Transportation

o Material handling

o Packaging

o Communications

o Information systems

Marketing & Sales Technologies

o Media

o Audio/video

o Communications

o Information systems

Service Technologies

o Testing

o Communications

o Information systems

PROCUREMENT

The raw material for each product is imported from china. The procurement is

either done for the parts or whole products are imported. Separate warehouses

are developed in order to optimize quality and speed.

36

COMPETITIVE ANALYSIS

Haier Pakistan becomes the 2nd Largest Company but it is very far away to

become the Market leader. The main Haier competitors are Dawlance, Samsung

and waves. Haier has different competitors in different products. For example in

Refrigerators and Microwaves the main competitor is Dawlance, in Waching

machine and TV, LG is main competitor, and in Air conditioner Waves and

Sabaro is the main competitors.

Market Share

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

LGHaie

r

Dowlan

ce

Samsu

ng

Nation

al

Wav

es

Other

s

Market Share

37

Direct Competitor’s

Mitsubishi

LG

Dawlance

Pel

Siemens

38

Substitute Competitors

Royals Fans

National Coolers

National Stove

BCG Matrix For Competitors:

Other Competitors

PEL

Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in

Pakistan. It was established in 1956 in technical collaboration with M/s AEG of

Germany. In October 1978, the company was bought by the Saigol Group of

Companies

39

Waves

Cool Industries (Pvt) Ltd. established in 1973, is a leading manufacturer of Home Appliances,

including Deep Freezers, Refrigerators, Air conditioners, Vacuum cleaners, Food processors, Washing

machines and other wide range of appliances.

The company is fully committed to protecting the environment and has been awarded a substantial grant by

the World Bank to phase out ODS (Ozone Depleting Substances) its production processes. This is an

ongoing activity and is being given all the importance it deserves for a timely and successful competition.

COMPETITIVE ANALYSIS (CPM)

Critical Success

Factors

  Dawlance Haier LG

Weight Rating Score Rating Score Rating Score

Product Quality 0.11 3 0.333 4 0.444 3 0.333

Price 0.11 3 0.333 2 0.22 4 0.444

Advertising 0.08 4 0.332 4 0.332 3 0.249

Market Share 0.06 3 0.168 3 0.168 4 0.224

Global Expansion 0.08 1 0.083 4 0.332 2 0.166

Brand Recognition 0.08 3 0.249 3 0.249 4 0.332

Production Capacity 0.06 3 0.168 4 0.224 3 0.168

After Sales Services 0.14 3 0.417 3 0.417 4 0.556

Availability 0.11 4 0.444 3 0.333 4 0.444

Product Range 0.08 4 0.32 3 0.24 4 0.32

Service Centers 0.09 3 0.27 3 0.27 4 0.36

  1.00   3.117   3.229   3.596

All companies are performing well because their scores are above average.

40

THEME(CO-ORDINATION OF THE THREE DEPARTMENTS IN ORDER TO

IMPLEMENT PROPER MARKETING INFORMATION SYSTEM)

41

PLAN:

Implementing proper Marketing Information System

PROs CONs

Better Feedback Costly implementation system

Better control over distributor, retailer High operating cost.

Better control over intermediaries New hiring required

Up to date sales information Time consuming process

Better competitor information

Following are the specific activities for the specific departments for the implementation of the selected alternative:

Marketing Department

Conducting marketing research Information gathering of competitors activities Information gathering of all internal company operations Gathering information for consumer buying patterns Gathering feedback information

Finance Department:

Arrangement of debt for implementation (If needed) Allocation of budget for new department Co-ordination with MIS department Managing financial activities

Human Resource Department:

Hiring new employees for the MIS department. Right sizing and hiring skilled labor. Training and development of employees. Job analysis (Job description, Job specification). Co-Ordination with MIS department.

Management Information System:

42

Managing information received from all departments Updating the information on regular basis Generating reports on demand Providing suggestions for improvements

43

PROBLEMS AT HAIER:

Improper distribution system.

No publication of Haier Pakistan Financial reports

Less availability of skilled labor

No proper feedback system

Weak brand image

No effective marketing activities

RECOMMENDATIONS

Introduce Online buying system

Establish customer Help line service

Revise the mission statement

Publish annual reports. So It helps to motivate and inform the

stakeholders about the working of organization

Increase the B-2-B relation like making contacts with Banks, Hotels and

Hospitals

Re-design existing marketing strategy

Provide Additional incentives like Hajj

Provide better after sales services

Provide training to employees to enhance their skills

Set smart goals

44

APPENDIX

45

APPENDIX 1:

Market Share

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

LGHaie

r

Dowlan

ce

Samsu

ng

Nation

al

Wav

es

Other

s

Market Share

Financial Results (Rs. in Million) 2006 2005

Gross Sales 11,042 8,075

Gross Profit 2,048 1,489

Profit Before Tax 517 381

Profit After Tax 442 285

46

INCOME STATEMENT & BALANCE SHEET

Financials

Year HK$’000 % Change + / -

2005 2004    

Revenue 4,940,474 5,893,839 (16.17%) -

Net Income (417,837) 148,628 (381.12%) -

Gross Profit 648,381 616,499 5.17% +

Operating Expenses 1,049,363 450,853 132.75% -

Current Liabilities 1,574,323 1,501,918 4.82% -

Current Assets 1,820,845 1,791,028 1.66% +

Total Liabilities 1,794,657 1,506,512 19.12% -

Assets 2,498,768 2,196,067 13.78% +

Equity 704,111 689,555 2.11% +

47

APPENDIX 2:

Nation Wide Dealers

Electro Palace

Abid Market Lahore

042-6367116

Electro Palace

Abid Market Lahore

042-6367116

Awais Electronics

Abid Market Lahore

042-6362029

Komal Centre

Abid Market Lahore

042-6312079- 042-6311584

Delite House

Abid Market Lahore

042-7562740

Electronics Centre

48

Abid Market Lahore

042-6316425

Star Electronics

Abid Market Lahore

042-6372610

Madina Electronics

Abid Market Lahore

111-100-122, 7356740

Arshad Electronics

Abid Market Lahore

111-721-721

Merigold Centre

Abid Market Lahore

042-6361441

Fridge Centre

Abid Market Lahore

042-7212575

Lahore Electronics

Abid Market Lahore

042-7359015

Markaz Al Rehman

Abid Market Lahore

042-7211482

White House

Abid Market Lahore

042-6308089

Selectronics

Abid Market Lahore

042-6360771

49

DISPLAY CENTERS

Lahore                                            

Patyala Ground

Ph: 042-7354075

Karachi

1) Saddar Ph: 021-7751867

2) Gulshan-e-Iqbal. Ph: 021-4818713

Quetta

M.A Jinnah Road

Ph: 081-836947

50

NATION WIDE SALES OFFICES

Lahore (Head Office)

11F-1(off Jail Road), Main Gulberg

Ph : 5879686-89

Fax : 5879308

Karachi

417, 4th Floor Madina

City Mall, Abdullah, Haroon Road, Saddar

Ph : 5653650

Rawalpindi

60-First Floor Walayat

Plaza Muree Road

Ph : 4841023

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