Haier Incubating Entrepreneurs In A Chinese Giant Case Solution

2. Problem Identification 

The CEO of Haier Group aims to accelerate the growth of the microenterprises that have been set up through the Haier platforms, despite the fact that there survival currently stands at 40%. Zhang however, believes that they have a huge potential and would help in opening up infinite opportunities for the users and contribute towards future development. Zhang however, needed to come up with a strategy through which he would support such micro-enterprises which would in turn help in creating a much valuable eco system. 

3. Connection with relevant article(s) - Connect theory and case study 

It is quite true that as organizations grow big, they become more bureaucratic as the levels of hierarchy increase (Hamel & Zanini, 2018). This makes the organization less customer-responsive which would cause it to lose its competitive edge in the market (Daugherty, Sabath, & Rogers, 1992). This can be related with the “Randenheyi” model used in Haier which was aimed at bridging the relations between the employees and the users with the aim of boosting creativity. This would be consistent with the style of democratic leadership, which further helps in boosting innovation as the employees would have a higher degree of autonomy to take initiatives that would add positive value to the organization.

Having a culture that promotes micro-enterprises would be even more productive as the employees would be collaborating with each other coming from different functions to produce products and services that are required by the target customers, hence creating a sustainable ecosystem.

Also, these enterprises would be customer-facing, hence would help in meeting the goal of “zero distance” between employees and the users, thereby helping in reducing the customer response times and improving the overall satisfaction rate.