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

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

 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 Supervisor  1982 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.

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

 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 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.

 Joined the Communist Youth League  1975 – Membership in the Communist Party  Alternate Member of the 16 th Communist Parties Central Committee  Alternate Member of the 17 th Communist Parties Central Committee  Alternate Member of the 18 th Communist Parties Central Committee

 Zhang Ruimin is one of Fortune’s World’s Top 50 Leaders (22 nd )  His philosophy permeates Haier Group  Branding, Expansion by Acquisition, Quality

Company CEO Haier CEO Legend

Qingdao China’s Great Collective: 1991 – 2014 and Beyond

 Started As Qingdao Refrigerator Plant in 1984  Qingdao 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.

 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  Acquires Qingdao Microwave Electric in 1988 Appliances and increases its product line.

 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.

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

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.”

 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

 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.

Haier offers a wide variety of household and commercial products.

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

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

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

 Globe News Wire. (2014, March 20). Fortune Names Haier Group Chairman & CEO Zhang Ruimin Among "The World's Greatest Leaders”. Retrieved from GlobeNewswire: release/2014/03/21/620343/ http://globenewswire.com/news- release/2014/03/21/620343/  Haier Group. (2005) Environmental Report of Haier. Retrieved from UN Global Compact: OP.pdf OP.pdf  Haier Group. (2014, January 24). About Haier. Retrieved from Haier Group Home Page:  Haier-UK. (2014, April 18). Haier surpasses $29 billion in 2013 revenue and achieves record growth in sales. Retrieved from Haier-UK:

 The Economist. (2013, October 12). Haier and higher. Retrieved from Chinese Industry:  Wikipedia. (2014, May 20). Zhang Ruimin. Retrieved from Wikipedia, the free encyclopedia: wikipedia.org/wiki/Zhang_Ruiminhttp://en- wikipedia.org/wiki/Zhang_Ruimin  Williams, D. ( ). China Business Etiquette, Culture, & Manners. Retrieved from InternationalBusinessCenter.org:  Wu, Y. (2003). China's refrigerator magnate. The Mckinsey Quarterly, pp. 1-7.