Management Case Study


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Introduction & Problem Identification

Management helps in managing all the functions and activities which are going to be taking place in an organisation. The management functions are also related with all the strategies, goals, objectives which they formulate and on such basis all acts are done in the specific manner. Haier is one of the leading electronics appliances company which creates an competitive market for the many companies. The basic purpose of this report is to keep in view about the problems which are face by the company at their initial stage. Such problems create barrier in their growth through which their sales get affected along with that they got(Yin, 2013).

One of the major problems which they faced in the 1980s was that they were near to the bankruptcy due to a faulty refrigerator. It leads in creating a problem through which company have to bear the loss of 400 refrigerators. Also 76 refrigerators get destroyed by the hammer due to some issues on the place of selling of them. Another problem which usually faced by the company was related with 3E card. According to this, workers have to produce 1% every day and their incentives were going to provide on such basis. This leads in creating a competitive culture where all the employees start giving their best on the place of making effective synergy between them. This leads in creating a lack of combination between each other and thus it leads in suffering the teamwork (Yin, 2011).

With the increment in the competition, their personal emotions towards each other get reduced and thus it suffers in creating an effective team in the company. These are some of the problems which are generally faced by the company for the some time. They identify all such issues and start getting work on such problems through which they can increase their productivity. Such problems were identified in the given period of time so that their activities get managed on time.All such problems get solved after the proper management techniques used by their manager. They used OEC method and 3E card technique which helps them in creating the potential products for their customers. The whole argument of this research report is based on these problems which were face by the company.


The present discussion of this report is based on the two major problems which affects the business so much. This leads in creating the problems of their long term survival in the market. By Haier conduct such activities through which they easily get overcome from such issues. But not completely, because their 3E card system not get succeed. According to this system it creates the conflicts and competition feeling between each and every employee and their teamwork spirit get finished(Yates and Paquette,2011). Now they were only working for their own and harm the clause of synergy. Problems start arise between them and that was not good at all for the whole organisational objectives. They were now work for their individual not as the team. So the discussion for each and every problem is discussed briefly along with the solutions which were taken by the managers for effective management:

First Issue

The major and the first problem was faced by the company in the year 1980s. At that time they found that their were some mechanical mistakes were consider which leads in making the faulty products. Thus it leads in the dissatisfaction of the customers. Further it leads in decreasing t6he sales of the company refrigerators. For this concern, manager destroyed the whole faulty products of their company on the place of exchange(Warren and McFadyen, 2010). They established the western management theory for their plant which helped them in setting the reliability of quality which they generally provide to their customers.

This helps them in setting their business entities in several other countries and their sales also get increased. This improvement helps them in increase the sales as well as they also beat the giant competitor of their company “Whirlpool”. And after years per year their quality get improved and they serve the best quality products to their target customers. It helps them in getting the faith, trust of the large consumer sector.

Second Issue

Another thing on which the manager focused is the OEC acronym in which:

O stands for the overall
E stands for the everyone, everything, everyday
C stands for the control and clear

According to this acronym every employee have to finish its work on the daily basis without any if and but. It stands for the overall control of everything. This helps them in getting and achieving the targets on the right time. This also helps them in increasing their productivity.

In this manner they used the 3E card which helps them in keeping the everyday record on the daily basis that how much production a worker have done. This helps them in providing incentives to each and every employee of the company(Calabreseet. al., 2011).

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But this created a problem of inefficiency and lack of team work. All workers were start achieving their task on the daily basis without coordinating with each other. Thus it leads in affect the organisational productivity and the quality which they service to the target customers. It influence the synergy of the firm which means that conflicts were got started between each of them. Thus its was not a beneficial method for the Haier group of electronics according to the production purpose(Hollensen, 2015).

Manager adopt this technique for the beneficial purpose of the entity but their workers did not get that properly and start working in the different directions. Thus it affects the overall performance of the organisation.

As per the above two issues it can be easily assumes that every organisation faced some issues which affects the business totally(Komppula, 2014). In this concern manager of the company had to adopt some additional steps which were beneficial for the organisation not for the quality purpose but for the larger sector of customers. In this field they can use the quality control scheme.


Cited company have to work on such issues by using the effective and appropriate methods which helps them in satisfying their customers needs and demands. This is an important term because without satisfaction of the consumers neither a company can earn profit nor get survive in the market. For this purpose company can use two best methods through which they can easily work on and implement such methods for better growth. The two methods are quality control and feedback control.

Quality Control

If company do not provide the quality products then it leads in losing the customer base. This affects their business more and even to the shut down point of their company. The company uses the western management theory through which they focus most on the quality as compared to the cost(Laureani, Antony and Douglas,2010). This approach enforce them to control the quality and use the OEC and 3E card system. Such approaches are helpful in making of the quality product. Thus they can get number of customers with the help of such methods(Tegou, Polatidis and Haralambopoulos, 2010).Along with that another thing which attracts the customers most was the major step of the company manager in which he destroyed the poor quality refrigerator. This helps in getting the faith and trust. This quality control helps them in revenue for the company. Also Haier have to improve their technology which helps them in manufacture the quality product. All such factors are important in the context of quality control. Once the quality of the product get controlled and all activities are managed in the appropriate manner then it leads in getting the larger consumer base which is beneficial for the purpose of generating higher revenue.

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Feedback Control

Cited organisation have to take proper feedback for their customers through which they can work on such issues which are generally facing by their consumers while using their products. The feedback have to be accomplish in the appropriate manner and the issues have to be taken into consideration(Van Wilgenet. and et. al., 2010). This feedback control is the best method on working on all the issues which are related with quality, cost everything.Feedback can be taken in the form of personal interaction, by providing forms or by customer support service for several months. Cited firm have to serve the free service in any defective or problem for few months. This also helps in getting the target customers.

Such methods have to be used by the company so that they can attain their objectives in the ethical manner. The another things which are related with this is that it also helps them for creating a strong position in the competitive market environment. So, such techniques have to be utilise for long term survival.


Haier group of electronics is one of the largest company in the electronics sector. They are producing high quality products for their target customers. At the time of starting few years they face some issues which affects their business but their ethical activities and the cooperative nature with the customers helps them in getting their trust and faith again. Another thing which they adopt to improve their quality is the 3E system which bound them to produce 1% for each day. But this method has some limitation also which create a barrier in its success.\

Read now:- Unit 5 A Case Study in Talent Plus Level 4


  • Calabrese, F., and et. al., 2011. Real-time urban monitoring using cell phones: A case study in Rome. IEEE Transactions on Intelligent Transportation Systems.
  • Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
  • Komppula, R., 2014. The role of individual entrepreneurs in the development of competitiveness for a rural tourism destination–A case study. Tourism Management.
  • Laureani, A., Antony, J and Douglas, A., 2010. Lean six sigma in a call centre: a case study. International journal of productivity and performance management.
  • Tegou, L.I., Polatidis, H and Haralambopoulos, D.A., 2010. Environmental management framework for wind farm siting: Methodology and case study. Journal of Environmental Management.
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