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  • November 2007 (Revised May 2008)
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Haier Hefei Electronics Co. (A)

By: Lynn Sharp Paine
  • Format:Print
  • | Pages:25
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Abstract

The Haier Group, the first mainland Chinese company to make the Financial Times list of Asia's "most admired companies," attributes its success in large measure to the new value system it has sought to instill throughout the organization. However, when Haier takes over the Yellow Mountain television factory in the distant Hefei province at the behest of Hefei's government, workers strike against the Haier culture and what it stands for. The immediate catalyst is the labor contract Haier has asked them to sign. Haier's management must decide what's fair and how to respond to the workers' demands in the face of local government pressure to compromise.

Keywords

Public Ownership; Business and Government Relations; Organizational Culture; Transformation; Ethics; Labor and Management Relations; Business or Company Management; Contracts; Electronics Industry; China

Citation

Paine, Lynn Sharp. "Haier Hefei Electronics Co. (A)." Harvard Business School Case 308-075, November 2007. (Revised May 2008.)
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About The Author

Lynn S. Paine

General Management
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