Haier began to implement the asset expansion strategy from 199 1. It has successively merged more than 10 large and medium-sized enterprises such as Qingdao Air Conditioning Factory, Refrigerator Factory, Wuhan West Road and Hongxing Electric Company. , revitalize existing assets to1500 million yuan. The assets of the Group expanded from tens of millions of yuan before 10 to 3.9 billion yuan, becoming China.
1March, 1997 13, Haier group established Shunde Haier electric appliance co., ltd with Guangdong aide group company in the form of holding investment.
1September, 1997, Haier and Xihu Electronics, a large enterprise group with assets of nearly 654.38+0.7 billion, jointly invested and established Hangzhou Haier Electric Co., Ltd. in Hangzhou Economic and Technological Development Zone to jointly develop and produce large-screen digital TV.
At the end of 1997, Haier successively merged Anhui Huangshan Electronics Co., Ltd., holding Guizhou Refrigerator Factory and Qingdao No.3 Pharmaceutical Factory. So far, Haier has merged 16 domestic enterprises in 13, forming the largest "joint fleet" in the domestic household appliance industry.
Among 16 companies, Haier believes that the merger of Hongxing Electric Appliances is the most successful one, because Haier did not invest a penny in this merger, but only used its own intangible assets such as brand and management to become a shareholder, making Hongxing a winner in a short time and an important part of Haier's washing machine. Shunde Haier is a relatively standardized merger and acquisition conducted by Haier in accordance with the principles of market economy. Although the role of local governments is not small, it is not like Red Star being directly placed under Haier by Qingdao Municipal Government. Most of Haier's mergers and acquisitions are not cross-industry (white goods industry), but the establishment of Hangzhou Haier Electric Appliance Co., Ltd. marks the increasing pace of Haier's mergers and acquisitions, and this merger is undoubtedly a milestone. In view of the importance of the above three mergers and acquisitions, I paid more attention to these three mergers and acquisitions in this survey, and I will mainly introduce these three cases in the next report.
Overall merger-Red Star Electric Company
I. Background
Qingdao Haier Group Company was established in 199 1 year by Qingdao Refrigerator General Factory, Qingdao Electric Refrigerator General Factory and Qingdao Air Conditioning Factory. 1993 changed its name to Haier group in September, and its products are mainly refrigeration equipment. June 65438+July 0993 Group and Meloni Design Co., Ltd. jointly established Qindao Haier Meloni Co., Ltd. and began to produce drum washing machines. 1994, the group achieved a sales income of 2.565 billion yuan, a profit of 2 10/00000 yuan, and produced 7 13000 washing machines. 1May 1995, Haier washing machine "Margaret" was rated as1May 1995, the top ten best-selling washing machines in China market.
Qingdao Hongxing Electric Appliance Company was once one of the three major washing machine manufacturers in China, with more than 3,500 employees, with an annual output of 700,000 washing machines and an annual sales income of more than 500 million yuan. However, since the first half of 1995, its business has gone from bad to worse, with a big decline for many years. Moreover, the asset-liability ratio is as high as 143.65%, and the assets are insolvent1330,000 yuan, so the prospect is worrying. In order to revitalize the state-owned assets and the livelihood of more than 3,500 employees,1On July 4, 1995, the Qingdao Municipal Government decided to transfer Hongxing Electric Appliance Co., Ltd. to Haier Group as a whole. This is a remarkable property right transaction, which aims to revitalize state-owned assets and is conducted under the mediation of the government. Its success or failure is remarkable.
Second, the purpose of mergers and acquisitions
The rapid development of domestic washing machine industry in China began in the late 1970s, and the total output of 1995 reached about 9.5 million units. Generally speaking, household washing machines can be divided into single-barrel, double-barrel semi-automatic washing machines and full-automatic washing machines, and full-automatic washing machines can be divided into pulsator, drum and stirring type. The single-barrel washing machine is the original type. 1995 Most manufacturers stopped production. Semi-automatic binoculars were cheaper than automatic ones, which was the mainstream in China market at that time. Drum is more common in Europe, but pulsator is more common in Asia. For the washing machine market with a total capacity of more than 9 million units at that time, Haier's more than 700,000 units were obviously just a small number. Moreover, at that time, Haier washing machine was mainly drum, and its product line was relatively simple. In order to expand its market share, it must expand its production capacity and increase the length of its product line.
As an old washing machine manufacturer, Red Star's equipment, technology and worker proficiency should be quite good at that time. What it lacks is mainly scientific management and market-oriented production and operation mode, while Haier is famous for its management and excellent market concept, so their combination is very reasonable. The appearance of the municipal government made the merger very smooth, and because Red Star was placed under Haier by the municipal government as a whole, it did not need Haier's investment, which greatly reduced the cost of the merger, which is probably one of the reasons why Haier thought the Red Star merger was its most successful merger. Through this merger, the newly established Haier Washing Machine Co., Ltd. not only doubled the original production capacity, but also produced economies of scale, greatly enriched the product line and greatly enhanced its competitiveness in the washing machine market.
Third, the process of M&A.
(a) Changes in organizational structure
1On July 4th, 995, Qingdao Hongxing Electric Appliance Co., Ltd. was transferred to Haier Group as a whole and renamed Qingdao Haier Washing Machine Co., Ltd., thus becoming the second washing machine subsidiary of Haier Group after Haier meloni Washing Machine Co., Ltd..
(2) takeover process
1, culture first
1On July 4th, 995, Chai Yongsen, deputy general manager of Haier Refrigerator Co., Ltd., was ordered to come to Haier Washing Machine Co., Ltd., renamed by Red Star Electric Appliance Company, to serve as Party Secretary and General Manager. At the beginning of the classification, Zhang Ruimin, president of Haier Group, decided that Haier's greatest advantage was intangible assets. It is the most important thing to inject intangible assets into Haier's corporate culture to unify corporate thinking, recast corporate soul and revitalize tangible assets.
Yang Mianmian, vice president of Haier Group, first led the employees of Haier's five centers of corporate culture, asset management, planning and development, fund scheduling and consulting and certification, and came to Hongxing Electric Appliance Company the next day after his arrival, and began to implement and implement the strategy of "corporate culture first". Haier's spirit of "dedication to the country and pursuit of Excellence" began to implant and assimilate the employees of "Red Star".
Later, Zhang Ruimin personally went to Red Star to tell middle-level cadres about his management experience, explained the "80/20 management principle" and instilled the concept of "people and responsibility" that "the key minority decides the non-key majority".
"The most active factor of an enterprise is people, and among the human factors, although there are a few management cadres above the middle level, they bear 80% of the development of the enterprise."
The "80/20 principle" that refreshes the middle-level cadres of Red Star, the "Fayueer springboard principle" that standard questions and the exceptional problems should be solved in different ways, and the old saying quoted by China: "Only talented and handsome with both ability and political integrity; Talent is the capital of virtue, which has inspired the enterprising spirit of the majority of middle-level cadres of Red Star and inspired them to strive for first-class sails.
Zhang Ruimin then extended Haier OEC management from enterprise loss analysis, asking everyone to start from me, from now on, from me to produce results, from today to produce results, comprehensively clean up and manage every day, everyone and everything, and make things better every day.
He proposed that we should work together from three aspects at present: first, we should take the market as the center, sell credibility, not products, and all work should be done around customer demand and market satisfaction; Second, reduce costs, improve profitability, and get maximum output with minimum input; Three, from now on, make a plan every day, the goal of quantitative decomposition to people, pay close attention to death, and strive to become the first brand of washing machines in China in two to three years, and finally build a world famous brand.
2. "Ping Fan Incident"
It should be said that more than 3,500 employees of Red Star Electric Company welcome and support the enterprise being classified as "Haier". However, due to the differences in corporate culture, corporate management and employee quality, people have misunderstandings about Haier's management methods in concept.
Haier's management guiding ideology is "people-oriented". In this regard, the new leadership team headed by Chai Yongsen did not simply preach, but seized the typical cases that happened around employees and guided people to consciously change their concepts.
One day, something happened in the washing machine workshop. Fan Ping, a quality inspector, was fined 50 yuan because of her weak sense of responsibility, which led to the wrong selection switch and missed inspection. This is a trivial matter, because in the past, enterprises always punished front-line workers for quality problems, but if we look at this matter from Haier's management philosophy, we should not handle it so simply, and the cadres around the parties should take responsibility step by step. In view of this matter, they used the Haier newspaper sponsored by the group to discuss what responsibility Fan Ping's superiors should bear, and distributed commentary articles, which were serious and started with cadres.
Taking this as a starting point, Chai Yongsen urged subordinate departments to deal with the storage and maintenance of washing machines in enterprises for several years quickly. However, the subordinate departments accustomed to procrastination thought it was irrelevant and did not comply with it on schedule. Chai Yongsen took the blame and punished 500 yuan accordingly.
The brand-new Haier management shocked the original Red Star people, especially the cadres, and began to realize the gaps and deficiencies in management.
The red and yellow list of cadres was quickly established, and 10 cadres punished themselves for their work mistakes, which solved many long-standing problems such as quality, supply and cadre style.
Grasping the concept of employees has been achieved.