ABSTRACT
As one of the most valuable brands in China, Haier designs, manufactures, and sells various home appliances, including refrigerators, air conditioners, etc in over 100 countries. When Zhang took control of Haier in 1984, the company was in financial distress and it lacked basic standards and procedures. To demonstrate his commitment to high quality, Zhang once personally pulled 76 refrigerators with minor defects from production line and smashed them in public. Since 2006, Haier has continued to evolve its business models and extend its global reach. Since 1984, Zhang has continuously proposed new strategies, most of which combined Western management concepts and Chinese philosophical thought. Negative entropy refers to the constant influx of first-class talent into Haier. Du Jingguo, the current president of Haier Asia International (HAI), has served at Haier since 1985. Du adopted the following guiding principles in leading Haier Japan: respecting Japanese culture, integrating Haier culture, and, finally, shaping a unique local culture of Haier Japan.
