【正文】
ors. “Of the 400 or so there, I found 76 that I didn’t want released to the market,”he recalls. He had the rejects placed in an open space. Then he called his staff of some 600 together, showed them the refrigerators, and passed around a sledgehammer. “Destroy them!”he ordered. The workers hesitated, but Zhang insisted. “If we pass these 76 for sale,” he told them, “we’ll be continuing a mistake that has all but bankrupted our pany.” Soon piles of shattered metal littered the warehouse floor. Unit Two China39。Unit Two China39。s Haier Power — Antony Paul ? TEXT In the archives of China’s modern management lore, the events at a Qingdao appliance factory in the summer of 1985 have begun to acquire the dimensions of legend. Something like, say, the day Henry Ford separated the manufacture of a valve into 21 steps or when Akio Morita made Sony’s first length of recording tape in a frying pan. By the early 1980s, the Qingdao General Refrigerator Factory had bee a typical example of a business in the last stages of socialist decay: heavy debt, grumpy workers, shoddy products, service from hell. One day in August an unhappy customer came to the work site to plain of having bought a dud refrigerator—no small plaint in those days, when only two or three of every 1000 urban Chinese households owned such a luxury. Unit Two China39。s Haier Power — Antony Paul That burst of cathartic violence did more than turn a few refrigerators to rubbish. It set the stage for the regeneration of the Qingdao factory and the creation of one of China’s most interesting panies, now known as the Haier Group Co. Haier’s makeover has proved that it is possible to transform even a rotten socialist enterprise into a vibrant and prosperous pany. And the sledgehammer? Refrigerator assemblyline workers have placed it in a wall display. Zhang’s next goal is to crack the FORTUNE Global 500. He has a long way to go. In 1998 the group’s sales totaled $ billion。s Haier Power — Antony Paul FORTUNE’s global list. Still, Haier is a very big fish in the smaller pond that is the China market. It is tops in air conditioners (% market share), freezers (%), refrigerators(40%), and washing machines (%). It is fourth in color TVs and also makes a host of other small appliances, such as water heaters and microwave ovens. And it is growing fast: Since 1984 it has averaged an increase of 83% a year in revenues. Haier now has 50 units (18 are wholly owned, 23 are holding panies, and there are nine joint ventures). It has more than 20220 employees and some $ billion in assets?. Its products are sold in 87 countries, and it is building factories in Indonesia, the Philippines, Malaysia, and Iran. Nor is Haier just a Third World wonder. In the . it says it has nearly 20% of the market for small refrigerators. Haier air conditioners have made inroads in Europe. Unit Two China39。s Haier Power — Antony Paul Haier has been able to solve those problems, even though it is still officially a city collective a