It is a standalone business unit

e.g. What do they do? What is their core business, product or service?

The business which i choose is Haier Group. Haier Group, which was founded in 1984 and has headquarters in Qingdao, East China’s Shandong Province, now is one of the world’s leading domestic appliance manufacturer.

Value Propositions: Haier try to make their customers know more about their attitude and the quality of their products and service, specially the after-sales service. Their CEO said that they would never stop trying to develop more useful home appliance for their customers.

Customer Relationships: According to the different consumers’ characteristics of demand in the market, Haier focus on the reasonable segmentation. Because of Haier always care about the customer satisfaction, their would focus on developing variety products. So almost consumers can choose products of their own styles from Haier. If customers want any personalized demand or service, Haier would try them best to satisfy their customers.

Customer Segments: Haier’ s services and products which target the mass market segments are fulfill the demand of people from public mass. Besides, Haier is a big and successful manufacturer of refrigerator and there would not be a huge differentiation required by customers from their refrigerator.

Channels: Haier focus on developing customers base through various channels, including tele sale, network sale and physical store sale. In order to allow customers to purchase specific service or products, Haier always pay close attention on market trends which make the adjustment of supply chain system rapidly and accurately. According to make new decision and plan which satisfy customers’ demand.

Key Partners: Haier’ s key partners conclude Internet firms, advertising companies and many influential Chinese electronic commerce. With the help from these key partners which improve Haier’ s economic benefits.

Key Activities: InChina, the activities of electronic commence are very popular. Many online sale platform would help Haier to promote and popularize their products.

Key Resources: Haier very concern about human resource. Because of Haier has annexed many small business which make original managers have not able to take charge of this huge organization. So the management of human resource is very important.

Cost Structure: Haier focus on value creation and maximum automation in the cost structure.

Revenue Streams: Because of Haier provide varieties of personalized service and products, customer always would purchase the home appliance which they like.

Overall Comments on Strategic Business Unit/Business Model: According to the business model of Haier, it’ s not hard to see the management of Haier very concern about customers’ situation.

Q2) From your initial review, what do you see as the major issues that this Strategic Business Unit  is likely to face in the next 3-10 years?  (Not more than 200 words –  4 marks)

Through the management of Strategic Business Unit, it is more harder to figure out the problem of internal coordination. The difficult of management which make more and more managers of Haier have to think more about the future. Although the salary of employees has become than before, the original welfare of group do not become more. Under the circumstance of emphasize Strategic Business Unit management, each teams of Haier become more efficient but the flexibility is not enough. While employees and staff are under the pressure of working harder, the responsibility is also getting more and more important and it would be easy to make employees lack of self confidence and feel negative. Haier should pay more attention on employees’ feeling in the next 10 years.