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ee thirds’, of having the company’s revenue equally generated from goods made in China and sold overseas, and goods that are produced and sold overseas.

As the company approached the third decade in its business operations, the CEO was aiming at even higher targets. The goal of the company was to attain deeper penetration of the market in both rural China and overseas.

The goal was to be achieved by increasing the share of the market and adding the product categories. The fast growing Chinese economy as well as shifts in production facilities to China may have played a role in driving the company to globalize. The impact of the WTO on China after entry in 2001 added pressure on the company to solidify its brand and products globally and to also have a dominant position in the local Chinese market.

However, Zhang experienced the challenge of maintaining the company’s industry leadership in home (Archer & Cameron, 2013). The task of going global required Zhang to decide what lessons learnt from the international operations needed to be implemented at home and which lessons learnt from the domestic operations of the company needed to be applied in the international markets (Bonaglia & Goldstein, 2007). With the rapid growth of the economy in China, inflation peaked at 17 percent in 1995 forcing central banks to curtail lending by banks. As such, the Chinese government denied the company a loan of RMB 1.6 billion to curb speculation in the real estate. Zhang, faced with no other option of raising funds to expand the company decided to sell 43.7 percent of Qingdao Haier refrigerator division to the Shanghai Stock Exchange. The company was also faced by the challenge of penetrating global markets as its approach was to start with the difficult markets of the U.S and U.K which were already well established in consumer electronics and home appliances there by providing stiff completion for the Chinese company.

This study has several objectives that it seeks to

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