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By the 1980s, the factory had debt of over CNY ¥1.4 million and suffered from
dilapidated infrastructure, poor management, and lack of quality controls, resulting from
the planned economic system and relevant policies. Production had slowed to a trickle,
rarely surpassing 80 refrigerators a month, and the factory was close to bankruptcy. In
desperation, the Qingdao government turned to a young assistant city-manager, Zhang
Ruimin, responsible for a number of city owned appliance companies. Zhang was
appointed the managing director of the factory in 1984. It is Zhang Ruimin who has led
the company to stand up and grow to the world’s 4th largest white goods manufacturer in
Please find out the proactive and reactive motives of Haier’s Internationalization.
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