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Reinventing Giants: How Chinese Global Competitor Haier Has Changed the Way Big Companies Transform by Fang Liu, Umberto Lago, Bill Fischer

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Appendix

How ZZJYTs Work

This appendix provides additional details regarding how the ZZJYTs work with each other, how performance is assessed, and the expansion of Haier’s business model into Internet activities and new brands.

The ZZJYT Contract Process

The second-tier ZZJYTs offer business process support to the first-tier ZZJYTs. They contractually preset all the resources that they are to supply for the first tier. They then physically prepare these resources so that when the first-tier ZZJYTs need them, they are ready for delivery for the next three years.

There is also a contractual relationship between the second- and the third-tier ZZJYTs, similar to the contractual relationship between the second and the first tier: third-tier functional ...

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