profit-making business

Assignment Questions:
Please answer the following questions (12 points, Times New Roman, Double Spaced; World Limit: 2,000 words in total):
1. Consider what it would feel like to be told that you are no longer an employee; you must be an entrepreneur and run a profit-making business in order to earn a payback. How well did Chairman Zhang and his executives manage this transition? Have there been enough successes to date? Is this an important strategy for Haier’s overall business growth, especially in the digital age and Internet of Things?
2. What are the challenges of setting up “micro-enterprises” (some with the hope that they will become large) within an established company? What excites you about this model, and what concerns you?
3. What would you advice Chairman Zhang about the “tipping point” for this business model innovation?


 You are an entrepreneur on the verge of starting a new company. Describe the company you are planning to start. Is it a service or a manufacturing company? What will be your main source of operating revenue? What expenses are you anticipating? Categorize your anticipated costs as period or product costs and identify whether each is an indirect or a direct cost. Identify your direct materials, direct labor, and manufacturing overhead costs.