Strategic Management and Leadership | Task Report

Running head: STRATEGIC MANAGEMENT AND LEADERSHIP
Strategic Management and Leadership
Name of the Student
Name of the University
Author’s Note:

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STRATEGIC MANAGEMENT AND LEADERSHIP
Table of Contents
Task 1: Strategic Report.............................................................................................................3
1.1 Executive Summary and Introduction..............................................................................3
1.2 Justification for a selected Theory of Strategic Management for explanation of
Relationships between Strategies, Stakeholder Expectation and Organizational
Performances..........................................................................................................................3
1.3 Identification and Evaluation of the Effects of the External Factors on Strategic
Management in the International Context such as Economic, Political and Cultural Factor 5
1.4 Formulation of a New Strategy for facing Challenges and meeting Organizational
Objectives with Critical Evaluation of the Strategy...............................................................8
1.5 Explanation of the Process Business Strategy encourages and supports Innovation and
Change with Evaluation of Strategy against Competing Strategies based on the
Contribution to Success of the Organization.......................................................................10
1.6 Development of an Implementation Plan for the Strategy developed and documented to
fulfil Expectations of Stakeholders......................................................................................11
1.7 Recommendations and Conclusion................................................................................13
Task 2: Organizational Redesign.............................................................................................16
2.1 Introduction....................................................................................................................16
2.2 Analysis of the Current Organizational Structure and Evaluation of its Effectiveness to
meet Organizational Objectives with reasons for Restructuring and Organizational Chart 16
2.3 Critical Evaluation of the Restructured Plan to address Possible Issues and Negative
Consequences and ways to overcome them.........................................................................20
2.4 Conclusion......................................................................................................................22

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References................................................................................................................................24

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Task 1: Strategic Report
1.1 Executive Summary and Introduction
The objective of the report is to understand about strategic management for a popular
as well as significant company in the world, Huawei. This type of management is the
significant ongoing planning, analyses and evaluation of all requirements, which is needed
for the business for meeting each and every goal and objective (Rothaermel 2017). Huawei
Technologies Co. Ltd is a popular multinational technology organization, based in China that
provides different telecommunications equipment as well as sells smart phones and consumer
electronics. They have headquarters in Shenzhen, Guangdong and have been doing business
for more than 32 years (Huawei. 2019). The following report has outlined a detailed analysis
on the failed strategy of Huawei as they were highly internally focused. As a result, market
shares were lost to a high level. This report will be describing about a suitable theory of
strategic management and formulation of new strategy with proper recommendations.
1.2 Justification for a selected Theory of Strategic Management for explanation of
Relationships between Strategies, Stakeholder Expectation and Organizational
Performances
Huawei, being one of the most significant and noteworthy technological organization
in the world has faced issues, related to the network infrastructure (Huawei.msn.com. 2019).
They have been doing their business in the entire world, however the US intelligence
agencies have claimed that the equipment of this particular organization comprises of
backdoor for utilization by the government spies (Huawei.msn.com. 2019). They are still on
target for shipping 200 million smart phones units in spite of having threats from cyber
security, however in a major bid for improving the overseas standing. They would be
investing 2 billion dollars on cyber security for the next 5 years. The issue of network
infrastructure was faced by them due to the failed strategies and their top management has

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failed in executing the strategies as they were extremely internally focused (Ansoff et al.
2018). In spite of facing a ban from the US and Australian governments, the CEO of Huawei
has decided to enter into the market.
The above mentioned case study of Huawei refers to the fact that they have faced
issues related to strategic management (Huawei.msn.com. 2019). A proper relationship
between the organizational stakeholders and other members is required for ensuring that only
the best strategies are being selected for the organization, under every circumstance (Hill,
Jones and Schilling 2014). It is needed to manage different strategies as well as stakeholder
expectations. The entire procedure to manage stakeholders is the distinct activity to
communicate with the stakeholders and then manage their expectations or concerns to meet
the respective requirements of the stakeholders, address the existing issues, resolve various
conflict situations and then achieve project objectives (Moutinho and Vargas-Sanchez 2018).
As a result, a proper relationship between strategies and expectations of the stakeholders is
required to be maintained, so that better effectiveness and efficiency is maintained under
every circumstance.
It could be easily analysed with a strategic management theory. It is a specific system
of ideas that are intended in explaining the origin, principles, evolution as well as applications
of the strategic management (Goetsch and Davis 2014). This particular theory stem mainly
from the perspectives of system as well as IT approach towards corporate management. The
most popular theories of this strategic management are applicable to the modernized
industrial as well as governmental companies are the resource based theory, HR based theory,
contingency theory, agency theory and many more (Ginter, Duncan and Swayne 2018). The
most suitable theory of strategic management that can demonstrate the relationship of
stakeholder expectations and strategies for the organization of Huawei would be agency
theory.

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This particular theory is the distinct principle, which is being utilized for explaining as
well as resolving different issues within the relationship between business principals and their
subsequent agents (Lasserre 2017). This relationship is mainly within shareholders, company
executives and principals as agents. The agency is the relation within two parties, where any
1 agent majorly represents the other principal in regular transactions. The top management of
the organization have recruited the respective agent for performing a specific service on their
behalf (Hitt and Duane Ireland 2017). These principals are responsible for delegating the
authority of decision making to the agents and they affect the principal financially for
understanding the differences in interests and priorities. As a result, it is being referred to as
the problem of principal agent. An agent is utilizing the resources of a principal (Noe et al.
2017).
Agency theory can easily address the disputes that mainly take place within two major
areas of a modification in objectives as well as a difference in the aversion of risks. The
organizational executive of Huawei might take decision to increase their business into the
new market and it would sacrifice their short-termed profitability within the expectations of
higher earnings and growth in future (Hill 2017). However, few of their shareholders might
place a major priorities on the short-term capital growth as well as face on the organizational
decisions. Hence, the strategic management theory of agency theory is the most suitable
theory for Huawei for understanding the relationship between their strategies and stakeholder
expectations (Stead and Stead 2014).
1.3 Identification and Evaluation of the Effects of the External Factors on Strategic
Management in the International Context such as Economic, Political and Cultural
Factor
Several external factors could eventually impact the core capability of any business as
well as investment for achieving the strategic objectives and goals. These distinct external