Impacts and Influences of Macro Environment on Huawei's Business Strategies

BUSINESS STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Impacts and the influences of the macro environment on the organisation and their
business strategies.......................................................................................................................3
TASK 2............................................................................................................................................6
P2 Internal environment and capabilities of the organisation.....................................................6
TASK 3............................................................................................................................................7
P3 Porter's Five Forces models in the organisation to evaluate the force of competition..........7
TASK 4............................................................................................................................................9
P4. Strategic management planning of the Huawei...................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business strategy refers to the set of the process and the practices which the business use
to attracts the number of customer, increase in the level of the performance and achievement of
the objective of the business. Strategy of the business helps to reach he success and growth of the
business. In the strategies of the business there are the three main practices such as cost
leadership, differentiation and focus of the company. This report explains about the business
strategy of the Huawei which is the famous which provides the information and the
communication technology across the world. It is the largest Chinese company which sells the
electronic devices for the customer such as the smartphones. The headquarter of the Huawei is at
the Shenzhen, China. This file involves the impact of the external environment on the Huawei
and its business strategies. There are also the internal environment on the business of the
Huawei. This report includes the evaluation and analysis of the five forces of the porters. There
are various theories and the models which determine the strategic planning of the Huawei.
TASK 1
P1 Impacts and the influences of the macro environment on the organisation and their business
strategies
In the business of the Huawei there are various external factor which affects the
positively and negatively on the strategies of the business. The success and growth of the
business is depends on the political, economic, technological, environmental, social and legal
factors of the business. These external factors are explained below:
Political factors: These factors affects the business of the Huawei in the international markets
because of the increases in the control of the government affects the productivity and
profitability of the business. In the expansion of the business of Huawei in the international
markets is one of the biggest challenges due to increase in the pressure of the politics (Alghazi,
and et.al., 2017). In the international markets the smartphones of the Huawei are famous so there
is the significant force of the politics across the world.
Positive: Political factors have positive effects on the business of the Huawei because the
governments of the china provides the loans to the local companies to increase the sales and the
productivity in the international markets.

Negative: In the promotion of the political and in the meetings of the national congress
the process of the most of the Chinese companies decreases so this will affects negatively on the
business of the Huawei.
Economic factors: The success and the growth of the business of the Huawei is depends on the
economy of the china and their targeted markets. The performance of the targeted market of the
Huawei is effective and efficient economically the sells of the smartphone of the Huawei
increases in the targeted markets(Bentley-Goode, Omer, and Twedt, 2017) . The economic
factors affects the business of the Huawei
Positive: There is the increase in the economy of the china which increase the disposable
income of the business and there is increase in the demands of the good quality of the
smartphones of the Huawei.
Negative: When the value added tax increase there is the decrease in the operating cost
of the company of the telecommunication sector and this will reduces the profitability of the
business of the Huawei.
Social factors: These factors refers to the needs and wants of the customer are affected by the
social culture and trends. So the business makes their strategies and business plans as per the
social factors. Social factors affects the business because is affects the demands of the products
and services in the people.
Positive: The changes in the trends and the culture of the society Huawei brings the new
and effective techniques and practices for the development of the products and services. Because
of the social factors the Huawei makes sure about the sustainability in their products.
Negative: Because of the continuous changes in the social trends and culture the Huawei
have to changes the strategies and the practices of the business on the as per the changes in the
society
Technological factors: The success and the growth of the technology industry increases it will
increases the success and the growth of the Huawei business. Huawei is the information
technology company which aims and focuses on the research and innovations of the technology
products and services (Lawton, 2017). The technological factors affects the business of the
Huawei because there is the rapid changes in the technology.
Positive: There is the increases in the sales of the Huawei by fast development of their
own modems of the 5G before their competitors in the international markets.