Business Case Analysis: Huawei Enterprise USA (MGMT20144)

This essay provides a comprehensive business analysis of Huawei Enterprise USA, examining its business structure, governance, and environmental factors impacting its performance and decision-making. The analysis delves into the company's organizational structure, including sales, marketing, and business partner departments, and its corporate governance framework. It identifies key internal and external environmental factors, such as political, economic, technological, and legal aspects, influencing the company's operations. The essay also highlights the top three risks faced by Huawei, including political risks, security concerns, and supply chain vulnerabilities, and their impact on the company's strategic choices. Furthermore, it explores Huawei's business practices, including its product and service offerings, competitive landscape, and functional departments, such as HR, marketing, and finance. The conclusion summarizes the importance of business analysis in understanding contextual factors affecting organizational performance and decision-making, using Huawei Enterprise USA as a case study.

Running head: BUSINESS ANALYSIS
BUSINESS ANALYSIS
Name of Student
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Author Note

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Table of Contents
Introduction......................................................................................................................................2
Case company Synopsis..................................................................................................................2
Discussion........................................................................................................................................3
Business structure and governance structure...............................................................................3
Environmental factors that are influencing the company’s performance and decision making..4
The top three risks faced by the company and its impact on the performance and decision
making of the company...............................................................................................................6
The business practices adopted by the company and its influence on the company performance
and decision making....................................................................................................................7
Functional departments of the chosen company..........................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
The internal and external contextual factor refers to all those factors that impact the
organization’s performance and decision making (Yang & Li, 2019). Some of the major external
factors are political, economic, technological, and various other factors and some of the major
internal factors are company’s location, its human resources and various other resources of the
organization. Therefore all the companies are required to carry out proper analysis of these
contextual factors in order to improve their performance and to take efficient decisions. The
company chosen for the purpose of this study is Huawei enterprise USA (Huawei Enterprise.,
2019). It is a company dealing in enterprise networks, enterprise wireless, enterprise IOT and
various others. The main aim of the study is to carry out a business analysis of the same in order
to identify the contextual factors.
Case company Synopsis
Huawei enterprise USA has been continuously engaged in technological innovation, and
is therefore committed to cloud computing, internet of things, big data analytics and other
products and services in order to create a flexible, open, secure platform and provide a win-win
situation for all the players. It is also engaged in carrying out joint innovations helping customers
in different segments and others. Some of its major products and services are enterprise
networking, cloud data, management systems and others (Huawei Enterprise., 2019).The vision
of the company is to have an intelligent world by bringing digital to everyone- individuals,
organizations and home. The company has the core values of collaboration, shared success and
collaboration.

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Discussion
Business structure and governance structure
The organization structure of the Huawei EBG comprises of sales department, business
partners department, marketing solutions department and others. It has the responsibility of
designing, planning and verifying all industry solutions. It is responsible for ensuring growth,
market competitiveness, customer satisfaction of high level and others. Corporate governance
structure of the company undergoes continuous improvement through customer centrism. The
shareholders body is responsible for making all important decisions for the company such as
profit distribution and various others. The board of directors of the company is responsible for
leading the company and for exercising decision making in the company. Supervisory board is
there to look after the activities of the board of directors. The company has independent auditor
who is responsible for auditing the financial statements. There is an ICT management board for
looking after the ICT business structure of the company.
Figure 1: Corporate governance structure of Huawei enterprise USA

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Source: (Huawei Enterprise., 2019)
The carrier BG along with Enterprise BG as can be seen from the above diagram is
responsible for managing the marketing solutions, sales solution, and others which is aimed at
targeting carrier customers and various industry customers. These provide differentiated,
innovative and advanced solutions depending upon different factors such as- customer patterns
and others. The AI and cloud and network products and services are engaged in providing
integrated solutions. The main aim of these organizations is to provide world’s best connections
that are cost effective. There are regional organizations of ICT which are responsible for
developing the capabilities and resources and for implementation of the strategies. There is also a
managing board of the consumer business in order to manage the risk and for increasing decision
making.
Environmental factors that are influencing the company’s performance and
decision making
Some of the major internal environment factors of the company are- resources, core
competencies, capabilities, analysis of value chain and business fundamentals. Some of the
major external environment factors are- political, socio-cultural, economical, technological and
legal (South China Morning Post., 2019). The company gets its core competencies from its
capabilities which are formed from grouping of all the resources. Organizational resources of the
company comprises of Research and development, marketing, production, administration,
customer care and others. The physical resources of the company comprises of the research
laboratories, centers for software development and others. The technological resources of the
company comprises of patent filling and others. Human resources comprises of the huge
employee strength of approximately 1, 70,000 employees. The employees of the company are

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mostly bachelors and masters. The company capabilities comprises of all those resources that
have been integrated in order to achieve tasks. Huawei enterprise USA company employee’s
people who are mostly graduates and masters and therefore it has an educated workforce. The
company engages in creative activities and therefore innovate goods and services therefore
having a high number of patents. They also have a Guanxi network. The company’s core
competencies comprises of research and development with the help of which it is able to
innovate products and services. It uses the technique of integrating the marketing people in its
research and development team and therefore the marketers can directly communicate to the
research and development team. With the help of the value chain analysis, the company can
identify all those segments which are profitable and which are not. Some of the major external
factors influencing the performance and decision making of the company are political factors
such as there are different legislations framed by the Chinese government which affects the
operations of the company across different countries. The company has growth opportunities due
to different reforms introduced by the government. The company occupies good market share in
the field of telecom equipment.
Huawei enterprise is presently operating in an economy that offers it possibilities of
growth. It also has a background of economic growth. The socio-cultural factors impacting the
company have been unfavorable for the company in the United States during the phase of Plano
in the year 2001. However, the company overcame these difficulties. The company is also faced
with cultural and communication issues in US. The company has been able to adapt to different
technological needs and therefore it had invested in the third generation technology of mobile
communication. Presently it is working in the fifth generation of technology. Legally the

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company had been involved in many issues such as it was sued by Cisco in United States. This
led the company to lose much of its sales contracts.
Figure 2: Financial performance of Huawei enterprise USA
Source: (Huawei Enterprise., 2019)
The top three risks faced by the company and its impact on the performance and
decision making of the company
The top three risks faced by the company are that of political risks, security risks
regarding products and services offered by the company and supply chain risk for the company.
The company is presently being faced with various political issues because of different efforts on
the limit to buy for the company in US which is resulting in a disability to get all the necessary
supplies from the US based suppliers. Non US companies are being imposed different types of
restrictions on their sales. This has resulted in difficulty in operations in the United States that is
therefore reducing the share of the company from the global market. The second biggest risk
faced by the company is security issues and concerns of people before buying any Chinese
products. There is risk of kill packet- in which there is a threat to the networking equipment’s of

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being shut down. There are software issues that are considered to be intentional which involves
software’s that are aimed at providing a special access to the hackers in certain countries. There
may be some bugs that are intentionally hidden in the Chinese software in order to gain access.
There are issues of bad software unintentionally. There can be different types of bugs, different
types of errors in the hardware and other similar issues. There can be different types of business
issues. These include different non-technical issues such as cultural frameworks that are different
from the rest of the world (Guo et al., 2019). All the successful Chinese companies are required
to get integrated with some communist party of the country and therefore these companies are
expected to put the interest of their country above anything else and sometimes even above the
customer’s needs (Harvard Business Review., 2019).There is a risk of supply chain of the
company. The company is able to gain access to more information than most of the organization
which can be used for different purposes.
The business practices adopted by the company and its influence on the company
performance and decision making
The company is engaged in products and services such as enterprise networking,
enterprise collaboration, management systems, enterprise wireless and others. It operates in the
retail and manufacturing industry. It has got different partners- solution partners, channel
partners and others. Some of the major competitors of the company are Cisco Systems, Jupiter
networks, Extreme networks and others. The main aim of the company is to deliver technological
products and services to the customers. About 211 customers of the fortune 500 global
companies are some of the customers of the company. It follows the business driven ICT
information structure in order to help the customers transform themselves digitally.

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Functional departments of the chosen company
The functional departments of the company comprises of human resource, strategy
marketing, finance, corporate development, cyber security and various others. Business
organization of ICT comprises of carrier BG, Enterprise BG, AI and cloud products and services
and products and services of network.
Conclusion
From the above definition it can be concluded that it is very important to carry out
business analysis of companies in order to identify the contextual factors that have an impact on
the performance and decision making of the company. The company chosen for the purpose of
the study was the Huawei enterprise USA which basically deals in technological products and
services. With the help of the business analysis, the different factors that have an impact on the
organizational performance and decision making can be known; it can help in knowing impact of
the business practices on the performance and others.

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References
Guo, L., Zhang, M. Y., Dodgson, M., Gann, D., & Cai, H. (2019). Seizing windows of
opportunity by using technology-building and market-seeking strategies in tandem:
Huawei’s sustained catch-up in the global market. Asia Pacific Journal of
Management, 36(3), 849-879.
Harvard Business Review. (2019). Huawei’s Culture Is the Key to Its Success. Retrieved 17
August 2019, from https://hbr.org/2015/06/huaweis-culture-is-the-key-to-its-success
Huawei Enterprise. (2019). About Enterprise Business Group — Huawei Enterprise. Retrieved
14 August 2019, from https://e.huawei.com/us/about/huawei-enterprise
South China Morning Post. (2019). Huawei challenges rivals to open their source codes for
testing. Retrieved 17 August 2019, from
https://www.scmp.com/tech/enterprises/article/3003876/huawei-challenges-competitors-
subject-themselves-same-regulatory
Yang, Q., & Li, C. (2019). User Roles and Contributions in User Innovation
Community. American Journal of Industrial and Business Management, 9(6), 1318-1331.