Huawei's Operational Efficiency and Market Position

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Management & business
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Table of Contents
Introduction......................................................................................................................................3
Company synopsis...........................................................................................................................4
(a).....................................................................................................................................................5
(b).....................................................................................................................................................6
(c).....................................................................................................................................................7
(e)...................................................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
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Introduction
The report explains the Huawei Enterprises USA which is a multinational company which
involves various functions such as financial services, transportation, energy, and manufacturing
services. This report defines the governance and the business structure of the company and also
the various environmental factors which affect the performance of the company. This report
explains the various risks faced by the organization which puts an impact on the working of the
company. There are also various functional areas through which the organization performs
various activities which helps in achieving the objective of the company.
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Company synopsis
Huawei Enterprise has been founded in 1987 by Ren Zhengfei. This is a multinational company
that provides equipment for telecommunications and associated with selling electronics to its
customers. The business of Huawei Enterprise has been expanded and now it includes
telecommunication network building, it provides consultancy and operational services. Till
September 2018, Huawei Enterprise has around 188,000 employees from these 76,000 have been
in the R&D department. There are many R&D institutes all around the world. The products and
services have been developed in around 170 countries or more. The revenue of Huawei
Enterprise in 2018 is the US $105.191 billion.
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(a)
Huawei is a privately held independent company that provides information and communication
technology, it has got nearly about 188,000 employees and they operate in more than 170 regions
and the countries and providing services to the more than 3 billion people around the world.
The company has got a great track record of 30 years in which the things they develop and
deliver to its customers is trustworthy and secure. There are mainly 4 key domains in the
organization such as telecom networks, smart devices, IT and the cloud services – They are
committed to bringing the digital to each people, organizations, and home for the fully intelligent
and connected world (Huawei. 2019).
Huawei was established in the year 2011 and has got the estimated revenue of us $ 10 billion, it
has got the double sale rate and has got the global partnership with the 25000 partners around the
world.
Huawei has sustained long term growth by staying customer-centric and inspiring and also
through the consistent improvement in the corporate governance structure, processes, appraisal
system, and the organizations. Various decisions are to be taken which are taken in the
shareholder's meeting who is the company’s authoritative body and decides about the major
issues such as profit distribution, selection of the board members and the company’s increased
capital (Huawei. 2019).
The Board of directors is the highest body which is responsible for the various operations,
strategies and the satisfactions of the customers. The main motive of the Board of directors is to
lead the company forward.
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(b)
Environmental factors influencing Huawei Enterprise:
The business of Huawei Enterprise has been affected by both the internal and external factors of
the environment. An internal factor of business has under little control of the organization while
the external factors are uncontrollable. Marketing strategies of Huawei Enterprise has been
developed by proper analysis of internal and external factors (Meredith, et. al., 2016).
Internal factors:
 Human resources: Human resources are the employees of the organization. They can be
the strength as well as the weakness of Huawei Enterprise. This has been depending on
their practical skills level, their performance and attitude for their work.
 Capital resources: Funds are a very essential factor for the business. Funds are required
to grow and sustain the business. Huawei Enterprise cannot survive without adequate
capital resources (Dixon, et. al .,2013).
 Operational efficiency: This factor focus on the improvement of the overall process of
Huawei Enterprise which helps in improving the output of the organization.
 Organizational structure: The focus on the structure is very important because it leads
to smooth work in the organization.
 Infrastructure: As much as the human resource, capital, and good operational and
organizational system are required effective infrastructure is also very important for
Huawei Enterprise.
External factors:
 Economic situation: This is a very important factor for company success. This factor
may include economic crisis, fluctuation of the interest rate.
 Laws: Local government rules and regulations are very crucial for the development of
Huawei Enterprise.
 Technological factors: Maintaining an updated technology is very important because it
helps in increasing the productivity of Huawei Enterprise.
 Customer demand: The business is running to fulfill the demand of their customers.
Huawei Enterprise produces its products and services according to their demand.
 Competition: Competition helps the companies to innovate their products, provide good
customer service and help the company in understanding their strengths and weaknesses.
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(c)
The risk faced by Huawei Enterprise:
Risk has been existing in every type of business. Proper risk management is very important for
companies. The company's performance and decision making have been affected by the risk
involved in the organization. Three types of risk that are involved in Huawei Enterprise are:
1. Market risk – This risk involved the conditions in the market that are changing
regularly. This factor affects the overall performance of the business. This risk has also
known as systematic risk. Market risk cannot be eliminated as well as it cannot be
ignored by the businesses. Some of the market risks can be a recession, changes in
interest rates, etc. this risk influences the overall market at a single time (Aloini, et. al.,
2012).
2. Credit risk – This risk has been incurred when Huawei Enterprise extends credit for the
customers. This risk has been arising when the company gives its products and services
to their customers on credit and the customer failed in making the payment then this will
be a credit risk for the company. This risk can be minimized by maintaining sufficient
cash flow.
3. Liquidity risk – This risk includes the risk of asset and funding liquidity. Asset risk is
related to the conversion of the assets in the cash which may be required to pay off their
debts. This risk may arise at the time when the company did not have adequate funds
which may require in the situation of risk (Aloini, et. al., 2012).
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(d)
There are various business practices which affect the performance of the company which is as
follows:
Engage workers
There are many of the workers in the company who doesn’t care about working in the
organization they only care about their income from the company. Huwaei has recognized this
issue and the managers of the company identified the employees who care about the company’s
vision as engaged workers are more productive and enthusiastic, they take responsibility for their
performances in the organization (University of saint mary. 2019).
Rewarding the efforts
Without recognition and achievements, an employee feels demotivated. Huawei rewards the
employees who are working hard for the company which further motivates them to perform more
efficiently and contributes towards the development of the organization.
Stay committed
There are various situations in which the team members do not trust each other and they spend a
lot of time ignoring the conflicts rather than giving their real opinions. Because of that state of
perpetual ambiguity ensues in which the goal and the strategies fail to emerge. So, staying
committed to the team is an important business practice that helps the company in many ways
(University of saint mary. 2019).
Seek Clarity
There is a common problem with the many of the company which involves a lack of alignment
among the managers who stopped working because they never understood the vision of the
company. There is six-question an organization should ask themselves to seek clarity which is as
follow:
 Why do we exist
 What do we do
 How will we succeed etc.
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(e)
Functional departments of Huawei Enterprise:
 Human resource – This department is the most important in Huawei Enterprise, without
human resource no activities and operations of an organization will be work. An
organization's function has been depended on human resources. Providing proper training
to the human resource is very important to build the employees according to the skills,
qualifications, and experience of the human resource the operations of the organization
will be work (Lobonţiu, & Lobonţiu, 2014).
 Marketing - With the help of this department the advertisement and the promotional
activities have been done and this helps the company in communicating about the
products and services of the company to their target customers and market. Effective
strategies for marketing will help in increasing profitability, growth, and success in the
market.
 Production – In this department, the inputs will be converted into the output and the
products will be produced for distributing to their customers. This department is also
known as the manufacturing department. This is the responsibility of this department of
producing goods and services of good quality and free from any defects.
 Sales – This department is responsible for the generation of the income for Huawei
Enterprise. The success of the organization has been depending on the sales department.
Coordination between the sales and marketing department is very necessary. The sales
department should be ensured that the products if the company will be sold on profit
(Lobonţiu, & Lobonţiu, 2014).
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Conclusion
The summary of this report includes that Huawei Enterprise is a multinational company that
provides electronic products to their customer all around the world. There are a proper business
and governance structure of Huawei Enterprise. Some of the factors that influence the
performance and decision making of the company are human resource, capital resource,
operational efficiency, technology, laws, etc. these are both internal as well as external factors.
Every business involves a certain amount of risk this risk can be market risk, location risk, credit
risk, etc. The functional department of the organization is a very important part and it includes
many departments.
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References
1. Aloini, D., Dulmin, R., & Mininno, V. (2012). Risk assessment in ERP
projects. Information Systems, 37(3), 183-199.
2. Dixon, J. A., Carpenter, R. A., Fallon, L. A., Sherman, P. B., & Manipomoke, S.
(2013). Economic analysis of the environmental impacts of development projects.
Routledge.
3. Huawei. 2019. About Huawei. [Online] Huawei. Available at:
https://e.huawei.com/ca/about/huawei-enterprise [Accessed: 13 August 2019]
4. Lobonţiu, G., & Lobonţiu, M. (2014). The owner-manager and the functional
management of a small firm. Procedia-Social and Behavioral Sciences, 124, 552-561.
5. Meredith, N. A., Quinn, C., Cate, D. M., Reilly, T. H., Volckens, J., & Henry, C. S.
(2016). based analytical devices for environmental analysis. Analyst, 141(6), 1874-1887.
6. University of saint mary. 2019. Business practices. [Online] University of saint mary.
Available at: https://online.stmary.edu/mba/resources/8-best-practices-in-business-
management [Accessed: 13 August 2019]
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