System04116: Business Management, Risks, and Practices at Huawei

This report provides an overview of Huawei's business management, focusing on its organizational structure, environmental factors affecting its performance, and the risks it faces. It highlights Huawei's customer-oriented approach and its commitment to ethical practices and legal compliance. The report also identifies key functional departments, such as information technology, operations, legal, and human resources, and their roles in the company's success. Huawei's business practices, including its emphasis on social responsibility and sustainability, are also discussed. The document concludes by emphasizing the importance of effective business management for Huawei's continued growth and stability. Desklib provides access to this and other solved assignments for students.

Management 0
Business management of Huawei
System04116
8/14/2019

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Contents
Introduction......................................................................................................................................1
Background of the organization.......................................................................................................1
Environmental factors affecting business performance and decision-making................................1
Risks faced by Huawei....................................................................................................................1
Business practices of Huawei..........................................................................................................1
Functional departments....................................................................................................................1
Conclusion.......................................................................................................................................1
References........................................................................................................................................1

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Introduction
This report studies about the management and business of Huawei. The management of
business is the coordination and organization of activities of business in order to attain the
specified goals. In this report, the government and business structure of Huawei is to be
discussed which is adopted by Huawei. The several environmental factors are present that widely
affect the performance of the business and the decision making processes. Moreover there are
risks which are involved in the business that is to be identified for the purpose of favorable
business performance and decision-making. Furthermore the functional departments of Huawei
are to be identified which play significant role in the success of the business and its employee’s
performance.
Background of the organization
Huawei enterprises is a Chinese multinational technology company which helps in
providing equipment for telecommunications and also helps in selling the electronics to the
consumers which includes things like smartphones and other electronics . The company was
founded in the year 1987 by Ren Zhengfei. In the beginning the company use to emphasis on the
manufacturing of the phone switches then later on it has expanded its business into
telecommunication networks which provides operational and consulting services and the
equipment to the companies both outside and inside of china and it also use to provide
manufacturing communication devices for the market of the consumers and the company has
around 188000 employees since the time of September 2018 and around 7600 of them are
working towards R&D institutes around the world.

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The government structure and business structure of Huawei
 Huawei is the customer-oriented company and it has continued long period growth by the
constant betterment for the company governance structure, processes of company and the
appraisal systems.
 The stakeholders meeting is the Huawei’s authoritative body that makes decisions on the
grounds of big issues such as increase in capital, profit distribution, screening of
members of the board directors and the supervisory board (Zhu, Et al, 2013).
 The member’s board is the topmost bodies who are responsible for the company strategy,
management of operation and satisfaction of customers. The board of director’s mission
is to lead the company for future. It exercises the authority of decision-making for the
company strategy and management of operation and to ensure the safety and security of
the customers
 The key responsibilities of the supervisory board consists the fulfillment of control
responsibility of the member’s board and the senior management, checking the operation
of the company and also the financial status while overseeing the internal control and
legal agreement
 KPMG has been employed as the independent auditor of the Huawei since the year
2000. One of the independent auditors is responsible for the auditing of annual financial
statements of company. In accordance with the applicable accounting standards and audit
procedures, the independent auditor expresses their view regarding the financial
statements whether these are true and fair (Wu, Et al, 2011).

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Environmental factors affecting business performance and decision-making
 Legal and political factor: Dedicated to ethics of company morals, approval for the
agreements and adherence of native rules and the regulations are essentials of worldwide
processes of Huawei. There are also some of the central set of values followed by the
organization team of Huawei. The legal settings in few areas where functions of Huawei
are difficult. This company focuses on all general instructions and rules; but negative
effects may occur. Huawei will suffer as always to proactively assess dangers and take
preventive events to report these issues. The certainty of lawful compliance is its best
protection in conflict of the uncertainties of international government (Tao, Et al, 2016).
 Economic factor: due to the growth of international trade, it has isolated behind
international economic growth for five consecutive ages. The whole skill setting is
constantly increasing and is also becoming very difficult and as well as and stimulating.
Several countries have spoken about their drive to adhere skill rules with an objective to
increasing economic growth and the service. As an international business, Huawei
controls international trade instructions and recruits to place skill compliance overhead its
own viable welfares. Being a representative for the international ICT multinationals,
Huawei has become one of the member of World Customs Organization's Private Sector
Consultative Group in June 2016. And apart from this being member of PSCG, Huawei
helps in giving recommendations and guidelines around the taxes of the World
Organization on the matters related to trade and the customs that helps in reducing the
international trade challenges, and also approves the growth of trade simplification and
duty strategies (Dalton, 2014).

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Risks faced by Huawei
 Business risk: Huawei have to depend on the third parties for business, logistics, and
facilities with the today’s extremely globalized division of work. Therefore, third party
commercial break can straight or obliquely support Huawei's processes and presentation
of business (Ke, 2015).
 Security risk: While the Huawei has accepted safety events of severe information to
protect its IPR; it is excruciating to completely stop other companies from improperly
using their information, charters, and licenses. Even when they are capable to recourse to
grievance to safeguard their IPR, as they may undergo losses from inappropriate use
(Nakai, 2010).
 Strategic risk: If considered through the viewpoint over technology, still the company has
come up a positive world within two to three decades. The world universally experienced
a seismic change, the extensiveness and complexity of which cannot visualize (Zhu,
Hoffmire, Hoffmire, & Wang, 2013). Looking into the future, the Huawei states that they
will remain dedicated to the pipe plans, and also constructing the procedural structure that
achieves interaction between policies, data piping, and cloud in the intelligent world. The
company also states that they will spend more intensely in study and research of the
technology and business models where the growth is extremely uncertain, continue
concentrating on the objectives, and make focused savings along with various trails in
several waves. At the same period of time, they will also struggle to disrupt ahead the
trends of the industry and classify, know, and satisfy the different needs of their clients
(Pawlicki, 2017). In order to make sure business stability, Huawei has identified a
business stability management system in arrangement, manufacturing, supply,

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international technical services, and other arenas. This system protections end-to-end
processes from the dealers to Huawei and on to their clients. With this system, they have
developed and accepted genuine events to protect steadiness of the business, including
organization’s management, other response and business stability plans, implementation,
trainings, worker awareness labors, and developments to extra response capabilities
(Pawlicki, 2017).
Business practices of Huawei
 As an international company, it take on social responsibilities by sanctioning sound social
growth to some extent than just concentrating on their own development and growth.
 Huawei includes requirements of sustainability into the processes of business and the
systems of management in order to fulfil the creativities of sustainability. For the future,
Huawei states that they will remain focused in creating financial welfares for the
communities.
 They will also give focus on sustainability opportunities and meets and infinitely increase
their sustainability management by working closely with their stakeholders in order to
create the sound business ecosystem (Murphy, Et al, 2017).
 Huawei has also recognized a sustainability management system based on international
values, guidelines, industrialized and circulated a series of rules, procedures, and the
baselines.
 The company states that they will make complete use of their sustainability function and
the management processes to plot, implement, display, and recover the sustainability
work.

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 In 2016, the company go through how it can processes their work, modernize and also
improve their processes therefore to make them improved match for the business and the
business operations, it states that it will create the more value for the business and
increase efficiency along with it.
Functional departments
 Information technology department: this department is responsible for the architecture,
software, hardware and networking of the computers related to the energy solutions in the
company. They manages the information security to protect the corporate data. They
develop the network to support an effective communication and collaboration within the
company (Zhang, 2012).
 Operations department: they are responsible to ensure their business is running
effectively and efficiently. They make use of little resources and time whenever possible.
They aim to deliver the highest quality service or the product (Fu, 2012).
 Legal department: they are responsible for providing the legal support or advice to the
company, their departments and their employees. They act as the official representative
for the company Human resource: they are in-charge of major areas such as benefits and
compensations, training and learning, labour relations, employee relations and the
development of the company. They recruit people in their company who are suitable to
this field and take task of this rightly (Kang, 2015).
Conclusion
From the above study it is concluded that there is essential a business management at
every phase of the business in an efficient and effective manner as Huawei undertakes the

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business of telecommunication and network which adopted a proper business and governance
structure to lead the business in their particular industry. In the report, it is seen that Huawei
affected by the several environmental factors but most widely impacted by the legal and
economic factors which creates issues in their operations. Furthermore, Huawei faces three
greater risks that has wide impact on their business and become severe in the progress of their set
up.

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References
Dalton, M. (2014). Telecom deal by China’s ZTE, Huawei in Ethiopia faces criticism. Wall
Street Journal, January, 7, 2014.
Fu, K., & Fu, D. (2012). Research on European marketing strategies of Huawei technology Co.
Ltd and it’s enlightenment on Chinese enterprise. International Journal of Innovative
Management, Information & Production, 3(1), 25-35.
Kang, B. (2015). The innovation process of Huawei and ZTE: Patent data analysis. China
Economic Review, 36, 378-393.
Ke, J. (2015). Analyses on Strategies of Enhancing Brand Competitiveness of HUAWEI
Company. In 2nd International Conference on Intelligent Computing and Cognitive
Informatics (ICICCI 2015). Atlantis Press.
Nakai, Y., & Tanaka, Y. (2010). Chinese company's IPR strategy: How Huawei Technologies
succeeded in dominating overseas market by Sideward-Crawl Crab Strategy. In PICMET
2010 TECHNOLOGY MANAGEMENT FOR GLOBAL ECONOMIC GROWTH (pp. 1-5).
IEEE.
Pawlicki, P. (2017). Challenger multinationals in telecommunications: Huawei and ZTE. ETUI
Research Paper-Background analysis.
Tao, T., De Cremer, D., & Chunbo, W. (2016). Huawei: Leadership, Culture, and Connectivity.
SAGE Publications India.

Management 10
Wu, F., Hoon, L. S., & Yuzhu, Z. (2011). Dos and don'ts for Chinese companies investing in the
United States: Lessons from Huawei and Haier. Thunderbird International Business
Review, 53(4), 501-515.
Zhang, Y., & Wu, Y. (2012). Huawei and Zhengfei Ren: leadership in a technology-innovative
firm. Technological Entrepreneurship in China. How Does it Work, 103-122.
Zhu, Z., Hoffmire, J., Hoffmire, J., & Wang, F. (2013). Employee stock ownership plans and
their effect on productivity: The case of Huawei. International Journal of Business and
Management Invention, 2(8), 17-22.