Huawei Enterprise Inc.'s Decision-Making Process: An Essay

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MANAGEMENT AND BUSINESS CONTEXT ASSESSMENT 1

Essay
The process of decision making is one of the most crucial processes that need to be done right by
organisations. There is a range of both internal and external factors that are to be looked at which
affect the decision-making process of an organisation. Huawei enterprise Inc. is such an
organisation in which its decisions are being affected by such factors. Environmental factors, as
well as the risks which are going to be faced by the organisation, are going to be discussed in the
report. This will help in providing more knowledge about management and business contexts.
Huawei Enterprise is an organisation that is dedicated to increasing the use of technology in
every area so that work can be done in a more effective manner. The culture that is involved in
the organisation is known to be the ethics of business and making sure that all of the rules and
regulations are followed. The structure is done by having proper authorisation an accountability
measure set throughout the organisation. Each individuals roles and responsibilities are defined
so that they know what job role is to be taken charge of. The organisation also makes sure to
assess the risks it's facing or going to face on a regular basis so that they can be handled
appropriately (Chang et. al. 2017).
The business structure and corporate governance of Huawei enterprise Inc. are set up in such a
way that they both are customer-focused. The main goal that is to be derived from this structure
is known to be a continuous improvement for the long-term. At the top of the organisation, there
stands the shareholder’s who are considered to be the authoritative body and whose work is to
make crucial decisions regarding the major issues of the organisation. Next, to them, the Board
of directors is in charge which will also be involved in the decision-making process regarding the
operational processes that occur in it. Another aspect that can be seen in this is that for managing
risk management and creating better strategies the organisation has set up ‘Consumer Business
Managing Board’. This board is responsible for assessing and managing the risks so that they do
not hamper into the quality of services and products that are provided by the organisation.
Launching of new and innovative products is also a part of this group and it is made sure that all
of the operational activities are working to provide effective quality. This board is probably one
of the most important parts of the organisation as it handles most of the crucial parts that would
lead to growth and development. The operations and decision made by the higher authorities

would be based on the information collected or the work done in this field. It can be seen that all
of the departments are interlinked with each other.
Environmental factors, which are present in the market, are the ones which have some impact on
the decisions made in an organisation and also on its performance. The use of PESTLE analysis
can be used here. One of these environmental factors is known as political factors. Since
Huawei’s business is spread worldwide it must adhere to the rules and regulations that are set out
by that specific country. In the USA there may be some different legislations that are applied to
the business while in other countries there are different legislations. Another factor is the
economic factor. In this factor, it was seen that the rise in competition in the technology sector
has led to various effects on the decision-making process. One of these was when the
organisation introduced its Smartphone which instantly captured the market. This decision
benefited the organisation a lot and made its growth successful. The recession times in the
economy might have caused some setbacks but still, the organisation is financially strong. Social
factors are mostly regarded with the fact of how will the customer feel about the product. The
decisions made by the organisation are mostly focused on consumer satisfaction. This shows that
this factor does not have that much of an effect on the organisation. Technology is probably one
of the biggest environmental factors that have an effect on the decisions made in the
organisation. The world is going toward more of a technology based one and the organisation
would need to make their products and services more technology focused. So the organisation
needs to offer more and more products that are innovative in the field of technology. From this, it
can be seen that the environmental factors play a major role in seeing where the performance of
the organisation is headed. They also play a major role in seeing that the decisions which are
taken on different management levels. This would mean that the decision made would have to be
made by analysing these factors.
There are many risks that are faced by organisations such as Huawei but there are three main
ones which affect its decision making process and performance in the market. One of the major
risks that are being faced by organisations is that it is facing security allegations in the United
States of America. The country has said that by using its 5G technology it has violated the
security terms for the customers. This is a huge risk for the organisation as the use of 5G will be
banned in other countries as well. This would affect the performance as it will go down because

introducing 5G into the world was one of the most crucial decisions made by the organisation.
Another risk which is faced by the organisation is that of innovation. More and more pressure is
seen to be amounting on the organisation so that innovation should be done. This has started to
affect the decisions made in the organisation the board of directors would need to come up with
more innovative ideas to stay successful in the market. There will be some innovations that
would not be that much effective in the market hence lowering the performance of it. Customer
loyalty is yet another risk which is being faced by the organisation. This is become a rising risk
by the allegations that are being put on it by countries. This makes the level of trust on the
company by the customers go down and the will stop buying its products and availing its
services. This would affect the performance of the organisation highly as their goodwill is down
in the market (Fitzgerald, & Rowley, 2016).
Huawei has a number of business practices that it has adopted. All of these practices are made
sure that they are run effectively and efficiently. One of the practices in the organisation is
known as digital inclusion. The focus of this practice is basically on making technology
available to all. This affects the decisions made in the organisation as the organisation would
need to focus more on how to provide such services to the public. It also needs to make sure to
provide digital skills to people so that they can use the technology. Another business practice of
the organisation is to make sure that cybersecurity is the top most priority on their list. This is
done in the organisation when the product is made and even when it is delivered to the customer.
This increases the performance of the organisation as it the employees will start to trust it and
become loyal (Lee et. al 2013). Having a friendly ecosystem with an corporate culture is also
considered to be a business practice. By motivating its employees and making sure that they are
giving all of their efforts to the business would help the performance increase. The decisions
which are made would be made regarding how much of innovation can be done by the
employees so that the organisation can grow in the market. All of these business practices have
some effect on the decisions made by the Board of Directors and also will have a positive effect
on the organisation. There are no negative effects because the organisation would want the
business practices it has adopted should be only for the benefit of it.

There are more than one functional department which are present in the organisation. One of the
departments is known as the CSR (Corporate Social Responsibility) Management department.
Under this particular department there are more than one department that is involved. One of
these departments is the employee health and safety department. In this department it is seen that
the safety of the employees is to be considered. There are a specific number of hours which are
defined by the rules in USA that specify how much work hours are to be given to an employer.
This needs to be followed by the organisation in order to maintain a friendly environment with
the country (Stanton, & Nankervis, 2011). The employee relationship department makes sure
that the management and the employees have a proper a healthy relationship. This would help in
reducing employee turnover.
From seeing all of these different factors and different practices it can be said that the
performance and decisions made should be done after analysing them. The environmental factors
are the ones which show that if one of them is affected in a negative way then the whole
performance would be decreased. Form this it can be concluded that the organisation should
focus on the decisions it makes regarding the different factors so that the performance can rise.
Both decision making and performance have a reverse effect on each other hence they should be
decided together when doing any business practice.

References
 Chang, L., Ho, W., Tsai, S., Chen, Q., & Wu, C. (2017). Dynamic organizational learning: A
narrative inquiry into the story of Huawei in China. Asia Pacific Business Review, 23(4), 541-
558. DOI: //doi-org.ezproxy.cqu.edu.au/10.1080/13602381.2017.1346910
 Fitzgerald, R., & Rowley, C. (2016). MNCs from the Asia Pacific in the global economy:
Examples and lessons from Japan, Korea, China and India. Asia Pacific Business Review, 22(4),
1-6. DOI: https://doi-org.ezproxy.cqu.edu.au/10.1080/13602381.2016.1168671
 Lee, J., Kwak, J., & Kim, K. (2013). Subsidiary goals, learning orientations, and ownership
strategies of multinational enterprises: Evidence from foreign direct investments in Korea. Asia
Pacific Business Review, 20(4), 1-20. DOI:
https://doi-org.ezproxy.cqu.edu.au/10.1080/13602381.2013.859427
 Rowley, C., & Warner, M. (2013). Strategic challenges and issues for Chinese managers and
management in the global economy: Conclusions. Asia Pacific Business Review, 19(4), 617-624.
DOI: https://doi-org.ezproxy.cqu.edu.au/10.1080/13602381.2013.832918
 Stanton, P., & Nankervis, A. (2011). Linking strategic HRM, performance management and
organizational effectiveness: Perceptions of managers in Singapore. Asia Pacific Business
Review, 17(1), 67-84. DOI: https://doi-org.ezproxy.cqu.edu.au/10.1080/13602381003790382