MGMT20144 Business Case Analysis: Huawei Enterprise USA, Inc. Report

This essay provides a detailed business case analysis of Huawei Enterprise USA, Inc., examining its business and governance structures, including the roles and responsibilities within the organization. It delves into the internal and external environmental factors influencing the company's performance and decision-making, such as resources, capabilities, political, economic, and technological aspects. The analysis explores the risks affecting the company and the business practices implemented by functional departments to mitigate these risks and ensure operational efficiency. The essay concludes by highlighting the future implications and the potential impact of the differences between China and the USA on the company's performance, particularly concerning political and legal issues. The analysis is supported by cited sources, providing a comprehensive overview of Huawei Enterprise USA, Inc.'s operations and challenges.

Huawei Enterprise USA, Inc.
Running Head: HUAWEI ENTERPRISE USA, INC.
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S t u d e n t N a m e :
S t u d e n t U n i v e r s i t y :
Management and Business Context

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Contents
Introduction................................................................................................................................2
Background of the Company.....................................................................................................2
Business and Governance Structure...........................................................................................2
Environmental Factors...............................................................................................................3
Internal Environmental Factors..............................................................................................4
External Environmental Factors.............................................................................................5
Risks influencing the company’s performance or decision-making..........................................5
Business Practices......................................................................................................................6
Functional Departments.............................................................................................................6
Conclusion..................................................................................................................................6
Bibliography...............................................................................................................................7

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Introduction
Every company has its business and governance structure which is important to make
better decisions where responsibilities are allotted, measured and matched within different
levels of management for achieving long-term investment goals. These decisions made in the
company are influenced by the environmental factors i.e. internal and external. The factors
also include risks influencing the decisions made and performance which the company needs
to face. To diminish the risk, the company makes business practices which are implemented
by functional departments.
The purpose of this essay is to make sure that the Huawei Enterprise USA, Inc. has a
proper structure including business practices to minimize risks which influences the
performance and decision making with the help of an efficient workforce of functional
departments for business and governance structure through its internal and external
environmental factors.
Background of the Company
Huawei is an international technology company in China founded in 1987 by Ren
Zhengfei and now expanded worldwide where Huawei Enterprise USA, Inc. is also a
subsidiary of the company which sells telecommunications equipment and electronics to
customers including smartphones. The company operates with 188,000 employees and
invested in more than 170 countries including the US serving billion people their services on
whom they are dependent on globally. It is an ICT brand private company where they assure
that they develop and deliver with security and trust to customers for respecting their values
as the main priority. They are best in telecom networks, IT, smart devices and cloud devices
with digital commitment and fully connected tech world (Zhu & Jones, 2014).
Business and Governance Structure
Huawei business structure is made for operations and success where the team focuses
on long-term growth and removes the unnecessary layers and processes from the company to
show and maintain the ability to make a strategy for high progress. The company needed to
attack from within to strengthen outside by trembling off distractions, improving

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management and to reach the strategic goals. They were racing against the time to make the
vision of bringing digitalism to every person, home and organization for a fully connected,
intelligent world in real (Schell, 2018). Huawei has inspiring passion, increase productivity
and long-term growth. After restructuring, the company started a business and policy
management mechanism on the ICT Infrastructure Managing Board and Platform
Coordination Committee; group functioning at workplace and authority allocation with
manager positioning to field offices, R&D and other top-level departments to encourage
desire in areas of an organization which results in future growth (Paswan, Francisco, &
Charles, 2012). Huawei keeps on designing and implementing control system internally on
the basis of organizational structure.
(Huawei, 2018).
Huawei stayed customer-centric and encouraged dedication for nourishing long-term
growth with continuous improvement. They implemented a complete governance structure
defining authority and accountability instruments comprising Board of Directors, committees,
group functions, and multi-level management teams; defining the roles and responsibilities to
confirm actual separation of authority and responsibilities, and checking the balances through
common error. The company works on internal controls and monitor the operations after
submitting reports of possible defects and improvements made for building the environment
(Miglani, Ahmed, & Henry, 2015).

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Environmental Factors
Huawei consists of both internal and external environmental factors; internal factors
include resources, capabilities, core competencies, value chain analysis and Huawei’s
business fundamentals whereas external factors include political, economic, socio-cultural,
technological and legal (vom Brocke, Zelt, & Schmiedel, 2016).
Internal Environmental Factors
Resources: Resources are which create organizational abilities which result in core
competencies of the company and generates competitive advantage. Organization Resources
are R&D, production, marketing, customer care, and administration; physical resources are
headquarters in China, six research laboratories and software development centre in India;
technological resources are vast and applied in 170 countries with the top international patent
substantial in 2014 and lastly, human resources which hold 170,000 plus employees where
60% are masters and 85% are bachelors with degree (Huawei, 2018).
Capabilities: Abilities occurs when resources are used to achieve the specific goals
where Huawei recruits employees with high talent where the company can come up with
innovative products holding a high number of patents by Chinese standard. Ren Zhengfei
who came from military background had a connection with the Chinese military which helps
Huawei creating a network named ‘guanxi’ (Lu & Pan, 2015).
Core Competencies: The abilities are the only core competencies which gives a
competitive advantage to the company over Huawei’s competitors. The first competence of
the company is Resource & Development because of the less expensive work force; the
company adds its promoting people into Resource & Development team to communicate with
marketers through telephone companies and service providers in a short time and the
advantage of company’s close relations with the military (Lee, 2019).
Value Chain: Huawei Company USA, Inc. has a strong value chain which helps to
sustain competitive advantage and is used to evaluate the company’s operations’ divisions
which create value including primary and supportive activities. Primary activities include
marketing and sales, inward and outward logistics, and operation. Support activities include
the company’s infrastructure, HRM, services, technological development, and gaining (Li,
Jayaraman, Paulraj, & Shang, 2016).

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Huawei’s Business Fundamentals: This factor includes accounting and finance
where accounting holds the annual revenue with a rise of over 20% year-to-year and a
functional profit with generating. Finance includes the financial support from the main-
owned Chinese Development Bank and facilities from the Export-Import Bank of China as a
form of long-term financing (Mcmorrow, 2019).
External Environmental Factors
Political: The guanxi network formed with the help of Chinese military relations
where the few competitors matched and this also helped the Huawei to protect a big contract
with the military. The government of the US had various political rules like concerned about
Huawei and its tie-up with Chinese government which affect the external considered
environment and the political environment is very equable for growth where the reforms
introduced aims at proposing a situation that provides business growth (Stewart, 2019).
Economic: Huawei is the leading maker of telecommunication in China and other
countries like the USA with high market capitalization to function in an economy which
provides the likelihood of good revenues and development. It is important to consider the
potential in external strategy as it has a strong economic background because of a
multinational company to compete effectively and maintaining communication between
China and the USA by using company and its equipment (Fazzini, 2019).
Socio-cultural: Huawei’s efforts to fit in US culture was difficult for employees to
catch the accent at first and local culture but Ren Zhengfei recruited and trained talented
employees which have the urge to learn everything aggressively at its best. The factors
company consider are a distribution of wealth, mobility, availability of education and
schooling, movements of lifestyle, time usage and freedom, work outlooks, family and
relationships, benefits in growth, sacred flavours, folk characteristics, values, and standards
(Lahiri & Hui, 2019).
Technological: Company offered the 3G and 4G technology and recently working or
done working on 5G ICT technological expansion known by its internal resources. Every
technology company is concerned about its innovation and take serious steps to transform the
level of technology which offers a great opportunity for growth (Kim, 2015).
Legal: Huawei was sued by Cisco in the US after six months of setting up for
violating the copyrights and patents and Cisco was looking for compensations in the process

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because of which, many of the Huawei contacts were lost (Kawanami, 2018). Moreover, the
employee of the company was once trapped taking pictures of high-tech gear. The trade ban
in US by Chinese Government and economic issues is what affects the performance and
decision-making of the company.
Risks influencing the company’s performance or decision-making
Once the company stood for security risks in the US and some technological risk in
prompt product cycle; the Chinese company, when invested in the US faced the change of
legal environment is the first risk when direct investment runs against current US regulations
concerning foreign investment. So, FDIs are limited and regulated by federal, state and
special laws for industry access, M&A and national security. The company also faced some
political issues which are the second risk and are inter-related; as the US has political stability
and a sound legal system but as Chinese investors were unfamiliar with such an external
environment helpless to risks like additional legal requirements which brings risk to foreign
investments (Carvalho & Rabechini Junior, 2015). While entering in the US, different
business operations were faced with non-commercial risks as a third risk after making
investments as the laws of the US were strict and rigid than those of China.
Business Practices
Huawei best business practices which influence the performance or decision-making
by looking at the core areas are to engage workers to work effortlessly, giving rewards for
those efforts, getting vulnerable and stay committed, looking for clarity, creating cultural
togetherness and focussing on team effort by holding regular meetings; maintaining
relationships with vendors for better flow of supply chains and arranging recycling program
for development and making work policies (Reverte, Gómez-Melero, & Cegarra-Navarro,
2016).
Functional Departments
Business Departments which Huawei includes are HR department for recruiting best
talent, accounting and finance department by money, marketing and advertising department
for promotional strategies, IT department responsible for hardware, software, and
networking, customer service department to interact with them. The goal is to provide the
customer satisfaction, operational department which controls designing and process of

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production for delivering the highest quality products and services and legal department
providing legal services and polices who act as a representative (Howley, 2019).
Conclusion
To conclude, Huawei is a great brand considering every aspect of the company
internally and externally looking at the environmental factors which are worked by functional
departments applying the practices for business and governance structure. After analysing,
the future implications the differences between China and the USA can affect the
performance and decision-making of the company mainly because of political and legal
issues.

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