Detailed Report: Huawei Japan's Business, Culture, and Governance

This report provides a comprehensive review of Huawei Japan, a subsidiary of Huawei Technologies. It begins with an executive summary and an introduction to the company, followed by a discussion of its organizational structure, including its focus on carrier networks, enterprise solutions, and consumer products. The report delves into Huawei's business culture, emphasizing employee ownership and a top-down management structure. It examines the company's business sustainability and growth, highlighting its expansion into global markets and its financial performance over several years, including the development of 3G and 4G technologies. Furthermore, the report analyzes Huawei's corporate governance structure, outlining the roles of shareholders, the board of directors, and the CEO. Finally, it concludes with a SWOT analysis, summarizing the company's strengths, weaknesses, opportunities, and threats, offering a holistic view of Huawei Japan's market position and future prospects.

Running head: A REVIEW ON HUAWEI JAPAN
A review on Huawei Japan
Name of the student
Name of the University
Author Note

1A REVIEW ON HUAWEI JAPAN
Executive summary
The following report discusses about the contributions made by the Huawei technologies. The
chosen country is Japan. This report further discusses about the overview and the organization
structure of the company in regards to the revenue generated for various financial years. In
addition, this report also discusses about the business sustainability of the company that helps to
denote its structure and culture. Moreover, the company’s corporate governance is also depicted
in this report. Lastly, the report concludes by stating the SWOT analysis of the company.

2A REVIEW ON HUAWEI JAPAN
Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................3
Overview of the company:...........................................................................................................3
Business organizations and culture:.............................................................................................4
Business sustainability and growth:.............................................................................................6
Corporate governance:...............................................................................................................10
SWOT analysis:.........................................................................................................................11
Conclusion:....................................................................................................................................14
References:....................................................................................................................................15

3A REVIEW ON HUAWEI JAPAN
Introduction:
The Huawei Technologies Co. Ltd. was founded in the year of 1987. It used to be a
workshop having only one room for working situated in China. In the recent times, the company
has evolved from such structures to one of the largest and efficient information technology
providers. Across the years, the company has made great advances along the carrier networks
and consumer fields. This has resulted in the company to gain much dynamics and attitude in
recent years. This report discusses about the major organizational structure of the company along
with its SWOT analysis. In addition, it also consists of a discussion regarding the corporate
governance and sustainability.
Discussion:
The first phases of operations included the application of reverse engineering on the
market products and selling them at a profit. In the recent trends, their main operations include
application of research and development technologies so that they can be used for engineering
their own products (Ba, Zehou and Qing 2016). Due to such applications of the company, their
solutions are being used across 140 nations which have made them a greater stability in the
market.
Overview of the company:
The main operations of the company include adoption of carrier networks for the
operators, solutions for the enterprises and consumer products. The first products that were sold
by this company were the fixed line telephones at the early ages. Due to their efficiency and
effectiveness, they have been used across the market and thus the reasons for such success. In

4A REVIEW ON HUAWEI JAPAN
addition, this product also includes customizable wireless networks and fixed networks along
with telecom software. The second type of products is the solution for enterprises which involves
the development of an ICT product like cloud solutions, information security and network
solutions which is mainly incorporated by the government entities and the public entities. The
major industries widely associated with them are the energy, power, transportation, finance and
other industries. The last segment of the research and development involves application of
adaptive solutions which has resulted in the adoption of various processes to make it a major
growth and success along the market economy (ZHU and LV 2014). In addition, the products of
the company are mainly integrated with the ideas for customer development. Their major
products like the mobile broadband devices, home devices, tablets, Smartphone and their
respective applications are a success in the market. Their mobile devices are successfully
competing with the major dominant companies like the Samsung and Apple. In the year 2015,
the company achieved massive growth which led to the worldwide innovations and acceptance
for their products.
Business organizations and culture:
The main company named the Huawei Technologies Co Ltd is considered to be a fully-
developed and owned subsidiary of the Shenzhen Huawei Investment & Holding Co Ltd. In
addition, the major properties of the Huawei are owned by its employees only without the any
influence from third party organizations. The shares of the company are allocated to those
employees who show commitment and performance in their annual reports. The stockholders of
Huawei are determined by 33 members of the union which forms a committee for making
decisions (Xuesong 2016). This committee then delegates the responsibility of the board to nine
candidates which is generally decided in the annual meetings of the stockholders.

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The culture and the effectiveness of a company are correlated with each other. The
telecommunication company has emerged in the market globally leading to rapid growth and
development (huawei, 2017). The major customers of the company include North America, Latin
America, Middle East, Europe, Africa, South Asia, China, Russia, Japan and Australia. The
founder of the company, Ren Zhengfei has established a great corporate culture which is
characterized by responsibility, pragmatism and technological development.
Figure 1: Customer base o the company
(Source: Xuesong 2016, pp 93)
Additionally, the organizational culture of the company is based on adopting the various
long-term benefits rather than aiming for short term returns. This process is adopted in their
methodologies making them a great competitor in the market. They have also started an
incentive system that drives the best from their employees in terms of efficiency and quality. The

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company also considers a top-down management structure for adoption of principles. Moreover,
the culture of the corporate governance is more focused on meeting the needs of the customers
and the company than the individuals or suppliers making them a key player in the market (Fan
et al. 2015). Furthermore, the company also provides various benefits and vacations to their
employees for recreational purposes.
The basic principles of the company include the protection of the weak which is always
followed under the egalitarian distribution principle. In addition, the company principles also
follow the equality in treatments among the ranks as well as respecting the higher authorities.
Moreover, the company policies also emphasize pursuit for technologies and products along with
solitary protection of each individual right.
Business sustainability and growth:
The business of the company has emerged from a small one room workstation to a
multinational company making billions in their enterprise. In the year 2008, the company signed
a contract for 23.3 billion$ which made them revenue accounting to 18.3 billion$ in sales. This
also made them the fourth largest company based on the telecommunication equipment supplies
which gave them the fourth rank globally (Qing, Yingfang and Hongxing 2016). During the
introduction of the third generation technology (3G), their market sales increased by a percentage
of 43 which reduced the percentage sales of the competitor companies in the market.

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Figure 2: Sales comparison of the major comparison over the years
(Source: Qing, Yingfang and Hongxing 2016, pp 17)
The main contributions for the company which made them a great success was the
establishment of favorable ties with the various telecomm service operators in a global level. In
the year 2008, the company was associated with majority of the global contracts accounting to 75
percent in total. This made them a great success for the year and established their boundary as
the biggest overseas sales making company. Additionally, it also developed and established the
LTE/SAE network in the city of Oslo in Norway which was the first telecomm service being
offered in that region. Moreover, it also signed contracts with the Bell and the Telus companies
which helped them to introduce the High Speed Packet Access and the Universal Mobile
Telecommunications Service.

8A REVIEW ON HUAWEI JAPAN
` In the year 2012, the company made more investments in their European franchisees. The
main involvements included the development of a new research and development sector in
Finland. In addition, the company also set up a local board of directors and advisory board
committees. The main focus of the company behind such investments is to make certain amount
of contributions pertaining to the information and communication sectors. The work of the
company will be to provide more dedicated and efficient operations in pipelining to conserve
more energy. This is also done keeping in mind the need for future innovations in technology
sector.
The main strategies that have been implemented by the company are the development of
digital connections, promoting the safety of the customer networks to make it a stable and secure
one, promoting the need for environment protections and achieving a win-win situation. In
addition, in the same year the company also made a new innovations regarding the successful
launch of the 400G dense wavelength division multiplexing (DWDM) for transport system
which made a new standard in the market (huawei, 2017). In addition, the company also made a
successful launch of the 480G line card that is associated with the largest IP capacity on the
industry.
The financial year of 2012 was also associated to a larger contribution from the company
y in terms of the cloud computing aspect. The company made a contract with clients from 33
countries and made a great achievement in making the biggest desktop cloud. This desktop cloud
was associated with 70000 employees which are being used each and every day for daily
operations. The numbers of data centers that have been delivered are 260 in numbers out of
which 35 of them works according to cloud engagements. Moreover, the storage solutions made
by the company are used to serve 2000 customers across all industries. Over the span of seven

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years, then compound annual growth rate (CAGR) increased to a level more than 70 percent
which was the initial contributor to making it the fastest growing managed service provider in a
global level.
Figure 3: Comparison over a five year financial basis
(Source: Xuesong 2016, pp 93)
The company also made a great innovation in the Smartphone devices as well. For the
year 2012, the major revenue was from the sales made from the high-end and middle-end
Smartphone. The major best sellers were the Ascend P1, Ascend D1 Quad, and Honor which
mainly contributed to the revenue made in the developing countries. Moreover, this also made
the company shift from their role as a design manufacturer to their own branded franchisees.

10A REVIEW ON HUAWEI JAPAN
Corporate governance:
In the hierarchy of Huawei Japan, the first and the foremost entity are the shareholders.
The shareholders make key decisions regarding various issues like increase in capital and sharing
of the profit, selection of candidates for the board of directors and surveillance committees.
Below them, the board of directors, supervisory board and independent auditors are in the
next level of hierarchy. The board of directors controls four different committees. They are the
human resource committee, finance committee, strategic development committee and the audit
committee. The board of directors is concerned with decision making and effectiveness of the
strategic development of all business processes. The various committees are responsible for
analyzing the financial conditions of the company along with the management situations.
Furthermore, the committee is also responsible for monitoring the performance of the managers
and the directors in achieving their purposes.
The next level of the hierarchy includes the CEO to be the first person to lead. The CEO
then looks after the various group functions which forms the company processes. The major
functions are the carrier network functions, enterprise business functions, device business
functions and other business functions (huawei, 2017). These make up for the whole
organizational processes. The network functions are associated with support and analysis for
marketing and sales operations along with service targeting solutions. Similarly, the products
divisions of the company are basically focused on the providing integrated solutions that totally
utilize the use of the information and the communication technologies.

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These processes are further sub-divided so that they can be carried out in the regional
branches of the company as well. These regional offices are concerned with utilizing the local
resources for meeting the needs of the business processes.
Figure 1: Organization structure
(Source: ZHU and LV 2014, pp 283)
SWOT analysis:
This section of the report presents the SWOT analysis of the company in terms of its
strengths, weaknesses, opportunities and threats as analyzed in its recent years.
Strengths:
 Low cost in operations and engineering
Weakness:
 Limited investments due to being