Strategic Management and Leadership Report: Huawei Case Study Analysis

This report offers a comprehensive analysis of Huawei's strategic management and leadership, addressing the company's challenges and proposing solutions. It begins with an executive summary and introduction, followed by a justification for using agency theory to explain the relationships between strategies, stakeholder expectations, and organizational performance. The report then identifies and evaluates the effects of external factors, including economic, political, and cultural influences, on Huawei's strategic management in an international context. A new strategy is formulated to address challenges and meet organizational objectives, with a critical evaluation of the strategy provided. The report also examines how business strategy encourages and supports innovation and change, comparing the proposed strategy against competing strategies based on their contribution to organizational success. An implementation plan is developed, and the report concludes with recommendations. Furthermore, the report includes an analysis of Huawei's current organizational structure, an evaluation of its effectiveness, and a critical evaluation of a restructured plan to address potential issues and negative consequences.

Running head: STRATEGIC MANAGEMENT AND LEADERSHIP
Strategic Management and Leadership
Name of the Student
Name of the University
Author’s Note:

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Table of Contents
Task 1: Strategic Report.............................................................................................................3
1.1 Executive Summary and Introduction..............................................................................3
1.2 Justification for a selected Theory of Strategic Management for explanation of
Relationships between Strategies, Stakeholder Expectation and Organizational
Performances..........................................................................................................................3
1.3 Identification and Evaluation of the Effects of the External Factors on Strategic
Management in the International Context such as Economic, Political and Cultural Factor 5
1.4 Formulation of a New Strategy for facing Challenges and meeting Organizational
Objectives with Critical Evaluation of the Strategy...............................................................8
1.5 Explanation of the Process Business Strategy encourages and supports Innovation and
Change with Evaluation of Strategy against Competing Strategies based on the
Contribution to Success of the Organization.......................................................................10
1.6 Development of an Implementation Plan for the Strategy developed and documented to
fulfil Expectations of Stakeholders......................................................................................11
1.7 Recommendations and Conclusion................................................................................13
Task 2: Organizational Redesign.............................................................................................16
2.1 Introduction....................................................................................................................16
2.2 Analysis of the Current Organizational Structure and Evaluation of its Effectiveness to
meet Organizational Objectives with reasons for Restructuring and Organizational Chart 16
2.3 Critical Evaluation of the Restructured Plan to address Possible Issues and Negative
Consequences and ways to overcome them.........................................................................20
2.4 Conclusion......................................................................................................................22

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References................................................................................................................................24

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Task 1: Strategic Report
1.1 Executive Summary and Introduction
The objective of the report is to understand about strategic management for a popular
as well as significant company in the world, Huawei. This type of management is the
significant ongoing planning, analyses and evaluation of all requirements, which is needed
for the business for meeting each and every goal and objective (Rothaermel 2017). Huawei
Technologies Co. Ltd is a popular multinational technology organization, based in China that
provides different telecommunications equipment as well as sells smart phones and consumer
electronics. They have headquarters in Shenzhen, Guangdong and have been doing business
for more than 32 years (Huawei. 2019). The following report has outlined a detailed analysis
on the failed strategy of Huawei as they were highly internally focused. As a result, market
shares were lost to a high level. This report will be describing about a suitable theory of
strategic management and formulation of new strategy with proper recommendations.
1.2 Justification for a selected Theory of Strategic Management for explanation of
Relationships between Strategies, Stakeholder Expectation and Organizational
Performances
Huawei, being one of the most significant and noteworthy technological organization
in the world has faced issues, related to the network infrastructure (Huawei.msn.com. 2019).
They have been doing their business in the entire world, however the US intelligence
agencies have claimed that the equipment of this particular organization comprises of
backdoor for utilization by the government spies (Huawei.msn.com. 2019). They are still on
target for shipping 200 million smart phones units in spite of having threats from cyber
security, however in a major bid for improving the overseas standing. They would be
investing 2 billion dollars on cyber security for the next 5 years. The issue of network
infrastructure was faced by them due to the failed strategies and their top management has

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failed in executing the strategies as they were extremely internally focused (Ansoff et al.
2018). In spite of facing a ban from the US and Australian governments, the CEO of Huawei
has decided to enter into the market.
The above mentioned case study of Huawei refers to the fact that they have faced
issues related to strategic management (Huawei.msn.com. 2019). A proper relationship
between the organizational stakeholders and other members is required for ensuring that only
the best strategies are being selected for the organization, under every circumstance (Hill,
Jones and Schilling 2014). It is needed to manage different strategies as well as stakeholder
expectations. The entire procedure to manage stakeholders is the distinct activity to
communicate with the stakeholders and then manage their expectations or concerns to meet
the respective requirements of the stakeholders, address the existing issues, resolve various
conflict situations and then achieve project objectives (Moutinho and Vargas-Sanchez 2018).
As a result, a proper relationship between strategies and expectations of the stakeholders is
required to be maintained, so that better effectiveness and efficiency is maintained under
every circumstance.
It could be easily analysed with a strategic management theory. It is a specific system
of ideas that are intended in explaining the origin, principles, evolution as well as applications
of the strategic management (Goetsch and Davis 2014). This particular theory stem mainly
from the perspectives of system as well as IT approach towards corporate management. The
most popular theories of this strategic management are applicable to the modernized
industrial as well as governmental companies are the resource based theory, HR based theory,
contingency theory, agency theory and many more (Ginter, Duncan and Swayne 2018). The
most suitable theory of strategic management that can demonstrate the relationship of
stakeholder expectations and strategies for the organization of Huawei would be agency
theory.

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This particular theory is the distinct principle, which is being utilized for explaining as
well as resolving different issues within the relationship between business principals and their
subsequent agents (Lasserre 2017). This relationship is mainly within shareholders, company
executives and principals as agents. The agency is the relation within two parties, where any
1 agent majorly represents the other principal in regular transactions. The top management of
the organization have recruited the respective agent for performing a specific service on their
behalf (Hitt and Duane Ireland 2017). These principals are responsible for delegating the
authority of decision making to the agents and they affect the principal financially for
understanding the differences in interests and priorities. As a result, it is being referred to as
the problem of principal agent. An agent is utilizing the resources of a principal (Noe et al.
2017).
Agency theory can easily address the disputes that mainly take place within two major
areas of a modification in objectives as well as a difference in the aversion of risks. The
organizational executive of Huawei might take decision to increase their business into the
new market and it would sacrifice their short-termed profitability within the expectations of
higher earnings and growth in future (Hill 2017). However, few of their shareholders might
place a major priorities on the short-term capital growth as well as face on the organizational
decisions. Hence, the strategic management theory of agency theory is the most suitable
theory for Huawei for understanding the relationship between their strategies and stakeholder
expectations (Stead and Stead 2014).
1.3 Identification and Evaluation of the Effects of the External Factors on Strategic
Management in the International Context such as Economic, Political and Cultural
Factor
Several external factors could eventually impact the core capability of any business as
well as investment for achieving the strategic objectives and goals. These distinct external

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factors may eventually involve high competition, technological, legal and social changes for
understanding the entire environment of economic, cultural and political backgrounds
(Morschett, Schramm-Klein and Zentes 2015). The uncontrollable as well as controllable
aspects, which impact the business could be categorized as external and internal factors.
From setting of goals to the regular operations, it could be easier for the organization to
emphasize on what is being felt for controlling internally (Gamble, Peteraf and Thompson
2014).
The major and the most significant external factors, which impact the business
include economy, competitors, politics and customers that could not be controlled under any
circumstance (Meyer, Neck and Meeks 2017). It could easily influence on the organizational
performances for ensuring that the internal factors are being achieved on highest priority. The
organizational profitability as well as stability are interdependent on the core ability of
quicker identification as well as response to different changes within the external
environment (Frynas and Mellahi 2015). Any type of change is inevitable for having the
major flexibility in dealing with the unexpected market mutations for understanding the
significant difference within success and failure of the respective company.
One of such popular example of change in the organization would be shifting in the
governmental policies that can have a major impact on the organizational success. A
proposed legislation at the state and federal level may need the organization in making
suitable changes to the operations and hence becoming a basic critical success factor (Morden
2016). For the case study of Huawei, they have faced issues related to strategic management
in their business and the external environment would have a major impact on the
organizational strategies and business impacts. The external factors such as government
policy changes are highly unexpected and the most effective and efficient method for the
business to prime itself to be flexible for development of a framework to conduct the

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environmental scanning (Hubbard, Rice and Galvin 2014). The impacts of different external
factors on the strategic management context of Huawei are provided below:
i) Political: The first vital external factor is political. Huawei is being operated out of
China, in which maximum of the manufacturing is also completed (David and David 2019).
However, the smartphones of Huawei are being sold in the entire world and specifically,
these smartphones are quite famous in the EU. Huawei is hence subject to the political forces
from the entire globe, majorly relating to the European Union and China. Various notable
areas of politics is referred to the trade politics. In present situation, these trade policies are
extremely widespread and could facilitate the subsequent export of goods from the host
country to the respective European Union (Bryce 2017). The strategies of the organization of
Huawei would be majorly affected by the political turmoil and new strategies and policies
implemented by the government.
ii) Economical: The second vital and significant external factor for understanding the
impact is economical. Since, all the smart phones of Huawei are built in China and then sold
overseas, it refers to the fact that minimum of 2 geographical macro environments are
involved in this scenario (Bettis et al. 2014). As a result, the economic success is reliable on
the Chinese economy as well as economy of the target market that is in the United States and
the European Union. The core relation within the economic factors is major and the
respective target markets of Huawei can perform well economically. As they have faced
issues related to network infrastructure, it is evident that there would be a major effect of
different economic factors on the organizational of Huawei (Trigeorgis and Reuer 2017). It is
a consistent amount of business, irrespective of the economic conditions in different parts of
the world. Moreover, the organization has invested around 2 billion dollars in the business,
which would bring out several issues in the business eventually and they would not be able to
handle them under any circumstance.

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iii) Socio Cultural: Another vital and significant external factor is socio cultural.
There is a high demand for different smart phones in the entire world, after including China.
It is a socio cultural phenomenon, in spite of the fact that the effects are majorly economic
and the growing need for smart phones is subsequently impacting the complete market of
youth generation (Simon, Fischbach and Schoder 2014). Moreover, due to the network
infrastructure, it becomes extremely important and significant to entire into the market and
satisfying their customers to the most effective manner.
iv) Technological: Another significant and noteworthy external factor that is required
to be considered is technological (Steiss 2019). One of the most interest technological factors
for these smart phone manufacturers would be the rise of 5G. However, due to the issue with
network infrastructure, the government of the United States have banned 5G networks.
Huawei wanted to boast improvised speed, low costs as well as saviour of energy. The
respective technology of 5G needs new hardware, which is a requirement that would require
to be fulfilled by the component manufacturer (Certo et al. 2016). As a result, Huawei has a
strong impact from technologies.
1.4 Formulation of a New Strategy for facing Challenges and meeting Organizational
Objectives with Critical Evaluation of the Strategy
After properly analysing the internal and external environments of the organization of
Huawei, it is being observed they require proper effectiveness in checking the performances
of the company (Hanson et al. 2016). Since they had been facing issues in the markets of
Australia, New Zealand and the United States, it would be highly recommended for them to
change the markets. As a result, they would be able to implement new products and services
in their business. For this purpose, the management of Huawei would require proper planning
and investments (Jenkins and Williamson 2015). A successful business requires major
financial support from the top management, so that they are able to implement new strategies

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without any type of complexity or issue in the business. Moreover, it would be extremely
effective for them in driving revenue to a high level and also manage different processes,
advantages and people of the respective company. It would ensure that communication is
being maintained under every circumstance for the core purpose of retaining different
customers, by analysing operations as well as accounting (Foss and Hallberg 2014).
Technological advancement would be increased to a high level and the company would be
benefitted effectively.
The management of Huawei would be benefitted from the new strategy of changing
their target market to the European Union for facing any type of challenge as well as
fulfilling the objectives and goals (Hitt, Ireland and Hoskisson 2016). The first and the most
significant step in changing the respective target market to the European Union is
acknowledgement of the target market. It is vital to understand that the products as well as
services comprise of a target market, which could be eventually defined. The major objective
of the management of Huawei would be finding out of suitable methods for successful
identification of the people, who could create different marketing campaigns, which speak to
them on a direct manner (Engert, Rauter and Baumgartner 2016). The second distinct step in
this aspect would be determination of the criteria that are being intended to use for properly
identifying the consumers in the most effective manner.
The objective of the step is eradication of the people, who would not be relevant for
their business. They could easily and promptly focus on the marketing messages for reaching
out to the organizational business (Baumgartner and Rauter 2017). The next step is
identification of the customers as well as prospects from the strategy. Identification of the
bets channels for using to communicate with the organizational members is the fourth step in
this particular strategy of Huawei to change their markets. Finally, in the fifth step, they
should measure their campaign results for successful determination of the correct people in

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the organization (Benos et al. 2016). The above provided five steps would be extremely
significant for them to formulate this new strategy of changing market to the European Union
and they would be able to gain maximum popularity and success without much complexity.
1.5 Explanation of the Process Business Strategy encourages and supports Innovation
and Change with Evaluation of Strategy against Competing Strategies based on the
Contribution to Success of the Organization
This type of management is responsible for providing new direction to the company
and also for involving specifications to the company’s goals, so that proper plans and policies
are being developed to obtain these objectives (Foss and Hallberg 2014). It is also required to
allocate appropriate resources to the organization for implementing the plans successfully.
The business strategy of Huawei would be combining every decision, undertaken as well as
action performed by the business for successfully accomplishing the business goals and
objectives as well as securing the most competitive position within the market (Simon,
Fischbach and Schoder 2014). This business strategy is the backbone of the respective
business as it could lead to the desired goals.
These types of strategies are also important for the purpose of encouraging as well as
supporting advancements in the services and technology, by eventually investment of money
in the research and development activities (David and David 2019). As a result, the strategy
would be required for the organizations in gaining competitive advantages to a better level.
Such strategies would be highly inspiring and would be adding unique features to the
products and services of Huawei. Hence, the issue of network infrastructure would be
resolved completely and their brand value would be increased.
The US government hence would not be able to stop them from doing business in the
global market. Success would be gained majorly with those innovative products

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(Huawei.msn.com. 2019). The investment of the organization for their smart phones would
be taken into consideration for understanding the total effectiveness and efficiency of the new
strategy to be undertaken in the respective business. Innovation leadership would also be
required for their business to ensure that every aspect of the strategy is being communicated
effectively (Simon, Fischbach and Schoder 2014). Moreover, they would be able to eradicate
the existing issue easily and promptly for checking the impact of the project success. The
business strategy would encourage strategic innovation for maintaining a stable position in
the competitive market and competitive advantages would be gained on a priority basis. The
businesses could eventually become a failure, when they could not grow in the ever changing
US market (Hubbard, Rice and Galvin 2014). As a result, shifting to the EU would be much
more effective as their business would be successful and profits would be gained under every
aspect. Revenue would be increased and they would be able to support their financial
conditions, since strategic innovation would be enhanced to a high level.
1.6 Development of an Implementation Plan for the Strategy developed and
documented to fulfil Expectations of Stakeholders
Competitive advantages are easily and promptly gained and as a result, overall market
shares are improved for better plan in the future. Different changes within the subsequent
business environment requirement the companies to continuously assess their distinct
strategies to obtain success (Meyer, Neck and Meeks 2017). The entire procedure of this
strategic management would be quite helpful for the companies in taking stock of the current
situation, chalking out the strategies, and deployment of the strategies and finally analysis of
the total effectiveness as well as efficiency of the implemented management strategies. It is
being predicted over the organizational clear understanding of the purpose and mission for
existence and even vision for where it wants to be in the future, so that respective values are
guided to gain better actions (Gamble, Peteraf and Thompson 2014). Strategic management

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needs a major commitment towards strategic planning, which is the subset of better
management of the business before involving the organizational capability of setting short
term and long term objectives and planning strategic activities and decisions, required for
achieving the goals.
It is required to implement the business strategy of changing target market from the
US to EU in an effective manner, so that the organization of Huawei does not face any more
challenge in issue related to implementation of strategic management, without getting the
executives involved in the business (Morschett, Schramm-Klein and Zentes 2015). A suitable
plan for implementing the business strategy so that it could fulfil the stakeholder expectations
is as follows:
i) Communication and Alignment: The first and the most significant step in the
implementation plan of the business strategy would be communication and alignment
(Lasserre 2017). The organizational management requires to start with clear communication
of the strategies that are required to be driven by the organizational values and vision. Having
clearer goals with the most comprehensive list of different business objectives could easily
create certain guidelines, which would become the significant foundation for better growth
and planning of the business (Hitt and Duane Ireland 2017). The employees should align with
the organizational objectives and the vision of the CEO would ensure better effectiveness in
the organization.
ii) Driving Accountability: The second important and noteworthy step in the
implementation plan of the business strategy of Huawei would be driving accountability. The
top management should create major goals for ensuring better effectiveness in the
organization (Moutinho and Vargas-Sanchez 2018). As a result, the impact of the business

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would ensure high organizational success. As a result, strategies as well as vision of the
company would be quantified for better action plans in the business.
iii) Creating Focus: Moreover, Huawei would be able to create focus on their
organization for setting and achieving goals and objectives (Hill, Jones and Schilling 2014).
The organizational management would be able to need clear as well as aligned goals and
objectives, so that they could easily track their own progress and ensure that the respective
business is gaining succeeding in the existing market eventually.
iv) Tracking of Progress: The final step in the implementation plan of the new
business strategy of changing target market to the EU is tracking of progress (Ansoff et al.
2018). Daily meeting regarding tasks must be help with every team for talking about the
progress and as a result, proper contributions to the company would be taken into
consideration for successfully fulfilling the expectations of the stakeholders.
1.7 Recommendations and Conclusion
Therefore, from the above discussion, a proper conclusion could be drawn that the
strategic management eventually includes the proper formulation as well as deployment of
the most significant goals and objectives or initiatives that are being undertaken the
organizational top management on the behalf of its owners, on the basis of distinct
consideration of different resources and an assessment of the external and internal
environments, where the company is working. The five distinct phases in the process of
strategic management involve assessing of the organizational current strategic directions,
recognition as well as analyses of the internal and external strengths or weaknesses,
formulating of different action plan, executing the action plan and finally assessing the
significant degree that action plan has been successful in making alterations whenever any
type of desired result is not eventually produced.

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The above provided report has properly analysed the case study of Huawei, regarding
their failure of strategies in the organization. A suitable theory of the strategic management is
being selected with successful identification and evaluation of the external factors over
strategic management. Moreover, support of the business strategy for innovation is also
considered in the report with relevant recommendations. Apart from the effectiveness, the
organization would also be able to deal with the major existing complexities and issues
present in the business in the most efficient manner with these recommendations. Financial
stability would also be gained by the business in this case and every issue related to the
subsequent problems would be resolved successfully.
Suitable recommendations for failed strategy in Huawei are as follows:
i) Developing a proper long term Strategy: The first and the foremost
recommendation for Huawei regarding their failed strategy in the business would be
developing a proper and effective long term strategy. It is quite vital and significant to make
sure that the strategies, made by the company is made for the long run and would be
improving the overall performances of every small company in the most effective manner. It
would recognize the significance of creation of a typical coherent system and even
incrementing the total number of assisting facility as well as service provider. The most
suitable components of the centralized coordination as well as control with the conjunction
with distributed and decentralized direction and management for the core purpose of creation
of a comprehensive and efficient system for assistance resources. Huawei would be able to
deal with the complexities to a high level, when they would consider details regarding long
term strategies.
ii) Governing Expansion by Quality and not Quantity: The second important and
significant recommendation for Huawei regarding their failed strategy in the business would

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be governing major expansion by quality and not by quantity. Although, Huawei is one of the
most important as well as noteworthy organizations in the world, they should focus on quality
and not quantity. For maintaining competition with the rest of the organizations, they would
be able to ensure that high quality assistance is remained under every circumstance. The
subsequent complexity as well as constant change is well handled without any type of issue
and the organization is benefitted majorly. It would also be helpful in handling situations, in
which proper effectiveness and efficiency would be gained and the strategies would not be
involved internally. As a result, the existing issues would be resolved successfully for
maintenance of a regular coordination.
iii) Federal Financial Support for every New Strategy: Another effective and
significant recommendation for Huawei regarding their failed strategy in their business would
be ensuring federal financial support for all the new strategies, undertaken by this particular
organization. A proper financial support is required for the business for their strategic
planning. It would eventually set out the major process of the planning of a company for
financing their overall operations, so that Huawei would be able to meet their respective
objectives even in the future. A specific financing strategy is responsible for summarizing
targets as well as the actions that are to be undertaken over a three to five years period for
achieving the targets. The key policies of the respective organization are also being stated for
guiding the actions.

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Task 2: Organizational Redesign
2.1 Introduction
Organizational redesigning refers to the process that helps in integrating the structure,
people and processes for the core purpose of supporting the deployment of different strategies
and hence going beyond the traditional approach (Whitley and Glaser 2014). It eventually
consists of various procedures, which the individuals follow few important rules. Moreover,
recruitment of talent as well as development of the employment skills are also being
considered for such redesigning (Ugboro 2016). As soon as this organizational redesigning is
matching with the strategic intentions, the respective members would be primed for better
execution and delivering them effectively.
A proper organizational redesigning should eventually focus on the various resources
of the organization for their strategic priorities and other growth areas, improvement of
decision making process and finally reduction of the costs (Girod and Whittington 2017).
This report would be outlining a brief description on organizational redesigning of Huawei
with relevant details related to organizational structure, structural changes and evaluation of
restructure plan to address possible issues with methods to overcome them.
2.2 Analysis of the Current Organizational Structure and Evaluation of its Effectiveness
to meet Organizational Objectives with reasons for Restructuring and Organizational
Chart
The current organizational structure of the organization of Huawei comprises of its
board of directors, managing director and every involved department of the business (Holten
and Brenner 2015).

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Figure 1: Organizational Structure of Huawei
(Source: Huawei. 2019)
The above provided figure demonstrates about the detailed organizational structure of
the organization of Huawei. It shows the system, which outlines the process of certain
activities being directed for the core purpose of achieving the objectives of a company
(Micucci and Rossi 2017). Such activities could involve responsibilities, roles and rules. It is
also required for determination of the process of information flow within different levels of
the organization to ensure that decision making process is being executed in the company in
the most effective manner (Vedina and Dolan 2014). These activities of Huawei are being
distributed amongst several organizational levels and as a result, the top management remains
focused and efficient, under every possible aspect.
A major hierarchical organizational structure is being followed in the company of
Huawei and the low level management follows the instructions of top level and middle level
management (Abildgaard, Nielsen and Sverke 2018). The employees identify various
leadership levels in the company. Moreover, the organizational members could easily

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promote the developing staff as specialists. These employees might even narrow their field of
focus to gain major success. Major opportunities for promotion are also gained in the
business and as a result, the employees are able to perform effectively (Ongwae and Moronge
2016). In spite of having such distinct advantages due to hierarchical organizational structure,
there are few issues and challenges identified in their current structure. They are unable to
communicate properly across various departments, which is less effective than the other
similar organizations (Kwaning, Churchill and Opoku 2014). It has enhanced their issues of
lack of interaction within organizational members. Moreover, there had been a significant
rivalry within the departments for making decisions that are not beneficial for the business.
The interests of the organization are hence decreased for checking the organizational speed of
change. The overall time consumption of the organizational strategy execution is also
increased to a high level. As a result, expenses are also increased majorly (Smollan 2015).
The above mentioned issues and complexities of the hierarchical structure would be
resolved completely after proper restructuring of the organization of Huawei. The first and
the foremost advantage of organizational restructuring in Huawei is better clarity in reporting
of relationships, procedure of decision making, and effective flow of information as well as
follow ups on working processes (Girod and Whittington 2015). In a highly structured
organization, the employees get the significant opportunity of avoiding or refusing to perform
any type of work outside their work descriptions. The second vital advantage of this type of
restructuring of the organization in Huawei would be better growth in the business (Marques
et al. 2014). A properly designed organization could eventually find itself in better
preparation of growth opportunities. Employees would be able to get involved in the
procedure of decision making and as a result the existing issues and complexities related to
management of organizational members would be done in the most efficient manner.
Moreover, a robust technological infrastructure would be enhanced in the organization of

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Huawei and their problems with network infrastructure would be resolved completely (Allan
et al. 2014).
Such distinct restructuring is required in the organization of Huawei for enabling their
new strategy implementation. The new strategy for Huawei is to target new market of the
European Union and not consider the markets of the United States, Australia and New
Zealand (Huawei.msn.com. 2019). With the help of such restructuring of organizational
structure to a flat structure would help them in easier assessment of the current state of the
business (Karadag 2015). A better understanding of the current state of the organization
would be helpful for the company in finding out of the gaps and challenges in the most
effective manner and then facilitate a comprehensive assessment of the company for checking
the functionality of the organization eventually. As a result, they would be able to document
as well as standardize the procedures and then streamline the major business procedures to
gain extra revenues and deliverables (Aguinis, Edwards and Bradley 2017). The support
resources like human resources, sales and finances, staffing and mission of the company are
being identified as well as located properly.
The current organizational structure of Huawei is hierarchical and the most suitable
organizational structure of Huawei would be a flat structure (Holten and Brenner 2015). With
the help of the flat structure, the organizational management would be able to elevate the
level of responsibility of the employees in the company and even eradicate excessive layers
of management for proper improvement of the speed and coordination of communication
within the employees (Vedina and Dolan 2014). As a result, the complexities to manage the
organizational members would be reduced and costs will be saved. A proper strategic
decision making is being involved for understanding the most complex environments as well
as competitive dynamics. It is the respective procedure, by which the organization could
easily manage the organizational strategies for helping the business in making the most

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logical decisions and then developing new objectives, so that they are able to keep speed with
the evolving technologies, business and marketing conditions (Abildgaard, Nielsen and
Sverke 2018).
2.3 Critical Evaluation of the Restructured Plan to address Possible Issues and Negative
Consequences and ways to overcome them
The restructured plan of flat organizational structure in the organization of Huawei
would be having no levels of management within the staff level and management level
employees (Ongwae and Moronge 2016). The respective flat organizational management
would be supervising their employees lesser while promoting the incremented involvement of
the entire decision making process. The structure selected for the business would be
extremely effective and significant for ensuring if it is successful or failure (Girod and
Whittington 2017). Few of the businesses like Huawei would be getting advantages from the
flat organizational structure as issues related to communication between organizational
members would be resolved completely.
The US government has banned 5G connection from Huawei due to their network
infrastructure, however with the new strategy and restructuring plan, they would be able to
lower their operational expenses to a high level (Huawei.msn.com. 2019). The decision
making process takes place at the respective staff level and it does not proceed from the
executives down to the rank and file. These staff in the flat organizational structure are being
provided with the most distinct authority with almost no supervision. The flat organizational
structures would be able to eliminate every manager in the business spectrum and then run a
leaner operations for getting more staff in the company for incrementing productivity from
the number of people employed (Kwaning, Churchill and Opoku 2014).

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One of the major issues that Huawei has been facing in their business is that the
organizational members are unable to communicate properly amongst themselves (Girod and
Whittington 2015). The slow rate of communication is mainly because of the hierarchical
structure currently present in Huawei. With the new restructured plan, the respective
organizational management would be able to communicate directly with each other without
even having to get into the intermediaries (Karadag 2015). Moreover, the issues related to
micromanaging would be reduced, so that creativity would be welcomed in the business.
Such micromanaging would also stifle efficiency and lack of trust, which the managers show
to the subordinates could slow the work procedure when they would approve anything before
the staff could keep working on the project.
A major rivalry within the departments might inflame, since every department makes
up decisions, which could provide advantages to the own interests and not only on the
company as a whole (Allan et al. 2014). The increased bureaucracy in the hierarchical
structure could subsequently hinder the organisational capability of changing. As Huawei is a
technology based company, it is extremely important and significant for them to ensure
changes in the business for remaining in the competition effectively. The increased time
might even be needed for responded to their customers (Marques et al. 2014). Another
popular and noteworthy issue of their current organizational structure is the major increment
of the organizational costs and resources.
As a result, the organization might be facing issues related to financial losses. The
most suitable and effective solution to these issues would be implementation of flat
organizational structure. They would be able to get adapted to the distinct designs of the
company (Kwaning, Churchill and Opoku 2014). The new strategies would respond to the
predominant market place conditions as well as industrial trends. Having excessive thoughts
and considerations on the new strategy would provide a major support to the business in the

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most competitive environment (Smollan 2015). However, they would not be able to get
adapted to the trends in the future and the most loosely organized organizations could adapt
more quickly for gaining competitive benefits.
The solid organizational designs could be highly benefits as well as
counterproductive, when it comes to proper encouragement of staff regarding striving for
different advancement opportunities (Ongwae and Moronge 2016). A properly structured and
growing organization with a formalized advancement track could eventually motivate the
staff in excelling and the organization like Huawei with a hierarchical organizational
structure could convince the front line staff that there exists no opportunities for moving into
management (Aguinis, Edwards and Bradley 2017). The most loosely organized
organizations without the formal designs like flat structures might have the ability of creating
different supervisory positions, majorly for the high performing staff and also to increment
the payments of the employees without even reaching out to pay grade limit (Abildgaard,
Nielsen and Sverke 2018). Huawei would be able to gain maximum advantages and would
also be able to eradicate the issues with the help of this restructuring plan.
2.4 Conclusion
Therefore, a conclusion could be drawn that organizational redesigning is a sequential
method that identifies the dysfunctional features of working flow, systems, structures and
processes for realigning them in fitting to the current business goals and realities. It is
required for developing plans in implementation of the new changes. The respective
organization would be able to gain excellent customer services and then increase profitability
to a high level. Operating services would be reduced and overall cycle time as well as
efficiency of the business would be improvised. As a result, the culture of engaged and
committed employees would be maintained eventually to manage the clearest strategy to
grow their business successfully. Moreover, the organization would be able to ensure the

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distinct form of the company eventually matching the major purpose and strategy would be
meeting every challenge to increment the overall likelihood of collective efforts of people.
This report has properly described the detailed analyses of organizational redesigning of
Huawei.

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