Huawei Enterprise USA Inc. Business Performance Report

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MGMT 20144
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Table of Contents
Introduction......................................................................................................................................3
Introduction to the company............................................................................................................4
Business and Governance structure.................................................................................................5
Environmental factors......................................................................................................................6
Risk factors......................................................................................................................................7
Business practices............................................................................................................................8
Fundamental departments................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
The performance of the business is based on the business strategies and techniques which are
used by the managers of the organisation. The report exploring the decision making power of the
Huawei Enterprise which was established in 2011 in the USA. The report helps in analysing how
applied business practices has influenced the firm performance and helped in developing
decision-making skills of managers. Further, the report explores the environmental and risk-
taking aspects which have designed and influenced the performance of the company. At the end
of this report, the significance of fundamental departments such as production and other
managerial departments are derived in this report.
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Introduction to the company
Huawei is one of the largest global traders in the ICT sectors and has developed its growth in
more than 170 countries. The formation of Huawei was done in 1987 by the former engineer Ren
Zhengfei. The company offers technological products, wireless networks services, and other
energy and infrastructure services in the global market. The company is known for its
technologically advanced products which have always resulted in the innovation in the market
and barriers for other market competitors. The essential motive of the report is to analyze how
some allegations have developed challenges for the Huawei and has an impact on the
profitability of the firm. It was analysed from the recent research that Huawei products are got
banned in the USA due to the launching of 5G wireless networks by the US entities. Such
aspects have affected the performance and sustainable growth of Huawei Enterprise, USA, Inc.
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Business and Governance structure
Huawei is one of the best ICT global leader customer electronics company which was started
earlier with low-cost investment in 1987. The formation of a company has done for technological
innovation in the market of China. Earlier business and governance structures have supported the
business activities of the companies and have helped in advancing the sustainability and market
growth of the company at the global level (Amran, et.al., 2015). In 2011, the higher authorities
have tried to focus on the US market which was full of the biggest competitors. The corporate
governance structure has tended to be the biggest factor which will help in enhancing the
performance of the organisation and help business managers to develop their critical thinking
approaches. For the business formation in the USA, the managers have considered some
governance structures and have developed its business structure accordingly (Ortiz‐de‐
Mandojana & Aragon‐Correa, 2015). There are some factors which are considered for business
and governance structure:
 Policies related to taxes rates and interest rates on investment has helped in balancing the
financial condition of the business.
 Developed maintenance degree of protection which has helped in securing information
about business and prevent the threat of misconduct activities.
 Business registration cost as per the norms of the US government.
 Maintaining fluctuation of investment rates to protect shares of stakeholders.
 Develop business practices which will enhance the working environment.
Such business and governance factors have helped in influencing the performance and decision
making skills of the managers.
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Environmental factors
Environmental factors are playing an essential role in the success of the company, it is essential
for a business manager to analyze and determine the external and environmental factors which
can help in taking effective decisions and lead to productive result for the company. The Huawei
has focused on some environmental factors which have led to success in the market of the US.
The main motive of the company was to developed innovative products with the help of high and
advanced technological factors by enhancing user interference (Vij & Bedi, 2016). The company
has analysed some essential environmental factors which have developed decision making the
power of the company are:
 Use of high technological features: Company has entered in the market of the US by
developing innovative strategies. The main objective of the company was to fulfil the
requirement of the customers by developing innovative products. The technological
aspect has enhanced the performance of the company (Ortiz‐de‐Mandojana & Aragon‐
Correa, 2015).
 Business fundamentals: Accountability and financial stability of the firm has enhanced
market area of the company (Amran, et.al., 2015). The entrance of Huawei Enterprise has
affected the profitability of the company as it has used all the available resources in an
effective manner. It was analysed during 2014 that Huawei has maximised its
profitability by 25% in the US market. The total profit was evaluated as US$ 34500
million (Rose, 2016).
 Resources: The key resources which are used by the company in the market of US has
enhanced its performance by implementing human resource management strategy and by
focusing on the financial capabilities of the firm. The manager of the firm has analysed
all the market requirements by developing creative thinking skills which have helped in
taking effective decision in the context of Huawei (Amran, et.al., 2015).
 Maintenance of financial structures: Proper maintenance of financial structure helped in
design to taking initial steps and actions which has resulted in productive form for the
company.
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These aspects of environmental factors have influenced the performance and decision making
skills of the company.
Risk factors
It is significant to develop effective risk management policies which will help the business
manager to analyse the risk aspects present in the business and determine their impact on
business performance through risk management approaches. At the time of formation of business
in the US, the managers have implemented risk management techniques through which effective
decisions have taken for influencing the performance of the organisation. There are some risk
factors in the context of Huawei are:
 Financial and operational risk factors: There are some financial risk factors which can
hamper the performance and financial stability of the company such as lack of interest of
stakeholders and poor accountability may lead to a negative impact on the performance
of the company. Further, operational risk such as lack of engagement of employees at
workplace may hamper the productivity of the firm. But the proper implementation of
risk management theories has helped in analysing the market conditions and has helped
the manager to take effective decisions accordingly (Vij & Bedi, 2016).
 Business strategic risks: There are always higher possibilities of the risk at the time of its
formation. Lack of business strategies can lead to a negative impact on the performance
of the firm. Huawei is a well-known company in the ICT sector and it is already
operating its business in more than 170 countries. The use of innovative strategies has
advanced the functions of the business efficiently and has helped managers in
accomplishing targets on time (Rose, 2016).
 Other risk factors: There are some other risk factors such as trade barriers, business
continuity and poor strategic performance by employees may have a bad impact on the
performance of the business. Further, the poor environment at workplace may also cause
a negative impact. But innovative approaches which were applied by the managers of
Huawei has helped in taking effective decisions which have also impact on the
performance of the company (Ortiz‐de‐Mandojana & Aragon‐Correa, 2015).
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Business practices
The successful formation of business can only be done by business practices, before the
formation of business the managers should formulate business practices which will enhance the
performance of the company. The business practices will always have a greater impact on
organisational culture and policies and will help in developing the efficiency of the employees
(Malott, 2016). At the time of formation of business practices of Huawei, the manager had to
think all the essential aspects such as environmental factors, market and customer requirements,
customer demand and competitors strategy (Ortiz‐de‐Mandojana & Aragon‐Correa, 2015). The
essential motive of the company is to enhance performance by developing effective decisions in
the context of the US market. There are some business practices which are developed by the
managers of the Huawei are:
 Develop effective working environment through which employee could focus on
accomplishing goals of the company promptly.
 Develop and implement high technological techniques through which the company can
develop innovative and quality products (Malott, 2016).
 The regular analysation of competitive techniques and strategies through which
innovative strategies can be developed for more competitive advantage (Amran, et.al.,
2015).
 Determine marketing conditions which will help in focusing on the customer demands
and needs.
 Provide proper training and learning programs to employees for enhancing their
efficiency at the workplace (Vij & Bedi, 2016).
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Fundamental departments
There are various fundamental departments of Huawei which has helped it in developing its
efficiency and performance at the global level:
 Production and manufacture department will help in enhancing the quality of the products
by developing effective proper manufacturing process (Rose, 2016).
 The managerial department will help in targeting the market and in analysing all the
fundamentals of the business.
 There is an essential need to focus on marketing strategical departments through which
effective decisions could be made in the context of Huawei Enterprise of USA.
 Accounting and the financial department will enhance the financial stability of the
business in an effective manner (Vij & Bedi, 2016).
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Conclusion
From the above findings, it is concluded that business practices are playing an essential role in
the formation of business which also helped Huawei manager in enhancing the performance of
the company in the global market. Some risk factors have developed allegation challenge which
is overcome effectively with the help of risk management approaches. Further, it was analysed
from this report that environmental factors will always influence managers to think critically and
to take effective decisions respectively. The fundamental departments such as technological
department have enhanced the efficiency of the company suitably.
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References
 Ortiz‐de‐Mandojana, N., & Aragon‐Correa, J. A. (2015). Boards and sustainability: the
contingent influence of director interlocks on corporate environmental performance.
Business Strategy and the Environment, 24(6), 499-517. https://doi.org/10.1002/bse.1833
 Vij, S., & Bedi, H. S. (2016). Are subjective business performance measures justified?.
International Journal of Productivity and Performance Management, 65(5), 603-621.
https://doi.org/10.1108/IJPPM-12-2014-0196
 Rose, C. (2016). Firm performance and comply or explain disclosure in corporate
governance. European Management Journal, 34(3), 202-222.
https://doi.org/10.1016/j.emj.2016.03.003
 Amran, A., Ooi, S. K., Mydin, R. T., & Devi, S. S. (2015). The impact of business
strategies on online sustainability disclosures. Business Strategy and the Environment,
24(6), 551-564. https://doi.org/10.1002/bse.1837
 Malott, M. (2016). Selection of Business Practices in the Midst of Evolving
Complexity. Journal of Organizational Behavior Management, 36(2-3), 103-122.
https://doi-org.ezproxy.cqu.edu.au/10.1080/01608061.2016.1200511
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