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North South University Huawei Course: Strategic Management Course code: MGT489, Section: 05 Submitted By H. M. Sohan 1230356030 Imam Tarik Hasan 1230578630 Mohammad Ahsanul Alam 1411292030 Mounata Monsur 1411126030 S. M. Abrar Jahin 1330065030 Md. Emdadul Haque Shaer 1230917630 Leona Mumtaz 1230866030 Submitted to Mohammad Hannan Miah Department of Management School of Business & Economics
Executive Summary This report was made to find out the Strategic Managerial Principals of Huawei. As a Chinese Telecommunications giant, the path to its current state was not short. The rise from the bottom to now one of the biggest companies in its industry, Huawei managed to strive through excellence through every path of its journey. It competed with big shot companies such as Apple, Nokia, Siemens and many more to upsurge in the hierarchy. This report also describes various aspects of Huawei. It discusses on its internal and external environment, its core competencies and whether or not it has any distinct competencies. It has found out its strength, weaknesses, opportunities and threats. Their financial analysis also contained the comparison between industry standards. The recommended corporate level strategies, business level strategies, functional level strategies and technological strategies has been comprehensible with the recommendations which is enclosed in the report. This mammoth task helped us achieve to analyze policy formulation and implementation from a companywide standpoint, emphasis on integration of knowledge and approaches across functional areas; techniques for strategy formulation and implementation by a single business, diversified multinational firms, in this case Huawei. Page | 1
Table of Contents Company Introduction ..................................................................................................................... 4 Internal Environment Analysis ........................................................................................................ 5 Tangible Resources ...................................................................................................................... 5 Intangible Resources .................................................................................................................... 6 Capabilities .................................................................................................................................. 8 Core Competencies ...................................................................................................................... 8 External Analysis ............................................................................................................................. 9 Identification of Industry ............................................................................................................. 9 Competitive Forces Analysis ....................................................................................................... 9 Industry Life Cycle Analysis ..................................................................................................... 11 PESTEL Analysis ....................................................................................................................... 11 SWOT Analysis ............................................................................................................................. 13 Strength ...................................................................................................................................... 13 Weakness ................................................................................................................................... 14 Opportunities ............................................................................................................................. 15 Threats ....................................................................................................................................... 16 Huawei’s Distinctive Competencies .............................................................................................. 17 Competitor Analysis ...................................................................................................................... 19 Financial Analysis .......................................................................................................................... 20 Industry comparison .................................................................................................................. 21 Competitive Advantage ................................................................................................................. 23 Recommendation ........................................................................................................................... 26 Corporate Level strategy ................................................................................................................ 31 Business Level Strategies .............................................................................................................. 33 Changed Business Model .......................................................................................................... 34 Achieving Competitive Advantage ............................................................................................ 34 Focus on Cost Leadership .......................................................................................................... 35 Functional level Strategies ............................................................................................................. 36 Research Level ........................................................................................................................... 36 Marketing ................................................................................................................................... 37 Human Resource Management .................................................................................................. 38 Page | 2
Information Resource ................................................................................................................ 39 Technology Strategies .................................................................................................................... 39 Company’s Governance ................................................................................................................. 40 Strategic Control System ............................................................................................................... 42 Organizational Culture ................................................................................................................... 43 Global Strategy .............................................................................................................................. 43 Ethical Value Proposition ............................................................................................................... 44 References ...................................................................................................................................... 46 Page | 3
Company Introduction Huawei is China based international ICT equipment and service Corporation which is situated in Guangdong, Shenzhen. Its industry is based on mainly telecommunications equipment, networking equipment and semiconductor. Ren Zhengfi, a Chinese businessman founded a telecom equipment company, also is the current president of the company. He was a former engineer of People’s Liberation Army. He founded the company back in 1987 with an amount of 21000 yuan or 5000 dollar of value at time. At the beginning, Huawei focus on doing business in

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