College’s Name: Fairfield School of Business

Student’s Name: Gheorghe Enache

Table of Contents

Critical Analysis3

PESTLE Analysis4

Bibliography14

HUAWEI ASSESSMENT REPORT

DISCUSS QUESTIONS.

An organization’s environment will be constantly changing, and globalization will be increasing day by day. It will set challenges for companies to remain and succeed in business. Every organization has a need for change and development whether companies accept it or not. As the world is getting smaller and competition is increasing, organizations have increased pressure to develop their business, emphasize knowledge and to strengthen their competitiveness. Strategic thinking and strategic management are two relevant pillars as currently, these are the most famous phenomenon in order to achieve a competitive advantage, high performance and to success and remain in business. The most significant and strategic management theories are mostly 40 years old, which implies that strategic management is a relevant topic in today’s business world. The strategic approaches highlight how environments affect the company and some factors should be taken into account while formulating business strategies. The emphasis on internal and external environment has always been the center point of investigation and analysis in the current business environment. The aim of the investigation and analysis is to identify the company’s strengths and weaknesses and exploit its opportunities and pre-preparation for external threats. Most of the companies are unaware of their current resources and capabilities, this is the reason that all resources and opportunities are not been properly utilized.

Critical Analysis: Strategic Management

The main objective of a company is to perform well compared to rival firms. Strategic management has an essential effect on a company’s performance. According to researches on strategic management, organizations that are involved with strategic involvement tend to have better results and have a higher level of performance. A high level of performance can enable a company to achieve greater results and sustainable competitive advantage compared to competing companies. Strategic management is a combination of the company's integrated decisions and actions aiming at achieving a strategic position through competitive advantage and above-rate returns. A strategic position can be achieved through successful strategy formulation and implementation. In order to form a strategy, companies must make a strategy, companies have to make a fundamental analysis of the companies external and internal environment. A company can determine and form their strategy based on the analysis of a company’s external and internal environment.

PESTLE Analysis of Huawei Technologies

Four factors have been reviewed in Pest involves which are very essential for the strategic existence of a company. The four factors are very critical for the strategic goals of the organization to be achieved as they directly influence all plans made (Benita, 1998). Existing legislation is the first factor in the political environment. As far as the organizational environment is concerned, government has a very decisive role in the organizational environment in any nation. The government possess an influence over the organization and its policies, due to this, it has become important for the organization to consider the policies made by the government for the healthy existence of an organization. For the strategies made by companies, it is important to consider the government's legislation because they are very important for companies in any nation to go hand in hand with the political environment. There are many ways where government influences the external environment of an organization like taxation policies made by the government, control over the environmental policies, regulations over employment and labor policies.

consensus between the different leaders of the government. In the recent past, the government has introduced reforms aimed at offering an environment that favors business growth (Mentzer, 2001). Similarly, the China government has undertaken every measure to ensure that corruption and other vices are completely stumped out. This has facilitated the growth of Huawei Technologies due to the confidence of the government. Any concern raised to the government is well and hastily responded to ensure that the political government has set a platform for business growth.

• Huawei is a china-based company and the contradicting relations of china with the USA are impacting Huawei's existence in western nations adversely. A continuously intensifying trade war between America and China has led to higher pressure on China-based firms trying to do business in the USA and other Western nations. Huawei has tried its best to gain a strong foothold in the USA but due to political pressures, it has not been able to. Apart from that, the company has also been accused of spying on behalf of the Chinese government using its handsets. Though the Government has supported Huawei in the Chinese market it has created a negative effect externally or in global markets.

SOCIAL:

• Society is the next most important attribute while considering pest analysis. It includes the demographic factor as one of important characteristics in the social division of an environment of an organization.

• As this is the age of technology, Pestle analysis involves the level of technology. There are many things which relate to the technological factor.

• The major consideration in the field of technology are the price of innovation, time consumption in development, and the investment done in technology. Incentives, which are availed to the developers of technological products are very important while discussing the strategic external environment of the organization.

• In addition, Huawei like other European union, must manage the consumer laws in its target markets. This was not typically a problem area for most manufacturers of smartphones.

• Huawei is also subjected to a variety of labor and environmental laws in China. Often these laws increase overheads by forcing manufacturers to treat workers better and take environment concerns more seriously.

• Though, it is difficult for manufacturing companies to balance the massive need for new goods with environmental concerns, Huawei seems to be doing a reasonable job for environmental management.

SWOT Analysis

• Secondly, the growing graph of Huawei is very escalating. The reason behind this escalation is the price control over their product. Compared to its competitors like Samsung, Apple, the price of Huawei’s products is much less, with this distinction, they are much affordable by consumers.

• Innovation in technology is valued by the company, as they have served many differentiated products which increase customer value and customer satisfaction.

• Another weakness which is monitored by experts is that, Brand lacks its global presence. It is well known brand only in China, but its global presence is being hindered by numerous well-established firms.

OPPERTUNITIES

• The presence of XIOMI and ZTE targets in the same market cannot be ignored. This creates a stiff competition between these established new firms and Huawei. Both companies present products that are competitively priced.

• Tariff rates in China are comparatively low than the other countries which give an opportunity to foreign entities to import-competing products. Locally competing with international brands is quite challenging because international products have the prospects to dominate because they are well known.

organisation’s internal environment and capabilities--- core competences, competitive advantage

For Internal environment need to discussed two of the below

External forces are out of the control of an organization and this is one of the external forces. They are very essential as they determine the profitability of an organization. The interaction of five forces brings out a competitive environment, which is quite healthy for the organization.

Competition in the Industry: The first force is the extent of rivalry in the industry (porter, 1980). A competitive environment makes the organization much attractive. Thus, competition becomes much important for the organization. For example, an organization having a production of products with close substitutes requires a sense of prepared competition. The level of rivalry that Huawei faces can now be looked at as a race involving three horses: Nokia Siemens Networks (NSN), Ericsson and Huawei. These three mobiles networks are engaged in an intense competition such that the NSN is slowly catching up with the two market leaders. In the global world, Huawei is determined to make their place in specializing them in the world of development., Its operations in lucrative markets like the USA and Europe have been curtailed grossly by internal companies (Thomas.L. Wheelen & D.J. Hunger, 2002).

Task-4

Strategic Analysis: The primary factors which are necessary for strategic plans of an organization are Pest Analysis and Porte's five forces. These factors are taken and adopted by Huawei which is a Chinese multinational company. Without concerning these factors, it is difficult to survive in the highly competitive market. The organization has been able to withstand competition due to the proper use of this vital information. As the business environment frequently changes, a company should regularly analyze its internal and external environments in order to further develop its business strategy. As the world is getting smaller and competition increases it is vital for the company’s survival to regularly reassess the direction of its business. Companies cannot take its resources and capabilities for granted as the external environment changes; companies must change too. The main impediment is to identify the strengths, weaknesses, opportunities, and threats and to prepare strategic recommendations based on these findings in the company’s internal and external environment. The key is to identify the factors that affect’s companies’ performance and competitiveness now and, in the future, and to provide recommendations for the next step.

A hybrid strategy seeks simultaneously to achieve differentiation and low price relative to competitors. This success strategy depends on the ability to deliver enhanced benefits to the customers with low price while achieving enough margins for reinvestment to maintain and develop bases of differentiation. Hybrid strategies have become more important as global competition increases. Compared to companies relying on a single generic strategy, companies that integrate the generic strategies may position themselves to improve their ability to adapt quickly to environmental changes and to develop new skills and technologies.

Bibliography

Anon., n.d. E-Works Global. [Online]
Available at: http://www.eworksglobal.com/

porter, M., 1980. 'Competitive stratergy: Techniques for analyzing Industries and Competitors. New York: free press, p. 3.

Thomas.L.Wheelen & D.J.Hunger, 2002. Strategic Managment and Buisness policy. s.l.:Pearson Education.