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Strategy, Organization Design and Leadership

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Raghavendra Mahto

on 30 June 2014

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Transcript of Strategy, Organization Design and Leadership

Strategy, Organization Design and Leadership

Characteristics of Huawei's Strategy
Strengths Weaknesses
Opportunities Threats
Resources, Capabilities, and Core Competencies
Strategy Implementation

Strong team of R&D staff and all employee with high caliber.

Strong R&D

Core Competencies
Organizational Structure
Mission Vision Goals
Strategic Analysis- External
Strategic Analysis- Internal
Strategy Formulation
Strategic Implementation
the largest communications
equipment maker
in the world..
Palisha Tuladhar (st115345)
Pratisara Tuladhar (st115340)
Raghavendra Mahto (st115346)
Thiri May Thu (st114186)

1987 1993 1997 2003 2004 2009 2012
$39.6 Billion
Global Revenue
Digitil Telephone Switch
First Product
Overseas Sales Surpass Domestic
Named world's top patent seeker
Joint venture with 3Com
Ren Zhengfai
Started as switch distributors, then made its own euipments & devices

Started selling in China but now in 150 countries
Shenzhen, Guangdong Province
Huawei, Headquarters
Technologies which enable a user to
access, store, transmit, and manipulate information
A very dynamic sector, and it benefits and creates
economic growth
Because of liberalization, the market becomes more & more
Currently serves
45 of the world's 50 largest telecom

Center Worldwide
36 Joint
Innovation Centers

Internationalization of R & D

International Project Teams to incorporate best practices

Customer Centric

Continuous Price Cutting

Joint Venture Partnerships
Intangible Resources

Human Resources
- Strong R&D team
- Disciplined business culture of Huawei

Innovation Resources:
- Joint R&D laboratories with foreign companies such as IBM, Microsoft, Texas Instruments, Intel.

Being based in China, Huawei is able to manufacture and offer
products at a lower price
Tangible Resources

• Financial Resources
- Support & Credit Limit
• Organizational Resources
- Department & Production
• Physical Resources
- Research labs, Training
& knowledge partners
• Technological Resources
- Patents (More than 42000)

Global expansion

Strong R&D and high caliber employees

Low cost

Strong operational culture

Low brand awareness outside the telecom industry

Lack of marketing activities

Patent issues, cyber security concerns
and lack of trust

Limited flexibility as Hauwei had close tie-up with Chinese government

Expand into new geographies

Growth opportunities in non mature telecoms market

Gain more market share and profit by portfolio diversification and global expansion

Creative technology disruption threats

Intense competition (Ericsson & Siemens)

Regulatory changes in the Environment

Centralized Decision Making

Innovative products & end to end solutions
High Number of patents
In April 2011, the Chinese version of Fortune Magazine, Forbes China, listed Ren as China's most influential business leader
Internationalization of R&D
International Project Teams to incorporate best practices
Customer Centric

Continuous Price Cutting
Aggressive price strategy to win contracts
Low salaries for engineer's
-China’s pool of graduates
Taking advantage of low manufacturing cost
-Control cost Strategy

More than 70% Chinese

"To enrich life through communication"
"To focus on our customers' market challenges and needs by providing excellent ICT solutions and services in order to consistently create maximum value for our customers"
Organizational Design
Ambidextrous Design
Strengthen technology & Product Innovation
Attract engineers from developed market

Serving Customers: Only reason Huwaei exist

Quality Strategy , latest technology, improve customer experience
Fee based professional services
To be first choice and best partner of telecom carriers

Joint Venture Partnerships

Strategy of cooperation
& integration with partners
co-operation with firms
Centralized decision making process
Vertical information flow
Clear chain of command
High specialization

Cost Leadership
Cooperative Strategy
Adopted Strategies
Unique Management Structure - Rotating CEO System
Porter's 5 Force Analysis
Huge financial loan from state-owned banks
Ownerships restrictions: Foreign firms need joint venture with local Chinese companies

Highest possibility of best returns and growth
High potential rate and high level of investment
Having great annual growth (A net profit of US$470 million)
China, perfect place for the business boom

Potential social environment facilitates growth rate
Growing rate of higher living standards

Highly innovative industry

Both Incremental and radical innovation

Huawei’s low price product
Organizational Structure
Collaborative Leadership
Thank You
Every six month a new acting
CEO takes charge

Easy to adapt to changing

Founder CEO as mentor
Market Development &
Full transcript