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Huawei

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HUAWEI LIMITED Strategic Appraisal report I have provided question, answer and my feedback in this attachment.

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Managing Strategy
The second assignment of this module is a Strategic Appraisal.
The suggested format for this report and a possible approach to the word count allocation could
be found below:
CONTENTS PAGE
The report should be clearly structured and follow logically.
INTRODUCTION AND COMPANY BACKGROUND (150 words)
State clearly what the report is about and provide a brief overview of the company to set the
context for the case. You need to explain: the purpose of the report; what is the core business
of the company do; what industry does it operate in; what are its geographical markets; what
are the company’s mission, vision and values?
PART I : External Analysis (900 words)
Part 1 requires an analysis of the external environment using appropriate strategic models
and frameworks, which will be discussed during the weekly workshops. In particular, the
external analysis will require two main parts and corresponding tools:
- The Macro-Environmental Analysis through the application of the PESTEL model (table
format)

- The Industry Analysis through the application of the Porter’s Five Forces of Competition
model (table format)

Finally, deriving from the external analysis, you should then identify the main opportunities
and threats present in the company’s environment (partial SWOT analysis, should be
presented in a table format).
PART II : Internal Analysis (900 words)
Part 2 entails the internal analysis of the company under investigation using appropriate
strategic models and frameworks. In particular, the internal analysis will require three main
steps and corresponding tools:
- The Identification of the Resources & Competencies of the company through the
application of the Value Chain model (table format)

- The Appraisal of the Resources & Competencies through the application of the VRIO
framework (table format)

Finally, deriving from the above-mentioned three steps, you should then identify the main
strengths and weaknesses of the company (partial SWOT analysis, should be presented in a
table format).
PART III : Company’s Business Strategy and Business Model (300 words)
Description of the company’s Business Strategy in terms of Bowman’s Strategy Clock model.
In this section you also need to provide a brief explanation of the company’s Business Model
in terms of value creation, value configuration and value capture.
PART IV : Issues & Challenges and Strategic Options for Growth (800)
In this section you will need to summarise the main issues and challenges faced by the
company, which should logically follow from the previous steps of your analysis.
Based on that you need to generate a number of strategic options that the company could
pursue in response to the identified issues and challenges in order to continue to grow.
Strategic options should be generated with the use of the Ansoff matrix or the TOWS Matrix
models (table format).
PART V : Evaluation of the Strategic Options for Growth and Implementation (800)
In this section you should provide a specific suggestions to the company based on evaluation
of strategic options identified previously through the application of the SFA framework (table
format) and select the best one. Please explain your choice and discuss what resources
needed to implement the strategic option chosen effectively.
CONCLUSIONS (150)
Provide a brief summary of the major findings arising out of your analyses and leading on to
YOUR final strategic recommendations for the company’s ongoing health. What problems will
the company face in order to sustain a competitive advantage over its rivals?
REFERENCE LIST (Alphabetical order and Harvard style. It is not included in the word count)

,1

, CONTENTS
Introduction and Company Background…………………………………... Page 3




Part I: External Analysis………………………………….......................... Page 4




Part II: Internal Analysis…………………………………......................... Page 7




Part III: Company’s Business Strategy and Business Model………… Page 10




Part IV: Issues & Challenges and Strategic Options for Growth…… Page 11




Part V: Evaluation of the Strategic Options for Growth Page 13
IIIIIIIIIIIIand Implementation



Conclusions…………………………………............................................. Page 15




Bibliography…………………………………................................... Page 16




2

, INTRODUCTION AND COMPANY BACKGROUND
Huawei Technologies (Huawei) is one of China's most successful multinational corporations.
Its technology is utilised in more than 170 countries, with Samsung and Apple as its
smartphone competitors for market share (Xiao, 2017). Huawei was established in 1987, in
the southern Chinese town of Shenzhen. Back then, it was a scrappy upstart, selling
telephone switches made by another Hong Kong company. It began conducting its own
research in the 1990s, and towards the millennium's end, many research centres had
opened worldwide. Huawei was able to produce its own products following the research,
which were often cheaper than its rivals. From here, it started to expand its reach worldwide.
It’s also the biggest telecommunications equipment provider in the world, uniting a third of
the globe's population, having built more than 1500 networks worldwide (Huawei Annual
Report,2019).

The purpose of this report is to carry out the key strategic issues and challenges faced in
managing Huawei. This is obtained by the study of the company's external and internal
environment, accompanied by the identification and evaluation of its key strategic growth
options. Finally, the recommendation for further development of Huawei, which will further
discuss what capabilities and resources are required for its implementation.

Huawei mission and vision statement (Huawei, 2020) all have clear operations.


Mission: Huawei's mission is to expand the benefits of technology to everyone,
everywhere.

Vision: Huawei's vision is to bring digital to every person, home and organization for a fully
connected, intelligent world.

These are integral to Huawei's strategic decision making. Therefore, Huawei is clearly,
optimistic, to achieve a major competitive advantage in a heavily saturated industry.




3

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