Free Essay

Huawei Crisis

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Submitted By wercahn
Words 1231
Pages 5
Introduction
Background of Principle of Management
Management is about planning, organizing, staffing, directing, and controlling. It is important for all company to make all the people in your organization more productive.
Background of company
I would like to choose Huawei Technologies (Malaysia) Sdn as my assignment title. Huawei company was founded in 1987 and is based in Shenzhen, China. Is a leader in providing next generation telecommunications networks, and now serves 45 of the world's top 50 operators, along with over one billion users worldwide. Ren ZhengFei is the chairman of Huawei. Huawei is a leading global ICT solution provider. And it have established end-to-end capabilities and strengths across the networks carrier, enterprise, consumer and cloud computing fields through their dedication to customer-centric innovation and strong partnerships. Over 140 countries have been deployed in Huawei products, serving more than third of the world’s population. Operate products of Huawei is telecom network infrastructure services, including radio access, fixed access, core network, transport network, data communication, energy and infrastructure, and storage and network security services, as well as applications and software. Products on enterprise is networking & security, UC &C, and IT infrastructure. While the other products is mobile phone, tablet, mobile Wi-Fi, broadband Modems and etc. Vision of Huawei is to enrich life through communication. It provide opportunities to enjoy broadband services.

Problem statement
The problem of Huawei company is less of the credibility mostly towards to the west countries.
Study objective
For Huawei, it is a multinational company, so that credibility is very important. Director of Huawei should have some idea or way to solve it. So that, they can improve the credibility.
Significant and contribution
Huawei considers industry standardization vital to market access, patent defence, brand image, solution interoperability, research and development effort, and multilateral cooperation efforts. There are always looking to build a healthy ecosystem, better explore the market with peers, and contribute to domestic and international standards organizations.

Literature review
Journal source from strategic direction. When Napoleon ruminated on China's potential to shake up the Western world two centuries ago, he could hardly have imagined that the sleeping giant would wait so long to awaken. However now the world is firmly in the post-Chinese slumber era, it would have also surprised Monsieur Bonaparte that while every exporting Western company of a certain size has its own China strategy firmly in place, very few Chinese companies have taken the world by storm so far. What has, if anything, hindered the chances of a really big global player taking on the West?

Analysis of the problem
From the journal above, Monsieur Bonaparte surprise that Huawei companies have taken the world by storm so far. And said that, that is few Chinese companies in China can do it. Credibility is quite important for a company that is multinational. The percentage of people using or develop Huawei products in Asia is more than west countries. That’s why western feel less credibility on this company. That is few other factor that cause the Huawei company less credibility. Information of Huawei do not disclosure to public. The company's annual report says nine directors serve on Huawei board. But their names have not been disclosed, and before news of the latest personnel shakeup leaked, the public knew little about the company's leadership circle and its dynamics.
The cost of the China labour. Because of the labour cost is cheap, directly make the price of the products more cheaper than west country. Besides that, this is also one of the reason that make consumer feel less credibility. Consumer will think that lower labour cost definitely lower quality. Next is the establish of the company. Huawei is set up on year 1987, 24 year Huawei company held in business field until year 2012 now. Western will feel that Huawei is not enough longer in this field. Consumer might less confidence about the company, on their mindset, some people will think that is no enough of qualification on this company.

Result and discussion
Credibility is something that’s earned, not automatically given. To solve this problem, Huawei company should increase their credibility. So that, other countries and western will more believe on it. At the first, Huawei company can published in a major publication is perhaps the single best way to achieve credibility. Choose the best and the famous sector that can improve credibility of the company. Next is Being interviewed can be a nerve wracking process. Huawei can publish the interviews or make it available on the Huawei website. Moreover, Good press and publicity will also help boost credibility and of course visibility too. It can show the public eye and if the media picks up on the story, then can earn the visibility and perhaps even a client or two along the way. Lastly, it is important to create a sense of professionalism on the Huawei website. This is established by clearly communicating Huawei policies and procedures. Having a clear customer service policy, and treat everyone with respect and courtesy. Furthermore, Huawei company can create some event on shopping centre or other to show to their consumer about their products. Good disclosure practice is a priority, on which future business success depends. Disclosure, even of the past performance, create expectations for the future and therefore can, and usually does, lead to changed management behaviour. That will help Huawei more reliable.
Discussion
With high levels of credibility, prospects don’t feel the need to do as much due diligence, checking, thinking about purchase decisions. Trust is already established and this reduces the second-guessing and doubt. Ultimately the sales cycle speeds up and the closing percentage increase.
Second is more likely to attract and gain higher quality client. With increased credibility, you become more attractive to larger prospects. The higher the credibility of the firm or advisor, the more likely they are to attract bigger client with more assets.
Third is likely to attract and retain higher quality talent. Employees want to work for an company or leaders who are perceived as credible. The more credible the employees in the organization, particularly those in key positions, the more credible the perception of the overall organization and the more likely the organization is to attract other credible.
Conclusion
Over the last ten years, the telecommunications industry has grown and begun changing from the familiar patterns of the past. These changes have been driven by customer needs, technology changes and the emergence of new business models.
Huawei is in a unique position to have insights into the divergent global telecom their vision of where the industry is going and their views of the key trends that will impact success.
Reference:
1. Huawei company
(http://www.huawei.com/en/) [ accessed 15 June 2012] (http://www.huawei.com/en/industry/standards-contributions/index.htm) [accessed 15 June 2012] 2. Emerald http://www.emeraldinsight.com/search.htm?st1=huawei&ct=all&ec=1&bf=1 [accessed 18 June 2012]

3. Problem and solve (Pamlawhorne)
(http://pamlawhorne.com/5-tips-on-how-to-make-your-business-more-credibile/) [accessed 21 June 2012]
(http://www.ipa.co.uk/News/Improve-your-companys-credibility-reputation-and-market-positioning) [ accessed 21 June 2012]

4. Discussion (Producers e-source) http://www.producersesource.com/client-acquisition/the-credibility-advantage-build-your-credibility-and-your-bottom-line/ [accessed 25 June 2012]

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