Multinational enterprise (MNE) is “a company that is headquartered in one country but has operations in one or more other countries” (Rugman and Collinson 2012, p.38) that has at least one office in different countries but centralised home office. These offices coordinate global management in the context of international business. MNEs have increasingly essential influence on the development of the global economy and coordinate with other companies in different business environments. However, there are many issues involved with how MNEs operate well overseas, especially in emerging markets (EMs) (Cavusgil et al., 2013, p.5).
This paper provides the relevant knowledge of international business to examine and analyse the key issues for Huawei in its business and the international market place. Firstly, a brief introduction of Huawei will be given and its main drivers in emerging markets will be presented under the theory of foreign direct investment (FDI) before showing its entry mode. Then, there will be a discussion about the core external environmental issues that Huawei underwent when it operated its business in emerging markets: India and South Africa. Next, it looks forward to justifying the key opportunities and challenges when it moves in to India and South Africa. After that, Huawei’s international business operations with the evaluation of its company structure as well as control mechanisms will be specified. This part includes a section that how human resources management (HRM) impact its international business operations. At the end, the suggestions of external environmental issues need to be coped with in the future will show before drawing a conclusion.
Founded by Ren Zhengfei in 1998, Huawei has become a leading global ICT solutions provider, deploying its products and solutions in 170 countries and regions. Huawei has built up end-to-end capabilities and strengths across the carrier networks, enterprise, consumers and cloud computing fields. Huawei puts its customers in the first place; as a result, it generates long-terms values for customers via responding their needs and requirements. Huawei invests in information industry so that could innovate to satisfy the increasing necessities of the customers and take advantage of technology in the global market. In other words, Huawei strives to bring a better life for customers via communication (Huawei, 2014).
MNEs have extensive direct investment in foreign countries (Bartett et al., 2008, p.2). Czinzota et al. (2009, p.46) believe that the motivations and benefits of a company might be taken into account when it operates overseas. Thus, they indicate three major theories of FDI for MNEs, which include seeking profitable sources or prospects; exploiting of imperfections; and internalising the products.
Then, joint venture is a good way to move on to international markets as a result of alliancing two or more companies can narrow the management or financial...