International Business Essay

1618 words - 6 pages

Move on to International business operations, the international business operations of Huawei could be defined as Huawei develops the global supply chain by cooperating with the local companies and add values for customers and suppliers (Huawei, 2014). Hence, it builds up a healthy business ecosystem that shares resources, risks, and benefits all together with the local companies or multinationals in the global market (Strikwerda and Stoelhorst, 2009). According to Huawei (2014), it has built up cooperate relationships with customers, suppliers and so on for the purpose of offering new solutions to address social and environmental issues. Czinzota et al. (2009, p.267) describe six types of organisational structures: Global Product Structure; Global Area Structure; Global Functional Structure; Global Customer Structure; Mixed/Hybrid Structure and Global Matrix Structure. From the organisation structure of Huawei, it is highlighted that the Shareholders' Meeting holds the most important authority and power throughout the whole company. They make decisions on major issues such as the company's capital increase, profit distribution, and selection of the members of the Board of Directors/Supervisory Board (see the Figure two). Therefore, Huawei’s corporate structure obviously divided into several departments in terms of the specific functions.
Figure two: Huawei’s corporate structure

According to Huawei’s organisation structure, the small group of elites are charge of decisions-marketing, and market products and services strategically. For one thing, according to Faia et al. (2013), it can help the company’s business grow professionally and unified the development of processing business in foreign markets. Besides, to uniform the organisational structure in all EMs could not successful all the time (Hogg, 2014). For example, Fiat introduces its business structure to Brazil and India markets. The former achieves high market share while the latter does not have a good performance (Cavusgil et al., 2013, p.107). Therefore, Huawei might be considering of differences between EMs, even within an EM. For instance, with the distinct ethic groups of India market, Huawei needs to think about their “dos and donots” when it introduces products and services to this market.
Di Tullio and Staples (2013, p.55) outline the control mechanisms can be referred that the leaders try to combine the behaviours on the grounds of their expectations to reduce the undesirable behaviours from their staff. They summarise that there exist two types of control mechanisms (Appendix B): formal controls (outcome, behaviours) and informal controls (clan, self-control). To sum up, the operation of Huawei highly concentrates on the shareholders’ meeting. Thereby, the company has a high level control system of the employees’ behaviour. That means the majority of members are following the shareholders’ behaviours and meet their expectations. Huawei strive to provide a platform with...

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