Strategic Management Essay Example | Topics and Well Written Essays - 1000 words - 1

Strategic Management - Essay Example These automobile producers include Ford, Toyota, Volkswagen BMW and several others which rely on the quality products produced by Magna. With the help of its technologies Magna is able to develop a variety of products including exterior, interior, metal body, front models, rear models, lighting components and several others. Magna is also known for its assembling of these products together to produce an automobile which can meet the requirements of the modern day society. Although the company went through an era of considerable losses in 2008, it still was able to grasp a profit of nearly $51 million by the end of September 2008. This clearly shows that the company is growing more and more day by day generating more profits so as to fulfill its aim of achieving the right profitability rate. Unlike other companies, Magna International Inc. does not follow a mission statement with inflexible approaches. It, as a substitute, uses its ‘corporate constitution’ and its ‘ Employees’ Charter’ as its responsibilities and line of action. The corporate constitution of Magna International included the rights and responsibilities of its workers, declaration of management’s involvement in profits and development of the business, and description of disciplines on management. Their culture and responsibility, hence, is to keep a balanced behavior with management, workers and investors. The operating philosophy and culture of Magna International is based on the fairness of treatment, equality of opportunities to all employees and a collaborative approach to work for the good of the organization. It gives ample space to the employees in order to increase its efficiency and provides a flexible approach to the wants of employees, shareholders and management. The aim of Magna is to become a leading supplier of automobile parts but keeping the integrity and fairness in the treatment of its organizational workers and other stakeholders. The comp any has expanded throughout these years and has now been able to develop 242 manufacturing operations all over the world. Magna International in order to achieve its aim has to operate in a proper international, regional and industrial environment. The industrial environment of the company includes the working level of the employees and the potential to which they can work at. The industrial environment of Magna International is modified in such a way so that their employees are able to work at their maximum potential. The industrial environment of Magna includes its fair working policies and other programs which tend to encourage employee participation. Moreover an Employee Charter which was introduced in 1988 helps them to achieve this target of fairness and balanced industrial environment. As the company has expanded all over the world it applies to all the principles and laws of different nations. To do so the company makes sure that it is competitive enough to launch its manufa cturing plants in certain countries and that its routine activities in that particular area are successful enough. The company has developed such policies which help them to further expand in these countries and cope up on the level of international scenario. The company strictly follows the laws and economic policies of the country in which it develops its plants. Similarly it also adheres to the factor of language as per the country

Linear Model and Nonlinear Model Essay Example | Topics and Well Written Essays - 2000 words

Linear Model and Nonlinear Model - Essay Example This model can then be used in predicting the dependent variable values based on the independent variable values. In measuring the association strength between X and Y variables, correlation analysis is applied. Generally, when plotting for the line of best fit, the concept of the least squares is applied. Interpretation of the slope of the line of best fit is usually done in algebra i.e. -0.008/1. The slope represents a ratio that exists between the Y and X variable in that a change in Y per change in X is represented by the ratio. From the equation above, As the X- variable value increases by 1, the Y-variable value decreases by 0.008. In the context of the question, as the years increases by 1, the winning times of the Summer Olympics, 200m Breaststroke women swimming decreases by 0.008. This implies that the units of the slope of the line are determined by the units of the Y-variable per the units of the X-variable. The Coefficient of determination (R squared) is an indication of how well the points of data fit on a regression line. In most cases, the main role of the R squared in statistical models is to predict future outcomes or to test for the hypotheses. This coefficient is used to determine how proportionate the variance of one variable is from another from the model. Usually, the value should range between 0

Study Skills Essay Example | Topics and Well Written Essays - 2000 words - 1

Study Skills - Essay Example Study skills are never attained fully formed, any more than a grown man pops out of his mother’s womb. According to Cottrell(2003 p3)They evolve and mature through repetition, trial and error, critique from others and continued reflection as you progress through your individual journey as a learner The purpose of this module is to provide the opportunity to acquire and develop the study skills that will be necessary to successfully complete this course to a standard that I am aiming for. Being a competent independent learner is derived from being self motivated, being able to manage personal learning processes, good time management skills and continually reflecting on what and how you learn best and tailoring your energies to suit. Within this portfolio I will examine the development of learner independence, time management, self evaluation of personal learning, production of an action plan and improving my essay writing skills. If as anticipated this is completed successfully it will add additional skills to my current ones and aide me in my current quest to secure a higher second grade result on this degree course. Learner independence or autonomy can be defined as â€Å"capacity to take responsibility for, and control of, your own learning, whether in an institutionalised context, or completely independent of a teacher or institution† (Thornbury, 2006). Learner independence is the ability of the learners to control their learning process (Holec, 1981). In the present age, when knowledge is growing at very fast pace because of the ongoing research work and rapid advancements in technology, the importance of independent learning cannot be overemphasized. Learners must understand that the education they are provided with at institutions is time-constrained, and what they need to learn is not limited to what they are taught in schools. Most learners used to learning in

Should women be banned from wearing veils in public Essay

Should women be banned from wearing veils in public - Essay Example inst and for it, the following analysis will discuss the issue of the face veil and attempt to draw a conclusion with regards to whether or not it should be â€Å"allowed† within Democratic Western society. Firstly, the most salient argument against outlawing the veil in public is concentric upon individual liberty and discrimination against Muslims. Although there are certainly a number of nations that can be considered as representative of â€Å"Western democracy†, a core similarity that exists between all of these nations is a certain degree of self-determination and free will; within the confines of the existing law. By and large, personal liberty is a complement of all of these democracies. As such, those individuals that argue against a ban on the facial veil point to the fact that such a ban is inherently against the liberty and founding principles of the societies in question. Moreover, due to the events of the past several decades, there is already a high level of distrust, suspicion, and oftentimes, right hatred, or Muslim individuals within society. Accordingly, those who argue against a band point to the fact that restricting the natural behavior of individuals, rega rdless of their religious interpretation, would only lead to a further escalation with regards to the hatred and distrust that are oftentimes placed against Muslim communities throughout the West. By means of comparison and contrast, those individuals that argue against allowing the veil in public, and promote the belief that it should be outlawed, also point to fundamental rights and interpretations of liberty and freedom as the backbone of their arguments. For instance, those in favor of a band point to the fact that women’s rights are inherently guaranteed with regards to the democratic principles that define governance. As such, by restricting the mobility and potential level of integration that women can exhibit within society, a facial veil is tantamount to a level of second-class

Analysis of Alfred Hitchcock's The Birds Assignment

Analysis of Alfred Hitchcock's The Birds - Assignment Example The story begins in a pet shop in San Francisco where a young lawyer, Mitch Brenner, is unsuccessfully trying to buy his younger sister, Cathy, a pair of lovebirds for her 11th birthday. He meets and remembers the wealthy socialite Melanie Daniels, who, apparently, does not recognize him, and he plays a joke on her by treating her as a salesclerk. Attracted to him, she impulsively buys two birds, which she secretly delivers to Mitch’s home in Bodega Bay. On her way back, she is attacked by a seagull, after which she meets Mitch on the mainland pier and he convinces her to go back home with him. The following day, during Cathy’s birthday party, a group of birds attacks her and her friends and, the same evening, finches swarm down the chimney in their hundreds into the Brenner home. There is panic as a chicken farmer, Dan Forsyth, is pecked to death by his own birds which then cause a fire at a gas station and threaten children as they leave school. After a school teacher named Annie Hayworth is also killed by birds, panic mounts in the town and residents flee to San Francisco. Mitch decides to board up all his house’s entrances and wait for the attack. The birds are unable to gain entry after pecking on the doors and tearing at shingles. However, tragically, they manage to make a hole in the roof and attack Melanie who went up to the attic to investigate a noise she had heard. Although Mitch managed to save her, he acknowledged that his own home is no longer safe from the birds and also flees to San Francisco amid a moment of silence from the birds into an uncertain future as the film ends (Mcgilligan 21). This paper will identify the film’s theme and discuss how the director used sub-genre and combined genre elements to project that theme. The theme, which is predominantly suspense/horror, is strategically brought out by a strange relationship between humanity and nature. The plot may appear to be banal, but the director manages to depict horror by turning garden birds, not birds of prey, against mankind. Bodega Bay, a small town in California is suddenly and without apparent explanation subjected to violent and widespread attacks by birds.  

Reading Is the Path to Success Essay Example for Free

Reading Is the Path to Success Essay Introduction 1. Before you begin each assigned essay, read about the author’s life (biography). In particular, note literary biography. On our Learning Web, I have a website link for each author we study. 2. Note the titles. What expectations do the titles create? Once you have finished reading each essay, reconsider each title. 3. As you read, note the author’s intertwining of some of the elements of memoir: narration, description (especially appeals to the five senses), emotion (tone), and reflective commentary. Note any use of dialog. Langston Hughes’ â€Å"Salvation† (from The Big Sea, 1940) 1. Who is Langston Hughes (1902-1967)? Note his biography on the Learning Web. 2. In Hughes’ essay â€Å"Salvation,† do you find more narration or description? Which one of these strategies is the primary strategy that structures the essay? 3. What is the point of view of this essay? How old was Hughes when he wrote this essay? How old was he when the event occurred? What is the age of his speaking voice in the essay? How do you know? (Note exclamation marks and purposeful overuse of the word â€Å"and.†) 4. What is Hughes’ thesis? 5. Where is the setting(s)? What descriptive details does Hughes use to sketch in the setting? 6. Note allusions to religious hymns. â€Å"The Ninety-Nine and Nine† and â€Å"Let the Lower Lights Be Burning† are old evangelical hymns sung in church. 7. Examine Hughes imagery (appeals to the five senses). What are some of Hughes’ specific images? 8. Note how Hughes sustains the imagery in paragraph 13. 9. Who are the minor characters? How does Hughes describe each one? 10. Note Hughes’ use of short simple sentences for effect. Note his use of sentence fragments. 11. Note Hughes’ use of the one sentence paragraph for  dramatic effect. 12. Note Hughes’ use of dialog. What makes his dialog effective? 13. What conflict(s) do you find in this essay? Are Hughes’ conflicts internal or external (or both)? 14. Note the character Westley. Why is he important to the story? 15. Where is the climax of this essay? Explain your decision. 16. Account for the title â€Å"Salvation.† From what, exactly, was he saved? 17. What irony do you find in this essay? 18. Do the conflicts reach resolution by the end of the story? 19. Comment on tone. Do you find this essay humorous or serious (or both)? 20. Note Hughes’ use of the dash (—) for dramatic emphasis. 21. Did you enjoy reading this essay? Why or why not? 22. Did you look up vocabulary? Note â€Å"knickerbockers,† â€Å"rounder,† and â€Å"mourners’ bench.† Annie Dillard’s â€Å"The Chase† (from An American Childhood, 1987) 1. Who is Annie Dillard (1945 )? Read her biography in the Learning Web. Note literary biography. In particular note the paragraph about her as a small child. 2. Why does the essay begin with a paragraph about being a tomboy and loving football? Dillard is using football as a metaphor for what? According to Dillard, what does football require? 3. What is her thesis? (Note paragraph #2.) 4. What is her setting? Note the descriptions of the snow. 5. Where does conflict begin? What kind of conflict do we have in this story? 6. Describe the driver. What does he do after the children hit his car with a snowball? 7. Note the chase itself. Note how the rising action intensifies in paragraph 12 and 13. Note the signal words that help you follow her. 8. What about the man’s behavior surprises Dillard? In her mind, the driver transforms from what to what? 9. Where is the climax of the essay? 10. Dillard keeps dialog to a minimum. What dialog do we hear? 11. What is Dillard’s attitude about being captured? 12. What word would you use to describe the tone of this memoir? 13. Dillard reveals the point of her story in paragraph 19 as part of her denouement. What is that point? 14. Note that description of the man in paragraph 21. In Dillard’s imagination, he has transformed from â€Å"the driver† into what? 15. Note Dillard’s use of the semicolon and dash as part of her sentence structure. 16. Note vocabulary â€Å"crenellated,† â€Å"spherical,† â€Å"perfunctorily.† E. B. White’s â€Å"Once More to the Lake† (Harper’s Magazine, â€Å"One Man’s Meat,† White’s monthly column, October 1941) 1. Who is E. B. White (1899-1985)? When did he write â€Å"Once More to the Lake†? Note literary biography on our Learning Web. 2. Note the exposition. Who are the characters? What is the setting? 3. Note White’s thesis. 4. Do you find the essay has more narration or description? 5. Note White’s use of imagery as he describes the lake. 6. What figurative language does White use to describe the lake? 7. What conflict do you find in this essay? When does the conflict begin? Is White’s conflict internal or external? Explain. 8. When White and his son go fishing the first morning, White mentions â€Å"the† dragonfly instead of â€Å"a† dragonfly. Account for his decision to use â€Å"the.† 9. Note places in the memoir where conflict builds. 10. What sound effect disrupts White’s reliving of his past? 11. Where is the climax of this essay? Account for your decision. Is there resolution? 12. Why does White feel a â€Å"chill of death† at the end of the essay? 13. What is the tone of this essay? Account for your answer. 14. Did you enjoy this essay? Why or why not? Amy Tan’s â€Å"Two Kinds† (from her novel The Joy Luck Club, 1989) 1. Who is Amy Tan (1950 )? Note her biography on the Learning Web. Note literary biography. 2. Note the exposition of the story. What is the narrative point of view? Who are the main characters in the story? What are the cultural differences between Jing Mei and her mother? Note dialog and body language as you read. 3. What is the setting of â€Å"Two Kinds†? Where and when does this story take place and how do you know? 4. Define the word â€Å"prodigy.† 5. What motivates Jing Mei’s mother to force her child to become a prodigy? 6. What are Jing Mei’s first responses to becoming a prodigy? 7. Note the rising action and conflict. 8. What does Jing Mei finally decide she will do about her mother’s constant attempts to make her into a prodigy? 9. Note Mr. Chong. Who is he? What specific details about him make him a vivid character? 10. The piano plays an important role in the story. What does it become for Jing Mei? 11. Note the various reactions of the people who experience Jing Mei’s recital. 12. What is the climax of the story? 13. What happens in the denouement of the story? 14. Is the mother-daughter conflict resolved? 15. In the denouement, what does Jing Mei learn about the song she played at the recital? 16. Note Tan’s use of metaphor and simile. Give examples of Tan’s figurative language and fine detail and imagery.

Analysis Of Huawei And Its Core Competencies Management Essay

Analysis Of Huawei And Its Core Competencies Management Essay Huawei Technologies was founded in 1998 by Ren Zhengfei who is a former Peoples Liberation Army officer and telecom engineer. It was incorporated as a private enterprise which manufactures telecommunications equipments for domestic Chinese companies at a much lower price than its international competitors. And since the beginning, Zhengfeis vision was to build innovation capability into the company. However, contrary to the Chinas policy of exchanging market for technology, Zhengfei is convinced that having a joint venture with foreign companies would only cause the Chinese to lose their domestic market and not enable them to acquire foreign technologies. In performing an internal analysis, it is important to have a global mind-set, which is the ability to analyse the internal environment in ways that are independent on the assumptions of a single country, culture, or context. In addition, the businesss portfolio of resources and the bundles of heterogeneous resources and capabilities have to be analysed so that they are be leveraged on if need to. Business Fundamentals Accounting Huawei Technologies had annual revenue of US$6.7 billion and a net profit of US$470 million in 2005. This is an increase from annual revenue of US$5.8 billion and a net profit of US$470 million in 2004. Huaweis net profits in 2002 and 2003 were US$110 million and US$380 million respectively, and it had a net profit margin of 4% in 2002, 10% in 2003 and 8% in 2004. No doubt, Huaweis net profit margin drop by 2% in 2004, Huawei is still generating profit. Finance There are short-term financing and long-term financing options available. Huaweis financial support from the state-owned Chinese Development Bank in the form of a US$10 billion facility and US$600 million from the Export-Import Bank of China are both forms of long-term financing. Risk Management There are three major types of business risks; price risk, credit risk and pure risk. As Huawei has markets overseas, there is bound to be some price risk involved when there is any fluctuation in foreign exchange rates as their receivables and payments are transacted in foreign currencies. Hence, Huawei can use hedging to manage its price risks. In addition, pure risk is assume to be present in virtually any industry and there are four types of pure risk that affect business; damage to assets, legal liability, workers injury and employee benefits. Organisation Design Huawei practice departmentalization as its workforce is spilt into departments such as Research Development (RD) and production. It is also a mechanistic structure as there is high specialization and centralization. Human Resource Management Since its beginning, Huawei had been emphasizing on building a strong RD team and it had been recruiting employees of high caliber with exceptionally high salary by Chinese standard. Operations and Supply Chain Management The success of most businesses is their ability to identify the customers needs and to come up with products that fulfills the necessary requirements. These products will then have to be produced at economically viable costs. As Huawei manufactures and ships its products both locally and overseas. Thus, it is vital that Huawei monitors its operations and supply chain management to ensure that its products remain profitable and that bullwhip effect be controlled. Product Development Huawei has the foresight to invest and develop in new technologies in the industry which gives it a quantum leap in the market from its competitors. Resources, Capabilities, and Core Competencies Resources, capabilities and core competencies form the basis of competitive advantage. Resources create organizational capabilities when group together and in turn, capabilities result in the core competencies of a firm, and these are the foundation of competitive advantage. Tangible Resources Financial Resources As previously mentioned, Huawei has the financial support from the state-owned Chinese Development Bank and the Export-Import Bank of China. With their financial support, Huawei received a US10 billion facility for its international expansion over five years and US$600 million respectively. Organisational Resources Huawei has departments such as RD, production and marketing which form up the basic organization structure of the company. Huawei also integrates its marketing employees into its main RD team so that the customers needs can be better communicated to the RD headquarters responsively. Physical Resources Huawei has research centres located in China and overseas. For example, it has a 21 storey research center at its headquarters in Shenzhen and six other research laboratories in Beijing, Shanghai, Nanjing, Huangzhou, Xian and Chengdu; a software development centre in Bangalore (India) and research facilities in Moscow (Russia), Stockholm (Sweden) and the Silicon Valley in California. Technological Resources Huawei had a large number of patents under its name. It had more than 8,000 patent applications by late 2004, with 800 of them applied in more than 20 countries, including the United States and Europe. In fact, in 2004 alone, Huawei had more than 2,000 patent applications which put it on par with its international rivals in the same industry. Intangible Resources Human Resources Since establishment, Huawei had focused its resources to build itself a strong RD team. Starting off with 500 RD staffs and 200 production staffs, Huawei had a workforce of 24,000 employees by late 2005 with 48% of them engaging in RD works. In addition, the education level of the companys employees was higher than the average worker in China. More than 85% of its workforce had a bachelors or higher degree, and about 60% had a masters or PhD. Innovation Resources Huawei undertook joint RD laboratories with foreign companies such as IBM, Microsoft, Texas Instruments, Intel, e.g., focusing on different telecom techniques. These joint development efforts were used to complement Huaweis innovation capabilities. Reputational Resources Huawei has a large customer base in China with the major telecom companies being its customer. In addition, Huawei is one of the major suppliers for equipments for the China Telecoms ChinaNet Next Carrying Network, known as CN2, which is the core network for the countrys next-generation business and consumers services. Capabilities Capabilities exist when there are resources on hand that have been deliberately integrated to achieve specific tasks. Huawei had a strong team of RD staff which comprises of 48% of its total employees. In addition, Huawei recruits employees of high caliber, with more than 85% of its employees having at least a bachelors degree and 60% having a masters or PhD. Thus, Huawei is able to come out with innovate products, hence holding an exceptionally high number of patents by Chinese standard. In addition, coming from a military background, Ren Zhengfeis connection with the Chinese military helps create a guanxi network which is extremely helpful to Huawei. Being based in China, Huawei is able to manufacture and offer products at a lower price (typically 30% lower than those of established suppliers). Core Competencies Core competencies are capabilities that are a source of competitive advantage for a company over its rivals. Huaweis first competence is its RD. Because of the inexpensive labour force in China, Huawei had an advantage over its international competitors. In addition, Huawei integrates its marketing people into its RD team, thus the needs of telephone companies and service providers could be communicated through the marketers to the RD department in the shortest time. Another core competence which Huawei had is its close relationship with the Chinese military. This close relationship enables Huawei to create a guanxi network which few other competitors could rival and which helps Huawei to secure big contract orders in its initial years and huge financial loans from the state banks. A third core competence is Huaweis products low price as compare to its competitors. In summary, Huawei would need to maintain these core competencies in the long run to have a sustainable competitive advantage. Valuable Rare Costly to Imitate Non-substitutable RD à ¢Ã‹â€ Ã… ¡ à ¢Ã‹â€ Ã… ¡ à ¢Ã‹â€ Ã… ¡ Close relationship with Chinese military à ¢Ã‹â€ Ã… ¡ à ¢Ã‹â€ Ã… ¡ à ¢Ã‹â€ Ã… ¡ à ¢Ã‹â€ Ã… ¡ Price à ¢Ã‹â€ Ã… ¡ *Must meet at least 3 criteria to be a competitive advantage (CA). Value Chain Analysis Using the value chain analysis, we will analyse which are Huaweis operations segments that create value and those that do not. It is essential to understand these issues, as a business will only earns above-average returns when the value created is greater than the costs incurred to create that value. Primary activities Huaweis primary activities are marketing and sales, inbound logistics, outbound logistics and operations. Support activities Huaweis support activities are firm infrastructure, human resource management, service, technological development and procurement. Activities which are not of competitive advantages to Huawei can be outsourced to external vendors so that resources can be put to better use within the company. SWOT Analysis Strengths and Weaknesses Strengths Huawei have a strong RD team and high caliber employees which gives it an edge over its competitors. Being based in China, Huawei is able to manufacture and offer products at a lower price (typically 30% lower than those of established suppliers). In addition, with a low-cost workforce, Huawei spends less in RD but achieve comparable results with foreign technology companies who spend more. Ren Zhengfeis connection with the Chinese military enables Huawei to have the support from the Chinese government which is essential to working in China. Weaknesses Being a Chinese company, Huawei will be view in a different light compared to other companies from other countries. In general, the perception was that Chinese vendors were mainly relying on western engineering methods and were turning the higher margins and complex products into standard commodities. Thus, Huawei would have to move beyond this to be view as a serious global competitor. Huaweis lawsuit with Cisco gives rise to the issue that Huawei has infringed Ciscos patents and copyrights by copying its user interface, user manuals and source codes which inevitably affects Huaweis reputation in the United States. Key Success Factors Huawei is able to be successful as in general the Chinese market is a closed industry and foreign companies would need to joint ventures with local Chinese companies in order to enter the market, which will involve large equity investments. In addition, being a home-grown company, the Chinese will prefer to buy their products from Huawei, thus giving it an advantage in such a big emerging market. Furthermore, with Ren Zhengfeis connection to the Chinese military, it would have an unfair advantage over other companies. Secondly, since the onset, Huawei had focus on employing high caliber employees to form a huge RD team. Together with joint RD with other leading foreign companies, this has enables Huawei to come up with innovative products. Question 2. Perform an external analysis of Huawei. Based on your analysis, identify the possible opportunities and threats encountered by Huawei. (30 marks) Business Fundamentals Economics China overtook the United States to become the largest telecom market in late 2002 and by 2004; Chinas telecom industry had US$112 billion in business transactions. This is equivalent to an annual growth rate of 34.9% which was 3.7 times Chinas gross domestic product (GDP) growth rate of 9.5%. In addition, Chinas telecom equipment market will continue to grow annually at a compound rate of 10.9%, from US$30 billion to US$45 billion between 2004 and 2008. Stakeholder Management There are two major groups of stakeholders; market stakeholders and non-market stakeholders. Market stakeholders are also known as primary stakeholders and they include the employees, customers, suppliers and distributors of Huawei. Non-market stakeholders, also known as secondary stakeholders are people whom are affected by Huaweis actions but without being directly involved with any economic transactions with it. Marketing Huawei had to be aggressive to win contracts and typically, their products are about 30% cheaper than established brands. In addition, Huawei offer incentives when pitching for sales for major contracts. The External Environment The external environment of a company is divided into three major areas; the general, industry and competitor environments, each focusing on different aspects. The General Environment PESTL Model The general environment comprises of dimensions in the broader society that influence an industry and the firms within it. Using the PESTL model, we will gather the information and analyse each segment and its implication. Political Huaweis founder; Ren Zhengfei was from the Chinese military and this connection had created a guanxi network which few competitors could match. This relationship had helped Huawei secure big contract orders with the military during its early years. In addition, financial supports from state-owned banks were given to Huawei for its expansion plans overseas. However, this connection to the Chinese military had also affect Huawei, as a number of distributors in the United States were skeptical about the influence Huawei was subject to, and they were cautious of any implications. In addition, due to ownerships restrictions in China, most foreign firms would need to have a joint venture with local Chinese companies before they can enter the market. Hence, Huawei had an advantage in this aspect. Economics Huawei was the largest telecom equipment manufacturer in China with annual revenue of US$6.7 billion in 2005, and a net profit of US$470 million. At the same time, its market capitalization was estimated to be up to US$10 billion. Sociocultural Despite Huaweis efforts to fit into the United States culture, Huawei still met with difficulties when it first started operating in Plano, Texas in 2001. For a start, the Americans had difficulty pronouncing the companys name to the extent that Huawei had to come up with a working name. However, this caused confusion as the new name was not adopted nor promoted consistently and the Americans were confused by two different names belonging to the same company. To make matter worse, Huaweis employees had difficulty adapting to the Texas accent and their local culture. Huawei itself has a unique corporate culture within the company. Due to Ren Zhengfeis military background, he had instilled military style training for new employees and his employees were urged to learn from the behavior of wolves. He wants Huaweis marketing department to be aggressive, just like a pack of wolves. Technological Technological advances in the internet boom continued till 2006, and the technology choices and service requirements of service providers were getting more diversify. As previously mentioned, China had overtaken the United States to become the largest telecom market and hence, telecom service providers were now focusing on network improvement and value-added services rather than on infrastructure development. Huawei had the foresight to venture early and invested heavily in the third-generation (3G) mobile communications technology and it started its own research and development (RD) in Code-Division Multiple Access (CDMA) in 1995. And over the next few years, Huawei invested more than US$370 million in wide-band CDMA (WCDMA) technologies with a dedicated team of 3,500 RD employees deployed throughout research centres in China and other countries. In 2003, Huawei formed a 3G research joint venture with Japans NEC and Matsushita and entered the mobile handset market in early 2004 to familiarise itself with the 3G industry in future. At the same time, a joint venture was also formed with Siemens to test TD-SCDMA (Chinas home grown standard) mobile handsets and networks equipments. As a matter of fact, Huawei had invested one-third of its RD spending on 3G technologies for the past two years. Legal Huawei was sued by Cisco in the United States six months after setting up a subsidiary there. It had allegedly infringed a number of Ciscos copyrights and patents and Cisco was seeking damages in the lawsuit, which includes the discontinuation of Huaweis Quidway routers, and the impoundment and destruction of all Huaweis routers and manuals in the United States. By the time Cisco dropped its lawsuit in July 2004; many sales contracts which Huawei was pitching for were lost. To make matter worse, a Huaweis employee was caught taking photographs of high-tech equipment from Fujitsu in a trade show in Chicago in June 2004. The Industry Environment The Five Forces of Competition Model The intensity of competition and the profit potential of an industry are the functions of the five forces of competition; the threats of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products and rivalry among competing firms. Threat of New Entrants There is a low to medium risk for Huawei for the threat of new entrants in the industry. Chinas telecom industry had grown to become the largest telecom market in the world and most of the leading global telecom equipment firms had already started operations in China by setting up joint ventures with local Chinese companies. Among the multinationals in China now are leading global telecom equipment firms such as Motorola, Nokia, Lucent Technologies and Siemens. Thus, it is already a competitive market with little room for new players. In addition, as previously mentioned, foreign companies wanting to enter the Chinese market would have to set up joint ventures with Chinese companies due to ownership restrictions and this usually involve equity investments. Hence, it is capital intensive for a new player to enter the market. Bargaining Power of Suppliers No evidence found in the case study. Bargaining Power of Buyers The buyers have a high bargaining power. Phone subscriptions had increased to 390 million mobile phone users and 348 million fixed-line users by October 2005. As there was low switching costs for customers, telecom service providers are focusing on network improvement and value-added services to win customers and make existing customers stay. In addition, Chinas telecom equipment market has been forecasted to grow at a 10.9% annual compound rate between 2004 and 2008, from US$30 billion to US$45 billion. Threat of Substitute Products There is a low threat of substitute products as there is basically no substitute for the industry. There is currently no other products that can offer the same usage and convenience offered by the telecom equipment industry. Rivalry Among Competing Firms There is a high rivalry among competing firms. Beside the influx of multinationals telecom enterprises, there are also a number of domestic companies that are becoming competitive. There is little differentiation among competitors and hence, customers have low switching costs. Besides Huawei, there are three more companies; ZTE, DTT and GDT that have started to emerge. Both Huawei and ZTE were expected to enter further into international markets in the near future, going neck-to-neck with the established multinational enterprises for the same customers. The Competitor Environment Intense rivalry creates a need for Huawei to understand its competitors and their objectives, strategies, capabilities and assumptions. To help Huawei prepare for a response to its competitor, four dimensions (future objectives, current strategy, assumptions and capabilities) about the competitor should be found out and understand. SWOT Analysis Opportunities and Threats Opportunities Having already facing difficulties entering the United States market, Huawei can present itself better in the United States by collaborating with some of the United States companies. In this way, customers will not perceive Huawei as a low-cost vendor. In addition, as long as Huawei delivers reliable equipments, quality service and continues its product development, it will pose a formidable opponent to foreign companies. Threats Huawei have to be wary of competition from companies from low-cost countries where they pose a direct threat. Question 3. Identify the business level strategy adopted by Huawei and discuss the strategic actions implemented by Huawei in supporting this strategy. (20 marks) Huawei had adopted an integrated cost leadership/ differentiation strategy for its business level strategy. With its focus on RD and owning more than 8,000 patents, Huawei is able to differentiate their products in many ways. In addition, being located in a low-cost workforce country, Huawei is able to have their products manufactured at a much lower cost compared to others. Huawei engages in both value-creating primary and support activities that enables them to simultaneously pursue cost leadership/ differentiation strategy. By having an efficient production, low costs can be maintained while creating products of unique value give rises to differentiation. Primary activities As mentioned in question 1, Huaweis primary activities are marketing and sales, inbound logistics, outbound logistics and operations. Marketing and Sales Huawei priced their products about 30% cheaper than other established brands and to make it more attractive, Huawei offers attractive incentives as a sales package when pitching for major contracts. Support activities Huaweis support activities are firm infrastructure, human resource management, service, technological development and procurement. Firm Infrastructure Huawei had a good infrastructure that enables it to effectively and consistently identify its external threats and opportunities, resources and capabilities and support core competencies. It had a very good relationship with the Chinese military which is paramount to its success in China. Human Resource Management Huawei focus on having high caliber employees to build up its RD team. With more than 85% of its employees having a bachelors degree and above, Huawei ensures that they are highly paid by Chinese standard. In addition, due to Ren Zhengfeis military background, new employees are put through intensive military style training for the initial months. Service To offer unparallel service to its customers, Huawei hires local personnel in customers home country as part of its strategy to tailor technologies and services according to customers needs. Technological Development Huawei ventured early and invested in third-generation (3G) mobile communications technology and it started its own research and development (RD) in Code-Division Multiple Access (CDMA) in 1995. With a dedicated team of 3,500 RD employees deployed throughout research centres in China and other countries, Huawei invested more than US$370 million in wide-band CDMA (WCDMA) technologies over the next few years. In addition, to familiarise itself with 3G industry, Huawei formed a 3G research joint venture with Japans NEC and Matsushita in 2003, and entered the mobile handset market in early 2004. At the same time, Huawei started a joint venture with Siemens to test TD-SCDMA (Chinas home grown standard) mobile handsets and networks equipments. Procurement Huawei has research centres both in China and overseas. It had a 21-storey research centre in Shenzhen, and six other research laboratories in Beijing, Shanghai, Nanjing, Huangzhou, Xian and Chengdu; a software development centre in Bangalore (India) and research facilities in Moscow (Russia), Stockholm (Sweden) and the Silicon Valley in California. Flexibility Flexibility is needed by firms in order to complete both primary and support activities that allow the production of differentiation products at relatively low costs. Three sources of flexibility are: Flexible manufacturing systems, information networks and total quality management systems. Flexible Manufacturing Systems Flexible manufacturing systems enable a firm to produce a variety of products in moderate quantities with minimum human intervention. Through either patent-mining or reverse engineering, Huawei had turned high-profit and complex products into standard commodities. In addition, to offer better differentiation products, Huawei hires local personnel in customers home country to tailor technologies and services according to customers needs. Information Networks By linking companies with their suppliers, distributors and customers, information networks provide another source of flexibility. Ren Zhengfeis relationship with the Chinese military had helped Huawei to have a close guanxi network which other competitors do not have, and this had helped Huawei to secure big contract orders. Furthermore, Huaweis major customers in China were the big players in the industry such as; China Telecom, China Mobile, China Netcom and China Unicom. Huaweis networks in China has over 400 million people across the country, occupying 25% of the mobile network market shares and supplying 80% of all SMS from China Mobile. Total Quality Management (TQM) Systems TQM emphasizes the companys commitment to the customer and to continuously improve process through usage of data-driven, problem-solving approaches from empowerment of employee groups and teams. Huawei is able to simultaneously reduce cost while making use of its ability to develop innovative products. This increases their flexibility which is beneficial to implementing an integrated cost leadership/ differentiation strategy. Question 4. What other strategic actions would you recommend to Huawei to compete better in the future? Justify your answer. (20 marks) Besides the current strategic actions which Huawei is already implementing, I would suggest that Huawei consider acquisition where Huawei will buys a controlling, or 100% interest in another company to make it Huaweis subsidiary business within its portfolio. They are several reasons for acquisitions and we shall look at each of them: Increased Market Power Market power exists when a firm is able to sell its goods or services above competition levels or when the costs of its primary or support activities are lower than those of its competitors. Hence, to increase its market power, Huawei can use horizontal acquisition where it acquires company competing in the same industry. Overcoming Entry Barriers Presently, Huawei experiences problems entering the United States market. Hence, by making a cross-border acquisition, Huawei can overcome these entry barriers and gives it more control over its international operations. Cost of New Product Development and Increased Speed to Market Acquisitions allow Huawei to gain access to current and new products that are unique to the acquired firm. Returns are more predictable as the performance of the acquired firm products can be observed and assessed prior to acquisition. Lower Risk Compared to Developing New Products As the results of an acquisition can be easily and accurately estimated than that of developing a new product, Huawei will find that there are lower risks involved. Increased Diversification Huawei can find it easier to develop and introduce new products through the acquired firm as it may be difficult to develop products that deviate from their current product lines. Reshaping Firms Competitive Advantage Competitive rivalry can affects Huaweis profitability. Thus, to reduce the effect of an intense rivalry, acquisitions actually reduce Huaweis dependence on one or more products or markets. This will in turn alters Huaweis competitive scope. Learning and Developing New Capabilities Acquisition can allows Huawei to gain new capabilities which it does not currently possess. Through acquisition, Huawei can broaden their knowledge base and reduce inactivity. In addition to acquisition, Huawei can also have a nonequity strategic alliance with other companies. A nonequity strategic alliance is a form of alliance where two or more companies have a contractual relationship such that they share some of their unique resources and capabilities to create a competitive advantage. This is used in more uncertain situations, and companies do not establish any independent company and hence do not have any equity positions. Through nonequity strategic alliance, Huawei can have licensing agreements, distribution agreements, and supply contracts with other alliance companies. Usually, outsourcing commitments are specified in the form of nonequity strategic alliance. In conclusion, I would recommend that Huawei consider acquisition and nonequity strategic alliance as its business strategy in the future so that it can better compete with other competitors.