M&O Huawei G5 Mbm8 Final (1)

Management & OrganisationHUAWEI TECHNOLOGIES CO., LTD.

www.huawe i.com

Presentation by MBM8- Group 5

Hanoi, March 27, 2009

Nguyen Ha Phuong AnhBui Hong Hanh

Nguyen Thi HanhPham Thi Lan Huong

Hoang Hong MinhHa Bao Ngoc

Dinh Ngoc SangPham Quang Tuan

Nguyen Thi Thanh Tue

04/07/11Group 5 MBM8

• Corporate Information• Environment &Technology• Contingency factors • Organization Structure• Culture • Decision making

Contents


Corporate Information

Name: Huawei Technologies Co. Ltd. Established: 1988Headquarters: Shenzhen, People's Republic of ChinaIndustry: Telecom equipment venderRevenue: 23.3 billion USD (2008)Net income: $ 674 million USD (2007)Employees: 83,002(2007)Website: www.huawei.com


Environment

Five circles model

(Hatch, 1997)


Environment - Network


General Environment

Economy

Legal and

Political

Text

Socio -

Culture

Technology

Natural


General Environment

• Legal and Political +Political stability in each country +Member of Telecom Associations: ITU, GSMA, 3GPP

• Economy + High economic growth rate + Strong competition

=> Capital demand is increasing + Unstable economy

• Technology + High technology + Fast growth

• Socio-culture Multinational Culture => complexity


Resource Dependence

• Capital resource

• Human resource

• Technology resource

Capital

Technology

Human resources

The circle of

resources


Complexity vs. Rate of Change

- Huawei involves in almost factors of general environment and network: high complexity

Co

mp

lexi

ty o

f th

e E

nvi

ron

men

t

(Hatch, 1997)


Technology

R&D

MKT&TSD

Perrow (1967)


Technology THE NON ROUTINE TECHNOLOGY

- Department: R&D (43%)- Variability: High- Analyzability: Low

- Coordination and Control: Low Formalized- Administrative Hierarchy: Flat


- Department: MARKETING and TSD (57%)TSD: After-sales, technical support division

- Variability: High- Analyzability: High- Coordination and Control: High Formalized

- Administrative Hierarchy: Tall

Technology THE ENGINEERING TECHNOLOGY


Contingency factors

Technology : Engineering and Non routine

Coordination : Process standardization

Environment: UnstableAge: 21

Size: 83,609 employees

Contingency Contingency factorsfactors

Labor Division: Specialization into single task

Variability : Mechanistic

Relativity: Integration


Environment: Unstable

• Change in Demand

• The quick development of

technology


Size

• operate in 8 regions, 20 regional HQ • over 100 branches office • 12 R&D centers• 83,609 employees (updated number)• Total current Asset: 10.590.189.000 USD

(2007)• Total equity: 3.998.261.000 USD (2007)


Coordination

Process standardization

Reach CMM level-5 accreditation


Organization StructureThe Director

Board

President

StrategyDevelopment

Dept.

Marketing& OperationSystem

SalesSystem

Systemic ProductSystem

Terminal Product System

Supply Chain

System

HR& Admin

System

FinanceSystem

HW HK invest.

Operation Management

Dept.

Quality Dept.

Project Marketing

Dept.Commercial

Management Dept.

MarketingResearch

Dept.

PR Dept.

Marketing China Region

Sales Management

Dept.

Marketing AP Region

Customer Dept.

Marketing Euro Region

Multi-national Operators

Management Dept.

Marketing Middle east Region

Global Customer Service Centre

Marketing CIS Region

TechnicalManagement

Dept.Central

TechnologyResearch Institute

Technical Planning

Dept.Mobile

Product Division

Network Product DivisionCDMA Product DivisionDigital Product Division

Multi-product Division

Handset Product Division

LogisticCompanies

Logistics Dept.

PresidentSecretary

Centre

HR Centre

HW University

IT Centre

Financial Management

Centre

Accounting Centre

Overseas Accounting

Centre

Global Financial Business Centre

Security & Investors’

Relationship Centre

Auditing Dept.

Marketing Africa Region

Marketing North America Region

Marketing Latin America Region

The Director Board

President

StrategyDevelopment

Dept.

Marketing& OperationSystem

SalesSystem

Systemic ProductSystem

Terminal Product System

Supply Chain

System

HR& Admin

System

FinanceSystem

HW HK invest.


Dept.

Quality Dept.

Project Marketing

Dept.Commercial

Management Dept.

MarketingResearch

Dept.

PR Dept.

Marketing China Region

Sales Management

Dept.

Marketing AP Region

Customer Dept.

Marketing Euro Region

Multi-national Operators

Management Dept.

Marketing Middle east Region

Global Customer Service Centre

Marketing CIS Region

TechnicalManagement

Dept.Central

TechnologyResearch Institute

Technical Planning

Dept.Mobile

Product Division

Network Product DivisionCDMA Product DivisionDigital Product Division

Multi-product Division

Handset Product Division

LogisticCompanies

Logistics Dept.

PresidentSecretary

Centre

HR Centre

HW University

IT Centre

Financial Management

Centre

Accounting Centre

Overseas Accounting

Centre

Global Financial Business Centre

Security & Investors’

Relationship Centre

Auditing Dept.

Marketing Africa Region

Marketing North America Region

Marketing Latin America Region


Dept.

Sales Management

Dept.


VN Rep. Office Structure


THE GLOBAL MATRIX

ASIA PACIFIC

CIS

MOBILE SOFTSWITCH

UMTS/ HSPA

CHINAEUROPELATIN

AMERICANAFRICA

GSM

CDMA

WIMAX

MENA

Head Quarter

SUPPORT TECHNOLOGY


Comments on organization• Information of structure

– Applied since 1998, when Huawei decided to launch into global market

– Widened step by step in each market arears• Advantages

– Double coordination on products and market => efficiency and effectiveness

– Break the old principles (unity of direction, unity of command)– Introduce some plasticity in the structure

• Disadvantages– Efficiency and Effectiveness linked to the acceptance of multiple

management.– Necessity of arbitrage.– Huge culture shock.


Culture

Assumption

Values and norms

Artifacts

Invisible

Visible

Visible


Culture

•Artifacts: • Huawei: means “Great China” represents

the ambition and prestige of the company.

• Logo: elaborated in 2006 - the image of a blossom flower with 8 petals or

a rising sun with the name of the company Huawei.

- an extension of the company's core values: Customer-focus Innovation Steady-and-sustainable growth Harmony


Culture

•Artifacts: • Office:- comfortable- flexible- hi-tech equipped- intelligent office with green energy- OHSAS 18001:1999 and ISO14001:2004 certified.- beautiful view from the office building


Culture

•Artifacts:

• Slogan: Enrich life through communication• Decoration & Uniforms: • office dress is a must for creating a professional working environment• some departments with professional uniforms


Culture

• Artifacts:• Culture artifact - behavioral manifestation:Manager-staff: - Direct- Open- encourage communication


Culture

• Artifacts:• Culture artifact - behavioral manifestation:Between collaborators:- trustfulness- responsibility- performance with integrity


Culture

• Artifacts:• Culture artifact - behavioral manifestation:Collective meeting:- crowded- excited- understanding and sharing- fun


Culture

• Artifacts:• Culture artifact - behavioral manifestation:Common activities:- Various activities to enrich and enhance employees'

lives, such as picnics, dancing balls, and singing competitions.

- Variety of clubs to encourage employees in the pursuit of their own interests, including English, dancing, and singing clubs

- Family tour in Huawei


Culture

• Artifacts:• Culture artifact - behavioral manifestation:Events and ceremonies - New Year Party - Family DayReward policies:- Bonus on revenue- Team spirit award- Project winning- Recommend talent to company


Culture•Norms and valuesThe company’s values become the values, beliefs and expectations that all Huawei’s members come to share

Customer-focus - The strong corporate discipline and values-Serving customers is the only reason Huawei exists-Customer demand is the fundamental driving force for development.

Innovation -Continuous innovation in providing innovative products and solutions for customers with an enterprising spirit-Jointly face the challenges and opportunities of the future together with the customers.

Steady-and-sustainable growth-Milestone of growth in company’s history-The belief in the company’s growth

Harmony -Open-minded attitude and partnership strategy that maintain the healthy growth and create a harmonious business environment.


Culture

• Norms and values– Values created by:

• Hard working attitude.• Strong commitment. • Consistent management. • Career path enhancement.


Culture

• Assumptions–VisionTo enrich life through communication.–MissionTo focus on our customers' market challenges and needs by providing excellent communications network solutions and services in order to consistently create maximum value for customers.- Enrich life through communication


Decision making

– In most of cases, Huawei apply rationality model: the decisions are made at best knowledge and information available.

– A typical decision making process in Huawei


Decision making

– Example: Huawei decision on investment in Vietnam• Describe:

– Huawei found a investment team for this mission– The team survey market information, telco development rate,

expenditure. And finally prepared some investment models: Rep. Office, branch, Joint venture or 100% FDI.

– Choose one of above investment models– Did choose Rep. Office because of less investment and it was

first step to further investment– Build/ implement plan for rep office investment

• Time: 1 year• Person of team: 5:

– Market expert– Investment expert– Vice president who was in charge of sales/ marketing


THANK YOU!Nguyen Ha Phuong AnhBui Hong HanhNguyen Thi HanhPham Thi Lan HuongHoang Hong MinhHa Bao NgocDinh Ngoc SangPham Quang TuanNguyen Thi Thanh Tue

Documents

M&O Huawei G5 Mbm8 Final (1)