Leadership Behavioral Analysis. Evaluation of the Research Methodology Essay

Leadership Behavioral Analysis. Evaluation of the Research Methodology - Essay Example The study entailed statistical as well as qualitative surveys conducted on a sample of project managers. Qualitative and quantitative methodologies were used to analyze how the managers used situational leadership in project management. Johnson, Onwuegbuzie and Turner (2007) consider Concurrent Triangulation Mixed Method Design as appropriate research method since it enables the researcher to collect qualitative and quantitative data simultaneously. Moreover, the researcher is able to use qualitative data in validating the quantitative data resulting in reliable findings (Driscoll, Appiah-Yeboah, Salib, & Rupert, 2007). Appropriateness of the Data Collection and Analysis Methods Used For the Study The research study used both qualitative and quantitative research methodology (hybrid) and what the author refers as Concurrent Triangulation Mixed Methods Design. This entailed more than two methods in collection and analysis of data. Although qualitative and quantitative research methodo logies are considered different in terms of epistemology and ontology, they ensure completeness and validness in data collection and analysis. ... Blending qualitative and quantitative data collection technique is advantageous since results obtained using one of the methods can be triangulated using the other method. By using quantitative techniques, the researcher was able to obtain data that was used to test the research hypotheses. The data collected through qualitative techniques was used open the study since it provided insights on the other aspects interconnected in the study (Driscoll, Appiah-Yeboah, Salib, & Rupert, 2007). Scaling, which was used for quantitative data collection, was disadvantageous since it could not have reflect diverse observations of the data. By using open-ended surveys, which is a qualitative methodology, the researcher was able to explore situational leadership and project success. The above aspects are quite complex hence hard to explore using quantitative techniques. This is because it is hard to measure leadership and project success quantitatively since such aspects are better explained in de tails other than numeric. Such explanations constitute qualitative analysis (Lee, 2010). Using both qualitative and quantitative methodologies was a great idea. Quantitative method is the major method used for data analysis. However, qualitative data is used to support the quantitative data. In some instances, data collected using qualitative strategies such as open surveys is likely to be biased. However, collecting more data using quantitative methodology and analyzing it can enable the researcher to determine the credibility of the data. For example, in Lee (2010) study, the answers obtained from the open interviews showed that most manager interviewed had used situational leadership techniques. However, the data collected

Natural gas Essay Example | Topics and Well Written Essays - 1000 words

Natural gas - Essay Example ) published a World Energy Outlook report in the year 2011 in which, the production of natural gas was estimated to increase by 50 per cent over the next two and a half decades. The report said, â€Å"Natural gas displaces coal and to a lesser extent oil, driving down emissions, but it also displaces some nuclear power, pushing up emissions. This puts emissions on a long-term trajectory consistent with stabilizing the concentration of greenhouse gases in the atmosphere at around 650 parts per million CO2 equivalent, suggesting a long-term temperature rise of over 3.5 [degrees Celsius]† (â€Å"Gas is not†). While a range of opinions exist for and against natural gas, it is overall a good source of energy. Natural gas is a good source of energy not only because it is in abundance in the US, but also because it can be transported affordably. Natural gas is a clean energy alternative because the process of its burning is cleaner compared to other fossil fuels. While burning, natural gas does not emit high amount of such harmful emissions as carbon dioxide, nitrous oxide, or carbon monoxide. Burning of natural gas also does not produce any particulates or ash. Although natural gas is not as clean as solar energy or wind energy, yet it can be considered as a stop-gap energy alternative because of its cost-effectiveness, abundance, and simplicity of use while the society transits to other sources of energy. The amount of carbon released into the atmosphere by natural gas is half as much as the amount that is released as a result of burning of coal. The US provides evidence of a success story as emissions declined to a 20-year low in the start of the year 2012. Although the decline in emiss ions can also be attributed to certain other factors like a shift to renewables and energy efficiency, the decline was at least, in part, because of a transition from the burning of coal to the use of shale gas. Similarly, â€Å"In countries like  Poland  and  China  where there is heavy

Intern as Revenue Manager Assistant from March 2009 to August 2009 At Coursework

Intern as Revenue Manager Assistant from March 2009 to August 2009 At The Grand City Hotel, Berlin - Coursework Example The internship provided me with an insight into my own weaknesses and deficiencies which I was unable to realize without being a part of a hotel practically. I particularly found how important it is for me to have an extraordinary control and expertise in the use of software particularly the spreadsheets. I also learned group skills. I found the considerable difference between academic learning and professional learning. My experience of internship has acquainted me with a lot of knowledge and skills that I could not learn in the college. Over six months, I have grown as a professional and have learned how to apply theoretical learning in practical situations. The internship helped me become well equipped with such a valuable experience that would be very helpful in my professional career after my graduation. My tenure at the Grand City Hotel has been a very enlightening experience. Table of Contents Contents Page No. Executive Summary 2 Introduction 4 - 6 a) About the Grand City Hot el b) Location of the Grand City Hotel c) Attractions for the guests d) Environment of the Grand City Hotel e) Services at the Grand City Hotel f) Objectives for the internship Description and Analysis 7 - 10 a) Methodology b) Results c) Recommendations to the company Learning experience 10 - 12 a) Personal development b) Challenges and Solutions c) Academic Learning vs Professional Learning Conclusion 13 References 14 Introduction a) About the Grand City Hotel The Grand City Hotel chain comprises more than 100 hotels all across Europe. The hotels guarantee a memorable experience at the best price. The location, attractions, environment, and services provided by the Grand City Hotel far outweigh the prices charged from the guests. b) Location of the Grand City Hotel The Grand City Hotel in Berlin is an exquisite resort for the travelers from all over the world who want to discover the German Main content and have some quality time on weekends or holidays. One of the main attractions of the Grand City Hotel in Berlin Charlottenburg-Wilmersdorf is its location and surroundings. The Grand City Hotel is centrally located in Berlin and is at a short distance to many of the famous attractions that German has to offer, including the Messe Berlin, the renowned Kurfurstendamm, and the ICC (Grand City Hotels, n.d.). c) Attractions for the guests The Grand City Hotel Berlin provides the guests with easy access to the Berlin Zoo, galleries and shops, the German Opera Berlin, the KaDeWe department store, and the Kurfurstendamm. There is a variety of restaurants, clubs, and cafes near the Grand City Hotel in Berlin to satiate the cravings of the Night owls. The countless cultural attractions of Berlin make the Grand City Hotel a perfect resort for a longer stay. Among all cities of Germany, Berlin has probably the most to offer the tourists and visitors ranging from the Reichstag and the Brandenburger Tor to the variety of attractions in the local neighborhoods. Some of the most famous landmarks of Germany are located in the heart of Berlin and the guests can have them on walking distance from the Grand City Hotel.  Ã‚  

Natural gas Essay Example | Topics and Well Written Essays - 1000 words

Natural gas - Essay Example ) published a World Energy Outlook report in the year 2011 in which, the production of natural gas was estimated to increase by 50 per cent over the next two and a half decades. The report said, â€Å"Natural gas displaces coal and to a lesser extent oil, driving down emissions, but it also displaces some nuclear power, pushing up emissions. This puts emissions on a long-term trajectory consistent with stabilizing the concentration of greenhouse gases in the atmosphere at around 650 parts per million CO2 equivalent, suggesting a long-term temperature rise of over 3.5 [degrees Celsius]† (â€Å"Gas is not†). While a range of opinions exist for and against natural gas, it is overall a good source of energy. Natural gas is a good source of energy not only because it is in abundance in the US, but also because it can be transported affordably. Natural gas is a clean energy alternative because the process of its burning is cleaner compared to other fossil fuels. While burning, natural gas does not emit high amount of such harmful emissions as carbon dioxide, nitrous oxide, or carbon monoxide. Burning of natural gas also does not produce any particulates or ash. Although natural gas is not as clean as solar energy or wind energy, yet it can be considered as a stop-gap energy alternative because of its cost-effectiveness, abundance, and simplicity of use while the society transits to other sources of energy. The amount of carbon released into the atmosphere by natural gas is half as much as the amount that is released as a result of burning of coal. The US provides evidence of a success story as emissions declined to a 20-year low in the start of the year 2012. Although the decline in emiss ions can also be attributed to certain other factors like a shift to renewables and energy efficiency, the decline was at least, in part, because of a transition from the burning of coal to the use of shale gas. Similarly, â€Å"In countries like  Poland  and  China  where there is heavy

Infosys Write Up Essay Example | Topics and Well Written Essays - 1750 words

Infosys Write Up - Essay Example Infosys Technologies has established a smaller firm with the name ICI, which is established in get knowledge about IT consultancy business. The company Infosys Technologies is interested in IT consultancy because it is the current business of the market and the companies are getting good revenues on the basis of the new market trend of information technology consultancy business. The company showed interest in consultancy business because of its interest in extra revenue, expansion and the client’s needs and requirements regarding IT consultancy. The company has many strengths on the basis of which, it is going to appear better than its competitors before its clients. The company also has some weaknesses but the company is interested to control and improve all its weak to progress, expand and get better. The company Infosys Technologies and Infosys Consultancy (ICI) are going to face some challenges in their interface development such as the communication development challenge and management challenge. The establishment of a subsidiary firm is beneficial for the parent company, Infosys Technologies. Infosys is a well established firm that enjoys a reputable position in the market. It is suggested by the administrators of the firm that the firm will be the foremost firm in a couple of years on the basis of its technologies and growth of information technology. Infosys Technologies has a number of competitors in the market such as IBM, EDS, Accenture, Wipro Limited, Tata Consultancy Services and many more (Info Consulting in 2006). With all these firms in market of information technology and business, Infosys faced a full-fledged challenge in the market. The position of the company Infosys Technologies in December 2005 was at 9th number (Info Consulting in 2006). The company Infosys Technologies after being developed into ICI comes up with greater success and ambitions for its clients and employees. Because of its competition with many

Biography of Julius Caesar Essay Example for Free

Biography of Julius Caesar Essay Julius Caesar was born in 100BC to the aristocratic family of Gaius Caesar and Aurelius. He lost his father when he was sixteen. He got married to Cornelia in 84BC. He refused the order by Sulla to divorce his wife and went on exile to Asia where he learnt ‘the art of war’. He returned to Rome after Sulla’s death and was subsequently elected quaestor. After the death of his wife, He married Pompela, who was related to Pompey [one of his political associates]. In 65BC he was elected curule aedile and three years later the praetor. He became governor of Farther in 61BC and formed the first triumvirate, with Pompey and Crassus, in 60BC. He was elected consul in 59BC and same year married Calprnia. He was appointed governor of Roan Gaul in 58BC and perfected his rule with the conquest of Gallic Gaul. The Roman Civil war began in 59BC and culminated in Caesar’s rise to greater leadership role until on March 15th, 44BC the unprecedented happened. Caesar’s life is captured in prose through the literary prowess demonstrated by Antony Kamm. He shows his depth of knowledge and insight into the complex nature of Caesar’s story. His study of scholastic work proves useful, as it brings fresh insight into understanding the life and character of this great Roman leader. He shows the military leadership Caesar undertook and how it can influence our understanding of leadership in those days, as different from ours. Julius Caesar is presented in the context of human relationships he devised and others that shaped his life. Kamm also narrates cultural, religious and military landscape of the Roman republic in light of Caesar’s journey through life. Marius, Sulla, Pompey, Cicero are shown as partners in progress or dishonor. Sevilia and Cleopatra are accorded the plausible position Caesar gave them. III. MAIN IDEA The main idea of the book is that Julius Caesar is more than the stories we have heard; that he is far beyond the myths that surround his life history and that his life is a symbol of balanced service. In the vein, Kamm raises his character to the pinnacle of a superhero worthy of emulation and applaud. IV. SETTING The book contains 155 pages of well constructed account of a roman hero. It details in smooth prose the ‘Pilgrim’s progress’ of Gaius Julius Caesar and his life impacted the entire populace pf ancient Rome. It is written in well separated chapter properly linked and facilitated with ease of coherence. This account is well researched to suit the demands of the twenty-first century. V. IMPORTANT CHARACTERS The story of Julius Caesar is an interesting adventure of a bold man whose life is comparable to that of other great people like Alexandra, the Great. ‘I came, I saw, I conquered’ those are his words; they clearly confirm his strength of character and charisma. He lived true to his dream, dedicated to the course he wished and vehement in the pursuit of the same. In his pursuit of honor, the influence of his mother can not be forgotten. He lost his father when he was only sixteen but his mother took him through the painful lessons of life. Indeed, he is an example of a leader except for the tyrant nature of his leadership style: he led a number of fights to victories against nations with immense military support and ammunitions. There are lesson from every stage of his journey on the Earth, from his growth with his influential parents, to his youth and the concomitant exuberance he enjoyed. His rise to limelight is worthwhile and his fall to betrayal et coup is notable. Cassius acts in conjunction with Brutus culminated in the assassination of Caesar; they suffered for this. Many people have been endeared by this kind of life. They have attempted to cave a niche for themselves n through the use of words and symbols to re-present this roman general. Julius Caesar’s live, as captured by Plutarch in his historical outlook on lives of notable roman generals, speaks volume that can not be expounded by a single perspective of an individual. As a result, there have been many historical accounts and biographies in honor of Caesar apart from William Shakespeare’s play. VI MOST INTERESTING EVENT From the historical account of Cesar’s life, many events are important. He refused the order by Sulla to divorce his wife and went on exile to Asia where he learnt ‘the art of war’. He returned to Rome after Sulla’s death and was subsequently elected quaestor. He later married Pompela, who was related to Pompey [one of his political associates]. In 65BC he was elected curule aedile and three years later the praetor. He became governor of Farther in 61BC and formed the first triumvirate He was elected consul in 59BC. He was appointed governor of Roan Gaul in 58BC and perfected his rule with the conquest of Gallic Gaul. The Roman Civil war began in 59BC and culminated in Caesar’s rise to greater leadership role until on March 15th, 44BC. After his death, Rome continued to war for many years. The most important was his assassination by a ‘coup’ planned by Cassius, supported by Marcus Brutus, his close friend, and other senators. Cassius convinces Brutus of the need to eliminate Julius Caesar because of the possibility of turning Rome’s republic into a monarchy through Caesar’s lineage. The senators agree to this. Cesar approaches senate in the morning of the assassination; on his way, he was warned by a soothsayer to ‘Beware of the Ides of March’. He ignores the warning and heads for the Senate where he rejects a request brought before him, as expected. There, he was beaten to death. He however notices the presence of Brutus among his killers, and exclaims the popular clause: ‘Et tu, Brutus’ meaning ‘And you, Brutus’. Thereafter, Brutus delivers a logical speech at his funeral to convince the Roman people of the reason for Caesar’s assassination which was followed closely by the powerful and excellent rhetoric of Marcus Antonio that moves the mob to drive Marcus and his cohorts from Rome. The triumvirate comprising Marcus Antonio, Octavius and Aemilus become the rulers of Rome and fights to victory with the army of the assassinators; Brutus and Cassius commits suicide in the face of defeat. VII CONCLUDING SENTENCE Kamm has proved his ability to synthesize facts from complex details into smooth prose. And Julius Caesar remains head of state in ancient or modern times applied himself so assiduously to such a range of physical and intellectual activities, and excelled at them all. REFERENCE KAMM A. JULIUS CAESAR: A LIFE. September, 2006.

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.