Topic
Analysis of the Business Environment and Competitiveness of Huawei
Instructions
You will be required to submit an individual real-time strategic simulation (3000 words MAXIMUM) through Turnitin UK by 4pm on Monday 4th March (Week 8). The specific requirements of the simulation and assessment guidance will be covered with a PowerPoint presentation at the end of the lecture on week 2. This presentation will be made available on QOL for students to refer to. More details below.
Overview
The simulation is a real-time contemporary environmental analysis of a selected firm of your choice – involving a macro and micro environmental analysis and subsequent focused strategic recommendations linked to the analysis.
For a firm of your choice (for profit private sector firms only) the macro environment is analysed for the firm taking account of current and future global issues of relevance. Thinking specifically about customers and competitors in its microenvironment, isolate the opportunities for your firm to create an advantage over competitive rivals arising from the PESTEL analysis. From this, students are expected to provide focused strategic recommendations pertaining to how the firm should exploit a specific opportunity by building on identified core competencies. To do this students should use the VRIO framework. This is an internal strategic analysis tool designed to help organizations uncover and exploit the resources and capabilities matched to identified external opportunities that give them a long-term competitive advantage.
Answer Preview
Economic Analysis
The economic conditions in China, Africa and other parts of the world affect the business operations of Huawei, considering that it has a global presence. China, which is where Huawei is headquartered, is consistently growing its economic power, marked by an expanding middle class, ever savvy consumers who are receptive towards smart devices and services which Huawei and other technology firms offer, and an overall increase in the people’s purchasing power (World Bank, 2018). Similar trends are witnesses in most other Asian countries, in the Western nations, and Africa. Moreover, China has been experiencing stable interest and inflation rates, which characterize a friendly business environment for Huawei, domestically. Similarly, relative economic growth and stability in the Americas, Europe, Asia and Africa, among other regions, implies that companies can easily access credit where applicable, and consumers have disposable income to spend on products offered in the market. Huawei, like any other firm, needs a stable and favorable economic environment, where customers have income to purchase its products, and the company can access capital to undertake business operations and expand its market power. A local and global market marked by financial crunches would disfavor the business operations and growth of the firm under consideration.
Word Count: 3100