The impact analysis and impact assessment are vital in revealing issues linked to environmental regulations and laws. Apart from that, it offers the approach to withstand the scrutiny from stakeholders, including customers who expect better solutions and improvements. As a top global manufacturer of smart devices and information and communication technology (ICT) infrastructure, Huawei has been committed to using innovation to promote environmental protection (“Management – Huawei Sustainability”). The company has been judiciously instigating its “Green World, Green Pipe, Green Partner, and Green Operations” policy, which integrates the concepts of green ICT into the entire development of all products. At the same time, Huawei is persistently pursuing innovative methods to create a green communications network and improve the energy efficiency of products.
Huawei has considerably reduced its carbon footprint by implementing managerial and technical measures for energy conservation and introducing clean energy. Besides applying green concepts to internal business operations, the company also assists its suppliers in adopting emission reduction and energy conservation projects. The organization further promotes and offer green ICT solution by leveraging its experience and advantages in environmental protection designs and energy conservation. In essence, this approach has contributed to a low-carbon society, boosted the growth of the economy, and promoted emission reduction and energy conservation for different industries (“Management – Huawei Sustainability”). In this way, Huawei complies with applicable regulations and rules, with integrity, and abides by business ethics. The firm continually improves its sustainability management by collaborating with stakeholders to create a harmonious business ecosystem.
Instead of focusing on its development, Huawei undertakes social responsibility by encouraging harmonious social growth. The company creates management systems to meet sustainability goals and integrates the requirements for sustainability into its business operations (“Management – Huawei Sustainability”). The firm will remain devoted to building community economic benefits in the future. The business aims at challenges and opportunities for sustainability and persistently manages this process by collaborating with stakeholders to create a harmonious business ecosystem.
Table 1: Selected Potential impact and assessment
Putting clients first is at the center of its corporate strategy of Huawei, which has been fundamental to its success. The stated approach of customer-centricity is also mirrored deeply in the organization’s core values (Segers, 2016). The management team is, therefore, continually identifying opportunities for transforming operations in ways that will improve efficiency and enrich life. The service strategy highly relies on the capabilities and resources that the firm has and external factors, such as the wants and needs of the market. Internally, needs to efficiently respond to the constant demands of the customers for quality and innovative products. In this way, the operation strategy of Huawei was transformed from cost efficiency to consist of quality and innovation.
Externally, its customer-centric strategy of Huawei supports its business undertaking with the requirements of the consumers. In their quest for globalization, the operations team laboriously conducted studies on each local market to understand their customers’ unique wants and needs. It is, therefore, crucial that the input of such research into the design of the company’s service and products. In this way, the company will achieve a gradual and splendid diversification strategy that meets the market’s particular needs.
In making improvements, the management team is to be guided by the following criteria based on the organization’s core values, as demonstrated in the table below.
Table 2: Huawei’s criteria for improvement assessment
Although the paramount uncertainty often relates to the business environment, a significant concern for Huawei is internal processes and operations uncertainty. Risks are natural outcomes of business operations. In their absence, the number of competitors would be significant, and the reward would be small. For this reason, Huawei has continuously tried to mitigate impending uncertainties to direct operations as successfully as possible (Huang, 2019). Concerning strategic risk, Huawei operates in an extremely competitive market based on new service and product development, as well as on service quality, functionality, and price. The rapid changes in industry standards or alternative technologies and the development of science and technology have increased the number of entrants in which Huawei operates and has resulted in shorter product lifecycles. Huawei, in this regard, must continually introduce new functionalities and products into the market while reducing the cost of existing and new products to protect its operating results and stay competitive.
Huawei is also concerned about operational risks, such as information security, rising labor costs, and business continuity. Concerning information security, although the firm has judiciously implemented information security steps to safeguard its intellectual property rights, it may not suitably prevent improper use or infringement of its licensing, patents, and information. In essence, this may cause losses to Huawei. In China, the increasing cost of labor may offset the efforts of the organization to reduce the cost of its products, which, in turn, negatively affects profitability (Huang, 2019). Lastly, concerning business continuity, it is not always possible for Huawei to avoid single-source supplier solutions even as it strives to do so; it may take significant time to redesign products or find an alternative supplier.
Huang, W. (2019). Huawei’s competition strategy: A financial perspective. Built on Value, 31–82. doi: 10.1007/978-981-13-7507-1_2.
Management – Huawei sustainability. (2019, July 11). Retrieved from https://www.huawei.com/en/about-huawei/sustainability/management.
Segers, R. T. (2016). Multinational management: A casebook on Asia’s global market leaders. Cham: Springer International Publishing Switzerland.
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Published On: 01-01-1970
