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M&O Huawei G5 Mbm8 Final (1)

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Management and organization of Huawei in Viet Nam

Management and organization of Huawei in Viet Nam


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  • 1. Nguyen Ha Phuong Anh Bui Hong Hanh Nguyen Thi Hanh Pham Thi Lan Huong Hoang Hong Minh Ha Bao Ngoc Dinh Ngoc Sang Pham Quang Tuan Nguyen Thi Thanh Tue Management & Organisation HUAWEI TECHNOLOGIES CO., LTD . www.huawei.com Presentation by MBM8- Group 5 Hanoi, March 27, 2009
  • 2.
    • Corporate Information
    • Environment &Technology
    • Contingency factors
    • Organization Structure
    • Culture
    • Decision making
    Contents
  • 3. Corporate Information
    • Name: Huawei Technologies Co. Ltd.
    • Established: 1988
    • Headquarters: Shenzhen, People's Republic of China
    • Industry: Telecom equipment vender
    • Revenue: 23.3 billion USD (2008)
    • Net income: $ 674 million USD (2007)
    • Employees: 83,002(2007)
    • Website: www.huawei.com
  • 4. Environment Five circles model (Hatch, 1997)
  • 5. Environment - Network
  • 6. General Environment Economy Legal and Political Text Socio - Culture Technology Natural
  • 7. 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
  • 8. Resource Dependence
    • Capital resource
    • Human resource
    • Technology resource
    Capital Technology Human resources The circle of resources
  • 9. Complexity vs. Rate of Change
    • - Huawei involves in almost factors of general environment and network: high complexity
    Complexity of the Environment (Hatch, 1997)
  • 10. Technology Perrow (1967) R&D MKT&TSD
  • 11. Technology THE NON ROUTINE TECHNOLOGY
    • Department: R&D (43%)
    • Variability: High
    • Analyzability: Low
    • Coordination and Control: Low Formalized
    • Administrative Hierarchy: Flat
  • 12. Technology THE ENGINEERING TECHNOLOGY
    • Department: MARKETING and TSD (57%)
    • TSD: After-sales, technical support division
    • Variability: High
    • Analyzability: High
    • Coordination and Control: High Formalized
    • Administrative Hierarchy: Tall
  • 13. Contingency factors Technology : Engineering and Non routine Coordination : Process standardization Environment: Unstable Age: 21 Size: 83,609 employees Contingency factors Labor Division: Specialization into single task Variability : Mechanistic Relativity: Integration
  • 14. Environment: Unstable
    • Change in Demand
    • The quick development of technology
  • 15. 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)
  • 16. Coordination
    • Process standardization
    • Reach CMM level-5 accreditation
  • 17. Organization Structure The Director Board President Strategy Development Dept. Marketing& Operation System Sales System Systemic Product System Terminal Product System Supply Chain System HR& Admin System Finance System HW HK invest. Operation Management Dept. Quality Dept. Project Marketing Dept. Commercial Management Dept. Marketing Research 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 Technical Management Dept. Central Technology Research Institute Technical Planning Dept. Mobile Product Division Network Product Division CDMA Product Division Digital Product Division Multi-product Division Handset Product Division Logistic Companies Logistics Dept. President Secretary 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 Strategy Development Dept. Marketing& Operation System Sales System Systemic Product System Terminal Product System Supply Chain System HR& Admin System Finance System HW HK invest. Operation Management Dept. Quality Dept. Project Marketing Dept. Commercial Management Dept. Marketing Research 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 Technical Management Dept. Central Technology Research Institute Technical Planning Dept. Mobile Product Division Network Product Division CDMA Product Division Digital Product Division Multi-product Division Handset Product Division Logistic Companies Logistics Dept. President Secretary 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 Operation Management Dept. Sales Management Dept.
  • 18. VN Rep. Office Structure
  • 19. THE GLOBAL MATRIX
  • 20. 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.
  • 21. Culture Assumption Values and norms Artifacts Invisible Visible Visible
  • 22. 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
  • 23. 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
  • 24. 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
  • 25. Culture
    • Artifacts:
    • Culture artifact - behavioral manifestation :
    • Manager-staff:
    • Direct
    • Open
    • encourage communication
  • 26. Culture
    • Artifacts:
    • Culture artifact - behavioral manifestation :
    • Between collaborators:
    • trustfulness
    • responsibility
    • performance with integrity
  • 27. Culture
    • Artifacts:
    • Culture artifact - behavioral manifestation :
    • Collective meeting:
    • crowded
    • excited
    • understanding and sharing
    • fun
  • 28. 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
  • 29. Culture
    • Artifacts:
    • Culture artifact - behavioral manifestation :
    • Events and ceremonies
    • New Year Party
    • Family Day
    • Reward policies:
    • - Bonus on revenue
    • - Team spirit award
    • - Project winning
    • - Recommend talent to company
  • 30. Culture
    • Norms and values
    • The 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.
  • 31. Culture
    • Norms and values
      • Values created by:
        • Hard working attitude.
        • Strong commitment.
        • Consistent management.
        • Career path enhancement.
  • 32. Culture
    • Assumptions
      • Vision
      • To enrich life through communication.
      • Mission
      • To 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
  • 33. 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
  • 34. 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
  • 35. THANK YOU! Nguyen Ha Phuong Anh Bui Hong Hanh Nguyen Thi Hanh Pham Thi Lan Huong Hoang Hong Minh Ha Bao Ngoc Dinh Ngoc Sang Pham Quang Tuan Nguyen Thi Thanh Tue