Huawei is a leading global ICT provider founded in 1987 that operates in over 170 countries. It was originally a telecom infrastructure supplier but began producing smartphones in 2011 under its own name and through its Honor brand. Huawei was an early developer of 5G technology and has deployed networks in many countries. However, it faces strategic risks expanding its consumer brand internationally and legal/trade risks from restrictions in the US and other markets. The document outlines various operational, financial, and country-specific risks Huawei manages in its global business operations and supply chain.

2. INTRODUCTION
• Founded in 1987.
• Leading global provider of Information and Communication Technology
(ICT).
• Operate in more than 170 countries and regions.
• Huawei was formerly a network infrastructure and business-to-business
telecommunications solution supplier.
• In 2011, Huawei decided to produce mobile phones under it’s own name.
• Honor is a smartphone brand owned by Huawei Technologies. As part of
the Huawei Consumer Business Group's dual-brand strategy, Honor
provides smartphone handsets targeting young consumers.

3. GLOBALIZATION OF HUAWEI
• In late 1990s, the international players started to penetrate into the
domestic telecommunications market through strategic mergers and
partnerships. This overcame in the absence of import policies in China. As
competition grew more intense, Huawei had to look abroad for continuous
growth.
• In the beginning, Huawei was eager to make entries to countries that were
looking for affordable technologies, especially developing countries where
telecommunications infrastructure was inadequate and demand was
depressed by the lack of ability to pay.

4. • Huawei entered the Russian market in 1997, it managed to undercut
international prices by around 12 per cent and yet still offer impressive
after-sales service. Soon after entering Russia, Huawei made ventures into
Thailand, Brazil and South Africa. Its pricing strategies became more
aggressive, often undercutting its competitors’ by 30 per cent.
• In 2001,Huawei made its first two major sales in Europe –the Netherlands
and Germany.
• Huawei deployed their cost advantages in delivering advanced technology
and customization at minimal price premiums. This amounted to the
emergence of a new type of business strategy–“cost innovation,” or value-
for-money innovation.

5. 5G
• Huawei is the first company to develop large-scale 5G commercial
deployment capabilities.
• In September 2018, Huawei was the first vendor to complete all the phases
of China’s 5G technology.
• Huawei has signed commercial contracts with leading global carriers and
have shipped more than 40,000 5G sites to different markets around the
world.

6. STRATEGIC RISK
• The transformation of the Information & Communication Technology
(ICT) industry will introduce greater uncertainty to technology, business,
transaction models, and industry policies.
• Outside of its native country, the Huawei brand faces the challenge of
building brand awareness amongst individual consumers. One reason is
the fact that Huawei was formerly a network infrastructure and business-
to-business telecommunications solution supplier and not a consumer-
focused mobile device supplier.

7. LEGAL RISK
HUAWEI has established a compliance management system that covers all
offices, all businesses, and all employees around the world, including but not
limited to trade compliance and financial compliance. This program enables
the systematic management of compliance risks through established
policies, organizations, regulations, processes, etc.

8. TRADE RISK
Trade restrictions have increased and global trade tensions have intensified
(The Chinese firm has been facing restrictions in markets like the United
States after it was added to a trade blacklist. The ban prevents US companies
from selling components and software to the Chinese firm. Close on the
heels of the US move, Google restricted Huawei's access to Android
operating system updates and to some mobile services.)

9. NATURAL DISASTERS
Earthquakes, floods, epidemics, and other natural disasters can impact
certain aspects of Huawei’s business operations.
On September 7 and 19, 2017, Mexico City was struck by two earthquakes.
The disaster disrupted 1,081 communications sites of our customers. Soon
after the first earthquake, our Global Technical Assistance Center initiated
its Business Continuity Management procedures for emergencies and
formed an emergency support team. To restore the damaged networks,
within just 15 minutes of the disaster occurring, our team obtained customer
consent to remotely access their networks and begin repair work. Our
Mexican subsidiary also assigned experts to work on site.

10. COUNTRY SPECIFIC RISK
The complex international, economic, and political landscape could expose
Huawei to particular risks in certain countries and regions. These risks
include civil unrest, economic and political instability, exchange rate
fluctuations, foreign exchange controls, sovereign debt crises, regulations for
local business operations, and labor issues. Specifically, regional tension,
civil war, sanctions, and local unrest could greatly hinder Huawei’s business
operations and development.

11. OPERATIONAL RISK
• Business Continuity: Huawei relies on a wide variety of third parties
(including outside companies and agencies) for procurement,
manufacturing, logistics, and global technical services.
• Information Security: Huawei has adopted stringent information
security measures to protect its technology, it is impossible to completely
prevent other companies from improperly using our information and
patents.

12. SUSTAINABLE SUPPLY CHAIN
Procurement quotas were used as a means to drive the continuous
improvement of our suppliers, minimize supply risks, increase customer
satisfaction, and improve the competitiveness of our supply chain.

13. FINANCIAL RISK
• Credit Risk
• Liquidity Risk
• Sales Financing
• Foreign Exchange Risk (Natural
& Financial Hedging)
• Interest Rate Risk

14. THANK YOU