Strategic Change In Huawei

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The term strategic changes in management means the introduction of the some urgent needed adjustments of the policies, modifications of the company products and new future plans. Some factors actually influences these types of changes and those changes can be external or internal to the company. Huawei Company had to bring some strategic changes in the management because they wanted to reach one of the top positions in the current ICT market.
1 Task 1
1.1 Briefly mention and discuss three models of strategic change.
Adjustments, modifications and changes in organization’s future plan, mission and vision are called models of strategic change. Both internal and external activities of firm have influence on the strategic change (Malhotra
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Recent economic downturn: The price is rising day by day, not only for Huawei, but also for all ICT companies. Price of raw materials is also on the rise. Huawei should make some strategic change decision which will minimize the cost of raw materials. For example, Huawei can collect raw material from a nearby source, and can also use relevance costing strategy.
2. Expectations of Customers: customers have learnt to keep their mobile longer than usual time period. They are also expecting a phone of best service and longevity, but at a minimum cost. Other companies are expending huge amount in advertising, thus attracting the customers (Appelbaum, 2009). So, Huawei should fell the customer expectation, and makes change thereby.
3. Competitive Business Age: It is true that competition is healthy in any market, but it is more important to exist in the competition. Apple, Nokia and Samsung are using some innovative technology and give a brand new feature by their mobile phones. Huawei should adapt to these innovations and strategies to compete with the big
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However, these factors are assessed below:
The Changing Economy: Today’s economy is fast growing than ever. Economic recession, internationalization process, marketing strategy, advertisement etc. have made the economy more competitive (Lee, 2005). So Huawei is in the need of change its monetary and fiscal policy.
Environmental Issues: Environmental factors have impacts on Huawei on its business performance. Joint partnership with Vodafone (Spain) has made it possible to expand business to new countries. So Huawei should keep in mind the importance of environmental issues (Huawei, 2007).
Financial factors: To meet the deadlines and targets, there are occurrences of financial pressures. Huawei needs a change in its finance plan. Economic recession in recent times may need to minimize the fund for Huawei.
Advancement in Technologies: Changes in productions, outsourcing, marketing and other areas have seen in recent times. Huawei needs to upgrade its system and thus keeping pace with the latest available technology.
Competition: ICT market is very competitive now. It is very important for Huawei to observe the activities of competitors like Apple, Nokia, and Samsung

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