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  • Essay / The Huawei Company and International Business - 2743

    IntroductionA multinational enterprise (MNE) is “an enterprise that is headquartered in one country but operates in one or more other countries” (Rugman and Collinson 2012, p 38) which has at least one office in different countries but a centralized home office. These offices coordinate global management in the context of international trade. Multinational corporations have an increasingly essential influence on the development of the global economy and coordinate with other companies in different business environments. However, many issues relate to how multinationals operate overseas, particularly in emerging markets (EM) (Cavusgil et al., 2013, p.5). This article provides relevant international business knowledge to review and analyze key issues. for Huawei in its activity and on the international market. Firstly, a brief introduction of Huawei will be given and its key drivers in emerging markets will be introduced under the theory of foreign direct investment (FDI) before showing its entry mode. Next, there will be a discussion on the main external environmental issues that Huawei faced when operating in emerging markets: India and South Africa. Next, it looks forward to justifying the key opportunities and challenges as it expands into India and South Africa. Next, Huawei's international business operations will be clarified with the evaluation of its business structure as well as control mechanisms. This part includes a section explaining how human resources management (HRM) impacts its international business operations. Ultimately, suggestions of external environmental issues will need to be addressed in the future before drawing a conclusion.Main bodyFounded by Ren Zhengfei in 1998, Huaw...... middle of paper ......ing them objectives (e.g. interim or completion target dates, budgets).2. Behavioral controls (formal control): involve the definition of procedures to achieve project objectives and performance is evaluated based on the controlees following the prescribed procedures (e.g. development methodologies, rules and procedures). Outcome controls specify outcome goals, while behavior controls focus on the process used to achieve the goals.3. Clan control (informal control): involves mechanisms that create common goals, values, beliefs, and expectations regarding acceptable behavior (e.g., socialization, rituals and ceremonies, shared ideologies, hiring and training practices). 4. Self-control (informal control): involves the person being controlled determining their own behavior (e.g., self-monitoring and management, empowerment and autonomy, self-set goals, and rewards).).