Material Two

Cross-cultural management in Huawei

With the continuous growth and development of its overseas subsidiaries, Huawei
mainly adopts the following strategies to carry out cross-cultural management.
First, localization strategy, also known as global adaptation proposition. It is a
strategy adopted by enterprises to integrate into the target market and strive to become
a member of the target market. The essence of "localization" is the process of
integrating production, marketing, management and personnel into the economy of
the host country in an all-round way. Generally, a series of integration adjustments are
carried out through comprehensive investigation and understanding of the actual
economy, culture and living customs of the local area. On the one hand, this is
conducive to the products produced by foreign transnational corporations, which can
better meet the needs of local consumers, and also save the high cost of overseas
personnel dispatch and transnational operation of foreign enterprises, integrate with
local society and culture, and reduce the crisis sentiment of local society towards
foreign capital. It is conducive to the economic security of the host country, increasing
employment opportunities, managing changes, and accelerating international
integration.
In Mexico, Huawei's localization strategy is relatively thorough. Huawei fully follows
local holidays and work schedules, celebrates employees' birthdays according to local
customs, and commutes according to local employees' habits. Even so, Huawei's
strong corporate culture has played an effective guiding role. Their own history and
development process, these elements are constantly evolving with the changes of The
Times. The reason why the enterprise culture can show the vitality of the new culture
is not only that it has a new material basis, but also that it inherits and absorbs the
excellent elements of the traditional culture and shows the characteristics of The
Times. Enterprise culture at the present stage must fully reflect the reality of national
traditional culture, and combine with the current political and economic conditions
and requirements, must be conducive to the development of social productive forces,
must be conducive to promoting the all-round development of people. After all,
Huawei's military-style management is worthy of its name, especially under the
influence of the Chinese employees who do not have overtime pay but often work late
at night, Latin American employees have finally accepted Huawei's culture and
worked hard. In India, Huawei is launching a "charm offensive" in India to cope with
the "strict scrutiny" from the Indian security sector: one of the former measures is to
promote Huawei's localization, including requiring Chinese employees to take "Indian
names", appointing local Indian executives, and promoting the integration of
enterprises into Indian culture. At present, 85% of Huawei's employees in India are
local employees. It is understood that Huawei plans to invest $300 million. Set up a
telecom equipment production plant near Chennai, India's fourth largest city, and
select a site. To reassure the Indian authorities. Huawei has even said it is willing to
release the source code of its network systems to prove that its equipment does not
pose a security threat. Huawei undoubtedly expressed enough sincerity on this matter,
and the Indian side has also recently eased its statement that it will lift the ban on
Chinese telecom equipment as soon as possible. After all, the development of India's
telecom industry still needs Huawei's help. When India's so-called "big countries"
continue to launch anti-dumping investigations to protect their young flowers, it is
better to spend more time wondering why they do not have "Huawei".
In the process of localization, the inclusiveness characteristic of traditional Chinese
culture also plays a great role. In Huawei's overseas organizations, everyone is trying
to create such an atmosphere: regardless of nationality, regardless of race in the
company, everyone is Huawei employees. With the continuous collision of Chinese
and foreign cultures and their integration under the influence of Huawei culture,
Huawei has gradually shown the characteristics of diversification and
internationalization. With the gradual implementation of the "localization" business
strategy, the proportion of Chinese and foreign employees in Huawei's overseas
institutions is constantly changing.
Second, the strategy of cultural compatibility means that in the subsidiaries of
multinational companies, the culture of the home country or the culture of the host
country is not taken as the main culture of the subsidiaries. Although there are huge
cultural differences between the culture of the home country and the culture of the
host country, they do not exclude each other, but complement each other. At the same
time, they run in the operation of the company and give full play to the cross-cultural
advantages. According to the degree of cultural compatibility, it can be subdivided
into the following two different levels: (1) cultural parallel compatibility strategy.
This is the highest form of cultural compatibility, which is conventionally called
cultural complementarity." That is, the culture of the home country or the culture of
the developing country is not taken as the main culture of the subsidiary of the
multinational company. Between the culture of the home country and that of the host
country
Although there are huge cultural differences, they are not mutually exclusive, but
complement each other. At the same time, they run in the operation of the company
and give full play to the advantages of cross-cultural. The existence of one culture can
fully make up for the many shortcomings of another culture and its monotonous
monotony. (2) Concealing the main culture of both, peaceful and compatible
strategies. That is, although there is a huge cultural difference between the home
country culture and the host country culture in a multinational company, and the huge
cultural difference between the home country culture and the host country culture is
easy to cause "cultural friction" in the daily operation of subsidiaries, managers
deliberately obscure this cultural difference in business activities and conceal the main
culture that is most likely to cause conflicts between the two cultures. Preserve the
more prosaic and insignificant parts of both cultures. Due to the loss of the strong
influence of the main culture on people of different nationalities, people regardless of
cultural background can coexist harmoniously in the same company, and even if there
are differences of opinion, it is easy to compromise and coordinate through the efforts
of both sides. With the development of business globalization, the influence of culture
on international marketing is becoming more and more prominent. Cultural
differences are present in all kinds of human relationships, all of which are potential
pitfalls for companies that are not careful. One of the most difficult and important
aspects of doing business in a foreign country is understanding cultural differences.
Therefore, for Huawei, incorporating cultural differences into the overall marketing
strategy to ensure the realization of corporate goals will always be a major issue.
Employees of Huawei's representative office in Uzbekistan often attend weddings of
local employees, travel to various cities on holidays, watch ballets, and learn about
local culture and customs. Each employee's birthday is celebrated with a collective
gift.
Third, cross-cultural training strategies. Now people are finding that it is difficult to
say which country made a certain product, such as a car. Similarly, with the
improvement of the internationalization level of enterprises, the nationality issue of
enterprises has gradually become blurred, and people no longer strictly distinguish
which company is which country. As international enterprises become the most
important cross-cultural organizations in the world, the source of human resources in
quite a number of enterprises is increasingly showing the trend of internationalization,
and people with different skin colors are becoming more and more colleagues.
Employees from different countries and nationalities have different cultural
backgrounds, and their values, needs, attitudes and behaviors are quite different. Such
cultural differences within enterprises will inevitably lead to cultural conflicts. At the
same time, due to cultural differences, the management ideas, management systems
and management methods of different countries are not the same, resulting in the
management ideas and management methods among the managers in the enterprise
are constantly impacting and colliding. In the daily operation and external
communication of enterprises, if employees lack the knowledge and skills of
cross-cultural communication, the differences between cultures will lead to
misunderstanding and unnecessary friction, which will affect the work efficiency and
reduce the competitiveness of enterprises. Therefore, cultural differences are also
obstacles that human resource management must overcome in the internationalization
and transnational operation of enterprises. Huawei employees receive relevant
training in the training department before going abroad, such as courses on cultural
differences and related products. Daily training also includes seminars, language
training, books, websites, discussions and simulation exercises. These trainings
strengthen the adaptability of employees with different cultural backgrounds and
promote communication and understanding between people with different cultural
backgrounds. Through continuous cross-cultural training, employees have gradually
formed cross-cultural awareness and learned to regard cultural differences only as
differences without distinguishing good from bad. This helps employees to be good at
considering problems from the perspective of others when dealing with people with
different cultural backgrounds, which greatly reduces cross-cultural conflicts.
Fourth, common values management. A very important reason why an enterprise can
become an excellent enterprise is that it has successfully created a core value concept
and sense of mission that can be heartily recognized by all employees. As a core value
concept of an enterprise, once the corporate culture is sincerely recognized or shared
by all employees, it will affect people's thinking mode and behavior mode. In addition
to regulating and managing overseas institutions in terms of office conditions,
Huawei's corporate culture is nothing. The ideology of form constrains the behavior
of every employee. Even overseas, the military-style management style from
Huawei's headquarters has not abated. Huawei believes that only those who insist on
fighting for the collective and are not selfish can form a united collective. In the same
way, without the material desire for a decent life, without the ideal of working to
realize the desire, it will be conformist, fixed, and thus give rise to laziness. Therefore,
Huawei advocates desire driven, decent means, so that the group formed a vigorous
upward, diligent fashion. Huawei believes that unity, cooperation and collective
struggle are the soul of Huawei. In Huawei, success is the result of collective efforts,
failure is a collective responsibility, do not attribute achievements to individuals, do
not regard failure as personal responsibility, everything is shared by the collective, in
addition to the differences in work, Huawei's senior leaders do not set up a private car,
eat, see a doctor as the same line, pay the same fee. In work and life, the upper and
lower levels of equality, inequality has been reflected in the form of wages. Huawei
no one enjoys privileges, everyone shares weal and woe, everyone is equal, collective
struggle, any individual interests must obey the interests of the collective, individual
efforts into the collective struggle. The spirit of unity and cooperation of unremitting
self-improvement, sharing weal and woe, raising a glass to celebrate the victory, and
desperate to save the failure, has been fully reflected in Huawei. Huawei in the
integration of this common value, the entire enterprise broke out incredible combat
effectiveness. From this, we can see that unity, cooperation and collective struggle are
the soul of Huawei's corporate culture, creating a "Wolf" corporate culture with
unique Huawei characteristics. Huawei's dedication is divided into three levels: to
contribute their own value to Huawei; To contribute their own value to customers;
Dedicate Huawei's value to the whole society and the whole community. To build
itself into a learning organization, Huawei requires its employees to have good
learning ability and develop good learning habits. Huawei people believe that not
innovating is Huawei's biggest risk. In the innovative way, advocate team combat, do
not approve of individual heroism. "Benefit" and "fairness" are
The core of Huawei's corporate culture. A prerequisite for the establishment of
Huawei's corporate culture is to establish a fair and reasonable value evaluation
system and distribution system. Huawei Basic Law summarizes and enhances the
company's successful management experience: The Basic Law of Huawei describes
the development direction of Huawei from the aspects of Huawei's core values,
pursuit, employees, technology, spirit, interests, social responsibility, basic goals,
customers, human capital, core technologies, profits, company growth, growth field,
growth traction, growth speed, growth management, etc. "Entrepreneurship",
"innovation", "professionalism" and "solidarity and cooperation" are the essence of
Huawei's corporate culture.
Finally, make full use of foreign resources. The existence of cultural differences does
not blindly affect the operation and development of multinational companies. If
reasonable and effective cross-cultural management is implemented, foreign cultures
can also bring new thinking and strength to the development of the company and help
the company build its core competitiveness. The practice of Huawei's transnational
operation and management tells us that cross-cultural management based on cultural
differences can play a positive role in expanding the market, developing human
resources and improving management flexibility. It is reflected in the following
aspects: 1. In terms of market development, it can improve the company's adaptability
to the cultural preferences in the local market, expand the product market, and find
potential consumer groups. To discuss Huawei's internationalization process, it is
impossible not to mention the market development in Asia and Africa. In Africa,
Huawei's young engineers use their high endurance to overcome tough environments;
in Asia, they use "localized" personal services to overcome cultural differences.
Huawei is relying on these low-cost "knowledge" to win the market share of
competitors. 2. In terms of access to resources, improve the ability of enterprises to
hire employees from people with different national backgrounds and enrich the
human resources of local companies. To improve the company's international
competitiveness, Huawei's cross-cultural management is conducive to the integration
of cultural traditions and ideological differences between managers and employees in
different countries, forming a business philosophy with the characteristics of the host
country and cross-cultural communication and harmony, which is conducive to the
enterprise to explore the international market and enhance its international
competitiveness. 3. In terms of cost, it reduces the company's cost in turnover and
hiring non-local managers, thus reducing the company's operating cost. In the process
of implementing cross-cultural management, Huawei strengthens its understanding of
the host country's culture, selects information faster and more conveniently, reduces
the blindness in market development, enhances the ability of market intervention, and
thus reduces the cost of information. It also greatly reduces the cost of negotiation. In
the aspect of solving problems, we stand in a more diversified perspective range and
make a more rigorous analysis, thus improving the ability and quality of
decision-making.
 Table of Content
I. Overview of the company…………………………………………………….......…..
II. SWOT Analysis of IKEA …………………………..……………………………..…
1. Strength……………………..……………………….…….......................…...…….
2. Weakness……………..…………………………………………........................….
3. Opportunity ……………………………………………………..............……...….
4. Threat………………………………………..……………………………………..
III. PEST Analysis of a Chosen Country
1. General Description of the chosen country…………………..……………...….….
2. Political Environment……………………………………………………….....……
3. Economical Environment…………………………………………………………
4. Social Environment……………………………………………….........…………
5. Technological Environment ………………………………………….........………
IV. Conclusion..................................................................................................................