Huawei Technologies

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Table of Contents

Company overview.. 2

Cultural Profile. 2

China. 2

South Africa. 3

Conducting Business in South Africa. 4

South Africa PESTLE analysis. 5

Political Environment 5

Economic Environment 6

Social Environment 7

Technological Environment 7

Legal Environment 8

Environmental Area. 8

International/Global Staffing Policy. 8

Leadership style to be used. 9

Decision Making Systems. 9

Motivation Systems. 9

Challenges that expatriate managers may face in South African Market 10

Language Issues. 10

Ethics and Corporate Social Responsibility Challenges. 11

Conclusion. 12

References. 13

Company overview

Huawei Technologies was established in 1998 by Ren Zhengfei who is a previous People’s Liberation Army officer and telecom engineer. It was joined as an issue venture which fabricates information transfers gears for local Chinese organizations at a much lower cost than its worldwide rivals. Also since the starting, Zhengfei’s vision was to incorporate advancement ability with the organization. Be that as it may, in spite of the China’s arrangement of “trading business for engineering,” Zhengfei is persuaded that having a joint wander with outside organizations would just cause the Chinese to lose their residential business and not empower them to secure remote innovations. In performing an interior investigation, it is vital to have a ‘worldwide personality set’, which is the capacity to dissect the inside environment in ways that are autonomous on the suspicions of a solitary nation, society, or connection. What’s more, the business’ arrangement of assets and the packs of heterogeneous assets and abilities must be broke down so they are be leveraged on if need to. Huawei starting points from China in 1988 and established by Ren Zhengfei. Ren Zhengfei is a move on from Chongqing University of Civil Engineering and Achitecture . He filled in as an issue (People’s Liberation Army) in examination of new advances. He has been known for the most progressive innovations investigated (Taylor & Thrift, 2012). After Ren was dug in from the armed force, because of a decrease by the armed force, he moved to Shenzen and was utilized as an electronic affiliate. By 1988 is then when he opened his own particular organization. At that point is when Huawei was shaped

Cultural Profile


Threads of Commonality

For a business to be effective in China, it should first take the time comprehend the fiber that strings several eras into a solitary weave. Chinese social history covers a compass that includes in excess of four thousand years. Like most societies, the Chinese have interesting gimmicks of shared characteristic that unite society (Taylor & Thrift, 2012).


Taking into account Geert Hofstede’s examination of social measurements, China has the most reduced independence (the inverse of cooperation) positioning of any Asian nation. Low independence makes an opposite accentuation on solid coordination to in-gatherings (insiders) versus out-gatherings (pariahs) (Taylor & Thrift, 2012). Chinese kids from an early age are adjusted into a kind of gathering enrollment held all through life. Not at all like individualistic social orders, for example, the United States, the expression “we” is the prevail consider that is engrained in the mentality of the masses from the onset

Nothing is absolute.

There are independent masterminds in China that have split far from the social standards and act freely. These current Chinese progressive who communicate in way like the maverick who are termed idiocentric

Saving Face.

An alternate discriminating measurement of the Chinese society that is predominant inside society and key to comprehension when directing business is the idea of sparing (Slangen & Beugelsdijk, 2010). Face incorporates the intellection of validity, admiration, honor, and notoriety (Taylor & Thrift, 2012). Starting in the early years of improvement, Chinese school age kids learn, more often than not through their prompt social gathering, that slip-ups are exceptionally disheartened.

Hierarchical Arrangement.

An alternate long-standing measurement that remaining parts rule inside the Chinese social framework, and taught in evaluation school, is the idea of various leveled course of action (Chiu, 1991). This systematic characterization starts with those most regarded in the social structure and develops outward to public connections (Slangen & Beugelsdijk, 2010).


China needs, both business and individual, start and end with connections. The Chinese want to work with those whom they have built a trusting individual association. While the Chinese just as results situated as their Western partners, their prosperity is subordinate by means of a system of made connections built to ensure great results


The Chinese society, because of hierarchal air and collectivist nature, takes after a controlled convention when directing formal gatherings. The title and rank of the individual benefits a privileged position. Along these lines, outside businesspersons need to know ahead of time who to address first when going into a room as an issue of appreciation.

Negotiation Styles

A vital segment utilized by the Chinese representative is the craft of transaction. Not at all like the Western style of win-win conclusion in the arrangement transform, the Chinese bargainer supports a win-lose result


An alternate vital part of how the Chinese like to direct business is as feasts. At the substance of these celebrations is the time-regarded convention of Guanxi, as this specific setting of attractive area and quality nourishment take into consideration loose socialization in a more open to setting

South Africa

Collectivist versus Individualist. African culture places solid accentuation on the welfare of the whole society instead of the single person. This rationality follows back to the times of Confucius, who taught the essentialness of looking for concordance for the purpose of the gathering was of more prominent worth than the concerns of oneself. Besides, inside the reliant collectivist society, principle situated hierarchal levels of (Rugman, Verbeke & Nguyen, 2011) are very viewed as time regarded admiration for laws and regulations guarantee instability and vagueness are kept at a negligible level. Collectivist spot solid attention on keeping up an overall characterized iron association with the individuals who are characterized as in-gathering parts.


The United States, then again, is placed on the flip side of the social range, as chose toward oneself people inside society view themselves as on a very basic level distinctive while keeping up a feeling of savage freedom from the norm. Hofstede (1980) characterizes independence as the stress one spots on self toward oneself governance and individual satisfaction in the quest for one’s achievements. Educational System (Rugman, Verbeke & Nguyen, 2011). Keeping in mind the end goal to suit for its tremendous populace, the South Africa education systems, serving 25 percent of the world’s understudy populace, has experienced incomprehensible instructive changes. Starting in 1986, the Ministry of Education built the objective of nine years of mandatory instruction by 2000, and distinguished key regions essential for bit by bit enhancing the general guidelines of higher learning, including enhancements to optional, specialized, and graduate projects, permitting more prominent tolerance and development in the choice making force of directors.

Conducting Business in South Africa

Export Basics

Organizations that choose to ship things abroad, particularly to South Africa, with the end goal of business deals are by definition, in the fare business and must comprehend the legalities included the whole time. Despite the strategy, whether via mail, fax, email, or web, an exchange is a fare and directed by The Bureau of Industry and Security (Rugman, Verbeke & Nguyen, 2011). The fare permit is a manifestation of conceded consent by the South Africa’s government to direct a fare exchange.

International Payments

A vital thought for organizations working with the nation of South Africa is the accumulation of installments. Dissimilar to the South Africa has a generally intricate managing an account framework, with a high level of government contribution regularly making an administration that meddles with the exchanges of installments

Cash in Advance

A standout amongst the most secured types of installment, from the perspective of the exporter, is trade in for cold hard currency propel. In this case, there is a settled relationship, alongside a standby letter of credit to fill the need of insurance, as requests regularly have developed creation cycles, for example, with custom-assembled gear

Documentary Letter of Credit

A standout amongst the most favored and widely used budgetary instruments utilized for universal requests is the narrative letter of credit. For this situation, monetary misfortune is moderated, as the banks of both the exporter and merchant must respect the surrender of installment if the guaranteed things are delivered and got as indicated by the terms of the agreement.

Documentary Collections

Documentary Collections is an alternate monetary instrument that gives slight support to merchant or purchaser. The verification that products are conveyed lie in the receipt of the bill of replenishing, which must be marked as acknowledged by the merchant and installment got to discharge the delivery (Kolk & Van Tulder, 2010).

South Africa PESTLE analysis

Political Environment

South Africa is a multiparty parliamentary majority rule government in which established force is imparted between the president and the Parliament. The Parliament incorporates two sections, the National Assembly and the National Council of Provinces. They are in control for making the laws of and dealing with bills including money related issues. The third administrative division is a self-ruling legal. The Constitutional Court is the most astounding court for deciphering and choosing sacred issues, while the Supreme Court of Appeal is the most noteworthy court for nonconstitutional matters (Kolk & Van Tulder, 2010). South Africa accomplished autonomy from Britain on 31 May, 1910 and the authority Independence Day is 27th April. In 1994, there was first all-race multiparty decision making it the formal end of politically-sanctioned racial segregation. In 2009, the decision African National Congress (ANC) won its third back to back race and Jacob Zuma was chosen President (Kolk & Van Tulder, 2010).

There has been a worry that the predominance of the ANC has made South Africa a true one-gathering state with different gatherings, for example, Democratic Alliance (DA) and Congress of the People (COPE) being in the restriction. President Zuma’s ascent to power has been divisive. Zuma’s notoriety has been stained by a few issues, for example, charges for defilement and sexual misuse, which incited his release as Deputy President in 2005. There are still issues concerning Zuma which incorporate his setback in pronouncing his business investments and additional conjugal undertakings. Zuma was brought to power with a backing of two decision accomplices – compelling Congress of South African Trade Unions (COSATU) and the South African Communist Party. The Zuma organization has for the most part stayed to the past organization’s monetary strategies. By and by, there are still ideological pressures inside the ANC and among the ANC and its controlling accomplices. South Africa keeps on having expansive monetary and political relations with the territorial and global group that will probably offer a level of strength. South Africa’s effective facilitating of the World Cup of soccer in June-July was seen as an issue out gathering of sorts for South Africa on the universal stage (Kolk & Van Tulder, 2010.).

In view of the late political circumstance in South Africa there are sure difficulties ahead. There have been striking changes in the nation after the politically-sanctioned racial segregation period, for example, projects to create important social administrations, wide spreading the right to utilize enhanced risks as a part of instruction and business. In any case, the procedure of change of South Africa is long and requires the steady devotion of the pioneers and individuals (Crane & Matten, 2010).

One of the principle supporters in the compromise procedure is The Truth and Reconciliation Commission (TRC) that is dealing with ill-uses of human rights amid politically-sanctioned racial segregation time, furnish victimized people with recompense and offers pardon to the individuals who perpetrated politically roused law violations. TRC regularly clashes with political, monetary and social diversions of diverse gatherings of South Africa’s kin. The test for the administration to adjust these showdowns and oversee concurrences on the essential inquiries will remain a discriminating test (Crane & Matten, 2010). Despite the fact that South African economy is in numerous territories exceptionally created, the way of politically-sanctioned racial segregation brought about the nation’s global confinement until the 1990s that has left significant detriments. The economy is in a course of progress as the administration endeavors to deal with the imbalances of politically-sanctioned racial segregation, energize development, and make business opportunities. These days business in the nation is getting to be more coordinated universally, and outside speculations have expanded. Then again, the monetary conflict among populace gatherings is anticipated to proceed for a long time, making it a primary sympathy toward the administration.

Economic Environment

The economy of South Africa has two sides: one is produced and the other one with most essential framework. Nation’s economy has numerous attributes of the economies in creating nations, for example, division of work among formal and casual parts, eccentric dissemination of riches and salary. South African government has exhibited its devotion to open markets, privatization, and an ideal venture atmosphere through the arrival of a Growth, Employment and Redistribution (GEAR) procedure that occurred in the period from 1996 to 2000. The results were with different victories. Most importantly, it accomplished more prominent money related control and macroeconomic dependability; then again it neglected to convey these accomplishments in principle regions. Unemployment kept on riing significantly in the wake of proceeding with projects of dark strengthening. Nation’s riches still remains unequally appropriated among racial lines. Second, a few budgetary changes that intended to give better reporting, evaluating and responsibility, and changes in money related arrangement as far as swelling focusing on, permitted South Africa to have straightforwardness and consistency that are exceptionally applauded. Third, the methodology of exchange liberalization has advanced essentially since the early 1990s, which together with usage of World Trade Organization (WTO) commitments and launch of the Doha Development Round shows South Africa’s recognition of free market values.

Today, financial recuperation is on track. The financial position stays testing, the gauges for 2011 incorporate sizable yet reasonable shortage (Crane & Matten, 2010). The administration anticipates that these setbacks will progressively tight because of a bounce back in development and log jam in use development. Universal financial specialists stay careful of developing markets because of occasions in Europe (Greece) and South Africa could drop out of support ought to observations shift. In this way, unemployment stays stuck at 25%, with work picks up just being enrolled in the general population division. The recuperation is required to stay on course and private part request ought to bit by bit addition power, hence supplanting government as an issue driver. A stronger recuperation will probably just grab hold in 2012.

Social Environment

Today there are 49,109,107 individuals living in the nation. Pretty much a large portion of the populace exists in urban zones, and a lot of people live in country regions with lacking lodging. In both rustic and urban focuses, many individuals don’t have admittance to water supply and sanitation, power, and different administrations. Because of the way that populace is more versatile today and there are more occupation open doors in the urban zones, the movement among the nationals is developing quickly. Destitution is the most astounding among the Black populace, arriving at in excess of 60%. There have been a few changes in the training division and now all tenants have admittance to instruction, however still around 13,6% of populace are uneducated (Buckley & Casson, 2010). Despite the fact that greater part of individuals have admittance to wellbeing administrations, open foundations are generally needing essential assets and not proficient to meet requests. South Africa has one of the most astounding rates of HIV event on the planet. Generally speaking, 18,1% of the populace is tainted by this illness. Consistently there are 1,000 new diseases happened, and around 350,000 individuals kick the bucket every year from AIDS-related ailments (Cavusgil, Knight & R.............

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