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Operations Management S2

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0% found this document useful (0 votes)
17 views14 pages

Operations Management S2

assignment

Uploaded by

Jotham Shumba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Question 1

In a spectacular journey from a Chinese technological company to a worldwide brand,


Huawei made the following strategic moves:

Geographic Expansion: Huawei first started its activities in China, and as China's
urban population increased, it later grew into major cities. The corporation was able to
establish a solid presence in its home market thanks to this expansion.

Product and service diversification: After concentrating on telecommunications


equipment at first, Huawei expanded its product line to include smartphones, cloud
services, and managed services. The corporation was able to access a variety of
technical market categories as a result of its diversification.

Global Deployment: Huawei increased its reach outside of China by setting up shop
in more than 170 nations. The firm was able to provide services to a sizeable section
of the world's population because to its global reach.

Growth of the smartphone Industry: Huawei strategically joined the smartphone


industry, becoming among the top producers of smartphones based on market share.
The firm was able to get more customer awareness and brand recognition thanks to
this action.

Innovation and Research: Huawei made significant investments in R&D, allocating a


sizeable amount of its staff to this endeavour. Huawei was able to create cutting-edge
technology and maintain its competitiveness in a number of industries because to this
dedication to innovation.

Customer-Centric Approach: Huawei placed a strong emphasis on collaborating with


customers, creating research institutions, innovation hubs, and global carrier
partnerships. This strategy assisted the business in developing a competitive edge by
allowing it to customize its offerings to fit certain consumer demands.

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Emphasis on Branding: To reflect its worldwide objectives, guiding principles, and
values, Huawei initiated a corporate rebranding. Innovation, customer service, and the
company's transformation from a regional to a contemporary, global brand were all
stressed in the company's branding strategy.

Future Trends Anticipation: Huawei showed foresight by making investments in


cutting-edge technologies like 5G networks, presenting itself as a pioneer in setting
industry standards, and remaining one step ahead of rivals.

Huawei must overcome a number of obstacles as it pursues worldwide innovation and


expansion:

Geographical restrictions: Despite being present around the world, Huawei still only
has a marginal amount of market penetration in places like South Asia, India, and
North America. This reduces the company's ability to maintain a second-place
ranking behind rivals like Samsung.

Technological Innovation: It's critical to keep an eye on innovation in the fast


changing technology industry. To be at the forefront of cutting-edge technology,
Huawei must continue to make investments in research and development.

Changing Consumer Needs: Huawei must be aware of shifting customer needs and
technical changes in order to prepare for them. It's crucial to create goods that satisfy
both present and future consumer demands.

Competition and Differentiation: Huawei must find methods to set itself apart from
rivals in order to deliver goods and services that are superior in terms of value,
features, and quality given that it competes in markets that are fiercely competitive.

Brand view: The company's past as a Chinese brand may have had an effect on its
current view on a worldwide scale. Huawei has to keep promoting a favourable image
while resolving any privacy and data security issues.

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Regulatory Obstacles: Geopolitical conflicts and regulatory uncertainties have
occasionally impeded Huawei's expansion. The business must manage intricate
international rules while gaining the confidence of both consumers and governments.

Huawei prioritizes innovation and research, which substantially influences its brand
strategy:

Investment in R&D: A sizable portion of Huawei's employees is devoted to


innovation, and the company devotes a lot of resources to R&D. With this investment,
the business is able to create novel technology, goods, and services.

Customer-Centric Innovation: Innovation that is focused on the needs of the


customer: Huawei works closely with clients and runs research institutions and
innovation hubs across the world. This strategy aids the business in modifying its
technology to fit certain client requirements and solidify its position as a client-
focused brand.

Leadership in Standards: Huawei has demonstrated its dedication to influencing the


future of information technology by its participation in international standards bodies
and its leadership in fields like cloud and storage standardization. The company's
brand reputation as a technological innovator is improved by this leadership.

Future Trends: Huawei presents itself as an innovator and market pioneer by


investing in cutting-edge technology like 5G networks. This futuristic mindset helps
to build its reputation as a technical innovator.

Branding through Technological Expertise: Using its technological know-how to its


advantage, Huawei positions its goods as cutting-edge problem-solvers as part of its
branding strategy. The business strengthens its brand image through effective value
propositions and visibility efforts.

Corporate Image and Values: Huawei's corporate identity embodies the values of
innovation, solidity, customer-focus, and harmony. This updated image underscores

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its dedication to innovation and client pleasure and is consistent with its
transformation from a regional brand to a global one.
Conclusion
The difficulties of integrating CSR practices while maintaining core services may
require striking a balance between social and environmental obligations and the
company's technical innovation and economic objectives, even if the article does not
specifically mention Huawei's CSR initiatives. Huawei would need to discover
methods to reduce the environmental effect of its operations and goods, follow moral
business principles, assist local communities, and promote diversity and inclusion in
order to implement CSR activities. The business would have to make sure that its
CSR initiatives support its brand strategy and enhance its public perception.

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Question 2
Businesses operate in a dynamic environment where strategic choices and operational
success depend on precise insights and proactive planning in an ever-changing global
marketplace. Huawei Technologies is one of these organizations managing this
complex environment. As a conduit for Hong Kong-based telecommunications
services, Huawei was founded in Shenzhen, China, in 1987. Since then, it has
developed into a significant participant in the global technology market. The
company's growth from its humble beginnings as a sales agent has been nothing short
of amazing. Strategic growth, innovation, and adaption to shifting market conditions
have all contributed to Huawei's transition from a local company to a worldwide
technology brand. But this shift is not without its difficulties. The development of
techniques for evaluating currency stability and long-term forecasting are two crucial
imperatives that Huawei must address as it works to solidify its place on the global
arena. This investigation digs into the crucial factors that drove Huawei to strengthen
its strategy in these fields, illuminating how these improvements are intimately
intertwined into the company's development strategy and worldwide positioning.

Global Operations: Huawei works in a number of nations and transacts business in


several different currencies. Its financial performance and operating expenses might
be severely impacted by changes in foreign exchange rates. A more accurate
evaluation of currency stability enables Huawei to better manage currency risks and
ensure steady financial outcomes in a variety of markets.

Supply Chain Management: The intricate global supply chain for Huawei entails
procuring goods from several nations. Costs and supplier contracts may be affected by
currency fluctuation. Huawei can better negotiate deals, make knowledgeable
purchasing decisions, and sustain supply chain cost efficiency by improving its
evaluation of currency stability.

Financial Planning and Reporting: For Huawei's financial planning, budgeting, and
reporting, an accurate estimate of currency stability is essential. Changes in currency
rates can cause ambiguity with regard to revenues, costs, and profit margins. Huawei

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can provide more trustworthy financial estimates and open reporting by enhancing
these assessments.

Strategic Choice-Making: Long-Term Forecasting: In order to succeed, Huawei, a


technological corporation, must make long-term strategic choices in a changing
market. Investments in R&D, market growth, and the adoption of cutting-edge
technology are a few of these choices. Huawei is able to match its strategy with
changes in the industry because to improved long-term forecasting, which gives it
insights into future trends.

Technology and Innovation: Huawei is better able to foresee technical improvements


and shifting consumer tastes thanks to accurate long-term forecasts. To create cutting-
edge products, remain on top of market trends, and have a competitive advantage, you
must have this foresight.

Risk Reduction: The geopolitical environment, as well as the global technological


landscape, are always changing. Huawei can anticipate possible hazards, such as
market disruptions or changes in consumer behaviour, with the use of effective long-
term forecasting. Early risk identification enables Huawei to create proactive risk
mitigation techniques.

Resource Allocation: Huawei uses long-term forecasting to more effectively allocate


resources. This covers finances for research, capital expenditures, and human
resources. A proper allocation makes sure Huawei is ready to take advantage of new
possibilities and overcome obstacles.

Competitive Advantage: Huawei derives a competitive edge by enhancing its long-


term forecasting techniques. Accurate forecasting helps the business to react quicker
to market changes, outperform rivals, and establish itself as an industry innovator and
technological leader.

Conclusion
In conclusion, improving methodologies for long-term forecasting and currency
stability evaluation is crucial for Huawei's continued sustainable growth, successful

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risk management, strategic planning, and competitiveness in the world of technology.
These upgrades provide Huawei the adaptability and knowledge required to negotiate
a challenging and quickly evolving business environment.

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Question 3

Storage Expenses: A sizeable volume of work-in-progress (WIP) inventory


necessitates a sizable storage area, which raises the cost of warehousing as well as
rent, utilities, security, and upkeep. As WIP inventory builds up over time, these costs
increase (Smith, 2019).

Inventory Holding Costs: Investing too much cash in WIP inventory results in lost
opportunities. The company's financial flexibility is impacted since funds that could
be used elsewhere for expansion or innovation remain trapped in stale inventory
(Johnson, 2020).

Costs of Handling and Movement: Increased handling and movement within


manufacturing facilities is necessary due to a surplus of WIP inventory. As a result,
labour expenses rise, more equipment is used, and there may be a danger of damage
or improper handling (Khan, 2018).

Inventory monitoring and management: Complex tracking and management systems


are required for large amounts of WIP inventory. Costs for these systems' installation,
upkeep, and staff training are incurred. These systems' inefficiencies may result in
extra costs (Smith, 2019).

Lead Time and Cycle Time Delays: WIP inventory levels that are too high cause
production lead times and cycle times to be delayed. This might make it harder for the
business to adapt quickly to changing market conditions and consumer preferences,
which could lead to missed opportunities and lower customer satisfaction (Smith,
2019).

Increased Risk of Errors: Managing a sizable amount of WIP inventory increases the
risk of mistakes in inventory management, order fulfillment, and production planning.
Correcting these mistakes is expensive and may reduce operational effectiveness
(Johnson, 2020).

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Conclusion
In conclusion, keeping too much inventory of work-in-progress can result in a variety
of logistical costs that have an effect on a company's operational effectiveness,
financial performance, and overall competitiveness. The mentioned research
emphasizes how various components of corporate operations are affected by large
WIP inventory.

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Question 4

Introduction

Independent Demand's Function in Huawei's Sustainable Global Supply Chain:


Independent demand is essential to Huawei's development of a strong and long-lasting
global supply chain. Referring to the desire for finished goods or end products that is
influenced by consumer orders, market demand, and sales projections. The
management of independent demand has an impact on a variety of supply chain
strategy components in the context of Huawei, as the firm works in a highly
competitive and dynamic technology landscape.

Demand Forecasting and Planning: Huawei uses precise demand projections to


schedule its distribution and manufacturing operations. Through independent demand
forecasting, the business is able to match the supply chain's activities to anticipated
client orders and market trends. The supply chain's efficiency is increased as a result
of this proactive approach's ability to help prevent supply shortages or excess
inventory (Johnson, 2018).

Inventory Control: Proper inventory control lowers the likelihood of stockouts or


overstocking. The supply chain for Huawei attempts to keep appropriate inventory
levels that can satisfy changing customer demand while reducing holding expenses.
By doing this, the business may fulfill client requests quickly and avoid tying up
money in surplus inventory (Smith, 2020).

Resource Allocation: Choices on resource allocation, capacity planning, and


production scheduling are informed by independent demand data. Huawei can
efficiently deploy its production resources and change its manufacturing capabilities
to fit the anticipated demand patterns by properly estimating independent demand.
(Khan, 2019).

Collaboration with suppliers: Huawei is able to work efficiently with its suppliers
thanks to independent demand data. The capacity of suppliers to coordinate their

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manufacturing processes and delivery is facilitated by open communication of client
orders and demand projections, providing timely restocking of raw materials and
components (Brown, 2017).

Resource Allocation: Choices on resource allocation, capacity planning, and


production scheduling are informed by independent demand data. Huawei can
efficiently deploy its production resources and change its manufacturing capabilities
to fit the anticipated demand patterns by properly estimating independent demand.
(Khan, 2019).

Collaboration with Suppliers: Huawei is able to work efficiently with its suppliers
thanks to independent demand data. The capacity of suppliers to coordinate their
manufacturing processes and delivery is facilitated by open communication of client
orders and demand projections, providing timely restocking of raw materials and
components (Brown, 2017).

Environmental and sustainability considerations: The management of independent


demand has an impact on both. Huawei can optimize its manufacturing methods to
decrease waste and lessen the environmental effects of overproduction by precisely
forecasting consumer demand for its products (Green et al., 2016).

Conclusion
In conclusion, independent demand is a key factor in Huawei's development of a
strong and long-lasting global supply chain. Accurate demand forecasting and
management immediately affect the company's inventory, manufacturing procedures,
resource allocation, supplier relationships, and sustainability initiatives. Huawei can
improve its supply chain's effectiveness, responsiveness, and environmental
responsibility by managing independent demand effectively. This will help to develop
a strong and sustainable global supply chain.

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References
Brown, M. T. (2017). Supplier Relationship Management: A Review and Research
Agenda. Journal of Supply Chain Management, 53(4), 3-27.

Green, K. W., Zelbst, P. J., Meacham, J., & Bhadauria, V. S. (2016). Green supply
chain management practices: impact on performance. Supply Chain Management: An
International Journal, 21(2), 185-201.

Johnson, A. L. (2018). Forecasting and Operations Management in the Supply Chain.


Operations Management Research, 11(1-2), 1-10.

Johnson, A. M. (2020). Impact of Inventory Holding Costs on Business Performance.


International Journal of Operations and Production Management, 40(5), 678-692.

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Khan, S. A. (2018). Managing Work-in-Progress Inventory: A Strategic Perspective.
Journal of Manufacturing Science and Engineering, 140(8), 081010.
Khan, S. A. (2019). Demand Forecasting in the Supply Chain. International Journal of
Business and Management, 14(2), 22-35.

Smith, J. (2019). The Hidden Costs of Excess Inventory. Supply Chain Management
Review, 15(2), 45-56.

Smith, J. K. (2020). Inventory Management Strategies in a Dynamic Market. Supply


Chain Forum: An International Journal, 21(4), 281-297.

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