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CONTENT

1.0 Introduction 5
2.0 Company conflicts 6
3.0 Handy’s dimension culture 8
4.0 Negotiation approaches 9
5.0 Recommendations 12
6.0 References 13
Appendix 14

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1.0 Introduction
1.1 Company Background
Chinese conglomerate IT technology company, Huawei Technologies Co., Ltd (henceforth;
Huawei) is incorporated in Shenzhen, Guangdong, China. In its initial days, Huawei focused
primarily on the manufacture of telephone circuits but has also since concentrated on the growth
of telecommunications networks and the creation of smart phones for the global consumer
industry. This job will evaluate the management of Huawei and make the development of assets
in the telecom sector more valuable.
Huawei had reduced the disparity in the international smartphone industry among two of its
leading competition, Apple Inc and Samsung technologies. throughout their first quarter of 2017,
their global position grew by 9 percent and is now effectively third in the global smartphone list.
In the last 5 years, Huawei device sending’s increased drastically: a maximum of 139 million
devices were delivered in 2016, a 29 percent rise over the previous year. In every industry,
companies must distinguish oneself from their rivals by bringing quality to the services they use.
Target users will be able to sell companies more than just the products bought and achieve a
strategic benefit over their rivals.
The main critical factor in terms of price is the expected consumer demand for payment. With
the Internet, the awareness of the user's company and product is high as it can analyze and
evaluate goods before purchasing. As Huawei joined the smartphone market first, it embarked on
a costs competitiveness policy where its price was slightly lower than those of its rivals, but they
show that they and the mobile device product would survive. While Huawei began to gradually
improve its price, particularly for its flagship models, when the business penetration plan was
successful. The duty of Huawei is to create a 'More Interconnected Environment.' Their
sustainability policy is strongly incorporated in the enterprise to ensure it suits their marketing
strategy.

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2.0 Company Conflicts
2.1 Cisco patent lawsuit
Cisco Systems accused Huawei Technologies in February 2003 for alleged infringement of its
copyright and unauthorized cloning of the software included in its appliances and sensors. The
challenged code, handbooks and command-line configurations have been withdrawn, and the
case was eventually resolved outside trial, thus according Cisco 's declaration by July 2004.
Huawei acknowledged, as result of the agreement, that several of Cisco's gateway technology
had been copied. Both of them reported success – by saying that "finalization of the litigation is a
win for the defense of proprietary property interests," and Huawei's affiliate (not a party to the
litigation) stating that judge's order stopped Cisco from pursuing another complaint toward
Huawei. While Cisco executives reportedly saw falsifying software as early as September 2005,
the Corporate Advisor claimed in a retrospectives that Cisco's "Cisco was characterized as a
threatening multinational business by the Chinese media" and "the harm to the image of Cisco in
China outstripped any advantage gained by the litigation."

2.2 T-Mobile smartphone testing robot

Huawei encountered a T-Mobile US lawsuit in September 2014 claiming that Huawei had
taken software from its offices in Washington. In its complaint filed, T-Mobile argued that
Huawei workers managed to sneak into a T-Mobile laboratory and took sections of its Tappy
software research robot throughout the time 2012–2013. Then the Huawei workers replicated the
technology and layout information and breached privacy deals between the two firms. In
addition, Huawei has been building its own research robot using the confiscated sections and
information. One Huawei spokesperson told The New York Times that the allegation was valid,
but both staff were dismissed. Since then, T-Mobile has ceased to supply Huawei, which
suggests T-Mobile may cost them tens of millions of dollars when moving away from their
devices.

2.3 Vodafone claims security vulnerabilities against Huawei

On 30 April 2019, Bloomberg News released an article claiming that between 2009 and 2011, on
its fixed-line infrastructure hardware in Huawei, Vodafone Italy had uncovered many
cybersecurity defects, particularly undisclosed fiber and wireless security holes and non-secured
telnet adapters which could allow Huawei exposure to Vodafone 's network. Although the article
suggested to have addressed them many remained until 2012, and Huawei hardware utilized by
certain local Vodafone divisions may also contain the same flaws. Both Huawei and Vodafone
challenged the assertion of Bloomberg, Huawei claimed that since they were found, the
suspected flaws of the cybersecurity system have been registered, and the suspected "security
vulnerabilities" identified as "technical flaws," "righteously reported."

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2.4 US bans Huawei due to security reasons
On 15 May 2019, Trump released the Executive Order for the Protection of ICTC, which grants
the federal powers to regulate dealings involving information and communications technologies
involving international marketers. The trade department has added Huawei and its associates to
its list of organizations which has been blacklisted by the. This limits U.S. businesses requiring
government approval to do transactions with Huawei. Reuters announced on 19 May 2019 that,
due to these limitations, Google had revoked Huawei 's capability to use Android on its Google-
licensed phone. The next day, Intel, Qualcomm and Xilinx were confirmed to have discontinued
providing Huawei with components.

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3.0 Handy’s Dimension Culture
Charles Handy's (1999) popularized concept of identity describes organizational cultures as
divided into four key types: power culture, role culture, job culture, and individual culture, which
can be characterized by the degree to how an organization is both formalized and centralized.
this could be due to the complexity of illustrating anything as abstract as heritage, this could be
reflective of the complexity of drawing anything as abstract as culture, but it also enhances the
interrelationship between culture and organization.
3.1 Task Culture
The Huawei Company's main organizational culture, that shows the collection of essential
values, beliefs and attitudes held by representatives of the organization, is known as task culture.
Huawei staff are highly receptive to business data and can respond to adjustments without delay.
Each representative of Huawei focused on the decisiveness of challenges and the ability to
advance regardless of how complex the challenge is. Huawei is especially atmospheric in team
collaboration and members are empowered to grow and express their own views. The task-
culture gives Huawei a high degree of transparency into the unstable environment and makes the
business respond rapidly to potential possibilities.
This could allow Huawei to increase its turnover annually by about 20 percent. Furthermore,
Huawei's consistent split and adjustable working collaboration ensures that all the tasks are
conducted in a most productive and convenient manner that allows Huawei to gain remarkable
revenues and consistently grow. Overall, task culture is without question the pillar of prosperity
for Huawei. In the dynamic markets of the contemporary economy it leads Huawei to major
advancements.
3.2 Role Culture
The Huawei community claim the assets can be depleted, but tradition can last indefinitely. The
leadership panel thereby put a great deal of emphasis into incorporating the corporate culture,
which in fact derives not from the leadership team but through the employees' insights. As we all
acknowledge, there are three layers of organizational culture: observed, experienced and
accepted. Although employees ' individual beliefs are well matched with the corporate culture,
which makes the cultural values at the alleged level, employees are inspired and feel more
positive about their work. In building the corporate culture, various levels of Huawei personnel
perform an indispensable position even though they are accountable for a varied function.
High-level administrators are responsible for tracking social patterns and strategies. The middle
level managers concentrate on the best strategies for improving the corporate culture, based on
cultural patterns and directives. Low level managers pay greater attention to community building
and ensuring that workers understand and communicate the corporate culture. Normal workers
should recognize and link the corporate culture with the way they execute tasks and accomplish

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objectives. In addition, new workers can recognize, experience and participate in the
organizational culture. 

4.0 Negotiation Approaches

A negotiation is a tactical debate that addresses a dilemma in a fashion that both sides deem
suitable. Each side attempts to convince the person in a discussion to comply with his or her
perspective. Both interested participants seek to stop argument by bargaining but attempt to find
a sort of consensus.
4.1 Cisco Patent Lawsuit -Distributive Negotiation
The chief executive of Huawei in the U.S. consequently argued that Huawei was exonerated in
the event, breaching a nondisclosure provision of the arrangement with Cisco by Huawei. In
addition, Cisco released sections of the external analyst 's report created for the case that
confirmed that Cisco code had been copied by Huawei and inserted indirectly into its devices.
Cisco's Mark Chandler claimed in a business blog post that the resolved case contained claims by
Huawei of "absolute, transcribed duplication of their source code, not to mention their direct line
system, our help screens, their proprietary documentation and other aspects of their services,"
and offered further evidence to justify those claims. The tale of Huawei's brazen defamation had
acquired the reputation of legends within the networking and transitioning culture before Cisco
presented definitive evidence in 2012.
4.1.1 Aggressive Tactics
When Cisco chief attorney Mark Chandler travelled to Shenzhen to address Huawei founder Ren
Zhengfei with details of Huawei's infringement of Cisco IP, the methods Cisco used against
Huawei were aggressive. The facts contained errors from Cisco's software documents that also
occurred in Huawei's, despite becoming confronted with the proof that Ren replied it was
a resemblance. But Huawei disabled the disputed code, documentation and command-line
frameworks after much refutation in July 2004 and the case has been eventually resolved outside
of court. As result of the compromise, Huawei acknowledged that some of Cisco's modem
technology had been replicated. By taking the legal charges against Huawei to the Supreme
Court and rejecting the conditions of the Huawei petition, Cisco used the techniques of being
hostile to give Huawei a major influence.

4.2 T-Mobile Litigation Against Huawei -Distributive Negotiation

A jury concluded with T-Mobile in May 2017 that Huawei had undertaken corporate sabotage in
the United States, and Huawei was forced to pay compensation of $4.8 million. By claiming that
Tappy was not a commercial entity, and that it was produced by Epson, not T-Mobile, Huawei
reacted to the lawsuit. "T-Mobile 's statement of the suspected trade secret is an incomplete,
generic statement that encompasses practically every part of its robot," according to Huawei, and

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it declined to make out any confidential data compromised with appropriate precision. T-Mobile
denied Huawei 's claims and argued that only a part of the robot had been given by Epson.

4.2.1 Aggressive Tactic

In a cross offensive tactic, T-Mobile prosecuted Huawei alleging that throughout the 2012-2013
period, one of Huawei staff members slipped into a T-Mobile lab and took pieces of its software
research robot Tappy from their premises. A jury concluded with T-Mobile in May 2017 that
Huawei had undertaken corporate espionage in the United States, and Huawei was forced to pay
compensation of $4.8 million. By claiming that Tappy was not a commercial entity, and
therefore it was produced by Epson, not T-Mobile, Huawei referred to the lawsuit. 

4.3 USA Blacklisting Huawei Components -Integrative Negotiation

The encounter between the two parties was the highlight of four days of negotiation in Asia for
Trump, whose prospects of re-election were jeopardized by the economic dispute that harmed
local jobs and disrupted international economies. After talks failed last time, pressures increased.
Trump said the negotiations with Xi were "certainly much smoother than anticipated.  Since
then, he said, "one fundamental truth appears unaffected both China and the United States profit
from collaboration and suffer in conflict. Cooperation and negotiation are stronger than conflict
and tension.
4.3.1 Aggressive/Cooperative Tactics
Under public safety concerns, the US declines to use Huawei devices. Although becoming the
world's largest telecommunications infrastructure producer, Huawei depends extensively on its
American manufacturers, allowing the U.S. plenty of space to drag the output of the Chinese
business. "When approached by TechCrunch, Huawei did not respond specifically on the ban of
the Commerce Department, but said it was" prepared and able to cooperate with the U.S.
government and take appropriate action to maintain consumer protection. "This indicates that
they were prepared to take a constructive way to address the problem against any additional
litigation.

4.4 Vodafone Corporate Espionage Claims – Integrative Negotiation

"The 'backdoor' to whom Bloomberg relates is Telnet, which is a standard widely utilized for the
performance of testing operations by many suppliers in the industry. It would not have become
available from the internet. "Bloomberg is wrong in suggesting that this may have allowed
Huawei unauthorized exposure to the fixed-line infrastructure of the operator in Italy. We still
have no confirmation of any unauthorized connection. this was hardly anything further than a
mistake during implementation to eliminate a debugging feature. "The concerns were found by

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external security testing, implemented by Vodafone as part of their usual safety steps, and
resolved by Huawei at the moment." A Huawei spokesman said: "In 2011 and 12 we were kept
informed of relevant flaws." We provide a well-established community warning and patching
procedure, like any ICT provider, and once a flaw is found, we collaborate directly with our
collaborators to undertake the necessary corrective steps.'

4.4.1 Cooperative Tactics

Relative to Vodafone 's security summary papers from 2009 and 2011, as shown by Bloomberg,
as well as by people interested in the case, Europe's largest telecommunications company found
secret security holes in codes that may have allowed Huawei unauthorized exposure to the
carrier's fixed-line infrastructure in Italy, a device that offers internet service to millions of
residents and companies. In 2011, Vodafone informed Huawei to uninstall security holes on
internet service appliances and got guarantees from the vendor that the bugs had been resolved.
"In a comment, Vodafone said" The problems found in Italy in the Bloomberg story were all
settled and dates back at least to 2011 and 2012. As reported, Huawei main contract to settle the
Vodafone dispute was focused on a cooperative that Huawei is cooperative in that situation as
they hear their arguments and attempt to correct themselves and also cooperate with shared
partners.

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5.0 Recommendations

5.1 Preparing Escape Routes for Different Market - T-Mobile

Strategy Escape Route has many sectors that if they lose their mobile market, they will engage
in. Throughout the area of human enhancement, they will engage. It will be an environment that
will conquer the industry and still have a slim possibility of changing the smartphone industry.
With regard to AI, computing, and mobile, Huawei has any system that can be beneficial to step
into the area of human augmentation.
5.2 Cybersecurity Protection -Vodafone
Huawei is helpless to detect cybercrime however it does stop it from unfolding. Huawei wants to
set up routers for this and recruit more responsible developers who might help themselves avoid
a potential attack. Another perfect way to stop a potential hack is to educate all staff about the
forms in which hackers can access the framework. They have to hold periodic awareness
workshops for their staff.
5.3 Outsourcing Different Markets for Unilateral Dependencies -USA
Currently, Huawei is struggling to reach the US sector. Huawei will also tackle these entrance
hurdles by allowing a cross-border transaction, giving it more leverage over its foreign activities.
Market power occurs where a corporation is in a position to sell its products or services at the
rate of regulation or when the price of its main or support operations is smaller than that of its
rivals. Huawei will then use strategic takeover, in which it obtains businesses operating in the
same sector, to expand its market dominance.
5.4 Tactical Partnerships- Cisco
Consolidation will allow Huawei to develop new technologies that it presently does not have.
Huawei will expand its information basis and decrease passivity by acquisitions. In contrast to
the takeover, Huawei could also have a tactical partnership with other firms with no capital. A
strategic alliance with no capital is a type with collaboration in which two or more firms have a
cooperative arrangement in order to share some of their specific strengths and skills to generate a
market edge. In more ambiguous cases, this is used, and businesses do not build an individual
corporation and thus do not have such stock shares.

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6.0 References

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Appendix

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