7ENT1069 Procurement and Supply Chain Management

Introduction to the Case Study

In order to enhance communication among the people, Huawei Company is providing the facility of smartphones and telecommunication services.  This telecommunication industry has enhanced the business since the last 15 to 20 years. Positively it is enhancing its market in the UK. It has 9.2% market growth according to the report of the government in 2019. The market demand is enhanced in this telecommunication industry because mobile phones have changed in various ways by the model, feature and application (Dignan, 2012). By the time the Huawei Company has earned its name by selling phones in the country and it has major competitions in the market with other companies, such as Mocell Solutions, Golden Phone Phone, Samsung, and Rixos Mobile.  Here these competitors have huge market share, hence the competition for Huawei Company has enhanced. This company has 16% market share in the country and 21% Xiaomi and apart from that 11% of the global Smartphone market share according to the report of 2020. The growth of this industry is high in recent days and the competition has also enhanced as the other companies are having a large amount of market share in the telecommunication industry.  On the other hand, the competition level can be dealt with several exclusive strategies such as marketing,  effective financial planning and as well as innovating new products.

Part 2: Reflections on the raw material sourcing

Factor

Outsourcing is the most common function of (R&D) Research and Development. It helps in the new process of innovation, software design and product innovation which will be beneficial for Huawei Company in order to get a market place in the UK. Apart from that it also identifies the risk factor in the origination which can be a barrier in the way of the success of the company.  R&D leads to patents, copyrights, and trademarks as discoveries are made and products created. Here the company must invest more money in R&D for identifying the risk factor.

Principles of good practice

Ethical sourcing is an important criterion which helps in determining sustainability. Ethical sourcing makes sure that the products or in this case the readymade garments are being produced with responsibility or not catering to the sustainable needs. Not only environmental safety but ethical sourcing also concentrates in the condition of the workers of the textile industry. It speaks of providing the workers with correct pay (Mboga, 2017). Ethical sourcing tries to minimize risks and reduce the operating cost of the clothes. The companies are motivated to protect the image by producing according to the need of the company.

The consumers of Huawei models in the UK have been observed to pay attention to ethical sourcing. The present-day customers are cautious about the planets and the world they are leaving wind for thor children. The customers want the companies to produce the clothes adhering to the sustainability goals. For example, the chemical colors can be banned from the industry. Organic colours shall be used to color and design the fabric (Dignan, 2012). The primary disadvantage of ethical sourcing is the increase in operating costs of the products. Increase in operating costs implies the increase in the end price of the product. Observation has been seen in the customers that they are ready to pay extra charges to save their planet. Therefore, it is the responsibility of the UK textile factory owners to limit the use of plastic in the production process. At the same time ethical sourcing practices will the industry to not indulge in child labour.

Par 3: Reflections on the raw material sourcing

Supply the key raw materials from other countries

The technology industry and the environmental issues caused by the industry have gained prominence in recent times. The customers are looking for green products. Green products have become trendy and protect the planet at the same time.  The manufacturing companies find it demoralising to implement a sustainable production process as it gives rise to increased cost. Therefore, it became important for the international authorities to implement international codes of conduct that were to be maintained by the industry (Cremer & Zhang, 2014). For example, Bangladesh is a developing country. A country like Bangladesh might have a board for conducting environmental laws. The pollution control board of Bangladesh is responsible for curbing the levels of pollution in the country.

Advantages and Disadvantages

The Bangladesh Environmental Conservation Act is an example of sustainable legislation. The act was aimed to protect the ecosystem reducing pollution and waste. Although the act had good intentions it was stringent. The law was unable to bring any large-scale change.

Sustainable leadership is the talk in the market. Sustainable leadership takes place when the business owner plans to run the business with particular objectives catering to the environment and sustainable needs (Abdoulaye, 2017). The big businesses now require such leaders who are capable of taking up different responsibilities.

Part 4: Addressing Capacity Issue

The primary focus of outsourcing is the development of the main business activities by supporting business functions based on the involvement of delegate professional and reliable partners. In the general context, the application of outsourcing in business is defining the usage of external material, intellectual and labour sources to meet the required parameters of the business. Furthermore, outsourcing and international outsourcing are offering a particular form of development to the business. In that case, there is no need to invest extra time in the managers of the companies to make an effective business plan. This process of outsourcing helps to operate business activities based on its resources. Within that case, it can be added that in the guest stage of outsourcing the temporary cost of the operations grows. Through the involvement of proper controlling methods of the managers, they can achieve their destined success graph with the easy format (Kavcic, 2016). It clearly shows that most of the outsourcing projects are failed due to the bad control of the delegated business operations of the project manager.

References

Abdoulaye, B. (2017). A Research on HRM Factors Affecting Employee Retention at Huawei Senegal. European Journal of Business and Management, 9(19), 1-8.

Condon, S. (2016). Samsung is suing Huawei for patent infringement. Retrieved April 11, 2019, from ZDNet: https://www.zdnet.com/article/samsung-is-suing-huawei-for-patent-infringement/

Cremer, D. D., & Zhang, J. (2014). Huawei to the Future. Business Strategy Review, 25(1), 26-29. doi:10.1111/j.1467-8616.2014.01023.x

David, D., C & Tian, T. June 11, 2015. GLOBAL STRATEGY : Huawei’s Culture Is the Key to Its Success. P (5).

De Cremer, D., & Tao, T. (2015, June 11). Huawei’s Culture Is the Key to Its Success. Retrieved April 12, 2019, from Harvard Business Review: https://hbr.org/2015/06/huaweis-culture-is-the-key-to-its-success

Dignan, L. (2012, May 10). Cisco on Huawei: ‘Imitation isn’t innovation’. Retrieved April 11, 2019, from ZDNet: https://www.zdnet.com/article/cisco-on-huawei-imitation-isnt-innovation-6001076605/