Pest Analysis of Huawei Technologies
Pest analysis involves the review of four factors that are very essential for the continued existence of an organization. The four factors are very critical for the strategic goals of the organization to be achieved as they directly influence all plans made (Anonymous 2010,). The first factor is the political environment and the existing legislations. In any nation, the government has a very important role to play as far as organizational environment is concerned. Due to the influence that government possesses over organizations, no organization would risk its existence without considering the policy set by the government. Legislations are very important to any nation, therefore all national and multinational organizations need to consider these legislations as they set their strategies (Child & Rodrigues 2005). Different ways that a government influences the external environment of an organization could be through issues on taxation, control of the environmental degradation, legislations on quotas as well as subsidies, labor and employment regulations, legislations on consumers, competition, safety as well as issues on health.
China government has various political legislations that affect Huawei's external strategic environment. As a multinational, the company has to adhere to all these regulations and ensure that no strategy is set without full consideration of the government legislations. For Huawei, the Chinese business political environment is very serene for growth. In the part of the government, all possible measures have been undertaken to ensure that businesses are provided with the right environment to perform. The Chinese government is communist in nature. However, it provides a political environment that is based on incremental consensus between the different leaders of the government. In the recent past, the government has introduced reforms aimed at offering an environment that favors business growth (Preeg 2008). The reforms are open and transparent as well as suited to the most appropriate style of government. Similarly, China government has undertaken every measure to ensure that corruption and other vices are completely stumped out. This has facilitated the growth of Huawei Technologies due to the confidence with the government. Any concern raised to the government is well and hastily responded to ensuring that the political government has set a platform for business growth.
Pest Analysis of Huawei Technologies Pest analysis involves the review of four factors that are very essential for the continued existence of an organization. The four factors are very critical for the strategic goals of the organization to be achieved as they directly influence all plans made (Anonymous 2010,). The first factor is the political environment and the existing legislations. In any nation, the government has a very important role to play as far as organizational environment is concerned. Due to the influence that government possesses over organizations, no organization would risk its existence without considering the policy set by the government. Legislations are very important to any nation, therefore all national and multinational organizations need to consider these legislations as they set their strategies (Child & Rodrigues 2005). Different ways that a government influences the external environment of an organization could be through issues on taxation, control of the environmental degradation, legislations on quotas as well as subsidies, labor and employment regulations, legislations on consumers, competition, safety as well as issues on health.China government has various political legislations that affect Huawei's external strategic environment. As a multinational, the company has to adhere to all these regulations and ensure that no strategy is set without full consideration of the government legislations. For Huawei, the Chinese business political environment is very serene for growth. In the part of the government, all possible measures have been undertaken to ensure that businesses are provided with the right environment to perform. The Chinese government is communist in nature. However, it provides a political environment that is based on incremental consensus between the different leaders of the government. In the recent past, the government has introduced reforms aimed at offering an environment that favors business growth (Preeg 2008). The reforms are open and transparent as well as suited to the most appropriate style of government. Similarly, China government has undertaken every measure to ensure that corruption and other vices are completely stumped out. This has facilitated the growth of Huawei Technologies due to the confidence with the government. Any concern raised to the government is well and hastily responded to ensuring that the political government has set a platform for business growth.
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