Management Tools: SWOT and PEST on Google - Case Study Example

Management tools SWOT and PEST on Google Insert Insert Introduction Google Inc. Company deals with global technology. The companys aim is to connect people with information. Google is an exploration engine, which provides various services such as searching products, videos, books, phone numbers, and images. Google offers instant messaging, blogging services, and free email. The company is a corporation that is multinational that offers internet related services and products, cloud computing, advertising and software technologies, including internet search. Google Inc. is a business oriented Company and as such, it has adopted SWOT and PEST as its management tools to aid managers in making decisions concerning business strategies of the company. SWOT analysis enables the company to determine its weaknesses and strength as compared to its major competitors. It aids the company to determine areas of competitive advantage. SWOT analysis gives four viable fields of strategic objectives, which include strength, weakness, opportunities, and the threat. Usefulness of SWOT to Google Open source services and products: The Company’s mission is to plan and come up with an organization of communication channels through the development of software by making it universally accessible and useful. Hence, almost all products of Google are in line with what the mission states. Let it be Google calendars, maps, drive or guidance on how to rank and enhance search index. Hence, through SWOT, Google management has ensured that company’s Products are with devices such as mobile without charge. It has made the company to be the leading in most of the services and products (Jureviciusl, 2013). Customer experience and quality are the main objects. SWOT analysis has ensured that everything offered by Google Inc. management is of the best quality. Through SWOT, the management has achieved customer satisfaction of their Products aimed at solving needs for customers. The intention of products is to solve customer problems when they arise. Achieving it is through provision of first-rate customer experience (Krantz, 2013). Financial situation: The use of SWOT strategy by Google management has ranked the company to be among the top companies that are profitable in the world earning about $50 billion and $ 11 billion profits. On the other hand, the Company receives $48 billion in cash and a debt of about $7 billion. As a result, it has enhanced the company’s financial strength (Google Inc., 2013). Access of the largest group of users of the internet worldwide: SWOT analysis has assisted Google managers to access 89% of market users through mobile search and 79% of market users through desktop search worldwide. Combined, these users of the internet represent a large market that the company can use to enhance and sell services and products (Google Inc., 2013). Strong portfolio patents: Through SWOT strategy, the management of the company increased Patents by 1,151 in 2012, making it to be a 21st business globally in terms of patents number. Intellectual Property is an important factor in competing with competitors (News, 2006). With this regard, Google acquisition of Motorola enabled it to gain advantage against its competitors. Integration of products: Google management has been able to integrate most of the products of Google creating an ecosystem that enhances customer experience, promoting the use of company’s services and products. Moreover, the management ensured that products for Google could be useful on any device with no problem and integration with applications of other companies. Due to this, the company has had no other technological organization providing the same integration level. Innovation of culture: Google management has been able to provide most of the products that are unique each year, with a variety of them in stages of development. As a result, it has made Google Inc. Company is leading as the second innovative business globally. Limitations of SWOT and ways to overcome SWOT shows a company the problems they are facing but not solutions. As a management tool, managers should rely on it as a road map yet act independently using other decision-making tools to run the company. Managers should be careful because the analysis can be simplified by the tool hence a limitation to coming up with the right decision (Nishadha, 2012). It does not capture the number of customers a company has and as such, the right picture is not set well. It can overcome it by always increasing number of users of mobile internet. Managers of Google Company has an opportunity to develop a tool, used to enhance advertisement display for users of mobile device (Nishadha, 2012). Through this strategy, the income will eventually increase. Usefulness of PEST to Google PEST is an important management tool for Google Inc. Company since it helps the company’s managers to analyze the external environment and the impact it has on the company’s management. PEST has enabled the managers of the company to reduce the effects and impacts of major threats to their company. It has also aided managers to enhance the development of strategic thinking in the company (Cox, 2012 ). In addition, it has offered a mechanism that it has helped managers of the company to exploit and analyze opportunities that are new. Through PEST, managers of Google have been able to determine the effects of entering new market globally. However, managers of Google Inc. Company have experienced limitations by using PEST as their management tool. Pest has denied users access to quality information that is external since it is time-consuming and costly (Cox, 2012 ). On the other hand, when managers are making decisions for the company, PEST has led to over simplicity of the information. Besides, the process of PEST should frequently be conducted for effectiveness yet managers do not account for this investment. Strategies to overcome PEST limitations The managers for Google need to restructure its strategies to capture and maintain the Company’s market. The managers should analyze the company’s weaknesses, strength, and the to which threats and opportunities influence Google by changing and adapting to the market. Once identified, the company should adapt in a timely way (Nishadha, 2012). Integration of more than one tool in the management is an imperative way to ensure that the progress is positive. Conclusion SWOT and PEST are imperative management tools. It helps to unearth an impending problem for the company. As much as it reveals emerging issues, the tools do not offer solutions. To achieve better decisions based on the outcome of SWOT and PEST, Google managers should integrate their process using other decision-making tools. Moreover, ones a problem has been cited, research should be concentrated on to come up with the details. The success of the company is a factor based on the right management. List of References Blatstein, I.M., 2012. Strategic Planning: Predicting or Shaping the Future. Organization Development Journal, 30(2), p.32. Cox, M.Z..D.J..M.E.a.J.I.R.J., 2012. Strategic Management: Is It an Academic Discipline. Journal of Business Strategies, 29(1 ), pp.27-28. Google Inc., 2013. Announces Third Quarter 2013 Results. [Online] Available at: HYPERLINK "http://investor.google.com/earnings/2013/Q3_google_earnings.html." http://investor.google.com/earnings/2013/Q3_google_earnings.html. [Accessed 14 NOV 2014]. Jureviciusl, O., 2013l. SWOT analysis of Google. [Online] Available at: HYPERLINK "- Ovidijus Jurevicius. 2013. SWOT analysis of Google. [ONLINE] Available at: http://www.strategicmanagementinsight.com/swot-analyses/google-swot-analysis.html" - Ovidijus Jurevicius. 2013. SWOT analysis of Google. [ONLINE] Available at: http://www.strategicmanagementinsight.com/swot-analyses/google-swot-analysis.html [Accessed 14 NOV 2014]. Krantz, M., 2013. Investing: Who wins, loses with higher rates. [Online] Available at: HYPERLINK "http://www.usatoday.com/story/money/personalfinance/2013/06/15/higher-interest-rates-stocks-invest/2400513/" http://www.usatoday.com/story/money/personalfinance/2013/06/15/higher-interest-rates-stocks-invest/2400513/ [Accessed 14 NOV 2014]. News, B., 2006. Google censors itself for China. [Online] Available at: HYPERLINK "http://news.bbc.co.uk/2/hi/technology/4645596.stm" http://news.bbc.co.uk/2/hi/technology/4645596.stm [Accessed 14 NOV 2014]. Nishadha, 2012. SWOT Analysis Vs PEST Analysis and When to Use Them. [Online] Available at: HYPERLINK "http://creately.com/blog/diagrams/swot-analysis-vs-pest-analysis/" http://creately.com/blog/diagrams/swot-analysis-vs-pest-analysis/ [Accessed 14 NOV 2014]. Read More