Strategic Management of Google - Case Study Example

STRATEGIC MANAGEMENT OF GOOGLE of the of the Table of Contents PRESENT PERFORMANCE 3 GIC POSTURE 3 MISSION 3 OBJECTIVES 3 STRATEGIES 4 POLICIES 4 EXTERNAL ANALYSIS: OPPORTUNITIES AND THREATS (SWOT) 5 SOCIETAL ANALYSIS 5 TASK ENVIRONMENT 7 INTERNAL ANALYSIS: STRENGHTS AND WEAKNESSES (SWOT) 7 INTERNAL ENVIRONMENT ANALYSIS 8 RECOMMENDED STRATEGY 9 IMPLEMENTATION 9 CONTROL AND EVALUATION 10 References 11 Appendix 1 12 Appendix 2 12 PRESENT PERFORMANCE Google has proved to be the well known search engine that aims to serve millions of the customers around the world. By 2000, the search engine started operating in around 15 languages and has gained a huge reputation in the international market (Priem & Butler, 2001). It proved to be helpful to a wide range of customers for various purposes. In 2004, the company gained reputation in the market with around 19,606,042 shares and at a starting price of $83 per share. STATEGIC POSTURE MISSION Google was founded by Larry Page and Sergey Brin in the year 1998 (Barney, 2001). The main aim of the company was to serve the customers with valuable information on various fields and set up its reputation in the international markets. Mission Statement, “To create the ultimate search engine to help the users tame the unruly and exponentially growing repository of information that is internet” (Ireland, 2001). OBJECTIVES The main aim of the company is to provide information to the customers regarding various aspects that would improve their knowledge. To allow the companies to advertise its products by launching new and efficient advertising mediums for them. To enable the customers to send free emails through the mailing options newly launched by Google. To enable the companies to create their own databases for their financial accounts through the spreadsheet option provided by Google and this helps the companies to maintain their financial records. STRATEGIES In 2002, Google launched a new program known as Adwords, which is a cost per click pricing technology meant for the customers, mainly the various companies to advertise their innovations (Zahra & Dess, 2001). Google Doc was introduced by the company to enable the customers maintain databases containing various numerical data regarding the annual sales and profit of the company. In 2010, Google was considered as the leader of technology that aimed at providing information to the people from any part of the world and the Google maps helped the customers to find directions as per their requirements (Hamilton & Nickerson, 2003). POLICIES Google is dedicated towards providing valuable information to the people residing in any corner of the world. It is committed towards serving wide range of customers on various aspects for their convenience. It also aims at providing free information as well as email sending options to the people all over the world and thus set up its position in the international market (Hamilton & Nickerson, 2003). EXTERNAL ANALYSIS: OPPORTUNITIES AND THREATS (SWOT) Opportunities Growing importance of the computer in various fields. Increased requirement of secondary data for carrying out analysis on various aspects. Development of online database management system in various companies. Communication through online services that is through emails (Rugman & Verbeke, 2003). Threats Growing possibilities of research being conducted only on the secondary data available without any verification of the reliability of data. Reducing manpower within the companies due to online management of the databases. Increased possibility of getting addicted towards chatting online especially among the children (Rugman & Verbeke, 2003). SOCIETAL ANALYSIS Economic: Google had to spend a lot of money in order to set up its business. The company has hired efficient managers to control the various teams and handle different projects of the company. The managers and the employees are to be paid high salary in order to encourage them to perform well (Elms, 2010). Hence, the financial accounts of the company have to be handled efficiently with proper allocation of the company’s grants for various projects. Further, the company has to use cost-efficient techniques to serve large number of customers. Politics: The impact of the political environment would be beneficial as well as harmful for the company. However, the political environment did not pose any threat to the launch of Google as it is an online search engine that is expected to provide valuable information to the nation. Also, it plays a key role in communication among people from different parts of the globe (Elms, 2010). Socio-cultural: Google acted as a medium for the advertisers who would prefer to promote social events through its online services. Further, commercial e-mails could be sent by various companies who would like to attract target customers to purchase their newly launched products (Barney, 2002). Technology: Google played a key role in bringing technological innovation to the economy by developing online information system. The customers can obtain information regarding any aspect using the Google search engine. The companies can maintain their online databases using Google spreadsheets and thus deal with huge amount of data (Elms, 2010). Legal: Google had to face some legal issues relating to the laws that were imposed on the business practices dealing with the information technology. Laws related to the liability of the online services were uncertain and posed threat for future development of Google. There were laws and restrictions in the international US markets on collecting irrelevant information from the minors that may affect their psychology (Elms, 2010). Environment: Individuals are becoming more concerned about the environmental issues that give rise to further problems. Hence, Google has launched the online database management system as well as the e-mail services. This is so that the individuals do not waste paper in preparing databases manually and writing thousands of letters which even consumes a lot of time (Elms, 2010). TASK ENVIRONMENT Threats of new entrants: However, Google suffers from a threat that there would be competitors in the market who would aim to provide even better services to the individuals. Hence, the managers continue to design new technologies in order to enjoy their monopoly power (Rugman & Verbeke, 2003). Threats of substitutes: In case there emerges a competitor of Google which provides better services then there remains a possibility of the customers to switch to the new search engine. The company may act as perfect substitute for Google (Rugman & Verbeke, 2003). Competitive Rivalry: The Company is likely to face a competitive rivalry in the near future due to the possibility of the emergence of similar kind of search engine that may offer better service to the customers (Rugman & Verbeke, 2003). INTERNAL ANALYSIS: STRENGHTS AND WEAKNESSES (SWOT) Strengths: Efficient managers Well trained employees Strong reputation as the biggest search engine Use of innovative technology Capable of understanding customer demands Weaknesses: High cost technologies used Irrelevance of the available information Reduction in market share due to emergence of competitors Inadequate information system and lack of security of the online databases INTERNAL ENVIRONMENT ANALYSIS Corporate Culture: The culture within the organization is ethical in keeping with the employees’ job satisfaction and work performance (Elms, 2010). Cooperation among the team leaders and other team members. Corporate Resources: Marketing The managers within the organization are efficient in creating awareness about the new products that are launched by Google in order to attract the target customers (Elms, 2010). Finance The company uses the high cost technologies for launching new products in keeping with the benefits of the customers and as a result earns huge profit in the market (Rugman & Verbeke, 2003). RECOMMENDED STRATEGY The managers of Google are recommended to conduct survey on the individuals using their services more often and plan for improvement according to the feedback. They can even invent cost efficient mechanism in order to reduce the company’s finances related to its innovations. IMPLEMENTATION The team leaders are to form various teams and likewise train them to handle projects related to innovation that would prove to be useful to millions of individuals and organizations that depend of information technology regularly. The teams can even engage in conducting surveys of the loyal customers across the globe. CONTROL AND EVALUATION Google has developed its business by satisfying large number of customers by providing valuable information according to their desires. It has reduced the work load as well as the time spent in writing long letters by introducing the individuals with the new technology of sending online mails. The company has been successful in achieving its mission of helping millions of users by making their mode of carrying business easier. References Barney, J. B. (2001). Is the resource-based “view” a useful perspective for strategic management research? Yes. Academy of management review, 26(1), 41-56. Barney, J. B. (2002). Strategic management: From informed conversation to academic discipline. The Academy of Management Executive, 16(2), 53-57. Elms, H., Brammer, S., Harris, J. D. & Phillips, R. A. (2010). New directions in strategic management and business ethics. Business Ethics Quarterly, 20(03), 401-425. Hamilton, B. H. & Nickerson, J. A. (2003). Correcting for endogeneity in strategic management research. Strategic organization, 1(1), 51-78. Ireland, R. D., Hitt, M. A., Camp, S. M. & Sexton, D. L. (2001). Integrating entrepreneurship and strategic management actions to create firm wealth. The Academy of Management Executive, 15(1), 49-63. Priem, R. L., & Butler, J. E. (2001). Is the resource-based “view” a useful perspective for strategic management research?. Academy of management review, 26(1), 22-40. Rugman, A. M. & Verbeke, A. (2003). Extending the theory of the multinational enterprise: internalization and strategic management perspectives. Journal of International Business Studies, 34(2), 125-137. Zahra, S. & Dess, G. G. (2001). Entrepreneurship as a field of research: Encouraging dialogue and debate. Academy of Management Review, 26(1), 8-10. Appendices Appendix 1 PESTEL FRAMEWORK Political Google could freely conduct its business without any political issues. Economic The company has used high cost technologies to introduce the mechanisms for the individuals. Socio-cultural Google by launching the e-mail services has set up a social relationship among the customers. Technological Technological innovation is important for the company in order compete with modern world. Environmental The company has reduced the use of paper by offering individuals with online services. Legal The company faced various legal issues related to the rules and restrictions imposed on the services dealing with information technology. Appendix 2 Value Chain Analysis Infrastructure Google has set up a huge business to provide a large number of users with the online services and information system and hence, the company is well equipped with huge infrastructure to satisfy its customers. HRM The HR management within the organization is efficient enough in hiring employees who are dedicated to the organization and capable of performing their duties well on time. Technology Development The company uses innovative technologies to carry out their job efficiently without wasting much time. Procurement The company aims at maintaining its reputation in the market by carrying out surveys and collecting customer feedback and improving their mechanism accordingly. Inbound Logistics The raw materials for developing new technologies had been obtained from parts of the United states. Operations Operations were carried out within the company to launch new mechanisms beneficial for the users. Outbound Logistics Google announces the launch of new mechanisms to its target customers using online advertisements. Marketing Google has created a huge awareness regarding its online services and most of the customers depend on these services. Services The services given by Google are user-friendly and it has gained support from millions of users. Appendix 3- Strategic Group Mapping Read More