Googles Steep Learning Curve in China - Case Study Example

The paper "Business and Management Decision-Making: Google’s Steep Learning Curve in China" is a perfect example of a case study on business. According to the author who won The World Is Flat, Thomas Friedman, the internet is developing rapidly amongst the world changes thus making the globe smaller or flat. The flattening effects cause the internet business to quickly cross borders and increase profitability with little constraint associated with it. Nevertheless, the venture in cross-border business is accompanied by challenges such as competition from other people whether they are internet-based or not. There are those new ventures on the internet that succeed while most others fail. Such a case is the Google company learning curve in China.

Google Inc. tried different ways to expand its business in china for instance opening its website in Chinese-language. Whenever Google needed to access the Chinese market, google.com, which was the new site by then added power to the company and gave a direct way to the penetration of over 94 million households who could access the internet in China. Unluckily, access to the Chinese users of Google services out of china was unreliable and very slow. Despite the pitfall, the government noticed the company's operations, and more attention was acquired from the public.

Google believes that leadership should be empowering people to strive to perform better. The products and services offered are not dictated by the founders but by the customer needs. It is to make the customers feel superior and in control of their needs.

Introduction

When Google got into china, it got access to a larger market through some ethical issues resulted. The authorities in China are known due to their hardline censorship rules concerning the internet. To be able to have a deeper access to the market in China, Google appointed Dr. Kai-Fu Lee to head the company to new efforts in China. He had the expertise because he worked with Apple company in California and later for Microsoft in China where he had established a research and development lab for Microsoft Company in Beijing. He, therefore, was knowledgeable about how he could handle Google's business and overcome all the cultural challenges in china.

Google planned the strategies it would apply so that its services would grow and be accepted in china. It had to come to terms with the government by removing all the websites not approved by the government. With the authorities on their side, Google would have a competitive advantage over other companies offering the same services. When not established properly in the market recession cases arise as most of the services are not selling. Advancing the internet is a way Google used to reach more people in china such as using the Chinese language.      

Google profile

Google had an informal motto ‘Don’t be evil’ and had a code of conduct that aspired to strive toward the highest possible standards of ethical business. When the government of china demanded to know the deep meaning of the logo used, the executives of Google answered that the license was only a set up for an official representative in Beijing and nothing more to it. The main interest of Google was to study the market structure in china so that it could operate effectively. At one time, the company held a press hearing and they were asked about their operations where they sidestepped all the ethical questions and insisted that they would only answer such questions when they were operating fully in china (BENSOUSSAN, 2013).

Dr. Lee supported the utopian motto by the Google Company through the conduct of business in china seemed less idealistic at that time. To have people like the logo of the company, the executives decided to remove any sites that were disapproved by the Chinese government. For instance, Falun Gong was a spiritual movement. Having the government on the side of the company, it would be easy to conduct business (STEIBER, 2014). 

Google business strategy

The first strategy that Google used was the hiring of Dr. Kai-Fu Lee as the leader of the company in china. Having grown and studied in China, he knew the market trends and would steer the business to success. He had added advantages such as he once worked with Apple Company and Microsoft in China. He, therefore, knew how to grow the companies in the region which is an added advantage to Google. He even had established a research and development lab for the Microsoft Company and therefore having enough knowledge of the region, Google knew they would entrust the company to him to grow it in that region.

The motto of the business was the other strategy where they used a phrase that would make the government sees that the company agreed with their serving terms. The motto doesn’t be evil was important because the authorities did not encourage unethical and immoral behavior associated with the internet. To prove their loyalty, the company even deleted some websites that the government did not agree with. In this case, the china government would be convinced that Google had no bad intentions and support their business.

The organizational structure is advantageous in that it attracts more consumers when they feel they determine the services that Google will offer them. The disadvantage is that when the company loses control over what they have to produce, it can get on the wrong side of the government which may destroy its business.  

Google challenges in china

The authorities in China are known due to their strict censorship rules when it comes to the internet. They firmly stand against risqué content and object to the Sims computer games due to the fear that the youths in the nation will be corrupted by it. Google faced banning some of its services which were a possible threat to state security, would destroy the glory of the nation, cause disturbance to the social order, and invade any legitimate rights. The strict rules forced Google to come up with a logo not to market their services but to make the government happy and agree with their activities in China (PRIDE, 2010).

Bunning of some of their websites by Google is a challenge to them because, despite the fact they had to make the government happy, they had to look at the business side. Banning the websites meant losing their customers to competing companies. These websites are found in other countries still offered by Google, in china that could not happen because the authorities control how the internet runs (NEHLS, 2011).     

Results of a decision to close down Google operations in china

In case of closing down the business, it would mean losing customers to the competing organization. The company will no longer offer the services such as the internet using the Chinese language and those who used it will look for other internet services that are more reliable and long-lasting. The company will as well lose the loyalty of many countries not only in China but in other places as well. It is because the customers may fear the business will be shut down in their countries as well and they, therefore, look for other companies with the same services but more lasting (CHOW, 1999).

The company experiences a loss in a different way, for instance, loss in cash due to the expense associated with the process. They had invested a lot of money to establish these services for china example use of the Chinese language and it has to be closed completely because no other country will require such services. In the process of leaving the country, work equipment may be damaged yet they are expensive as most of them are machines. Therefore shutting up a business would be a total loss (EFTIMIADES, 1994).  

Conclusion and recommendation

For the company to succeed, it requires planning for all its ventures and evaluating the results. Analyzing the market they are planning to take on is very important as it is the overall decision if to invest in an area or not. The decisions the company makes should be evaluated carefully before they are passed. For instance, the decision Google made in the United States failed and caused a fall in the stocks of company. The motto they establish should be able to satisfy the customers and the authorities to avoid any confusion.

I would call upon Google Company to change its logo in china. It should not only please the government but attract customers as well. Balancing the two is important as it will ensure success. Google should keep up with changes in technology to ensure they satisfy their customer needs and overall maximize their profits.