Google analysis - Case Study Example

Google case study analysis April 22, Case Summary Google’s executives are worried that it will be too late for Google to effectively compete with Baidu, the current leading search engine in China. With 123 million Internet users in China, second only to the U.S. with 207 million Internet users, Google cannot afford to not operate in China. At present, Chinese users can access Google through its usual domain, but because China’s Great Firewall censors Google’s search results, the search can be very slow and sometimes unproductive. Google aims to capture greater market share by acquiring a “.cn” domain name, because the Chinese are quite nationalistic when it comes to their brands. At the same time, Google knows that having servers behind China’s Great Firewall will improve users’ search experience. China’s main concerns are using Google to prevent brain drain and ensuring Internet censorship. The Chinese government knows that Google, once inside China, can offer access to its proprietary technology and encourage Chinese engineers and scientists to work in China, instead of abroad. China, however, also sees its censorship concerns as one of its top priorities. It believes that without strict Internet censorship, its political stability will be undermined. Still, China is also aware that having Google in China will also be good for China in terms of economic and knowledge needs. This paper provides a proposal outlining what the consultant should consider to be the key cultural management issues in this case study. Analysis The key cultural management issues for Google are: negotiation between two cultures with opposing social and cultural values, and understanding the factors that affect Chinese culture and how these factors can be used to persuade China to allow Google to operate in China. The first issue is negotiation between two cultures that have diverging social and cultural values. On the one hand, Google and China have strong social differences. Google wants to do no evil and it wants to provide all information needed by Chinese users. On the other hand, Google also wants to follow local laws and procedures, as it does with other countries, although it does not want to support political oppression in China. China wants to control search engines and other Internet websites to impose political control, which is often criticized as a modern form of political oppression, because it violates people’s freedom of speech and freedom to access free information. Using Trompenaar’s value dimensions, it is clear that eastern cultures like China prefer building relationships first, before doing business with others. The Chinese are believed to be motivated by openness and acceptance, while American companies like Google are motivated by reliability and congruence (Gaunt). China wants to have an open relationship with Google, where it expects Google to open its technology to its Internet restrictions. Google, however, cannot compromise its principles. It wants something gained for something it will lose. If it is going to do some self-censorship, it must get something in return. Furthermore, it is important for Google to understand the factors that affect Chinese culture and how these factors can be used to persuade China to allow Google to operate in China. This will help Google to also form “Batna” or Best Alternative to a Negotiated Agreement. China’s history of political and socio-economic problems motivates it to quell all dissents. It also has a communist government that somewhat sees Western values as decadent and ruinous to its people. Nevertheless, China wants to align its economic and political goals. It aims to balance openness with the ability to control the Internet. China and Google have common economic interests, which can be the basis of their long-term relationship that can balance conflicting social goals. Google should find something to offer that can benefit China economically, if it wants to be able to persuade China to set up servers behind its firewall (Barboza, Helft, and de la Merced 2010). Google should offer China proprietary knowledge to its Chinese employees, while it censors some words and informs the users of this censorship. This way, it addresses the economic and political interests of China without compromising its principles. Declan’s Law says: “The more you have explored with the clients the true cost of their problems, the greater the demand for your product and the less negotiating you will have to do” (Barboza, Helft, and de la Merced 2010). Moreover, Google should emphasize China’s need to censor the Internet and use it as leverage as its Batna. Google, as a second recourse, should inform China that it will pull out from China and just develop technology somehow that can allow Chinese users to use their search engine with little delay and with full results. This can convince China that it is better to have Google inside China, so that it can closely watch over it, instead of allowing Google outside and not being able to censor it. Key Learning Trompenaar’s value dimensions and other marketing laws and tools can be used to enhance Google’s multicultural management of China. If it wants to operate in China, it must consider China’s demand for openness and acceptance. Furthermore, Google should also understand China’s history and politics. China has rigid laws and political processes; although it might opt for compromises, if it can have some benefits that will serve its interests. China has political and economic goals too, and Google can use the same goals to help it convince China that having Google inside China will be good for China too. In addition, any company that wants to operate in another culture that has different, even diverging, values, should carefully consider if and how much they can compromise their own values, in order to do business in this market. They should understand not only what these cultural differences are, but also how they were developed and implemented. Also, if they cannot find common interests and their principles are too important to be compromised, they should consider other markets or other culturally-appropriate ways of negotiating with the gatekeepers of these markets. Reference List Barboza, D., Helft, M., and de la Merced, M.J., 2010. A compromise allows both China and Google to claim a victory, New York Times, 10 July, p. 1. Print. Einhorn, B,. 2006. Google searches for a home in China, Business Week, 23 June, p.11 Grogan, C. and Brett, H., 2006. Google and the government of China: A case study in cross-cultural negotiations. Kellogg School of Management. Gaunt, Sally Anne. Managing across cultures. Semester 1 2012. Read More