Capstone

Week 3 Assignment 1

Nikema Foster-Carrero

Strayer University

BUS499 Business Administration Capstone

Dr. Brian C. Grizzell

Date July 22, 2018

Week 3 Assignment 1

Introduction

The company that I have chosen to discuss in this writing assignment is Google. Starting as Backrub by two graduate students who had the vision to create a search engine with links attached to the world wide web. Google is a leading technology company that consists of vast amounts of software and hardware that is available worldwide. Their unconventional methods were the basis Google was founded by and they are continuing by creating hundreds of products used daily by millions of people and majority of their services are free. Their headquarters is in Parkway in Mountain View, California, United States. As of now, this company has developed and implemented the mechanisms that have enabled it to compete effectively in the global realm of Information technology. Also, the company has heavily invested in the most modern programs and services that have enabled it to consolidate its global business status.

In this paper I will be discussing how globalization and technology changes have impacted Google, how the company can earn above average returns based on the industrial organizations model, how the vision and mission statement influences its’ overall success, and how each category of stakeholder impacts the success of the company.

Globalization

Since Google has dominated the search engine industry, it seems only fair for them to dominate the rest of world, right? Google is a leader in reaching a global market. In 2005, the company decided it was going to expand their market to China, Europe, and Japan. Today, Google serves over 100 countries however, 25 of them are partially blocked. Although you would think that Google would be in competition with Bing or Yahoo, according to an article from searchengineland.com the Executive Chairman, Eric Schmidt stated that their biggest search competitor is Amazon. Apple and Facebook are among the global competiors. These companies are also innovative which creates heat for Google. Although Android controls majority of the market, Apple’s innovative creations can’t be ignored. The article also states that Facebook and Google combined make up more than 50 percent of the overall markets, from a mobile and market share perspective.

Technology

Technology evolves at a speed of 18 months according to Moore’s Law which is also known as technology diffusion. According to the text book disruptive technology destroy the value of an existing technology and creates new ones and new products contribute to the information age. Google’s strategy always keeps consumers fresh with new technology that is designed to never keep the consumer waiting. They are surpassing their competitors with items such as Google Duplex which is a speaker like Amazon’s Alexa, Gmail upgrades, Google Maps, Android P and much more. Cloud computing is among one of Google’s most innovative products. They have created a system that has changed how individuals and businesses interact. The advantages of cloud computing are plentiful, they include “pay as you go” which can be increased or decreased based on need and capital expenses can be transitioned to operating expenses. With the help of AI technology, Gmail has been upgraded to assist the user to create draft emails. Google photos are another feature that has become an asset for consumers. Google photos ensure you never have to lose a photo again because it’s attached to your google account. It also allows you to edit the photo by changing the colors, background, and animation.

Industrial-Based Model

As stated in the textbook, Industrial Organization Models of above average returns explains the external environments’ dominant influence on a firm’s strategic action. By Google’s main source of profit comes from business ad, the state of the government is major factor on their success. Since most governments don’t have identified laws, Google is able to operate freely with the exception of China who has presented a barrier by enforcing Google to operate on its terms. GDP has been increasing at an average of 3%, keeping up with inflation, countries such as UK, South Africa, China, and India have reach a level of over 17% means that more ads will be purchased strengthening their economy. Technology factors are where Google excel. As previously stated Google is a leader in technology. Their strategy always keeps consumers fresh with new technology that is designed to never keep the consumer waiting. They also offer training and testing through G suites that provides their consumer with skills necessary to become an android developer. Google implemented Alphabet which acts as an umbrella and it separates Google’s businesses. This has lessened challenges when obtaining new businesses, created a simplistic method to build the required capabilities, and allowed the units to make decisions on strategy and execution.

Resource-Based Model

The textbook states that a resource-based model assumes that each organization is a collection of unique resources and capabilities. Google has definitely proven its’s uniqueness from the beginning with its’ corporate values which are; Don’t be evil, technology matters, make own rules, managing innovation part of culture and never settle for best. Google encourages creativity in their employees. Google has a day called “20% day” where employees dedicate up to 8 hours for their side projects. This promotes creativity which has directly affected the company in a positive way. In addition, they also offer perks that consists of free food every day, gym facilities and not to mention you get to work with geniuses every day.

Vision

Panmore Institue states, that Google’s vision statement is “to provide access to the world’s information in one click.” They have accomplished their vision and are continuously expanding to have access to the entire world. The number of google searches per day have increased from 9,800 to over 4.7 trillion on average and it’s growing. There are 3 variables to the vision statement, world information, accessibility, and one click. They have accomplished world by expanding to over 100 countries and they keep a large database indexes all of the sites, and to maintain accessibility you would have to make your product free, and they do that for many of their products. One click gives them the information they are seeking.

Mission

Panmore institute states Google’s mission statement is “to organize the world’s information and make it universally accessible and useful.” The vision statement and mission statement are similar. The mission statement has 4 variables instead of 3 which are world’s information, organization, universal accessibility, and usefulness. These variable correlate with the vision statement as well. Top executives have tossled with the idea of changing the missions statement to something that applies to what have evolved into, the mission statement has been left as is for now.

Stakeholders

Google is known for diversity, and that holds true for everything they do including their stakeholder. In order to continue on the path of innovation and leading the tech world, their stakeholders must possess the qualities that is necessary for growth. Ordinarily you would think the top stakeholders would executives making decisions however for Google, their top stakeholders are users, employees, advertisers and other customers, investors, governments, and communities, in that order. The user is the most significant based on satisfaction, sort of the gateway to what they structure their basis around. Employees are a strong priority, Google is known as one of the best places to work and thus far the competition to get in and give your best as an innovator and be apart of history is high. Not to mention the perks a good too. Being that the main area of revenue generated is from advertisier or other customers I would say they have a high importance level. Google went public in 2004, by that time everyone had witnessed a change in history and Google was certainly a part of that. Individuals eager to be a part of history decided to invest in the company. The products are offered around the world and the potential for maximum growth made people choose to invest in the company without hesitation. Governments are stakeholders because they have to do with legal compliance since the company has expanded globally they must adhere to the rules in every area. Communities are important stakeholder because they give a broader exposure to the company. Google believes in giving back to the communities. They have a program that provides notebook laptops to schools to promote literacy. Overall, the company does well with its stakeholder, they are influential to their success.

Conclusion

In Conclusion, Google is the leading technology company of it’s time. The company has been able to globalize its market by reaching over 100 countries. They are paramount in the technology field creating some of the most innovative products of our time, including Google Maps, Gmail, Android P and cloud computing. Their industrial organization and resource models bring forth a culture that is determined to provide creativity and change lives, which their vision and mission go hand in hand with that philosophy. Stakeholders are key to their success and the company considers the most valuable stakeholder is the none other than the user.

References

Enge, E. (2016 May 24) Competitive threats to Google, and what they mean to you, Retrieved from https://searchengineland.com/competitive-threats-google-means-249772

Harrison, J. S., & Wicks, A. C. (2013). Stakeholder theory, value, and firm performance. Business ethics quarterly, 23(01), 97-124

Hitt, A., & Ireland, R.D., & Hoskisson, R.E. (2001) Competitiveness & Globalization Strategic Management 10th edition, (01), 14-17

Myer, P (2017 Jan 28) Google Stakeholders and Coporate Social Responsibilithy (CSR), retrieved from http://panmore.com/google-stakeholders-corporate-social-responsibility-csr-analysis

Rowland,C. (2017 Jan 28) Google PESTEL/PESTLE analysis & recommendations, retrieved from http://panmore.com/google-pestel-pestle-analysis-recommendations

Thompson, A. (2017 Jan 28) Google’s vision statement and mission statement, retrieved from http://panmore.com/google-vision-statement-mission-statement

Vise, David. (2005 May 13) Google to Focus on Expanding Its Business Overseas, Retrieved from http://www.washingtonpost.com/wp