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Tools1-7GOOGL-Parchman.pdf
Page 3Jared Parchman
Company Analysis Google LLC.
TABLE OF CONTENTS Tool 1: Historical Analysis Page 4 Tool 2: Mission Statement Page 5 Tool 3a: External Factor Evaluation Page 6 Tool 3b: External Factor Evaluation Page 7 Tool 3c: External Factor Evaluation Page 8 Tool 4: Competitive Profile Matrix Page 9 Tool 5a: Internal Factor Evaluation Page 10 Tool 5b: Internal Factor Evaluation Page 11 Tool 6a: Cohesion Analysis Page 12 Tool 6b: Cohesion Analysis Page 13 Tool 7: Generic Strategy Page 14
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Years 12/31/09 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 Net Income (Millions) 6520 8505 9737 10737 12733 14136 15826 19478 12662 30736 34343 40269 76033 74539 72061
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https://about.google/our-story/ https://www.cnn.com/interactive/2018/12/business/google-history-timeline/index.html https://www.mirrorreview.com/history-of-google/ https://www.britannica.com/topic/Google-Inc
2012-13 2015-16 2017-18 2021-22 References: https://www.macrotrends.net/stocks/charts/GOOG/alphabet/net-income
Jared Parchman
Historical Analysis Google LLC.
Purpose: To analyze the Net Income of MGM throughout the previous 15 years of their company and also state the strategic events that have happened within their organization. By stating the strategic events that have made MGM what they are, we will be able to see how their company has been sustaining throughout the Consumer Services sector and within the Hotel/Resorts Industry.
Historical Timeline of Strategic Events
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Revised Mission Statement
Modern day problems require modern day solutions. As a world renown company, we strive and continue to offer our services by providing superior products and intelligence to remedy day to day problems into one second solutions for all that seek the technological, business, and daily needs powered by yours truly, Google.
References: https://www.comparably.com/companies/google/competitors
Quality
Employees
Public Image
Self-Concept
Philosophy
Survival/Growth/Profitability
Technology
Markets
Products/Services
5 (Highest)
Customers
Jared Parchman
Mission Statement Evaluation Google LLC.
Purpose: To state and evaluate Google's mission statement and improve their deeper meaning, while listing the ten components found in the book and stating how Google's mission statement relates to those constinuents.
Mission Statement
Google's mission is to organize the world's information and make it universally accessible and useful.
Components 1 2 3 4
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PRESENT
FUTURE
Economic Factors Inflation Rate 0.80
0.60 Economic Growth Rate 0.75
1.00 Labor Costs 0.30
0.30 Exchange Rates 0.30
0.15 Business Cycle Stage 1.20
1.50
PRESENT
FUTURE
Political Factors Anti-Trust Laws 1.20
0.90 Level of Corruption 0.25
0.50 Wage Legislation 0.45
0.30 Foreign Regulations 0.10
0.20 Taxation 0.20
0.20
PRESENT
FUTURE
Social Factors Culture 0.75
1.00 Demographics 0.30
0.30 Leisure Interests 1.60
2.00 Educational Standard 0.15
0.20 Class Structure 0.60
0.60
Total 1.00 3.40 4.10
0.40 Opportunity
0.05 Opportunity
0.20 Threat
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0.10 Opportunity
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Total 1.00 2.20 2.10
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Total 1.00 3.35 3.55
0.10 Threat
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0.30 Opportunity
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0.20 Threat
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Jared Parchman
External Factor Evaluation Google LLC.
Purpose: To analyze external factors that might present threats or opportunities to Google Products in their future endeavors.
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PRESENT
FUTURE
Technological Factors Development by Competitors 0.40
0.20 Impact on Product Offering 0.75
1.00 Impact on Cost Structure 0.30
0.20 Impact on Value Chain 1.20
1.50 Rate of Diffusion 0.60
0.45
PRESENT
FUTURE
Ecological Factors Waste Management 0.45
0.60 Environmental Pollution Laws 0.30
0.30 Renewable Energy 0.40
0.50 Climate Change 0.40
0.60 Air Pollution Regulations 0.80
0.80
Total 1.00 2.35 2.80
0.10 Opportunity
0.20 Opportunity
0.40 Threat
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Jared Parchman
External Factor Evaluation Google LLC.
Purpose: To analyze external factors that might present threats or opportunities to Google Products in their future enterprise endeavors.
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References:
Technological
As competitors continue to develop new technology, that poses the threat to Google of losing customers to other businesses. With the demand of technological rate of diffusion, that can become expensive for companies like google, as they are almost pressured to keep up with the rest of their competitors. However, technology has improved the value-chain structure by eliminating errors, and will continue to do that, which will present an opportunity to Google. Alongside that, technology has also offered a quicker way to roll out product offerings, and as technology continues to advance, it presents a good opportunity as well.
Ecological
Google is working on becoming a more environmentally safe company, as they have announced initiatives to increase their renewable energies, reducing carbon emissions, and increasing energy efficiency of their buildings which presents opportunities for Google to improve in that aspect. Google and it's subsidiaries aim to be carbon free by 2030. If this happens, other companies should follow in those footsteps.
Political
In the Meta, most political factors involving technology often times find resolution, mostly due to wage legislation, taxation laws and Anti-Trust Laws. Thus, those who aim to keep corporations regulated, most politicians seek to demonopolioze companies to prevent bigger companies from expanding past govermental powers. In addition, with all else considered, creating wage legislation and taxation laws costs every company money, which presents a threat.
Social
In the social aspect, leisure activities is definitely the leading factor which makes Google successful, as their entire company is not at all a necessity to citizens. However, with the expected economic growth in the economy, this presents a strong opportunity for (GOGL) to be successful in the upcoming years, as well as the Culture and Demographics surrounding the company. With the increasing technology of the business world, it will continue to have it's moments of glory and downfall through the next era of evolution.
Jared Parchman
External Factor Evaluation Google Products
Purpose: To analyze external factors that might present threats or opportunities to Google LLC. in their future endeavors. SUMMARY OF VARIABLES AND FACTORS
Economic
Prior to the pandemic, inflation has been a prominent factor throughout the US. Although, inflation is expected to simmer down in due time, one can expect it to be a threat within the next five years. With increasing labor costs, and increasing exchange rates, both of these issues can be apparent to Google LLC. to be successful in upcoming years. Moreover, with the economy anticipated to recover, that also presents Google LLC. with a growth opportunity. Most of their business comes from Ad revenue and Tec products, so assuming the business cycle stage improves, there is a great opportunity for (GOGL) to increase profits.
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Rank Score Rank Score Rank Score Rank Score Net Income 4 0.60 3 0.45 1 0.15 2 0.30 Earnings Per Share 4 0.80 1 0.20 2 0.40 3 0.60 Employee Satisfaction Rating 1 0.10 2 0.20 3 0.30 4 0.40 Net Promoter Score 2 0.30 1 0.15 4 0.60 3 0.45 EBITDA 4 0.40 3 0.40 1 0.10 2 0.20 Product Quality 2 0.30 1 0.15 4 0.60 3 0.45 Debt to Equity Ratio 4 0.60 1 0.15 3 0.45 2 0.30
Total 3.10 1.70 2.60 2.70
https://www.comparably.com/competitors/amazon-vs-google https://terakeet.com/blog/amazon-vs-google/
Product Quality
In comparison to the quality of the products, Google ranked very closely to Microsoft, and had an overall rating of a 3.6/5. As a result, it's the not the best, yet again it is suffiicient if their returns on their products are achieving high yeilds. Therefore, if Google were to utilize this forward momentum and generate more appeal to their products, they have the best chance to remain as a top forefront in their industry across the board.
Debt to Equity Ratio
In most instances, a lower debt to equity ratio is better, as it lowers the risk of the overall business. Moreover, in the Tec industry, it takes research and development investments to create and shape the market as it grows. As a fact, there are more risks involved than in the average service industry. However, Google has done a tremendous job on keeping their debt to equity ratio consistent over the years, with it being stagnant roughly right under 2.0, whereas its competitors have not been consistent in this category.
References: https://thinkinsights.net/strategy/competitive-profile-matrix/
Employee Satisfaction Rating
One of the most important factors when gathering the broadscope of a company is to measure how difficult it is to work in that particular industry. In this specific area, Google LLC. ranks as one of the best of all four companies, which gives them area to improve in this aspect. Complaints with Google employees seem to come from the fact that they claim the business sometimes gets more concerned with corporate gains rather than the privacy of its customers and the prevention of discrimination of
Net Promoter Score Net Promoter Score measures customer satisfaction and the likelihood that they would recommend a specific business to other people. While Google ranked amongst the highest in this aspect, it is not necessarily a red flag as their rating came back positive.
EBITDA Along with almost every other financial metric used, Google ranked highest out of its competitors in EBITDA. This metric is important to disguise from net income, that Google is maintaining earnings appropriately before taxes, depreciation, and amortization.
0.15 1.00
Net Income
Reluctantly for GOGL, their Net Income has stayed positive in almost every year over the past 10 years. However, there have been declines in the Net Income that Google managed to retain, as of last year Google realized steady growth in Net Income (YOY). Although they have maintained better than their competitors, Google by each category, can still aim for improvement in other areas more, but less defiecient than it's competitors.
Earnings Per Share We can assume that every business was impacted by Covid-19, but Google adapted quickly, as the majority of these businesses rely on in-person stays and people being physically present. But, Google ranks highest in the Earnings Per Share category, as it shows that Google sustained its profitability the best, as opposed to its competitors over a long period of time.
0.15 0.20 0.10 0.15 0.10 0.15
Jared Parchman
Competitive Profile Matrix Google LLC.
Purpose: To compare Google to its competitors within its industry by evaluating Key Performance Indicators to identify strengths and weaknesses of the business.
KPI Weight Samsung Google Microsoft Amazon
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1 2 3 4 5 0.40
0.50 0.15
0.20 0.75
0.60 0.30
0.40 0.15
0.10 0.40
0.30 0.32
0.40 0.15
0.20 0.21
0.28 0.25
0.25 0.20
0.15 0.40
0.50 0.15
0.15
Google from top to bottom can be seen as an upper echelon company. Fun fact: Google provides three meals a day to its employees. What does that tell you? As much Google already offers on it's campus. Outside of that realm, it's main strenghts consist of being a market leader in search engines, has dominion in online ad services, android mobile operating system, command over machine learning, respository to exponential amout of data. Last but not least, it's brand power and it's culture to cultivate and innovate.
Total 1.00 3.83 4.03 STRENGTHS
Expansion 0.05
Free Cash Flow 0.10
Leader in Search Engines 0.05
Market Reach 0.05
Development of Products 0.07
Updating Technology 0.05
Qualified Employees 0.05
Recovering Economy 0.10
Appeal of New Products 0.08
Total Assets Increase 0.05
Financials 0.15
Covid Restrictions Easing 0.10
Hi gh
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FUTURE
New Market Entry 0.10
Jared Parchman
Internal Factor Evaluation Google LLC.
Purpose: To find strengths and weaknesses within the industry, and compare it to Google LLC. to find areas where google is succeeding and where it can improve in the future.
STRENGTHS
PRESENT
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1 2 3 4 5 0.10
0.15 0.20
0.20 0.10
0.05 0.36
0.24 0.20
0.10 0.13
0.26 0.05
0.10 0.05
0.05 0.45
0.30 0.16
0.08 0.15
0.15 0.14
0.07 0.15
0.10
https://www.statista.com/topics/1001/google/#dossierContents__outerWrapper https://www.swotandpestle.com/google-inc/
A company can be as strong, in terms of success, as long as they are capable in creating opportunities which lead to innovation and reimagination towards a better tomorrow. In the same notion, Google has proven to be impactful as well as efficitive in societal contribution. However, where there is strength, there is also weakness. For example, some of the figures above such as advertising; Google appears to have an over-dependence on Ad Revenues and dropping Ad rates. Lastly, another weakness to be identified is security and censorship concerns. References: https://www.macrotrends.net/stocks/charts/GOOG/alphabet/financial-ratios
Total 1.00 2.24 1.85 WEAKNESSES
Entry into New Countries 0.05
Long Term Debt 0.07
Government Intervention 0.05
Lawsuits 0.05
In-Person Attendance 0.15
Quality of Products 0.08
Labor Cuts 0.10
Tax Regulations 0.13
Environmental Regulations 0.05
Employee Satisfaction 0.10
Asset Turnover Ratio 0.05
Customer Service 0.12
Hi gh
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FUTURE Advertising
0.05
Jared Parchman
Internal Factor Evaluation Google LLC.
Purpose: To locate strengths and weaknesses within the industry, and compare it to Google to designate areas where Google is succeeding and where, technically, it can improve in the future.
WEAKNESSES
PRESENT
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4 Protect your privacy, guided by google's privacy principles which makes data more helpful to individuals and groups.
5 Sell ads, nothing more. Help creators succeed online.
Analysis In conclusion, the mission statement covers the broadstrokes of what goals and objectives align with each other to sequence the stages of perpetual growth and a positive environment.
Objectives
1 Deliver the most relevant and reliable information available.
2 Maximize access to information, by making it accessbile and useful to everyone from everywhere to help those understand the world around them.
3 Present information in the most useful way. This is done so by delivering information in the form of different types of contents such as, news, sports, videos, images, etc.
4 The focus on innovation is always shfiting towards the future especially with other competitors in the market like Facebook and Apple. Development and Research is an important component to this.
5 Google has ambition's to promote their products and services on the web through financial investments.
Analysis As technology and the combined morals of the company remain in tact, Google is bound to define the next decade of user interface with technology and innovation. Google LLC. will not only strive, but thrive in accordance to it's principalities
Goals
1 The main focus on Google is to enforce and push the known limits of exisiting technology, in order to create the best user experience possible.
2 Google plans on advancing it's infrastructure to boost engineering productivity, workforce gorwth, and international markets with new products.
3 Google has aim to improve their ad system in all seriousness in order to support business owners with google's AdWords program.
Jared Parchman
Cohesion Analysis Google LLC.
Purpose: To identify goals, objectives, and policies that in turn support the actions and Mission Statement of MGM Resorts.
Mission Statement
Google's mission is to organize the world's information and make it universally accessible and useful.
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5 Maintain and build strong relationships with our partners to provide a competitive advantage in the marketplace and support our mission to deliver the best ongoing experience, which is essential to the company's overall growth.
Analysis Google's policy compliance and adherence is key to their short-run and long-term success. Over the last decade is noteworthy that without their strong foundation of technological advantages their current position in today's world would look a little different. Thus and plus, Google's Search Engine has been monumental in today's society, and additionally, shall be provisional in future settings and interfaces. References:
2 Google is known for its credibility and fairness, and that means that avoiding conflicts of interests that can affect Google's rapport.
3 Whether information belongs to us or another company, we make sure to never share it or use it unlawfully.
4 We build credibility by utilizing our talents and ingenuity to achieve our goals.
Jared Parchman
Cohesion Analysis Google LLC.
Purpose: To identify policies, goals , and objectives that in turn support the actions and Mission Statement of Google services.
Policies
1 Google cooperates with properly conducted audits or investigations in a truthful and ethical manner.
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Yes
References: No new references listed for this page
Does the company have a strong position in at least one segment of their defined market?
X
Overall Assessment
Analysis
Google Inc. as a entity has abundant resource of its own materilaization making them very self sufficient in comparison to those similar in this industry and market. Both internal and external features of google are strong yet flexible enough to continue to innovate as well as promoting innovation that adapts. Therefore, Google products and serivces will proceed to elevate more so in the future.
Focused (Product Leadership) Yes No
Does the subject company have a core competency or distinctive advantage in at least one functional area?
X
Overall Assessment Yes Overall Assessment Yes
Incentives Based on Strict Quantitative Targets
X Ability to Attract Talented Labor and Management
X
Highly Structured Organization Structure
X Subjective Measurement of Personnel for Incentive Purposes as Opposed to Quantitative Measures
X
Frequent Detailed Control Reports
X Strong Internal Cohesiveness Among Departments
X
Tight Cost Controls X Long Industry Tradition/Unique Skill Set
X
Low Cost Distribution System
X Corporate Reputation in Quality Technological Leadership
X
Products Designed for Ease of Manufacturer
X Strong Distribution Channels X
Intense Supervision of Labor
X Strong R&D X
Strong Process Engineering Skills
X Corporate Creative Flair X
Ready Access to Capital X Strong Product Engineering X
Sustained Capital Investment
X Strong Marketing Capabilities X
Jared Parchman
Generic Strategy Google LLC.
Purpose: To determine effectiveness of Google through evaluation of their generic strategy. Low Cost Leadership
(Operational Excellence) Requirements
Yes No Differentiation
(Customer Intimacy) Requirements
Yes No
