Regent International Education Group

520, Queen Street, Auckland.

Strategic Management (Subject code-SM701)

A Case Study on Google

Submitted To: Patrick Foong

Regent International Education Group

Prepared By:
Aowrongajeb Chowdhury ID-1210026, Session-June, 2013. Level-7, Diploma in Business (Advanced) Regent International Education Group

Date of Submission: 27th June, 2013.

Question-1: What influences strategy development in Google? As Google is a giant corporation and it is the market leader, so its strategy should be distinctive and unique. To keep upward its growth, Google always consider some factors which influence very much in the mean time of establishing its strategies that are given below: 1) Trend: Google tries to adopt new trend to get comparative advantages than that of its competitors. This new tendency influences Google to set up its strategy. Google launched its share through open IPO system by which buyers bought share on the basis of the fair price, this new trend in USA established a distinctive theme for Google. Google also set up its governance structure with a two-tier board of directors. As a result, there is a distance between management and shareholders, therefore management can get freedom to run this company. 2) Competition: Rivalry is another factor which also influences Google to set up its strategy. In the age of 21 st century there is a huge completion among the rivals. To avoid completion against its competitors such as Microsoft, Apple & yahoo etc and also to get more advantage from market, Google prefer acquisition strategy.

3) Technology: Technology is one of the key factors which influence Google to establish its strategy. At the age of advanced technology, every moment many technologies are introduced by different corporations. Usually customers will prefer that corporation which provides a wide range of technology coverage and, of course, most updated technology. So Google provides service in Blogging, Radio, TV Advertising, Online payment service, Social Network and mobile Operating System. 4) Culture: Googles culture always influences to its strategy. It has its own culture in where employee can do anything whatever they want and they are doing work whenever they feel better. So they can be easily managed.

So, competition pressure, innovation of technology, new trend and privilege of its own culture always influence Google to establish its strategy in the proper way.

Question-2: What are the strengths and weaknesses of their approach? As every approach has strengths and weaknesses, Googles approach also has both of them. The strengths of the approach of Google are given below: 1) Evaluation by Peer: In Googles environment, engineers work in a small group who are independent and their performances are evaluated by their peer, not by their upper level management. As there is a competition between peers to get promotion and reward, they try to do their best in the work place. Another think is that as there is a good relation between them, so they are co-operative and close to each other, so corrective actions can be taken promptly at the initial stage. 2) Freedom: Engineers can spend 20% of their work time to personal projects which motivates them to introduce new products and create new knowledge. It facilitates many things for their employees include meals, messages and swimming pool. This freedom encourages employees to do a lot of works and invents new things for Google. 3) Highly qualified employees: Every year thousands of talents apply for job in Google. It recruits employees through arrogant tests and interviews and they also must pass from leading universities with master or doctorate degree. They recruit only employees against a psychometric profile of Googleness. So, they can hire and retain a fairly predictable employee population who are highly manageable.

The weaknesses of Googles approach are given below: 1) Hard to control: In Google it is very hard to find out who is responsible for what work. It is seen that Google launch half finished products into the market and the flow of products information is going without any control, even they dont advertise at all. 2) Diversification: One of the main features of Google is that they prefer acquisition to innovate something inhouse. I think, if Google only provides its services in a limited area, then it would provide better service than now. Although Googles approach has both strengths and weaknesses, I think, the strengths of the appoach are comparatively much more than its weaknesses. So Google should notice its weaknesses and work to lessen it. Thats why, its strengths will be stronger and Google would reach in peak position in market place.

Question-3: Is the Google approach transferable to other organizations? Provide two reasons for your answer? In the case of giant corporation like Microsoft or Apple, I think, Google approach can be transferable but it should be step by step ways because these corporations have both high profile and experienced management, financial resources and brand images. So there is no problem to follow the approach of Google in the case of giant corporation.

On the other hand, in the case of the small company it would be impossible to follow the approach of Google because-

1) Lack of high qualified and experienced management: Lack of human capital in work environment and proper management experience, the small company may not be able to follow the approach of Google because it requires experienced and skills human resources to maintain this approach. 2) Lack of financial resources and brand image: Money is needed for implementing a approach. So without enough financial resources, no firm can adopt a strategy like Googles which usually needs big budget to maintain and control. Brand image is also considerable because it is seen that talents most of the time try to join in a brand company and people accept a newly launched product, irrespective of its slight weakness because of its band image. So, it is clear that as Google approach is almost distinctive and unique, so in case of giant corporation it can be transferable but in the case of small firm it would be vice versa.

References: Text books1) Robert N. Lussier & Christopher F. Achua. , (2009), Leadership: Theory, Application, & Skill Development, Cengage Learning, p434. 2) Portfolio.com. "Google's Power Play." Wired. Feb. 11, 2009. (Feb. 11, 2009) http://blog.wired.com/business/2009/02/googles-power-p.html Websites: 1) http://www.slideshare.net/bookingworm/google-strategic-mktg-presentation-20102012 2) http://www.inquisitr.com/77322/googles-greatest-strength-is-also-its-greatestweakness/#RiotBItgdgM10mEt.99

Magazine: http://www.businessweek.com/articles/2013-05-22/inside-googles-secret-lab/ Newspaper: http://buzzmachine.com/2008/11/17/guardian-column-the-google-economy/