Strategic Decisions in

Strategic Management
Dr. Helen Abd El- Rahim
Introduction:-
• Today technology is becoming one of the world’s greatest trends and along
with a heavy influx of internet users have created a revolution for the
common quest of knowledge and information.
• Google has been innovative in creating new apps and services at little or
no cost to the users. This is a huge competitive advantage. It has been able
to do this by generate most of its revenue from advertising.
• Google has been able to enter new markets and acquire new businesses.
Making this ability to acquire new businesses a competitive advantage.
• The funding of artificial intelligence projects is one way Google is trying to
make information more accessible.
 History:-
 It started as a research project in 1996 by Larry Page and Sergey Brin two doctoral
students , now it has become one of the largest multinational corporations.
 Google - a synonym for "search"
 First - "Backrub", then "Google", now "Google"
 world's most powerful search engine in the world.
 google first homepage launched on 1998 and the rest is history
 started AdWords in 2000, with 350 customers.
 started images in 2001.
 Google News -2002, Orkut -2004.
 On April 1, 2004 Google started Gmail, Google Maps 2005.
 on 2006, YouTube, on 2007 Google started its glorious journey in the platform of
mobile os or Android.
Google products
global status of company
• There are more than 2 million Google searches per
second.
• over 6 billion hours of video are watched each month
on YouTube.
• Google has acquired 24 companies last year alone.
• Google has Photographed more than 5 million miles
of rood for its street view maps.
• Google is the only company with an explicit goal to
reduce the amount of time people spend on its site.
slogan, logo and advertising
• Slogan
 "Don't be evil" was the formal corporate motto ( or slogan ) of
Google.
 It was first suggested either by Google employee, Paul buchheit at a
meeting about corporate values that took place in early 2000 or in
2001,
 Larne Page and Sergey brin explained that their "don't be evil"
culture prohibited conflicts of interest, and required objectivity and
an absence of bias.
 Chris hoofnagle, director of University of California, Berkeley Law's
Information Privacy Programs, has stated that Google's original
intention expressed by the don't be evil motto is linked to the
company separation of search results from advertising.
logo
• Google has had many more logos since it was renamed from
Backrub.

• The first logo was created by Sergey Brin using GIMP, but the
current official Google logo was designed by Ruth Kedar, and is
• A word mark based on the catull typeface, an old-style serif script
designed by Gustav Jaeger for the Berthold type foundry in 1982.

• In 1998, Sergey Brin created a computerized version of Google

letters using the free graphics program GIMP. The typeface was
changed and an exclamation mark was added, imitating the Yahoo!
logo.
 Advertising
• Unlike some Internet companies, Google has
multiple ways to generate revenue beyond
advertising. Google uses three ways to engage with
merchants and advertisers:
Checkout, AdWords and Google AdSense. As of
August 2008, Google charges merchants 2 percent
plus a 20 percent fee for each transaction.
investor/stakeholder relations
• in the google community, as shown in the picture,
stakeholders play the major role
Strategic Management Impacts on:-
• Globalization.
• Innovation.
• Sustainability.
• Triple bottom line

All these points are an important indicators for

the success of Google company.
Google company apply Strategic
choice perspective
• Not only do organizations adapt to a changing
environment, but they also have the opportunity and
power to reshape their environment.
• Google has strong financial power, research and
development capabilities.
• The company is ready to delivery new products to stay
competitive, or acquire potential competitors to
eliminate threats.
 make search engines so powerful that they can
understand everything in the world.

 He announced his intention to name the company

GOOGOL.

 Become the perfect search engine

is to organize the world’s information and make it universally
accessible and useful.

The Commandments of Google:

1. Focus on the user and everything will follow.
2. You better do one thing very well.
3. Speed is better than slow democracy on the internet.
4. You don't need to be in your office to need an answer.
5. You can make money without doing evil.
6.There is always more information out there.
7.The need for information crosses all borders.
8.You can be serious without a suit.
9.Great just isn't good enough.
Success of the company depend on :
 Coordinated Leadership Group.
 Commitment to cutting edge.
 wise expansion.
 Precision Marketing.
 Google objectives
• The main goal of Google is to provide a website, which is
most popular in the whole world because of: Creativity
in advertising and Search the web.
• Besides, the company aims to convey relevant and cost
effective online advertisements that are essential to
generate income for the sustainability of the business.
• Google aims to provide other companies with the
innovative Ad Word program used to promote products
and services.
Google objectives
• Improve the competitiveness of its current products in
the market to make them more competitive among
consumers.
• The firm seeks to improve the manner in which people
access information on different devices to make it
friendlier to their lifestyles.
• The firm intends to build strong synergies with
developers of mobile apps to enable more Android
users to have access to useful apps.
• The firm also seeks to encourage more users to
develop apps on their mobile devices to encourage
innovation and creativity.
 swot analysis
Strength Weaknesses
1. Market Leader in Search Engines
2. Quality and customer experience are the primary objects 1. Relies on one source of income
3. Financial situation 2. High dependence on online
4 Access to the widest group of Internet users worldwide technologies
5. Strong patent portfolio 3. Patent lawsuits
6. Product Integration
7. culture of innovation
Opportunities Threats
1- Growing number of mobile internet user 1- Low control on consumer electronics
2- Obtaining patents through acquisitions that use Android OS2- Unprofitable
3- Cloud Computing products
4- Growing into electronics industry 2- Competition against large and
5- Diversification into non-Ad Business Models innovative businesses
3- Regulations that restrict Google’s
operations
4-Product imitation and counterfeiting
Strategic options (Recommendation)
Google should do the following recommendation to turn weaknesses to
strength and threats to opportunities:-
-Establish agreements with manufacturers to create higher consistency in
design and user experience, especially for Google products and services.
-It is recommended that the company ensure full compliance, along with
continuous improvement of products to enrich user experience, such as for
users’ ease of controlling their data.
-The company could use legal means to prevent or remove counterfeit
consumer electronics from the market. On the other hand, Google could use
marketing campaigns to inform and help customers discern authentic and
counterfeit products.
Google strategies

• Google's acquisition strategy and research

& development activities have increased
the company's dominance in Internet
advertising. The addition of new features
(Google Maps, Gmail, book, search, blogs,
weather, air travel information...)
increased traffic to the site.
• Google Chrome browser was launched in
2008 in order to accommodate cloud
computing applications.
Organizational structure
Analysis Organizational structure

 Google's organizational charts clearly show the trend of

horizontal hierarchy in the company's organizational
structure. To thrive in the age of social computing,
companies must abandon top-down management and
communication tactics.

• With these organizations will become more decentralized

and employees can work together to make faster and better
decisions.
What is a problem?
A problem has different meanings and can be defined as:
- A scenario in which the current situation does not match the
desired situation.
- Anytime actual performance does not match expectations.
- Any situation or circumstance for which there is room for
improvement.
- Other labels for a problem include challenges or opportunities.
 Google company faces some problems
From zero to $400 billion, which benefits the second
largest market capitalization in America, it took more
than 15 individuals to come into existence and less
than a decade as a public company.

1-Despite being one of the best companies in the word, Google has faced
a crisis in the last few months as it has lost its share of unique searchers
which has dropped to 80% which indicates that it has lost some regular
searchers.
2-We have observed that the big problem with Google is that the
offensive strategies to improve its market shares/performance will lead
to severe problems in the future.
3- Vertical search.
we gathered the information about these
problems using the internet
• Google faces increasingly intensive competition from experienced incumbents like
Microsoft, Social networks and Baidu which had been gaining popularity within the
Asia region.
• On the desktop, Google is the most popular front door to the Internet. It’s how
people quickly find what they’re looking for, and it’s a cash cow for Google. Big
companies spend hundreds of millions sometimes billions of dollars on sponsored
links that run alongside search results to make sure they’re getting Web traffic.
• The mobile world is very different. Smartphone users tend not to go to
Google.com to search for hotels, clothes or gifts. They go to particular apps,
meaning there is no central front door to the mobile Web. While Google remains
at the middle of mobile computing with Android and popular apps like Maps,
YouTube and Gmail, it doesn’t control the discovery experience.
Generate Solutions
• It is important to generate as many solutions
as possible before analyzing the solutions or
trying to implement them.
• We use brainstorming method in generating
different solutions for Google's problems.
Solutions
• The company may applies the intensive growth strategies of market
penetration to ensure growth despite competitive forces.
• The company may applies generic competitive strategy of differentiation
involves developing certain unique capabilities that make the business
competitive. This generic competitive strategy involves a broad market
scope. The company offers products to everyone around the world.
• continuous improvement of products.
• The new partnerships will also bring about faster and better development
of new technologies and products to improve competitive position.
• The company may applies defensive Strategies to Protect Company Market
Position.
Selecting the best solution
• The combination of the intensive growth strategies of
market penetration, market development, and product
development and its generic competitive strategy is
effective in satisfying the firm’s needs for continued
business growth and leadership in the global industry.
also contributes to the capability of Google to maintain
its leadership position, which in turn empowers the
company to maintain its financial viability.
Conclusion
• Altogether, Google has won countless awards, maximized its profits,
improved services, introduced new developments, removed most of the
competition and dealt with its weaknesses.
• Although the world is not perfect, Google has more strengths and
opportunities than threats and weaknesses.
• This was proven on the Internet as someone joked about Google saying,
"The only thing Google has failed to do so far is failure.“
• In conclude, Google is a firm that has great potential to expand its market
position. However, expansion is not an easy task and it takes great strategy
and meticulous planning for Google to achieve its objectives. Hence
Google need to adopt an open mind in conducting its businesses and
practice a strategy that will benefit them in the long run.
Team members:-
1- Nermeen Aboelnaga 2- Sahar Mohamed 3- Nourhan Emad
4- Ahmed Abdelmonem 5- Osama Ali