BM1807

ACTIVITY
Google
Google provides the world’s most popular search engine as well as cloud computing, Google Chrome, Google
Maps for GPS users, Google Earth, Google Analytics for keeping track of hits and traffic on websites, and
YouTube among others. Many of Google’s products are supported by heavy advertisements, helping to
produce record revenues of $38 billion or P1.9 trillion for year-end 2011. In addition, Google produces Android,
the world’s most popular smartphone platform. All these are pieces of evidence of wide product and service
diversification, which is the main strategy of the company. Furthermore, diversification has enabled Google to
position itself as a one-stop venue for all Internet-related needs.

About 96 percent of all Google revenues are derived from advertising programs, with the balance coming
predominantly from licensing agreements. Using technology from a firm named DoubleClick, Google can
better determine user interest and effectively target advertisements, thus enabling Google to charge more for
their service.

Google’s market success is strongly attributed to their very creative Human Resource (HR) team or what they
call as “people analytics team.” This team reports directly to the Vice President (VP) of the company and has
a representative in each major function of HR. The team produces many products, including dashboards and
employee surveys, to identify insightful correlations and to provide recommended actions to organizational
problems. In addition, Google provides free food to its employees; 20 percent time allowance from the regular
work hours, to think creative thoughts that will mostly benefit Google; and a wide-ranging benefits and fun
activities such as on-site haircuts, massages, bowling alleys, gaming rooms, pools, and playgrounds, which the
employees may enjoy any time of the day, even during work hours. It is indeed the company culture which
brings Google to its current state of success.

Answer the following items: (3 items x 10 points)

1. Explain how the employee benefits of Google help in creating continuous innovation in the industry.
Answer: Google's employee benefits contribute to the industry's continual innovation since its
employees are not under pressure to develop while at work. As noted in the lawsuit, Google's
headquarters are meant to exude a pleasant feel due to the variety of activities available to employees.
This type of program boosts staff engagement to new heights. The company's many advantages serve
as a foundation for employees to connect to the company's fundamental aim, which is to develop and
diversify their products and services.

2. Discuss how Google established its unconventional company culture.

Answer: With the support of its people analytics team, Google was able to build its own corporate
culture. The team creates a variety of products, including dashboards and staff surveys, as indicated in
the case. This type of company initiative paves the way for Google to classify insightful connections
from employees, allowing the company to develop and implement very creative action plans that not
only bring efficiency to their day-to-day activities, but also help to create a more productive culture that
is fun and exciting.

3. Propose different ways on how Google can attain a more superior competitive advantage through
organizational culture.

Answer: By properly analyzing the driving organizational values, attitudes, and behaviors of its
employees on an individual level, Google may achieve a better competitive advantage through
organizational culture. This program makes sense because Google employees come from a wide
range of ethnicities and cultures. This will allow Google to create several types of work
environments based on the requirements and tastes of its employees. As a result, individuals are
more driven to work, study, and play at the same time, resulting in a more productive work
environment.

10 Activity 1 *Property of STI

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