Contemporary Management Issues: Emerging Economies and Social Change Impact on Google

This article discusses the impact of emerging economies on the global economy and the challenges and opportunities they present. It also critically assesses the effectiveness of Google's response to social change and the impact of social media on its operations. The article emphasizes the importance of studying inflation rates and purchasing power before introducing products. No specific subject, course code, course name, or college/university mentioned.

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Contents
Task 1.........................................................................................................................................1
Task 2.........................................................................................................................................6
References................................................................................................................................10

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Task 1
The emerging economies are going to hold an increased amount of inclusive economic power
by 2050. The E7 nations (China, Brazil, India, Indonesia, Turkey, Russia, and Mexico) will
be the biggest contributors towards global growth. The E7 nations can go average 2 times
faster than the G7 economies (France, Canada, Germany, Japan, Italy, UK, and the US).
According to Rubaj, 2017, the economic growth will be directed by China with India in 2nd
place and it will be monitored by Indonesia in 4th place (Rubaj, 2017). The US is anticipated
to stand the global’s 3rd major economy in 2050 in the terms of the GDP. The share of the
European nation could drop below 10% in 2050. The UK could fall to the 10th place and it
will be surpassed by the emerging countries like Mexico, Vietnam, and Turkey. The growth
is anticipated to be overtaken by the E7 countries by mounting at a yearly rate of 3.5% in the
coming next 32 years, whereas the G7 nations are expected to grow at the rate of 1.6%. A
continuous shift could account for 50% of the GDP by the E7 economies. The share of the G7
could decline to just 20%. As per Sun and Huang, 2014, China has already overhauled the
U.S and develop the major economy in the terms of the purchasing power parity (PPP). India
is expected to overtake the US by 2050 which currently holds a third place (Sun and Huang,
2014). Indonesia could attain fourth place by 2050. China is expected to be the world’s major
economy by 2030. It represents a gradual shift in the economic power (Li, 2017).
According to John and Pecchenino, 1994, the emerging economies represent opportunities for
the business. The developed nations are keen interested in doing investment in the emerging
economies (John and Pecchenino, 1994). The international companies adapt to the
preferences of the local customers and evolve the local market dynamics (Lepojevic, Djukic,
and Mladenovic, 2016). The developing markets can be explosive so the global investors are
required to be persistent enough to drive out of Lshort-range economic cycles in these
economies. The shares of the world’s GDP will change drastically by 2050. The GDP of
Europe is anticipated to fall from 15% to just 9% and the share of US from 16 to 12%. The
GDP of China will increase from 18% to 20% and India’s from 7% to 15%. The reason for
the economic growth in the developing economies will be due to the rapid growing
populations, increasing national demand and the size of the personnel. In order to be feasible,
the growing population should be accompanied by the investment in education (Guo,
Rammal, Benson, Zhu and Dowling, 2018). The government of the emerging economies
should be making sure that there are sufficient jobs for the young generation. The

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government is also required to make efforts to implement growth-friendly policies which can
attract investment and businesses.
(Source: Statista, 2015)
The above graph represents the total GDP of the E7 and G7 nations of 2015 and the projected
GDP of the year 2050. The anticipated GDP of the E7 countries for 2050 is 138.2 trillion
U.S. dollars (Rubaj, 2017).

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(Source: Statista, 2015)
The above graph represents the GDP of the G7 and E7 countries of 2015 and project for
2050. It is clear from the graph that E7 economies could grow two times fast than the G7
economies. 6 out of the 7 major economies are anticipated to be developing economies in
2050. The worldwide economy will be headed by China out of the seven emerging countries.
The developing markets will initiate inclusive fiscal growth and gradually upsurge the share
of world GDP. As per Goh, Saville and Scheepers, 2016 the worldwide economy is
anticipated to twice in size by 2042 if it grows at the rate of 2.6%. This evolution will be
primarily obsessed by the evolving market and developing nations (Goh, Saville and
Scheepers, 2016). The E7 countries are anticipated to grow at 3.5% in the next 32 years
compared to 1.6% of the G7 countries. A continuous shift is observed in the international
economic power towards the emerging economies. The E7 might nearly account fifty percent
of the global’s GDP by 2050. It has been already discussed that China has surpassed the U.S
to develop the world’s main economy in the terms of purchasing power parity. Whereas,
India is anticipated to overtake the U.S by 2050. China is anticipated to be the world’s major
economy by 2030. It exposes a substantial and steady shift in the economic power.

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The economies like Brazil, Indonesia and Mexico are prospective to be greater than UK and
France although Pakistan and Egypt can surpass Italy and Canada by 2050. The rapidly
growing economies such as Vietnam, Bangladesh and India could grow around 5% annually
in the period of 2015-2050. Nigeria has perspective to be fast developing major African
economy and could upsurge its national GDP standing to 14th by 2050. Nigeria can only
comprehend its possibility is it diversifies the economy missing from oil and reinforce its
self-governing organisations and national substructure. Both Poland and Colombia reveal
countless perspective and are anticipated to be the rapid growing great economies in their
particular areas (Käkönen, 2015). Latin America and many developing economies are going
to be reinforced by the quickly growing population, enhancing domestic demand and the
number of workforces.
The investments in the learning and amended economic freedoms are essential to certify that
there are appropriate professions for the mounting number of youngsters in these countries. It
offers a path of justifiable development to the evolving markets with emerging economies.
The progressive economies will strive for the advanced regular incomes whereas the
emerging countries probable to mark growth to eradicating the gap (Dinçer and Hacıoğlu,
2014). The possible exception of Italy will lead to the E7 states rank above in 2050. It is
going to be on the basis of the rankings of projected GDP per capita.
As per Chisti, Ali and Sangmi, 2015, the businesses have a great opportunity of conducting
operational activities in the emerging markets (Chisti, Ali and Sangmi, 2015). As the
emerging market develops, it will develop less striking due to the less-cost manufacturing
bases but more striking due to the consumer and business-to-business (B2B) markets. The
global companies necessitate strategies which are bendable enough to acclimatise local
customer partialities and quickly develop native market subtleties. The developing markets
can be unstable so the global investors are required to be enduring enough to drive in the
short-term commercial and radical cycles in those specific countries. Along with the
opportunities, the emerging economies face various challenges in attaining long-term growth.
The structural developments have a role in the preparing workforce and promoting
sustainable development by climate change, ageing and populations requiring forward-
thinking policy. The economies will evolve into different industries and will engross with
domain markets. It is also estimated that the population of the emerging countries is
comprised of more young people than in the progressive countries. This is the reason
developing economies will be further attractive places to carry on business activities (Deery

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and Jago, 2015). It is the technical advancement which replicates the perspective of the
countries to catch up physical and principal investment. The organised factors have also a
role in the political stability and advancement to trade and foreign investment. There is a
sluggish rate of technical growth in the emerging economies like India, Indonesia and Brazil.
These countries hasten in the extended period as these can reinforce the recognised context. It
can produce frameworks for the lasting inclination growth. It neglects the regular variations
which is considerable for the developing economies in the short term. These are also
proficient of disregarding antagonistic shocks (Chisti, Ali and Sangmi, 2015).
According to Armanios, Eesley, Li and Eisenhardt, 2017, the upsurge of the E7 economies is
helpful to the West but it can lead to success and failure (Armanios, Eesley, Li and
Eisenhardt, 2017). For instance, Amazon.com moved its European consumer service centre
from Marsh to the Irish Republic which is due to the lack of bilingual workers. It was realised
that people with small to medium level skills can face hazard due to moving jobs to overseas.
Although, highly skilled professionals like lawyers and doctors could find livelihoods even
under threat. If we talk about GDP then in terms of the PPP is constantly an improved
indicator of the regular existing standards. It corrects the price variances across countries at
several stages of the expansion (Amponsah and Ahmed, 2017). The price levels are
suggestively inferior in the developing economies. GDP has a role in narrowing the revenue
gap with the progressive countries. GDP at MERs is a developed amount of the relative scope
of the economies from the perspective of trade in the short period. It is a critical influence in
the future and to define market exchange rates in the emerging economies. The reason behind
it is upper domestic price increase in the emerging economies or over the insignificant
exchange rate depreciation. An approach is assumed for the estimation of GDP at market
exchange rates 2050. As per the report of “World in 2050” market exchange rates can be
assembling to PPP rate with varied congregating rates reliant on on the economy (Bernhard
and Grundén, 2016). It indicates the considerable increase in the actual market exchange rates
due to higher productivity growth rates. It is the possibility of falling MERs lower the PPP
levels in 2050 in the scene of the emerging economies. The emerging countries will endure to
upsurge their share of world GDP in the extended period even with the varied performance of
some countries. The emerging economies will continue to shift in the global economic power
and it is to be believed that the E7 countries will attain almost 50% of the world GDP by
2050.

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Task 2
This task is going to judgementally assess the compressions of social change influence upon
the corporate procedures of Google and it also assesses the effectiveness of the current
response. Google is a US based Multinational Corporation. The company is recognized for
generating and successively as one of the prime search engines on the World Wide Web
(www). The charge of the company is to form the world’s information and sort it entirely
reachable and beneficial. Google is specialized in the internet related products and services
such as online advertising technologies, search engine, software, hardware and cloud
computing. Google keeps itself away by focusing on the innovations. The company faces the
pressure of social change impact on its operations. As an internet company, it operates at an
essentially diverse step. It advances day by day in reaction to the behaviour of the customers.
Quicker it evolves, more effective products will be. The evolutionary approach and the
responsive design processes are used by the company to build into the fibre and psyche. The
senior management of the Google is trained to learn cultural values. They learn terminology
and set of standards which are acquainted and contented to the investors. The company is
totally precise by the manufacturing PhDs. They make use of the scientific linguistic than the
business (Dhopte and Sinha, 2017).
Apart from the internal environment, Google operates in the external environment which is
called macroeconomic forces. Although these factors are not controllable by the company but
have an impact on the business. These also provide challenges or opportunities for the
company. The social influences mark the way customers react to the Google products. The
social influences which are the most noteworthy in Google’s macro environment are growing
use of the social media and intensifying range of the users. The upsurge of social media
practise is also a hazard to the Google as it reinforces companies like Facebook which deals
online publicising services. The growing variety of the operators is a prospect for the Google
to advance its services in order to counterpart discrete partialities (Sakane, 2017). There are
various things which influence the position of the Google in the future. The guest posts are
not considered an effective approach. The traditional links have become a past thing. The
social signals have started to impact search results such as Twitter, Google +, Facebook and
more. It has been observed that people now days are more prospective to share content than
embedding linkage on the website. As the shares have become significant to the specific
social networking accounts have become appropriate. For instance, a Twitter account is very

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active and shows adequately of re-tweets. It has also loads of admirers and can be assumed
‘Twitter rank’ parallel to the Google page rank.
The organization is required to study the inflation rate and the purchasing ability of the
customers before introducing the products. The income and the living standards can diverge
from one place to alternative so the viability learning is must for the organizations (Haim,
Hoshen, Reges, Rabi, Balicer and Leibowitz, 2015). A large amount of money is kept by the
Google in the overseas market which makes susceptible to the conversation rates and the
exchange market. The company can lose a lot of currency if it is required to fetch cash back
into the US. It can also miss money if the dollar is weedy as it would be enforced to exchange
a tougher agency. An abrupt drib in the high stock price could even affect the company by
dropping its market capitalization.
In an environment where the Google operates is ruled by the rubrics and policies forced by
the government. The government drags definite activities which might lead to the competitive
advantage. It has been criticized that Google is a cartel which might lead to antitrust action. It
is informed to modify the way it conducts a search. It has also too much control over the
information. A claim was also made that the Google search results can also result in
influencing outcomes of the elections. The business model of the Google is also reliant on
the data centres and other substructure which utilises a great amount of power. The struggles
are made to govern global warming by inspiring the use of the higher green energy sources to
yield electricity could increase alphabets functioning costs. It also happens that at some time,
Google is not capable to propose services as it has in the past. The alphabets’ new business
model will protect the company and become more profitable than ever.
The business adapts to change from traditional to technological. The adaption of quick
technology can result in gaining an advantage to the business. The use of the mobile devices
is growing the accessibility to the internet. These devices also comprise Apple products
which have exclusive search engines which contend with Google. Some of the players like
Amazon and Microsoft also have developed examine algorithms as prevalent and operative as
Google’s. Amazon has been successful in dominating shop investigation with its solution.
There is a robust prospect of the competitor’s devising an improved search explanation than
the Google’s at some opinion. There are alternative solutions to the Google’s products and
are not computer-based. These solutions are of mass media and prompt messaging like

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Whatsapp and Facebook messenger. These can be used to refer news, acoustic messages
along with the running videos (Smallbone, Welter and Ateljevic, 2014).
Google is a vibrant environment where the decentralised specialist is required for the planned
decisions. The culture and the regionalisation can be chased rear to Brin and Page as both
appeared Montessori schools and credited much of intelligent liberation to that knowledge.
Within the association of Google, deliberate planning is required to work in union with
bottom-up developing processes of the strategic growth. The management at Google applies
strategy development by research and education by the formation of self-managed teams
(Henderson, Cheney and Weaver, 2015). Sharing knowledge and doing experiments is in the
norms of the company. The “70-20-10” decree specified that Google would dedicate 70% of
its manufacturing resources to mounting the central business. 20% to encompass that
essential into the associated areas and 10% is assigned to peripheral ideas. This is the reason
the employees at Google are able to devote a substantial amount of their time employed on
the specified projects (Sommerfeldt and Yang, 2017).
The rapid growth expansion of the Google has raised strategy formulation, procedures and
policies. The company need to effectively manage its growth, operational and financial
infrastructure. The major issue faced by Google is too many acquisitions at a very rapid pace.
There is the clear implementation of new infrastructure and immediate incorporation of the
company’s bookkeeping, human resources, management and other administrative systems
(Harzing and Alakangas, 2016).
The premeditated resolutions which are advanced are the consequence of constant testing and
investigation. It makes use of the company’s innovation capabilities, low-cost investigation
like digitizing the world’s collections, creating software which can search the book. These are
the modest instance of achieving competitive advantage over its challengers. The company
surfaces competition in its every facet such as search engines, erect search engines and e-
commerce websites. The social networks and mobile applications on the mobile strategies
allow operators to access info straight from the issuer without even making use of the search
engines.
Google is recollecting a competitive benefit by averting simulated, building strategies based
on manifold competences and innovation. Such efforts can be understood by the Google’s
highly selective hiring policy. It only hires the brightest candidates comprising calibre and
characteristics. The company is making difference by doing exciting work. Google also

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protects the intellectual property and the richness of the portfolio of patents by acquiring new
companies (Tiftikçigil, Güriş and Yaşgül, 2018). It deals with the threat of the competitors
with its own patents. It has constantly created new information and leveraged knowledge into
the advanced products and services and staying forward of the competitors.
The information and technology are endangered by the designs and expanded by research and
practice. Google launches products constantly as well as the fast growth development by the
attainment of the new companies. The success behind Google can be evaluated from the
search engine algorithm corporate model. It counterparts text ads to the searches and the
innovative culture of the organization (Van Niekerk, 2017). The company delivers high-
quality products and services. Google has also unrestricted high-quality products which have
slight or no link with its main business. The company has entered into another state of
competition by acquiring Motorola.
Google’s response to the key dynamic forces can be evaluated from its performance
management philosophy. The formal rankings were not portion of the organization’s
procedure. The employee objective setting has always been measure of Google. The company
has introduced a new flair of goal setting by using objects and key results to Google (Wright,
Filatotchev, Hoskisson and Peng, 2005). The managers at Google continue to improve this
approach to train employees for generating and attaining goals. Google has introduced new
products and technology upgrades to response key dynamic forces. It has introduced robot
calling human, Gmail writing emails, AR upgrade to maps, Al-powered pic sharing and
more. The robot calling human is a part of the Google assistant which is a voice-controlled
system, responses queries and achieves an increasing collection of responsibilities on
command. Duplex depend on AI which learns automatically from data, then having to be
hand coded. It also predicts the next phrases or words people want to type. It takes a step
beyond the smart replies (Walters, 2015). Google also introduced a visual positioning system
to find people their way around with maps. It has functionality similar to the Apple maps to
point users toward suggested places. The company has upgraded to its photos app for sharing
shots with based on who is in the picture. The company also initiated big upgrades to its
photos app comprising ability for Al algorithms to recommend who to share shots on the
basis of who is in the picture. A new Google news app is also announced for Android
devices, iPhones and web. It comprises the built-in subscriptions tool to make easier for
readers to pay for digital magazines and the newspapers (Gay, 2016).

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The decision-making tools are used by the Google to extend outside its traditional business
boundary. These are helpful in addressing contemporary drivers for change. Google
understands the changing behaviour of the customers. It has been observed that 70% of
enterprises are installing mobile apps and customers are using them. Google can focus more
on the mobile app for customer services. The company have a chance to transform the
equality, suitability and relevance of the customer experience. Engaging with customers in a
right way and can significantly maximise the customers’ influence (Wang and Hernandez,
2018). There is multi-channel customer communication and experience reinforces the
competitive strategy. The friendly software makes the process easier for the customers. It
supports anytime access to key information and improves the experiences of the customers.
Google can deliver the most appropriate experience by recognizing the context. To provide
the appropriate experience, it must be embedded within the core business processes.
The contingency theory of the contemporary management can be used to co-operate the
identification and application of the corporate responses to contemporary management issues.
The contingency theory declares when the company makes a decision and must take into
account as the current situation aspects and acting on these is a key to the situation
(Wehrmeyer, 2017). The contingency theory claims that there is no best method to lead a
company instead of the optimum course of act is contingent upon the internal and external
state. This theory claims that there is no best way of organizing. It depends on the kind of
environment Google operates. The digital technology has a vast role in the company’s
functions. The countless software is used by the company to manage functions. The social
media platform such as Google +, Gmail can be used to communicate with each other in the
society.

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