Strategic Management at Google: Analysis of Macro and Micro Environment

International Strategic
Management
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Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Analysis of Macro environment .................................................................................................3
Analysis of micro- environment and competitive success factor................................................5
Analysis of business model and business strategy......................................................................8
Analysis of innovation strategy.................................................................................................11
Appraisal of organisation's strategic situation...........................................................................13
Conclusion.....................................................................................................................................15
References......................................................................................................................................17
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Introduction
Businesses operate in a dynamic environment and changes in the components of the
environment presents both opportunities and threats for the organisations operating in it. Those
organisations which are able to develop innovative offerings to exploit those opportunities and
dodge those threats are able to attain success and lead itself on the path of sustainable growth and
development. Technology is one such aspect that has presented both opportunities and threats for
the organisations. Digitalisation has presented itself both as an industry in itself as well as the
aspect that can help companies transform their fate by developing innovation in their strategies
(Ansoff and et.al , 2018). This report is aimed at assessing strategic management at Google to
assess organisation's business and innovation strategy with a view to explore those factors that
has helped it reach the pinnacle in its industry. Google LLC or Google, as it is popularly referred
to as, is an American multinational company that specialises in technology and offers internet
related services and products like search engine, cloud computing, online advertising and others.
It was founded in 1998 and has its head quarters at California, US. In 2015, company
reorganised its multiple offerings into a conglomerate and named it Alphabet Inc. Google is now
a subsidiary of Alphabet and deals in internet related services of the group. This report takes
inspirations from various case studies that have been based on the Google to develop an
understanding of the aspects that has held the helm of company's operational and strategic
control in the field on internet search services. This report explores business model and strategy
for innovation of the company to take a look and appraise the strategic situation of the
organisation. Further, factors presented in macro and micro environment of the company that
catalyses and acts as sample template latests competitive success factor have been explored to
draw conclusions regarding the innovation strategy of the company.
Main Body
Analysis of Macro environment
Key trends in online search industry
 semantic search: In order to provide proper information to the user Google should
provide specific results to the user so that the most relevant data can be provided to the
user.
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 Focus on Search intent: Google should provide specific data to user instead of showing
relevant data so that time of the user can be saved and proper information to the user can
be provided.
PESTLE Analysis
Macro environment is basically condition that exits in the economic system which
includes inflation rate, employment, monetary policy, spending etc. macro environment analysis
is very important in strategic management various business also conduct pestle analysis to
identify the macro environmental factors that can affect the growth of the business. Macro
environment can also affect the performance of the business either in negative way or positive
ways.
Impact of macro environment on the strategies of google:
 Political factors are basically the rules and regulation which are provided by the
government. There are various political factors that can affect the business strategies of
google to maintain the international relations wider free trade agreement has been
launched which the organisation in the export of goods and services political stability
plays in important role in the growth of the economy.
Positive impact- For the company like google political stability helps in innovating their
strategies of the business so that best services can be provided to the customer.
Negative impact- Unstable political factors can also cut the cash flow of google (Chaouk and
Moxon, 2020).
 Economic factors includes employment and unemployment rate, raw material cost and
interest rate which can affect the growth of the business. if the inflation rate in the
economy will be high then it will affect the demand of the business in the market.
Negative impact- if the cost of renewable energy will increase in the market then it will also
affect the google energy supply in the market.
Positive impact- The various advertising companies are expanding its renewable energy so that
their operational stability can be enhanced in the market. Economic factors helps google in
achieving their objective by developing the right strategies ( Orduna-Malea, 2018).
 Social factors basically focuses on the emerging trends of the market. These factors of
macro environment affects the growth of the business because in today's world people
wants the new variety of products and services in the market if the business will follow
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