Strategic Management - Assignment On Google
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Edith Cowan University Australia
Strategic Management (MAN3503)
Added on 2020-03-07
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In this document, we will discuss the operational activities and the strategical management of the organization named Google. Google is the most powerful technological giant and it followed specific steps to reach that position. They have a distinguished internal and external environment that has kept them ahead of their competitors. Also, we cover the methods of innovation and invention to keep in the run of long-term sustenance in the technological field.
Strategic Management - Assignment On Google
Edith Cowan University Australia
Strategic Management (MAN3503)
Added on 2020-03-07
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Running head: STRATEGIC MANAGEMENTStrategic ManagementName of the student:Name of the university:Author note
1STRATEGIC MANAGEMENTExecutive summaryThis assignment on Google has focused on the operational activities and the strategicalmanagement of the organization. Google is considered as one of the most powerful technologicalgiants and they followed specific steps to reach that position. They have a distinguished internaland external environment which has kept them ahead of the competitors. Their various corporateand merger acquisition strategies have provided tough competition to Yahoo and Bing. Googlefollows the methods of innovation to keep in the run of long term sustenance in the technologicalfield. Their constant upgradation has provided the best speed to the internet users. Their currentpolicies will provide the an opportunity to continue their business in the same way and beglorious.
2STRATEGIC MANAGEMENTTable of ContentsIntroduction......................................................................................................................................3External Environment......................................................................................................................3Internal Environment.......................................................................................................................6Business- level strategy.................................................................................................................11Corporate- level strategy................................................................................................................12Merger and Acquisition Strategies................................................................................................13Cooperative Strategies...................................................................................................................14International Strategies..................................................................................................................15Conclusion.....................................................................................................................................16Reference.......................................................................................................................................18Appendix........................................................................................................................................20
3STRATEGIC MANAGEMENTIntroductionThis assignment is based on the organization Google and its operational activities. Thesarcasm lies in the fact that if someone is asked the definition of Google then he will have to takethe help of Google only. If the Google search engine is used for its definition then the probableanswers can be, a widely used search engine that uses certain methods and techniques to find outthe results relevant to the searches made by the user (Brett et al., 2017). Google has transformeditself gradually from the searches of the primary words to widely known words. The webpage ofthe Google is set as the standard benchmark for the assessment of most of the internetcompanies. The success that has been achieved by Google has become possible as it has utilizedits competencies to face the challenges strategically in order to be the leading technologicalinnovators globally. This can be considered as a remarkable achievement if the present globalcrisis in the economy is paid attention. It also puts emphasis on the interdependent relationshipbetween globalization and technology. If the financial report of the competitors of Google can bereviewed then it can be seen that Google had not only taken care of its own progress but also ledthe market in sharing data and growth categories. It has achieved the second position in the allround category of profitability. The previous figures and numbers of Google have given thecompetitors a tough competition in the run for finance and market share. External EnvironmentIn order to analyze the competitive industries that the company Google operates in cannotbe specified using a fixed code (Cordray et al, 2015). It has a diversified portfolio which isspread in the vast arena of products and services which have evolved around the opportunitiesthat are brought in by the internet. So it can be an extremely ineffective discussion about the
4STRATEGIC MANAGEMENTaspects of the strategies of Google which are associated with the two most outstanding offeringsof web search and advertising. For the reasons that are mentioned above, an overview of theexternal environment of Google industry can be well attained by the main competitors such asYahoo, Apple and Microsoft that are faced by the company in its offerings arena. Thecompetitive environment of Google is complex as different markets and industries are involvedwith their separate set of challenges and competitors (Cusumano, 2016). To analyze the external environment of the organization, PESTLE can be used whichtakes into consideration the political, economical, social, technological, legal and environmentalperspective. Political factors- it is a widespread statement that Google follows monopoly. This system has ledto mistrust of action and it had been called for changing the way in which it carries out theoperational activities. Criticism has also given rise to the fact that Google has tried to controltheir power over the flow of information. So the technical experts have observed the fact that thesearch results provided by Google can influence the outcome of election. Economic factors- By accumulating a lot of finance, there lay a risk of inflation for Google. Ifthere is a chance of drop in the currency value, then it would immediately affect theorganizational value. The cash accumulated by the company can be threatening for the currencymarket and the exchange rates (Edelman & Geradin, 2016). Social factors- With the decrease in the use of primitive computers or laptops, the company valuewill be affected. It has been reported that the increase in the use of social media applications suchas Face book and Whatsapp for those activities which were previously done on the internetincluding video streaming, search, online shopping and money transfer.
5STRATEGIC MANAGEMENTTechnological factors- The technological factors that have affected the business of Googleinclude the increase in the use of mobile devices for connecting to the internet. The popularcompetitors of Google who have introduced search algorithms include Microsoft and Amazon.With the increasing affinity for the social media solutions and instant messaging services havechanged the way in which Google used to conduct its business (Encheva & Pedersen, 2014). Legal factors- Google have already penetrated the highly regulated fields such as insurance,finance, automobiles and communications. This system is responsible for putting up severelimitations on its operational activities. The cost of liabilities might increase with Google’s entryin the field of insurance and the experiments done with the delivery services. Environmental factors- The business model of Google is totally reliable on the data centers andthe other infrastructure of internet which consumes a lot of electricity. Therefore the efforts putfor controlling global warming is to encourage the use of expensive sources of green energy forproducing electricity to increase the operating cost of Google. The BCG matrix can also be used as one of the strategies for analyzing the externalenvironment of the Google organization. The BCG or the Boston Consulting Group analysis is aportfolio diagram which includes cash cows, dogs, question marks and stars. The cash cows areconsidered when the company has high market share in a slow industry. The dogs refer to a lowmarket share in a slow but developed industry. The question marks consider those businesseswhich are functioning with a low market share in the high growth market. Finally, stars are thoseunits with a high market share in the fast industry (Erhemjamts, Li & Venkateswaran, 2013). The cash cows in the matrix are the search engine of Google is widely used and a reliablesource since its inception. The product has been responsible for bringing in constant revenue.
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