Factors Impacting Operational Management: A Google Case Study

This report examines the impact of various business environment factors on Google's operational management and decision-making processes. It utilizes a PESTLE analysis to evaluate political, economic, social, technological, legal, and environmental factors influencing Google's operations. The political factors discussed include government regulations and taxation, exemplified by Google's experiences in China and its impact on the company's reputation and decision-making. Economic factors such as economic growth, interest rates, and exchange rates are considered in relation to their effect on profitability and management strategies. Social factors, including user safety and demographics, are analyzed in the context of technological service provision. The report also explores how technological advancements and research and development impact Google's operations and market position, including the challenges faced by new entrants. Legal factors, such as tax agreements and regulations, are discussed in relation to their effects on reputation and profitability. Finally, the report considers environmental factors, particularly user protection from risks. The analysis concludes with a summary of how these factors influence the decisions of managers and leaders within Google.

Management and
Operations
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Contents
P6. Business environment factors that impact in
operational management and decision making by
leaders and managers.............................................3
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P6. Business environment factors that impact
in operational management and decision
making by leaders and managers.
Business environment is the integration of
internal and external factors which influence
organisation operating conditions (Slack, 2013). This
represents the opportunities and threats for all
businesses. Business generates their major profits
through advertisements as the mission statement of
Google is to systematise the data in worldwide level
and create information globally internationally
accessible. For analysing the implications, Google
can utilise PESTLE to ascertain the positive and
negative characteristics. Some are mentioned below:
Political Factors:
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Google have collected huge political
knowledge and provide people to access easily. It
also influenced the elections results. It covers
taxation, government restrictions and regulations.
For example: Google had to deal with some political
issues with China. It is because of rules and
regulations regarding the data of China. So, company
had to deal with censorship issues then also firms
reputation suffered. This factors keep Google from
successful in countries. So, all these political issues
impacts the decisions of leaders as well as manager.
Economic factors:
Most of the firm are generally effected by
economic factors. Economic growth, interest and
exchange rates, inflation rates all these comes under
economic factors. As yet Google have not such
experience but if economic situation of any countries
is not good it impacts the profitability of company.
Therefore, it is tough for managers and leaders to
make effective decision and manage the operation of
businesses.
Social factors:
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Social factors includes social and safety
groups which are used by technological services. For
example: In China, it is found that most of the users
are educated and from developed areas. So, the
safety of users are the major concerned and therefore
Google have to perpetually focus on measures which
protect their users. Hence, managers and leaders
have to take decisions and use more advanced
technology so that their information are safe while
using search engines or social sites.
Technological factors:
It covers the fields like automation, research
and development and also the modification in the
area of technology (Sroufe, 2018). As Google is a
huge company, it invests majorly in process of
research and development and execute many changes
in order to satisfy clients. This effects new entrants
into the market of technological services as they can
compete with Google. Therefore this factors impact
the operation management as advance technology
help to develop an app for all products. The
changing and advanced technology allow manager to
make decisions accordingly.
Legal factors:
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There are various laws and rules which
govern technology sectors. Google have to follow all
rules and regulations. These may consider some laws
which control technical services. French Tax
agreement case against Google a legal factor that
organisation have to deal with. As the legal factors
affects the company reputations as well as
profitability so, their managers and leaders have to
make decisions in order to resolve the legal issues.
Environmental factors:
In the technological area, environmental
factors mostly effects the users and its clients.
Google have to assure that their users are saved from
hackers, fraudsters and from another risk. So,
managers have to make decision by considering the
environmental issues which affects their companies
reputations.
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Google have formed a position for
themselves in technological field. Some economic
situation which has to tackle by most of the
organisations. All above factors impacts manager
and leaders of Google decisions.
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