Google's Acquisition of HTC: Strategy, Leadership, and Management
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This report examines Google's acquisition of HTC, a significant strategic move in the technology industry. It begins with an introduction to both companies and their respective roles in the market, setting the stage for an analysis of the merger. The report then delves into the strategic undertaking, evaluating its suitability, feasibility, and acceptability. It employs frameworks such as the Ansoff Matrix, PESTEL analysis, Porter's Five Forces, SWOT analysis, and TOWS analysis to provide a comprehensive view of the strategic decisions. The report also addresses potential problems associated with the acquisition and offers recommendations for improved strategic and leadership management. The report concludes with a summary of the findings and references relevant literature.
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Running head: STRATEGY AND LEADERSHIP MANAGEMENT
STRATEGY AND LEADERSHIP MANAGEMENT
Name of the Student
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Author Note
STRATEGY AND LEADERSHIP MANAGEMENT
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Author Note
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1STRATEGY AND LEADERSHIP MANAGEMENT
Table of Contents
1.0 Company Introduction.............................................................................................2
2.0 Evaluation of strategic undertaking.........................................................................4
1. Suitability...............................................................................................................4
2. Feasibility...............................................................................................................7
3. Acceptability..........................................................................................................9
4. Rationale and Motivation.....................................................................................11
3.0 Potential problems..................................................................................................12
1. Problem I..............................................................................................................12
2. Problem II.............................................................................................................12
3. Problem III...........................................................................................................12
4.0 Recommendation....................................................................................................13
4.1 Recommendation I.............................................................................................13
4.2 Recommendation II............................................................................................13
4.3 Recommendation III...........................................................................................14
5.0 Conclusion..............................................................................................................14
6.0 Reference List........................................................................................................15
Table of Contents
1.0 Company Introduction.............................................................................................2
2.0 Evaluation of strategic undertaking.........................................................................4
1. Suitability...............................................................................................................4
2. Feasibility...............................................................................................................7
3. Acceptability..........................................................................................................9
4. Rationale and Motivation.....................................................................................11
3.0 Potential problems..................................................................................................12
1. Problem I..............................................................................................................12
2. Problem II.............................................................................................................12
3. Problem III...........................................................................................................12
4.0 Recommendation....................................................................................................13
4.1 Recommendation I.............................................................................................13
4.2 Recommendation II............................................................................................13
4.3 Recommendation III...........................................................................................14
5.0 Conclusion..............................................................................................................14
6.0 Reference List........................................................................................................15

2STRATEGY AND LEADERSHIP MANAGEMENT
1.0 Company Introduction
Mergers and acquisitions and joint ventures are considered to be an important part of
the long term operations of global organizations. This process is mainly based on the ways by
assets or companies are consolidated with the help of different financial transactions. Mergers
and acquisitions are thereby considered to be a significant part of the strategic management
based actions of a company (Barros, Hernangómez and Martin-Cruz 2016).
Google LLC is a multinational corporation that has its base in the United States and
operates in the technology based industry. The company mainly specialises in providing
internet-related services and different products which include, search engine, online
advertising based technologies, hardware, software and cloud computing (Google.com 2019).
HTC Corporation is a Taiwanese electronics organization which has its headquarters in
Xindian District, New Taipei City, Taiwan. The organization was established in the year
1997 and HTC had started its operations as a manufacturer of original designs and
equipments Htc.com 2019 (Htc.com 2019).
The analysis in the report will be mainly based on the merger process that has been
undertaken by Google. The deal which was made by Google in order to acquire the
smartphone organization named HTC is the major topic of discussion in the report. The deal
was completed by Google in the year 2018 and the organization mainly aims at acquiring the
research and development based division of HTC. The entire acquisition based method of
Google can be analysed with the help of proper implementation of the Ansoff Matrix (Daspit
et al. 2017). The four major parts of the Ansoff Matrix analysis will be based on market
development, diversification, market penetration and product development.
Ansoff Growth based matrix is mainly based on the concept of the growth of a
business organization based on the existing markets or the new markets. The growth based
1.0 Company Introduction
Mergers and acquisitions and joint ventures are considered to be an important part of
the long term operations of global organizations. This process is mainly based on the ways by
assets or companies are consolidated with the help of different financial transactions. Mergers
and acquisitions are thereby considered to be a significant part of the strategic management
based actions of a company (Barros, Hernangómez and Martin-Cruz 2016).
Google LLC is a multinational corporation that has its base in the United States and
operates in the technology based industry. The company mainly specialises in providing
internet-related services and different products which include, search engine, online
advertising based technologies, hardware, software and cloud computing (Google.com 2019).
HTC Corporation is a Taiwanese electronics organization which has its headquarters in
Xindian District, New Taipei City, Taiwan. The organization was established in the year
1997 and HTC had started its operations as a manufacturer of original designs and
equipments Htc.com 2019 (Htc.com 2019).
The analysis in the report will be mainly based on the merger process that has been
undertaken by Google. The deal which was made by Google in order to acquire the
smartphone organization named HTC is the major topic of discussion in the report. The deal
was completed by Google in the year 2018 and the organization mainly aims at acquiring the
research and development based division of HTC. The entire acquisition based method of
Google can be analysed with the help of proper implementation of the Ansoff Matrix (Daspit
et al. 2017). The four major parts of the Ansoff Matrix analysis will be based on market
development, diversification, market penetration and product development.
Ansoff Growth based matrix is mainly based on the concept of the growth of a
business organization based on the existing markets or the new markets. The growth based

3STRATEGY AND LEADERSHIP MANAGEMENT
strategies that are developed with respect to the matrix is based on the direction that can be
provided to the organization. The four major parts of the Ansoff Growth matrix include,
market penetration, product development, marker development and diversification.
Market penetration – HTC has aimed at achieving high levels of growth in the
market with the help of the existing products that are already sold by the organization. The
capabilities and resources of the organization have however not been enough for proper
penetration in the market (Demir, Wennberg and McKelvie 2017).
Market development – HTC has tried to target new markets with the existing range of
products. The organization has also developed new products for the purpose of proper market
development.
Product development – New products are developed by HTC for targeting the
existing segments of the market in an effective manner. The specific customers of the
organization are targeted by the products in order to improve the revenue levels (Durand,
Grant and Madsen 2017).
Diversification – HTC has diversified its business operations in different areas based
on the supply of the products to the new market areas. The diversification based strategies of
HTC have however not been quite useful for the successful operations of the company.
strategies that are developed with respect to the matrix is based on the direction that can be
provided to the organization. The four major parts of the Ansoff Growth matrix include,
market penetration, product development, marker development and diversification.
Market penetration – HTC has aimed at achieving high levels of growth in the
market with the help of the existing products that are already sold by the organization. The
capabilities and resources of the organization have however not been enough for proper
penetration in the market (Demir, Wennberg and McKelvie 2017).
Market development – HTC has tried to target new markets with the existing range of
products. The organization has also developed new products for the purpose of proper market
development.
Product development – New products are developed by HTC for targeting the
existing segments of the market in an effective manner. The specific customers of the
organization are targeted by the products in order to improve the revenue levels (Durand,
Grant and Madsen 2017).
Diversification – HTC has diversified its business operations in different areas based
on the supply of the products to the new market areas. The diversification based strategies of
HTC have however not been quite useful for the successful operations of the company.
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4STRATEGY AND LEADERSHIP MANAGEMENT
Figure 1 – Ansoff Matrix
Source -
2.0 Evaluation of strategic undertaking
1. Suitability
PESTEL analysis of HTC
The first product that was launched by HTC individually was named as HTC Touch
and it was introduced in the year 2006. The first smart screen based phone of the organization
was further launched in the following year. The organization also received the award of third
best organization based on technological development in the year 2007. Some of the major
products that have been launched by HTC in the industry include, Hero, HD2, Desire, Touch
Diamond and HD Legend (Dyer et al. 2015).
Political factors – The tax based rates in Taiwan is 25% which has a major impact on
the profitability levels of HTC. The conflicts and instabilities that have taken place in the
political condition have been able to affect the economy and the market strategy of the
organization as well. The company has however followed the laws which have been
developed by the government.
Economic factors – The marketing and sales of HTC have been affected by the
deflation that had taken place between the economy of Taiwan and China. The sales of the
organization were also affected by the import and export of the machinery that are required
for production and manufacture purposes (Engert, Rauter and Baumgartner 2016).
Social factors – The living standards of people have been affected by the products of
HTC and the needs of consumers are considered to be a major factor for the manufacture of
Figure 1 – Ansoff Matrix
Source -
2.0 Evaluation of strategic undertaking
1. Suitability
PESTEL analysis of HTC
The first product that was launched by HTC individually was named as HTC Touch
and it was introduced in the year 2006. The first smart screen based phone of the organization
was further launched in the following year. The organization also received the award of third
best organization based on technological development in the year 2007. Some of the major
products that have been launched by HTC in the industry include, Hero, HD2, Desire, Touch
Diamond and HD Legend (Dyer et al. 2015).
Political factors – The tax based rates in Taiwan is 25% which has a major impact on
the profitability levels of HTC. The conflicts and instabilities that have taken place in the
political condition have been able to affect the economy and the market strategy of the
organization as well. The company has however followed the laws which have been
developed by the government.
Economic factors – The marketing and sales of HTC have been affected by the
deflation that had taken place between the economy of Taiwan and China. The sales of the
organization were also affected by the import and export of the machinery that are required
for production and manufacture purposes (Engert, Rauter and Baumgartner 2016).
Social factors – The living standards of people have been affected by the products of
HTC and the needs of consumers are considered to be a major factor for the manufacture of

5STRATEGY AND LEADERSHIP MANAGEMENT
different products. The products which are developed by the company are also socially
acceptable in nature.
Technological factors – The latest technologies are used by HTC for the purpose if
developing the products in an effective manner. The features that are provided by the
products are based on latest changes that have taken place in the environment (Ethiraj,
Gambardella and Helfat 2018).
Legal factors – The organization has faced some major legal issues that are related to
the patents that have been gained based on its android handsets in the year 2010.
Environmental factors – The major priority of HTC is to maintain health of the
environment. The recycling of cell phones is a activity is performed for reduction of the
effects of the operations of HTC on the environmental conditions (Frynas and Mellahi 2015).
Political Economic Social Technological Environmenta
l
Legal
Changes in
tax rates.
Conflicts in
political
condition.
Deflation in
economy.
Import and
export
activities.
Changes in
living
standards.
Developmen
t of socially
acceptable
products.
Implementation
of latest
technologies.
Features
related to latest
technology.
Maintaining
health of
environment.
Recycling
activities.
Patents
based
issues.
different products. The products which are developed by the company are also socially
acceptable in nature.
Technological factors – The latest technologies are used by HTC for the purpose if
developing the products in an effective manner. The features that are provided by the
products are based on latest changes that have taken place in the environment (Ethiraj,
Gambardella and Helfat 2018).
Legal factors – The organization has faced some major legal issues that are related to
the patents that have been gained based on its android handsets in the year 2010.
Environmental factors – The major priority of HTC is to maintain health of the
environment. The recycling of cell phones is a activity is performed for reduction of the
effects of the operations of HTC on the environmental conditions (Frynas and Mellahi 2015).
Political Economic Social Technological Environmenta
l
Legal
Changes in
tax rates.
Conflicts in
political
condition.
Deflation in
economy.
Import and
export
activities.
Changes in
living
standards.
Developmen
t of socially
acceptable
products.
Implementation
of latest
technologies.
Features
related to latest
technology.
Maintaining
health of
environment.
Recycling
activities.
Patents
based
issues.

6STRATEGY AND LEADERSHIP MANAGEMENT
Porter’s five forces analysis of HTC
Bargaining power of the suppliers – The bargaining based power of the suppliers are
considered to be major opportunities for the organizations in the industry including HTC
Corporations. They are able to compete based on the reduction of manufacturing costs. Low.
Threats based on the substitutes – The customers are provided with alternative
products that are based on lower prices and can offer better levels of performance as well.
The threats based on the substitutes in the market are thereby quite high (Dobbs 2014). High.
Bargaining power of the buyers – The bargaining power of buyers in the industry is
moderate as the smartphone based market is ruled by organizations like, Samsung, Apple and
Nokia. High.
Rivalry in the industry – The levels of competitive rivalry in the industry are high as
the differentiation of the products are also not high. High.
Threats based on new entry – The economic downturn is considered to be an
important factor that is able to impact the entry of new companies in the smartphone market.
The competition levels are high and entry of new organizations is quite common as well
(Hill, Jones and Schilling 2014). High.
Threats of new
entrants
Industry rivalry
Bargaining power of
suppliers
Bargaining power of the
consumers
Threats of substitutes
Porter’s five forces analysis of HTC
Bargaining power of the suppliers – The bargaining based power of the suppliers are
considered to be major opportunities for the organizations in the industry including HTC
Corporations. They are able to compete based on the reduction of manufacturing costs. Low.
Threats based on the substitutes – The customers are provided with alternative
products that are based on lower prices and can offer better levels of performance as well.
The threats based on the substitutes in the market are thereby quite high (Dobbs 2014). High.
Bargaining power of the buyers – The bargaining power of buyers in the industry is
moderate as the smartphone based market is ruled by organizations like, Samsung, Apple and
Nokia. High.
Rivalry in the industry – The levels of competitive rivalry in the industry are high as
the differentiation of the products are also not high. High.
Threats based on new entry – The economic downturn is considered to be an
important factor that is able to impact the entry of new companies in the smartphone market.
The competition levels are high and entry of new organizations is quite common as well
(Hill, Jones and Schilling 2014). High.
Threats of new
entrants
Industry rivalry
Bargaining power of
suppliers
Bargaining power of the
consumers
Threats of substitutes
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7STRATEGY AND LEADERSHIP MANAGEMENT
Figure 3 – Porter’s Five Forces Analysis
Source – Created by author
SWOT analysis of HTC
Strengths
HTC is the largest maker of the
PDA’s smart phone in the whole
world.
The research and development based
setup of the organization is strong.
HTC has received many awards and
industry recognitions.
Weaknesses
The recognition levels of HTC in the
market is quite low.
The manufacturing costs of the
products are high.
HTC has faced major issues based
on patent infringement.
The range of cell phones offered by
HTC is small as compared to other
organizations.
Opportunities
The collaboration of HTC with
Google is considered to be a major
growth opportunity for the company.
The company has developed a
strategic partnership with Beat
Electronics.
The rate of industrial growth of the
organization is high.
Threats
Rapid levels of technological
changes are able to affect the
operations of HTC.
The levels of competition faced by
the organization are high.
The preference of the customers for
other brands is high (Meyer, Neck
and Meeks 2017).
TOWS analysis of HTC
SO Strategies
Production of the innovative
products that are based on high
technology.
Increasing the shares in the market
with the help of innovative products.
Development of new products by
forming experience partnerships.
WO Strategies
Purchasing the legal rights.
Lowering the costs by using low
cost labour.
Overcoming the debts by the
formation of strategic alliances.
Taking advantage of the
sponsorships to make space in
customer minds (Michael, Storey
and Thomas 2017).
Figure 3 – Porter’s Five Forces Analysis
Source – Created by author
SWOT analysis of HTC
Strengths
HTC is the largest maker of the
PDA’s smart phone in the whole
world.
The research and development based
setup of the organization is strong.
HTC has received many awards and
industry recognitions.
Weaknesses
The recognition levels of HTC in the
market is quite low.
The manufacturing costs of the
products are high.
HTC has faced major issues based
on patent infringement.
The range of cell phones offered by
HTC is small as compared to other
organizations.
Opportunities
The collaboration of HTC with
Google is considered to be a major
growth opportunity for the company.
The company has developed a
strategic partnership with Beat
Electronics.
The rate of industrial growth of the
organization is high.
Threats
Rapid levels of technological
changes are able to affect the
operations of HTC.
The levels of competition faced by
the organization are high.
The preference of the customers for
other brands is high (Meyer, Neck
and Meeks 2017).
TOWS analysis of HTC
SO Strategies
Production of the innovative
products that are based on high
technology.
Increasing the shares in the market
with the help of innovative products.
Development of new products by
forming experience partnerships.
WO Strategies
Purchasing the legal rights.
Lowering the costs by using low
cost labour.
Overcoming the debts by the
formation of strategic alliances.
Taking advantage of the
sponsorships to make space in
customer minds (Michael, Storey
and Thomas 2017).

8STRATEGY AND LEADERSHIP MANAGEMENT
ST Strategies
Introduction of the new products for
gaining trust of customers.
Competing with the rivals by
focussing on the performance levels.
Enlarging market share and sales
volume.
WT Strategies
Implementing attractive features in
the products.
Keeping the costs low in order to
attract the customers.
Competing with the rivals with the
help of the new techniques.
2. Feasibility
Physical resources – The physical resources of HTC are mainly based on the vast
research and development based facilities which are maintained by the organization. The
production based facilities of the organization are located in Taiwan and the major production
based facilities are located in China. The outsourcing based activities of production process is
considered to be an important factor that is able to affect the costs based on production of
HTC. The materials that are used by the organization are also upgraded on a regular basis
based on the requirements in production. The organization aims at managing the inventory in
an efficient manner based on the future demands in the market (Meyer, Neck and Meeks
2017). A considerable amount of cash stock is used by HTC for the purpose of the increasing
the strengths of its production process. The research based process that is used by the
company is also considered to be effective for the operations of the organization.
Financial resources – The amounts of cash flow that have been held by HTC as a
result of the financial year 2011 were not quite high. The organization has invested in the
developed of more research and development based activities. HTC also has the capability of
borrowing high amounts of funds from the market. The overall competencies and the
resources of the company are affected by the levels of financial resources that are gained by
HTC. The organization has been enlisted in the Taiwan Stock Exchange and has gained the
topmost rank based on stability. The asset management based decisions that have been taken
ST Strategies
Introduction of the new products for
gaining trust of customers.
Competing with the rivals by
focussing on the performance levels.
Enlarging market share and sales
volume.
WT Strategies
Implementing attractive features in
the products.
Keeping the costs low in order to
attract the customers.
Competing with the rivals with the
help of the new techniques.
2. Feasibility
Physical resources – The physical resources of HTC are mainly based on the vast
research and development based facilities which are maintained by the organization. The
production based facilities of the organization are located in Taiwan and the major production
based facilities are located in China. The outsourcing based activities of production process is
considered to be an important factor that is able to affect the costs based on production of
HTC. The materials that are used by the organization are also upgraded on a regular basis
based on the requirements in production. The organization aims at managing the inventory in
an efficient manner based on the future demands in the market (Meyer, Neck and Meeks
2017). A considerable amount of cash stock is used by HTC for the purpose of the increasing
the strengths of its production process. The research based process that is used by the
company is also considered to be effective for the operations of the organization.
Financial resources – The amounts of cash flow that have been held by HTC as a
result of the financial year 2011 were not quite high. The organization has invested in the
developed of more research and development based activities. HTC also has the capability of
borrowing high amounts of funds from the market. The overall competencies and the
resources of the company are affected by the levels of financial resources that are gained by
HTC. The organization has been enlisted in the Taiwan Stock Exchange and has gained the
topmost rank based on stability. The asset management based decisions that have been taken

9STRATEGY AND LEADERSHIP MANAGEMENT
by HTC have been based on the priority that is provided to the fluidity and security (Michael,
Storey and Thomas 2017).
Intellectual and capital resources – HTC has paid high levels of attention to the
development of in-house research and development based facilities. The R&D based
capabilities thereby account for 30% of the total headcount in the organization. The
organization had proved itself to be an innovator by developing many products that can be
considered to be first in the technology market. The partnership that has been developed by
HTC with Google and Android has also been able to affect the availability of technological
and intellectual resources as well (Demir, Wennberg and McKelvie 2017). HTC has however
provided more attention to the development of intellectual resources of the organization. The
acquisitions of HTC have been able to play a key part in increasing the levels of intellectual
resources. The patent based portfolio is also considered to be important for the issues faced
by the company based on patent infringement.
Human resources – Human resources are regarded as the most important resource by
HTC. The high intellectual value of technology market is related to the importance which is
provided to the human resources within the organization. The organization has recently
acquired specialists in different fields like, brand promotion, designing the products,
marketing and sales and user interface. The employee base of the organization consists of
greater than 13000 people who belong to North America and Europe (Durand, Grant and
Madsen 2017). Major part of the employees in this case work in the research and
development based centres of the organization. The different significant positions in the
organization like that of engineers and managers are held by the specialists of Taiwan.
Types of resources Variables How to locate them?
by HTC have been based on the priority that is provided to the fluidity and security (Michael,
Storey and Thomas 2017).
Intellectual and capital resources – HTC has paid high levels of attention to the
development of in-house research and development based facilities. The R&D based
capabilities thereby account for 30% of the total headcount in the organization. The
organization had proved itself to be an innovator by developing many products that can be
considered to be first in the technology market. The partnership that has been developed by
HTC with Google and Android has also been able to affect the availability of technological
and intellectual resources as well (Demir, Wennberg and McKelvie 2017). HTC has however
provided more attention to the development of intellectual resources of the organization. The
acquisitions of HTC have been able to play a key part in increasing the levels of intellectual
resources. The patent based portfolio is also considered to be important for the issues faced
by the company based on patent infringement.
Human resources – Human resources are regarded as the most important resource by
HTC. The high intellectual value of technology market is related to the importance which is
provided to the human resources within the organization. The organization has recently
acquired specialists in different fields like, brand promotion, designing the products,
marketing and sales and user interface. The employee base of the organization consists of
greater than 13000 people who belong to North America and Europe (Durand, Grant and
Madsen 2017). Major part of the employees in this case work in the research and
development based centres of the organization. The different significant positions in the
organization like that of engineers and managers are held by the specialists of Taiwan.
Types of resources Variables How to locate them?
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10STRATEGY AND LEADERSHIP MANAGEMENT
Physical Different facilities and
capabilities.
Within the organizations.
Intellectual Partnerships Within the organization.
Human Employees Within organizational
processes.
Financial Investments Within the partnerships of
the organization.
Figure 2 – Key resources
Source – Created by author
3. Acceptability
The stakeholders of a company are able to play a major role in the development of
revenues and profitability levels in an effective way. The stakeholder groups of the
technology based organizations are considered to be an important part of the organizational
operations. HTC has also provided huge levels of importance to the stakeholder groups of the
organization (Daspit et al. 2017). The different stakeholders of HTC thereby include,
consumers, employees, investors and the employees who work under the distributors and the
suppliers of the organization as well.
Consumers – The consumers are provided with effective levels of priority by
HTC. The consumer based stakeholder group of the organization mainly
consist of the buyers and the customers. The major interest of the customers in
this case is based on the efficient and effective products that can be offered by
HTC. The products of HTC are priced in such a manner which is based on the
needs and demands of the consumers. The organization aims at offering the
products to different types of customers. The features of the products that are
Physical Different facilities and
capabilities.
Within the organizations.
Intellectual Partnerships Within the organization.
Human Employees Within organizational
processes.
Financial Investments Within the partnerships of
the organization.
Figure 2 – Key resources
Source – Created by author
3. Acceptability
The stakeholders of a company are able to play a major role in the development of
revenues and profitability levels in an effective way. The stakeholder groups of the
technology based organizations are considered to be an important part of the organizational
operations. HTC has also provided huge levels of importance to the stakeholder groups of the
organization (Daspit et al. 2017). The different stakeholders of HTC thereby include,
consumers, employees, investors and the employees who work under the distributors and the
suppliers of the organization as well.
Consumers – The consumers are provided with effective levels of priority by
HTC. The consumer based stakeholder group of the organization mainly
consist of the buyers and the customers. The major interest of the customers in
this case is based on the efficient and effective products that can be offered by
HTC. The products of HTC are priced in such a manner which is based on the
needs and demands of the consumers. The organization aims at offering the
products to different types of customers. The features of the products that are

11STRATEGY AND LEADERSHIP MANAGEMENT
offered to the consumers are able to influence the demands and needs in an
effective way (Durand, Grant and Madsen 2017).
Employees – The employees are provided with high levels of importance by
HTC as they are able to play a key part in the growth of the products of the
organization. The employees are able to form a major part of the facilities
which have been gained by HTC. The major interests of the stakeholders are
based on development of the careers and proper levels of compensation that
are offered to them. The human resource based capabilities of HTC are
determined in an effective manner by the employees (Barros, Hernangómez
and Martin-Cruz 2016). The innovations in the products and profitability
levels of the organization are also based on the employees of HTC.
Investors – The investors of HTC are also considered to be important for the
development of different products of the organization. The major interest of
the organization is based on the returns that are received by them on the
investments. The organization is thereby able to address the stakeholder group
of investors with the help of effective financial performance of HTC. The
profit margins that have been developed by the organization have a major
positive impact on the investors of HTC (Ethiraj, Gambardella and Helfat
2018). The financial position and resources that have been developed by the
organization are considered to be affected by the investors.
Employees of the distributors and suppliers – The employees who are a part
of the supply chain of HTC are able to influence the profitability and revenues
of the company. The employees of the suppliers or distributors can be
considered to be the indirect stakeholders of the organization. The major
interest of the employees in this case is also based on the levels of security that
offered to the consumers are able to influence the demands and needs in an
effective way (Durand, Grant and Madsen 2017).
Employees – The employees are provided with high levels of importance by
HTC as they are able to play a key part in the growth of the products of the
organization. The employees are able to form a major part of the facilities
which have been gained by HTC. The major interests of the stakeholders are
based on development of the careers and proper levels of compensation that
are offered to them. The human resource based capabilities of HTC are
determined in an effective manner by the employees (Barros, Hernangómez
and Martin-Cruz 2016). The innovations in the products and profitability
levels of the organization are also based on the employees of HTC.
Investors – The investors of HTC are also considered to be important for the
development of different products of the organization. The major interest of
the organization is based on the returns that are received by them on the
investments. The organization is thereby able to address the stakeholder group
of investors with the help of effective financial performance of HTC. The
profit margins that have been developed by the organization have a major
positive impact on the investors of HTC (Ethiraj, Gambardella and Helfat
2018). The financial position and resources that have been developed by the
organization are considered to be affected by the investors.
Employees of the distributors and suppliers – The employees who are a part
of the supply chain of HTC are able to influence the profitability and revenues
of the company. The employees of the suppliers or distributors can be
considered to be the indirect stakeholders of the organization. The major
interest of the employees in this case is also based on the levels of security that

12STRATEGY AND LEADERSHIP MANAGEMENT
have been gained by them. The different employment based practices of the
organizations or the suppliers of HTC are able to affect the supply chain in a
huge manner (Daspit et al. 2017).
Figure 4 – Stakeholder management
Source – Created by author
4. Rationale and Motivation
The external environment of HTC has been considered to be a significant factor that is
able to affect the operations and profitability levels of the organization. The political and
economic factors of the organization are considered to be the most important aspects that are
able to affect the profits that are gained by HTC. The changes that have been experienced in
the technological factors are able to influence the products that are developed by HTC. The
technological changes are considered to be highly important for the formation of research and
development facilities of the organization (Dyer et al. 2015). The changes that have taken
place in the needs and demands of the customers can have an impact on the products which
are developed by HTC. The industry in which HTC operates is able to influence the changes
that have taken place in the research and development of the organization. The suppliers are
Stakeholders
Customers
Employees Investors
Employees of suppliers
have been gained by them. The different employment based practices of the
organizations or the suppliers of HTC are able to affect the supply chain in a
huge manner (Daspit et al. 2017).
Figure 4 – Stakeholder management
Source – Created by author
4. Rationale and Motivation
The external environment of HTC has been considered to be a significant factor that is
able to affect the operations and profitability levels of the organization. The political and
economic factors of the organization are considered to be the most important aspects that are
able to affect the profits that are gained by HTC. The changes that have been experienced in
the technological factors are able to influence the products that are developed by HTC. The
technological changes are considered to be highly important for the formation of research and
development facilities of the organization (Dyer et al. 2015). The changes that have taken
place in the needs and demands of the customers can have an impact on the products which
are developed by HTC. The industry in which HTC operates is able to influence the changes
that have taken place in the research and development of the organization. The suppliers are
Stakeholders
Customers
Employees Investors
Employees of suppliers
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13STRATEGY AND LEADERSHIP MANAGEMENT
able to affect the prices of the products and features that are offered with the help of these
products. The competitiveness of the industry is considered to be a significant issue that can
influence the organization (Demir, Wennberg and McKelvie 2017).
The capabilities or resources that are gained by the organization are able to support
the operations and product development based facilities as well. The financial resources are
able to increase the levels of investments that are made by HTC. On the other hand, the
physical resources are related to the development of research and development of the
organization. The capital and intellectual resources are also significant for the methods by
which the company is able to develop effective partnerships with different companies. The
strategic alliances and partnerships are considered to be important for developing high
technology based products (Engert, Rauter and Baumgartner 2016).
The expectations of stakeholders of the organization are important factors which can
influence the performance which is depicted by HTC in the highly competitive technology
based industry. The investors have highest levels of expectations from the organization and
its operations in the industry. The consumers also have high expectations from the
organization with the help of products that are offered to them. The expectation levels of the
stakeholders are able to have a major influence on the products that are offered by HTC in the
market. HTC needs to develop the products in such a way which can help in improving the
revenues of the organization in an effective manner (Demir, Wennberg and McKelvie 2017).
3.0 Potential problems
1. Problem I
HTC has faced major issues based on the infringement of the patents and the rules
that are formed by the government which are required to be followed by the organization in
an effective manner. The legal issues have been able to affect the ways by which the
able to affect the prices of the products and features that are offered with the help of these
products. The competitiveness of the industry is considered to be a significant issue that can
influence the organization (Demir, Wennberg and McKelvie 2017).
The capabilities or resources that are gained by the organization are able to support
the operations and product development based facilities as well. The financial resources are
able to increase the levels of investments that are made by HTC. On the other hand, the
physical resources are related to the development of research and development of the
organization. The capital and intellectual resources are also significant for the methods by
which the company is able to develop effective partnerships with different companies. The
strategic alliances and partnerships are considered to be important for developing high
technology based products (Engert, Rauter and Baumgartner 2016).
The expectations of stakeholders of the organization are important factors which can
influence the performance which is depicted by HTC in the highly competitive technology
based industry. The investors have highest levels of expectations from the organization and
its operations in the industry. The consumers also have high expectations from the
organization with the help of products that are offered to them. The expectation levels of the
stakeholders are able to have a major influence on the products that are offered by HTC in the
market. HTC needs to develop the products in such a way which can help in improving the
revenues of the organization in an effective manner (Demir, Wennberg and McKelvie 2017).
3.0 Potential problems
1. Problem I
HTC has faced major issues based on the infringement of the patents and the rules
that are formed by the government which are required to be followed by the organization in
an effective manner. The legal issues have been able to affect the ways by which the

14STRATEGY AND LEADERSHIP MANAGEMENT
organization is able to operate in the industry (Htc.com 2019). Google will face major issues
in acquiring the research and development facilities of the organization due to the lack of
proper patents.
2. Problem II
The culture and capabilities of the organization also have a major impact on the lack
of revenues and profitability of the organization. The resources that have been developed by
HTC are not considered to be enough for the development of the revenues of the organization
in an effective manner. The organization has not been able to improve the revenues and
profitability due to the lack of proper levels of financial resources (Htc.com 2019). The lack
of proper resources of HTC will affect the revenues of Google after the acquisition process.
3. Problem III
The major issues that have been faced by the stakeholders or investors of the
organization are based on the lack of proper levels of profitability recently in the technology
industry. The organization has not been able to fulfil the expectations of the stakeholders with
the help of the products that have been developed by HTC. The expectations of the
consumers have also not been fulfilled by the organization and have affected the profitability
levels of HTC in the technology industry (Htc.com 2019). The investors and shareholders of
HTC are not able to receive high levels of returns from the company and this can affect the
stakeholders Google as well.
4.0 Recommendation
4.1 Recommendation I
A major recommendation that can be provided to HTC based on improvement of the
external environment based factors are related to the development of patents in such a manner
which can help in formation of the products which can be offered to the customers. The
organization is able to operate in the industry (Htc.com 2019). Google will face major issues
in acquiring the research and development facilities of the organization due to the lack of
proper patents.
2. Problem II
The culture and capabilities of the organization also have a major impact on the lack
of revenues and profitability of the organization. The resources that have been developed by
HTC are not considered to be enough for the development of the revenues of the organization
in an effective manner. The organization has not been able to improve the revenues and
profitability due to the lack of proper levels of financial resources (Htc.com 2019). The lack
of proper resources of HTC will affect the revenues of Google after the acquisition process.
3. Problem III
The major issues that have been faced by the stakeholders or investors of the
organization are based on the lack of proper levels of profitability recently in the technology
industry. The organization has not been able to fulfil the expectations of the stakeholders with
the help of the products that have been developed by HTC. The expectations of the
consumers have also not been fulfilled by the organization and have affected the profitability
levels of HTC in the technology industry (Htc.com 2019). The investors and shareholders of
HTC are not able to receive high levels of returns from the company and this can affect the
stakeholders Google as well.
4.0 Recommendation
4.1 Recommendation I
A major recommendation that can be provided to HTC based on improvement of the
external environment based factors are related to the development of patents in such a manner
which can help in formation of the products which can be offered to the customers. The

15STRATEGY AND LEADERSHIP MANAGEMENT
patents can be gained by the organization which can help in the development of the products
in such a manner which can play a vital part in the fulfilment of the expectations of the
customers. The company will be able to function in the technology industry in such a way
which can help in reducing the negative effects of the environment on organizational
operations. The strategic alliance that has been developed by HTC with Google needs to be
based on the different legal requirements of the technology industry.
4.2 Recommendation II
The financial capabilities of HTC can be improved with the help of effective strategic
alliance that has been developed with Google. The alliance is able to play a key role in the
ways by which the organization can increase the levels of financial resources in an effective
way. The financial resources will be able to play a key role in the development of products
that can fulfil the demands and needs of the consumers. Financial capabilities of HTC can be
increased effectively by the ways by which Google can use the research and development
based facilities of the organization.
4.3 Recommendation III
The expectations of the stakeholders can be fulfilled by HTC by partnerships which
have been developed by the organization. The partnership with Google will be able to play a
key role in the formation of effective resources by the organization. The organization will be
able to fulfil the expectations of the customers with the help of resources and capabilities
which have been gained by HTC in the technology industry. HTC has not been able to
maintain the position that has been developed by the organization in the technology industry.
The strategic partnerships which have been developed by the organization are considered to
be an important factor which can provide effective growth based opportunities to the
organization in future.
patents can be gained by the organization which can help in the development of the products
in such a manner which can play a vital part in the fulfilment of the expectations of the
customers. The company will be able to function in the technology industry in such a way
which can help in reducing the negative effects of the environment on organizational
operations. The strategic alliance that has been developed by HTC with Google needs to be
based on the different legal requirements of the technology industry.
4.2 Recommendation II
The financial capabilities of HTC can be improved with the help of effective strategic
alliance that has been developed with Google. The alliance is able to play a key role in the
ways by which the organization can increase the levels of financial resources in an effective
way. The financial resources will be able to play a key role in the development of products
that can fulfil the demands and needs of the consumers. Financial capabilities of HTC can be
increased effectively by the ways by which Google can use the research and development
based facilities of the organization.
4.3 Recommendation III
The expectations of the stakeholders can be fulfilled by HTC by partnerships which
have been developed by the organization. The partnership with Google will be able to play a
key role in the formation of effective resources by the organization. The organization will be
able to fulfil the expectations of the customers with the help of resources and capabilities
which have been gained by HTC in the technology industry. HTC has not been able to
maintain the position that has been developed by the organization in the technology industry.
The strategic partnerships which have been developed by the organization are considered to
be an important factor which can provide effective growth based opportunities to the
organization in future.
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16STRATEGY AND LEADERSHIP MANAGEMENT
5.0 Conclusion
The report can be settled by asserting that the merger of Google and HTC will be able
to play a key part in developing the levels of profitability and revenues of the organization.
Google will be able to use the major strength of HTC which is based on the research and
development based facilities in an effective manner. HTC is provided with high levels of
growth based opportunities for the ways by which the organization can increased the
revenues in the market and further to fulfil the expectations of the stakeholders as well. The
external environment based factors of the organizations can also be influenced by the
partnerships that are developed by HTC in the industry.
5.0 Conclusion
The report can be settled by asserting that the merger of Google and HTC will be able
to play a key part in developing the levels of profitability and revenues of the organization.
Google will be able to use the major strength of HTC which is based on the research and
development based facilities in an effective manner. HTC is provided with high levels of
growth based opportunities for the ways by which the organization can increased the
revenues in the market and further to fulfil the expectations of the stakeholders as well. The
external environment based factors of the organizations can also be influenced by the
partnerships that are developed by HTC in the industry.

17STRATEGY AND LEADERSHIP MANAGEMENT
6.0 Reference List
Barros, I., Hernangómez, J. and Martin-Cruz, N., 2016. A theoretical model of strategic
management of family firms. A dynamic capabilities approach. Journal of Family Business
Strategy, 7(3), pp.149-159.
Daspit, J.J., Chrisman, J.J., Sharma, P., Pearson, A.W. and Long, R.G., 2017. A strategic
management perspective of the family firm: Past trends, new insights, and future
directions. Journal of Managerial Issues, 29(1), p.6.
Demir, R., Wennberg, K. and McKelvie, A., 2017. The strategic management of high-growth
firms: a review and theoretical conceptualization. Long Range Planning, 50(4), pp.431-456.
Dobbs, ME 2014, 'Guidelines for applying Porter's five forces framework: a set of industry
analysis templates', Competitiveness Review, vol. 24, no. 1, pp. 32–45.
Durand, R., Grant, R.M. and Madsen, T.L., 2017. The expanding domain of strategic
management research and the quest for integration. Strategic Management Journal, 38(1),
pp.4-16.
Dyer, J.H., Godfrey, P., Jensen, R. and Bryce, D., 2015. Strategic Management: Concepts
and Cases. Wiley Global Education.
Engert, S., Rauter, R. and Baumgartner, R.J., 2016. Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production, 112, pp.2833-2850.
Ethiraj, S.K., Gambardella, A. and Helfat, C.E., 2018. Theory in strategic
management. Strategic Management Journal, 39(6), pp.1529-1529.
6.0 Reference List
Barros, I., Hernangómez, J. and Martin-Cruz, N., 2016. A theoretical model of strategic
management of family firms. A dynamic capabilities approach. Journal of Family Business
Strategy, 7(3), pp.149-159.
Daspit, J.J., Chrisman, J.J., Sharma, P., Pearson, A.W. and Long, R.G., 2017. A strategic
management perspective of the family firm: Past trends, new insights, and future
directions. Journal of Managerial Issues, 29(1), p.6.
Demir, R., Wennberg, K. and McKelvie, A., 2017. The strategic management of high-growth
firms: a review and theoretical conceptualization. Long Range Planning, 50(4), pp.431-456.
Dobbs, ME 2014, 'Guidelines for applying Porter's five forces framework: a set of industry
analysis templates', Competitiveness Review, vol. 24, no. 1, pp. 32–45.
Durand, R., Grant, R.M. and Madsen, T.L., 2017. The expanding domain of strategic
management research and the quest for integration. Strategic Management Journal, 38(1),
pp.4-16.
Dyer, J.H., Godfrey, P., Jensen, R. and Bryce, D., 2015. Strategic Management: Concepts
and Cases. Wiley Global Education.
Engert, S., Rauter, R. and Baumgartner, R.J., 2016. Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production, 112, pp.2833-2850.
Ethiraj, S.K., Gambardella, A. and Helfat, C.E., 2018. Theory in strategic
management. Strategic Management Journal, 39(6), pp.1529-1529.

18STRATEGY AND LEADERSHIP MANAGEMENT
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press,
USA.
Google.com 2019. Google. [online] Google.com. Available at: https://www.google.com/
[Accessed 24 Jan. 2019].
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Htc.com 2019. HTC United States. [online] Htc.com. Available at: https://www.htc.com/us/
[Accessed 24 Jan. 2019].
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic
management interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Michael, S., Storey, D. and Thomas, H., 2017. Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset,
pp.45-65.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press,
USA.
Google.com 2019. Google. [online] Google.com. Available at: https://www.google.com/
[Accessed 24 Jan. 2019].
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Htc.com 2019. HTC United States. [online] Htc.com. Available at: https://www.htc.com/us/
[Accessed 24 Jan. 2019].
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic
management interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
Michael, S., Storey, D. and Thomas, H., 2017. Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset,
pp.45-65.
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