Strategic Management Report: Google Strategy Analysis

This report provides a comprehensive analysis of Google's strategic management practices. It begins with an introduction to strategic management and its importance, followed by a critical assessment of the processes organizations use to determine their strategies, including external and internal analysis. The report then evaluates key models and tools such as PESTLE, SWOT, VRIO, and the Balanced Scorecard, and applies these tools to analyze Google's strategic decisions. The application of the PESTLE analysis to Google's operations, examining political, economic, social, technological, and legal factors, is discussed. The report also covers the importance of change management within Google. The report concludes with a summary of the findings and provides references for further research. The report highlights how Google utilizes various strategic tools to navigate its business environment and maintain its competitive advantage.

Strategic Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Critical Assessment of process used by organisations to determine their strategy.....................3
TASK 2............................................................................................................................................5
Evaluation of critical models and tools used by the organisation to determine its strategies.....5
TASK 3............................................................................................................................................6
Application of the tools used to determine the strategies of the company in Google.................6
TASK 4............................................................................................................................................8
Critical appraisal of the importance of the change management ...............................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management basically is the way in which a company plans strategy to manage
its resources so as to achieve the goals and targets of the company. It involves setting up of an
object by the company, analysing competition in the market and internal organisations,
evaluation of the strategy and then making sure that management of the company carry out all
the planned strategies (Stoyanova and et.al 2019). Any change can be made within the company
whose structure and plans are flexible but those company with complex structures needs more
efforts to plan any implementation of strategy. This report explains about how the organisations
determine its strategies. It also helps in evaluating the critical models used to determine
strategies. The chosen company in this report is Google. It is one of the most famous and
worldwide known technology company founded in 1998, that provides with facilities which
relates to internet.
TASK 1
Critical Assessment of process used by organisations to determine their strategy
There are many types of performances which is used by the company to ensure the
effectiveness of the performance of the company (Okumus and et.al 2019). Various strategies are
planned by the company and implemented. Such strategies are to be properly implemented by
the company so that it gets easy to analyse its effectiveness. The process for such an analysis to
determine the strategies in an organisation is explained below:
External Analysis
It is one of the very important procedure which helps the company in determining the
strategies which can be used by the company to achieve its goals. It helps in the evaluation of the
factors that exist in the external business environment which surrounds the company and have a
great influence over the decisions a company makes and strategies it plans. The external factors
that influence the decisions of the company while planning any strategy includes: stability of the
politics, economic performances, recent trends in society, technological advancements, factors
that relates to the environment and the laws that are related to the company which are to be
complied with.
This external analysis also includes the analysis of the company and its position in the
market while comparing it with its competitors. This process is very important to draw

conclusions and consider the areas which may affect the strategies being planned by the
organisation so that the company can sustain the competition in the market and work in direction
to develop sustainability. Although the company may face many limitations but this analysis is
worth having for the growth and success of the company.
Internal Analysis
This is one another kind of process which a company apply in their organisation. This
process relates to an internal assessment of the company itself so that the strategies can be
effectively planned by the company(Moutinho and et.al 2018). This analysis is done by
analysing the company's own strength, weaknesses, the opportunity is seeks in future and the
threat they have or might have in future from other companies, laws, etc. this type of analysis is
very important as it helps in determining the company's own capabilities and also will highlight
the areas with the organisation which needs improvements or reforms.
This type of analysis helps in determining the necessary requirements of the company
and also the reforms or changes which it shall focus upon. To determine the strategies which a
company need, it is important that the company perform its self analysis so that they can better
understand the strategies which they require to achieve its goals.
Analysing internal factors will help company know about itself and its requirements
while on the other hand analysing the external factors will help the company in Wong the effect
of them on their business. Therefore the Google is advised to adopt both the analysis while
determining the strategies they are planning and implement the same after analysing all the
factors.
TASK 2
Evaluation of critical models and tools used by the organisation to determine its strategies.
As discussed above, there are many internal and external factors which helps with the
process of determining the strategies and also help in making right decision by the company.
There are various models and tools which are used by the company to determines the
management strategies. Few of the models are explained below:
PESTLE Analysis
This is the framework which is followed by the company, adopted and also implemented
by it to determine all the factors of the external environment that may affect the growth of the

company(Meyer and et.al 2017). The model do not only help in the determination of the strategy
to the company but it also helps in knowing the impact of all the factors upon the company, be it
negative or positive impact.
Applying this model in Google, the company will know about the external factors that
will affect their growth either positively or negatively. These factors will help the company to
know about the political and legal factors which may be important for the company to comply
with and non compliance of it will make the company liable to pay damages. This will also help
Google to know of all the new trends that are running in the market or which the customers need
to be developed. The Google will accordingly make changes or make strategies which will help
in fulfilling the needs and requirements of the customers.
SWOT Analysis
This is another framework which is used by the company while determining the
strengths, weaknesses, future opportunities and the threat which they have in present or may
have in future with other companies, legislations, etc. (Hill, T., 2017). The company performs its
own analysis and then take effective decision about the strategies required by the company in
management. This model is universally adopted by many different companies.
This analysis mainly focus on the planning of the strategies to strengthen its internal
motives and agendas. This helps company to internally built the strategies that only works to
enhance the working of the company by removing its weaknesses, threats and working in
direction to grab the opportunities it seeks.
Both the models i.e. SWOT and PESTLE have their own advantages and disadvantages.
Using them by the companies help in the proper evaluation and analysis which further helps
company in fulfilling
VRIO Analysis
VRIO is an acronym for: Value, Rareness, Imitability and Organization. This is a
technique which is used by the organisation to evaluated its resources and also their competitive
advantage. The resources evaluated by the company are: financial, human, material and non
material resources. The four dimensions of the VRIO model are explained below: Valuable: This is very important as the resources in this are evaluated. This is important
for google as by this value of the resources can be known as the conditions of the market
is always changing.

 Rare: Evaluation of the resources by the google is very important as this will help it to
gain the competitive advantage over the companies that are in same industry. Rare
resources provides company with advantage over many things. Imitate: The company must not imitate any resources as it is very costly. Imitation can
either be duplicating or substituting. If google indulge themselves in Imitation that the
value of it will decrease and they would not not sustain long in the competition as they
do not have anything unique or rare to market. Organization: The management of the company, structure, culture, process, etc. must all
be organised in a systematic manner so that the google fully realise its potential. This
realization will lead google to gain the competition advantage and provide sustainability
in competition.
Balanced Score Card (BSC)
The strategic management and the planning system is BSC i.e. Balanced Score card. This
is used by the organisation for the alignment of the daily work activities which the employees are
doing strategically, measurement and monitoring of the process made towards the strategic
targets, etc. There are four perspective which are given under this that helps in the development
of objects, targets, initiatives, etc. The four perspective are explained below: Financial: In this, Google will view its financial performance and also will view the use
of all the financial resources done by them. By this they will be able to track their
finances and plan strategies accordingly. Customers/Stakeholders: In this the performance of the google is viewed in accordance
to the customers or the stakeholders of the company. By this the company can make
strategies suitable for its customers. Internal process: This is the way in which the performance of the organisation is viewed.
This will help google to know of the quality and the efficiency of the products and
services being provided by them.
 Organisational Capacity (Learning&Growth): This is the way in which the company
view its culture, technologies, infrastructure, etc. This viewing will help google to
analyse the capacity of the organisation which plays key role in the performance of the
company, so that proper strategies can be planned.

TASK 3
Application of the tools used to determine the strategies of the company in Google.
From the above analysis out of Two Models, PESTLE analysis is being adopted to
analyse the external environment and also help in getting the things done in a right approach so
that business can evaluate the external factors that is impacting an organisation.
 Political factors: These are the factors which includes the government stability, trade
restriction, exchange rate, tariffs and so on (Ethiraj and et. Al 2018). Google is working
on the global level and serving the customer across the world. There is high uncertainty
within the country and company is facing the big impact on the business as all the
operations is getting weak due to ineffective supply chain in the large market. These such
change impact the business negatively and leads to slowdown the business operation.
 Economical factors: These are the factors which includes the economic growth, interest
rate, rescission, wages rate, working hours, unemployment and so on. More over the
company is operating their business on a larger scale and facing the high inflation in the
large market and effecting the standard of living of individual and lower value of
currency. Hence, Change is required at the within the organisation so that company can
compliances with the different conditions.
 Social factors: These are the factors which includes the health consciousness, population
growth, age distribution, career attitudes, safety and health. It is related to the current
trends of the marketplace as customer is highly influenced with the digitalization and
with this internet is becoming the prominent tool that is using by the large
population(Cavicchi, C. and Vagnoni, E., 2018). In addition to this, company is also
dealing with the various technology like computers, mobile phone. This require the
company to change their strategies so that products can be sell in the market at lower
prices and this would increase the sale of the product and company will attain the higher
growth.
 Technological factors: These are the factors which involve the innovation and the
advance their business so that they can meet the the current trends of the market. Google
can expand their market by adopting the advance technology to meet the competitive
advantage in the large market as Google is dealing in Artificial intelligence so technology
advancement and innovation will boast the overall sale of the business.

 legal factors: These are the factors which includes the employment law, imports &
exports and taxations. In context to google, there are various rules and regulation which
must be followed by the company so that they can create good brand image in the
marketplace (Carayannis, E., 2018).
 Environmental factors: These are the factors which is concern with the environmental
law that each organisation must perform their operation in such a manner that it can not
harm the environment in terms of pollution or climate change so that Google can
establish a good brand image as they are operating and performing their business in such
a way that they are not harming the environment.
TASK 4
Critical appraisal of the importance of the change management
There are several positive and negative change which needs to be implemented in the
business so that they can retain in the changing world. The company have successfully
implemented the various structural change with its parent company by the name of Alphabet. It
will help the company to coping with the external factors by having the structural change and
emergence of parent company and leads the company to move towards growth and success
(Barbosa and et.al 2020). In context of Google, there are several factors which define the
importance of change which is explained as follows:
 Cost: It is important to analyse the cost for implementing the change within the
organisation so that each aspect of the business will rightly placed in the changing world.
In this context, company have to measure the additional training cost for the new
employees for their development and also need the cost on promotion, which will be
counted as the prominent expense and these such change may needs supervision so that
they can rightly applied in the various business operations.
 Sustainability: Every organisation is performing their actions with the consideration to
sustain in the market for a longer period of time(Ateba and et.al 2019). In context of
Google, the company is taking step for implementing the change by analysing the needs
and demand of the target customer so that they can sustain in the large market for a
longer period of time.

 Risk: There are various factors that are associated with the risk and change in the another
name of risk, when any thing is going to change it is associated in with the risk. In
context to google, they are going to make the structural change as by doing the change in
their business strategy. Risk can cause the complete failure of business plans and also
impact the business on a larger scale.
 Complexity: It is the factor which creates the problem in the various aspect of the
business as the single action towards change will impact the other function also and
disturb each department and affects the overall functioning of the business(Agwu, P.E.,
2018). In context of Google, Change has create the heavy resistance in the various
operations and employees will face various problems in workplace so it is important to
communicate the future anticipated benefits so that they work effectively in order to
successful implementation of the change in the various business activities.
CONCLUSION
It is concluded from the above report that, Strategic management plays a significance role
in the successful establishment of all the business plan so that each operation can be rightly
operated with the consideration of achieving higher profitability. There are various tools and
technique of analysing the business environment and company is suing the PESTLE and SWOT
analysis so that they can effectively evaluate the internal environment of the business and then
frame the strategy and also analysing the external environment so that they can evaluate the
macro factors of the business.

REFERENCES
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