Strategic Audit of Google: Performance, Strategies, and Analysis

This report presents a strategic audit of Google, evaluating its current performance, strategic posture, and the external and internal environments affecting its operations. It examines Google's mission, objectives, and strategies, including its approach to innovation and market competition. The analysis employs Porter's Five Forces model to assess the internal environment and considers factors such as competitive rivalry, bargaining power of buyers and suppliers, and the threat of substitutes and new entrants. The report also reviews strategic managers, policies, and external factors like natural, social, economic, technological, and political-legal environments. It offers strategic recommendations, including focusing on cloud computing and mobile advertising, and concludes by emphasizing Google's ability to adapt and grow in the face of challenges. The report also includes references to support its analysis.

Running head: STRATEGIC AUDIT OF GOOGLE
Strategic Audit of Google
Name of the Student
Name of the University
Author’s note

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Executive summary
The aim of the report is to analyse the strategic audit performance of Google . the strategic
audit gives a view about the current situation of the company and how the company is setting
their mission and based on which the company will be able to achieve its objectives.
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Table of Contents
Introduction................................................................................................................................2
Current situation.........................................................................................................................3
Strategic posture.........................................................................................................................3
Strategic managers.....................................................................................................................4
External environment.................................................................................................................5
Internal environment..................................................................................................................6
Strategy goals.............................................................................................................................7
Strategy alternatives...................................................................................................................7
Strategy recommendations.........................................................................................................8
Implementation plan...................................................................................................................8
Evaluation and control...............................................................................................................8
Conclusion..................................................................................................................................8
Reference....................................................................................................................................9

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Introduction
The strategic audit is a very effective method to check whether a organisation is
fulfilling its organisational goals in the most appropriate manner.in addition to that the
strategic audit also find out whether the organisation is making optimum utilisation of the
resources available to it.it is beneficial for every organisation to have a successful strategic
audit process. the strategic audit is a continuous process. based on the strategic audit report
the owners of the organisation takes decision and the team of the auditors checks the audit
process on periodical basis in order to revalue the performance of every unit of the
company .the management update the strategic plan once it achieve its goals.
In this report the strategic audit process of Google has been explained. The strategic
audit process can be classified in to various steps these are enumerated below :
Current situation
Current performance
The current situation of Google is very impressive as it has been able to increase its
revenue in the last few years. The company always try to upgrade its products and that
enables it to capture more market position and attract more users. The company having a
huge market exposure for which it has been able to sustain in the market even it has several
large competitors like yahoo, and Microsoft corporation Bing who give strong competition to
Google (Duhigg 2016).
Strategic posture
From its inception date Google’s main objective is to organise the world’s
information and make it globally accessible and useful. the management of the company

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believes that giving importance to the needs of the users is the only way to accomplish the
mission of the organisation (Lüttgens & Diener 2016).
Objectives
The objectives of Google is to provide world-class service to there users. In order to
fulfil the demand of the users the company has developed various products like Google
images , Google books ,Google scholar, Google finance , Google videos , Google maps ,
Gmail, Google news, Google pay and many other applications and that helps the users to get
information and satisfy their requirements (Eskandari et al 2015).
Strategies
The main strategy of Google to stay relevant in the market is to bring more speed in
their tools ad to bring more information in their various apps. The increasing rate of
competition has forced the company to bring regular update in their products, which enables
the users to get the best products from them. Google has taken the strategy of bringing
innovative products through continuous research and development in order to raise the
standard of their products to the next level and beyond the reach of the other market
competitors (Prajogo 2016).
Policies
The main policy of Google is to increase its brand identity and to increase its strong
brand recognition. The name Google itself attracts many users and that helps the company to
generate revenue.

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Strategic managers
Board of directors
The board of directors of the company has a very strong group of members that
consist of the two founders Larry page, Sergey Brin both of them has founded the company
in a garage, and there from has taken the company to become one of the largest companies in
the world. Another important member of the board is Eric Schmidt, who is the chairperson
and CEO, joined Google in the year 2001 and helped the company to grow from a Silicon
Valley start-up to a global enterprise. There are other board members like Nikesh arora 41 ,
David c Drummond , Patrick pichette , Jonathan j Rosenberg 48 Shona l brown 43 Shirley m
Tilghman who helped the company to take various strategic actions that enables the company
to achieve its desired objective.
External environment
Natural environment
Google does not directly effect any environmental pollution.
Social environment
Economic
The world economy has helped goggle to grow rapidly as users wants to know more
information about the world economy so it attracts more individuals to use Google.
Technology

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As USA is country, which is highly advanced in technology so Google get the best
advantage of the technological benefits which is very essential for the company to grow
rapidly.
Political legal
In the recent days the technology industry has faced several threats from the political
environment in the united states specially those who are involved with user data and
advertising. The government that affects the business operation of Google has implemented
strong legal regulations (Trotman Bauer & Humphreys 2015).
Social/ physical environment
Due to the lack of safety with private information, people are more anxious to allow
companies to get access to the personal data. This ahs hugely affected the operations of
Google as its ad targeting is founded in personal user data (Medina Munro & Belanger 2017).
From the external analysis, it has been able to find out the strength and weakness of
the organisation. It has been observed that Google has faced threats from the political and
social environment and it gets opportunities from the technology and economy factors of the
external environment.
Internal environment
The porter’s five forces model ahs been selected to analyse the internal environment
of Google.
The five forces model consist of the following five factors
Competitive rivalry model
There are currently many rivalry in Google’s various market. The cost of switching
from ne search engine to another is very low so it is very difficult for retrain the users for

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long time and the competitors will be able to take away the customer (Mkoba & Marnewick
2016).
Bargaining power of the buyers
The individuals does not contribute much to the revenue of Google so they have very
small influence on the operations of Google. In the technology industry the bargaining power
of the suppliers are very high as they always have the option to shift from one search engine
tool to another (Rastogi & Trivedi 2016).
Bargaining power of suppliers
Google has a several number of products and each product is made up of diverse
materials so its easy for Google to switch supplies. So the bargaining power of the suppliers
are relatively low (Harris 2017).
Threat of substitutes
There very few numbers of substitutes available in the technology market so the
threat from substitutes are low for Google.
Threat of new entrants
There are barriers on the entry in the technology industry for which the threat of new
entrants is low.
Strategy goals
The strategic goals of Google is to increase its margin of profit and the company will
try to solve the problem of public’s privacy concern. Google is now focusing more in
advertisement sales and use of personal usage data for earning profit (Sadgrove 2016).

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Strategy alternatives
Google is now focusing on alternative strategies by bringing new products like :
Cloud computing
The cloud computing industry in the recent days has gained popularity and has the
potential to improve the revenue figures.
Focus on android ads
Google is trying to shift their advertising focus to mobile advertisement on the
android operating system , the company will get more ads as the number of users will
increase.
Strategy recommendations
Going in competition with apple in the luxury phone market is Google’s best option.
The risk factor in this case is low and a the same time it will provide greater profit margin.
Implementation plan
The Google should now start marketing its luxurious phone and should start to sell the
products this will help Google to improve its revenue and to sustain in the competitive
market.
Evaluation and control
The management of Google is comprised of very efficient personalities who have
been able to evaluate the performance of Google effectively and take necessary steps to bring
more control in the operations of the company.

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Conclusion
In conclusion it can be said that from the strategic audit report it can be observed that
Google is one of the biggest players in the technology industry. The company though in the
recent years faced several challenges due to the problem of confidentiality issue of its users
but still it overcome these challenges and become successful to overcome these challenges
and grow more rapidly in the future.

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Reference
Duhigg, C. (2016). What Google learned from its quest to build the perfect team. The New
York Times Magazine, 26, 2016.
Eskandari, M. J., Miri, M., Gholami, S., & Nia, H. R. S. (2015). Factors Affecting The
Competitiveness of The Food Industry by Using Porter's Five Forces Model Case
Study in Hamadan Province, Iran. Journal of Asian Scientific Research, 5(4), 185-
197.
Harris, T. (2017). Navigating the Complex Marketplace of Donor-Advised Funds: Strategic
Recommendations for Nonprofit Leaders.
Lüttgens, D., & Diener, K. (2016). Business model patterns used as a tool for creating (new)
innovative business models. Journal of Business Models, 4(3).
Medina Munro, M., & Belanger, C. (2017). Analyzing external environment factors affecting
social enterprise development. Social Enterprise Journal, 13(1), 38-52.
Mkoba, E., & Marnewick, C. (2016, September). IT project success: A conceptual framework
for IT project auditing assurance. In Proceedings of the Annual Conference of the
South African Institute of Computer Scientists and Information Technologists (p. 26).
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Prajogo, D. I. (2016). The strategic fit between innovation strategies and business
environment in delivering business performance. International Journal of Production
Economics, 171, 241-249.
Rastogi, N. I. T. A. N. K., & Trivedi, M. K. (2016). PESTLE technique–a tool to identify
external risks in construction projects. International Research Journal of Engineering
and Technology (IRJET), 3(1), 384-388.