Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 77

GOOGLE LTD

DEPT OF MBA ,SSIMS 1


GOOGLE LTD

DEPT OF MBA ,SSIMS 2


GOOGLE LTD

ORGANIZATION ANALYSIS

“ASIAN PAINTS LTD”

Submitted to Tumkur University in partial fulfilment of requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted By DHANUSH GOWDA

Register Number P11MS23M015025

UNDER THE GUIDANCE OF

DR.SHOBHA BH

Assistant Professor

SRI SIDDARTHA INSTITUTE OF MANAGEMENT STUDIES,

(Affiliated to TUMKUR UNIVERSITY approved by AICTE, Delhi) Maralur,

Tumkur-572105, Karnataka 2024

DEPT OF MBA ,SSIMS 3


GOOGLE LTD
CHAPTER NO PARTICULARS PAGE NO

1
 INTRODUCTION
 HISTORY AND BACKGROUND OF ORGANISATION
 VISION AND MISSION VALUES
 BOARD OF DIRECTORS
 TECHNICAL AND OTHER COLLOBRATION
 RECENT MERGERS AND ACQUISATION
 OBJECTIVES 1 TO 13

2  ORGANISATION STRUCTURE
 GEOGRAPHICAL FOOTPRINT
 FUNCATIONAL AREAS/DEPARTMENTS
 ENVIRONMENTAL INCLUSION 14 TO 35

3  PRODUCT LINE
 ADVERTISING
 PUNCH LINE
 LOGO
 ADVERTISING AGENCY COMPETITORS 36 TO 40
 TECHNOLOGICAL DEVELOPMENT
4  SWOT ANALYSIS
 MC-KINSEY 7’S MODEL
40 TO 44

5  ANALYSIS OF FINANCIAL STATEMENT


 5 YEARS PROFITABILITY
 SEGMENTED REVENU
 LISTING STATUS AND –BSE AND NSE
 SHAREPRICE AND FACE VALUE 45 TO 51
 CRISIL RATINGT
 MAJIOR AWARDS AND ACHIEVEMENTS

CONCLUSION

DEPT OF MBA ,SSIMS 4


GOOGLE LTD

Chapter 1
INTRODUCTION

Formerly Google Inc. (1998–2017)

Company type Subsidiary

Traded as NASDAQ: GOOGL, GOOG

Industry Internet

Cloud computing

Computer software

Computer hardware

Artificial intelligence

Advertising

DEPT OF MBA ,SSIMS 5


GOOGLE LTD

Founded September 4, 1998;

25 years ago[a] in Menlo Park,

California, United States

Founders Larry Page

Sergey Brin

Headquarters Googleplex,

Mountain View,

California, U.S.

Area served Worldwide

Key people Sundar Pichai (CEO)

Ruth Porat (CFO)

Thomas Kurian (CEO of Google Cloud)

Products Android

Nest

Pixel

Search

Workspace

Waze

Full list

Number of employees 53,861 (2012)

Parent Alphabet Inc.

DEPT OF MBA ,SSIMS 6


GOOGLE LTD

Subsidiaries Adscape

Android

Charleston Road Registry

DeepMind

Endoxon

FeedBurner

Fitbit

ImageAmerica

Kaltix

Nest Labs

YouTube

ZipDash

DEPT OF MBA ,SSIMS 7


GOOGLE LTD

DEPT OF MBA ,SSIMS 8


GOOGLE LTD

History and background:

Google, now one of the world's most recognizable and influential companies, had humble beginnings in
a Stanford University dorm room. Larry Page and Sergey Brin, two PhD students, founded Google in
September 1998. The duo initially named their search engine "Backrub" before settling on the name
"Google," a play on the word "googol," a mathematical term representing the number 1 followed by 100
zeros, reflecting their mission to organize the vast amount of information available on the internet.

Google's breakthrough came with its innovative PageRank algorithm, which revolutionized web search
by ranking pages based on their relevance and importance determined by the number and quality of
links pointing to them. This allowed Google to deliver more accurate and useful search results compared
to other search engines of the time.

In 1999, Google secured its first major round of funding, $25 million from venture capital firms. The
company rapidly expanded its services beyond search, introducing Gmail in 2004, Google Maps in
2005, and Google Docs (now part of Google Workspace) in 2006, among many others.

One of the most significant milestones in Google's history was its initial public offering (IPO) in August
2004. The IPO raised $1.67 billion, valuing the company at $23 billion and turning Page and Brin into

DEPT OF MBA ,SSIMS 9


GOOGLE LTD

billionaires. The IPO marked Google's transition from a promising startup to a global technology
powerhouse.

Google's growth has been fueled not only by its innovative products but also by strategic acquisitions. In
2006, it acquired YouTube, now the world's largest video-sharing platform. Other notable acquisitions
include Android Inc. in 2005 (developer of the Android operating system), DoubleClick in 2007 (an
online advertising company), and Nest Labs in 2014 (a home automation company).

In 2015, Google underwent a major corporate restructuring, forming Alphabet Inc. as its parent
company. Alphabet was created to separate Google's core internet businesses, like search and
advertising, from its more speculative ventures, such as autonomous vehicles and life sciences research.

Today, Google is more than just a search engine; it's a conglomerate of companies under Alphabet Inc.,
encompassing a wide range of products and services, including Android, YouTube, Google Cloud,
Waymo (self-driving cars), and Verily (life sciences). With its vast resources, talented workforce, and

DEPT OF MBA ,SSIMS 10


GOOGLE LTD

commitment to innovation, Google continues to shape the way we interact with technology and
information on a global scale.

Vision:

Google's vision is to provide access to the world's information in one click." And its mission statement
is: "Our mission is to organize the world's information and make it universally accessible and useful."
In summary, while vision and mission statements share some similarities, they serve different purposes.
browser is part of the company’s vision of having their own browser which gives people online.The
company has even begun a new project called ‘Calico’, that is focused on creating a healthier future for
all of humanity.

DEPT OF MBA ,SSIMS 11


GOOGLE LTD

Mission:

Google's mission is to "organize the world's information and make it universally accessible and

useful." This mission statement emphasizes Google's core purpose of organizing and delivering

information in a way that is accessible and beneficial to everyone. It reflects Google's focus on

innovation, user experience, and societal impact.

Google has often framed its mission in terms of providing value to users through its products and

services, whether it's through search, communication (Gmail), navigation (Google Maps),

productivity tools (Google Docs), or entertainment (YouTube),

Values:

Google's core values have been the driving force behind this transformation: Respect the User, Respect
the Opportunity, and Respect Each Other.

Quality policy:

Across all products and services, we set clear policies for what is and isn't acceptable on our platforms.
These policies aim to ensure a safe and positive experience for our users and observe a high standard of
quality and reliability for advertisers, publishers, and content creators alike.

DEPT OF MBA ,SSIMS 12


GOOGLE LTD

PROFILE OF CEO:

Pichai Sundararajan (born June 10, 1972, better known ), is an American business executive. He is the
chief executive officer (CEO) of Alphabet Inc. and its subsidiary Google.

Pichai began his career as a materials engineer. Following a short stint at the management consulting
firm McKinsey & Co., Pichai joined Google in 2004, where he led the product management and
innovation efforts for a suite of Google's client software products, including Google Chrome and
Chrome OS, as well as being largely responsible for Google Drive. In addition, he went on to oversee
the development of other applications such as Gmail and Google Maps. In 2010, Pichai also announced
the open-sourcing of the new video codec VP8 by Google and introduced the new video format, Web M.
The Chromebook was released in 2012. In 2013, Pichai added Android to the list of Google products
that he oversaw. Pichai was selected to become the next CEO of Google on August 10, 2015, after
previously being appointed Product Chief by the then CEO Larry Page. On October 24, 2015, he

DEPT OF MBA ,SSIMS 13


GOOGLE LTD

stepped into the new position at the completion of the formation of Alphabet Inc., the new holding
company for the Google company family. He was appointed to the Alphabet Board of Directors in 2017.

Pichai was included in Time's annual list of the 100 most influential people in 2016 and 2020.

Early life and education Pichai was born in Madurai, Tamil Nadu, India, to a Tamil Brahmin family. His
mother, Lakshmi, was a stenographer, and his father, Regunatha Pichai, was an electrical engineer at
GEC, the British conglomerate.

Pichai completed schooling in Jawahar Vidyalaya Senior Secondary School in Ashok Nagar, Chennai
and completed the Class XII from Vana Vani school at IIT Madras.

He earned his degree from IIT Kharagpur in metallurgical engineering and is a distinguished alumnus
from that institution.

He holds an M.S. from Stanford University in materials science and engineering, and an MBA from the
Wharton School of the University of Pennsylvania, where he was named a Siebel Scholar and a Palmer
Scholar, respectively. Pichai worked in engineering and product management at Applied Materials and
in management consulting at McKinsey & Company. Pichai joined Google in 2004, where he led the
product management and innovation efforts for a suite of Google's client software products, including
Google Chrome and Chrome OS, as well as being largely responsible for Google Drive. He went on to
oversee the development of other applications such as Gmail and Google Maps. On November 19, 2009,
Pichai gave a demonstration of Chrome OS; the Chromebook was released for trial and testing in 2011,
and released to the public in 2012. On May 20, 2010, he announced the open-sourcing of the new video
codec VP8 by Google and introduced the new video format, Web M.

DEPT OF MBA ,SSIMS 14


GOOGLE LTD

BOARD OF DIRECTORS:

Larry Page

is one of the co-founders of Google. Born on March 26, 1973, in East Lansing, Michigan, Page

showed an early interest in technology and computers. He graduated from the University of Michigan with a

DEPT OF MBA ,SSIMS 15


GOOGLE LTD

Bachelor of Science degree in computer engineering and went on to pursue a PhD in computer science at

Stanford University.

At Stanford, Page met Sergey Brin, with whom he would later co-found Google. Together, they developed

the PageRank algorithm, which formed the basis of Google's search engine. The algorithm ranked web pages

based on their relevance and importance, revolutionizing the way information was retrieved on the internet.

In 1998, Page and Brin incorporated Google as a privately held company, with Page serving as the CEO.

Under Page's leadership, Google grew rapidly, expanding its services beyond search to include email (Gm

ail), online mapping (Google Maps), video sharing (YouTube), and more.

In 2001, Page was named a Young Global Leader by the World Economic Forum. Google went public in 2004,

and Page continued to lead the company as CEO until 2001, when Eric Schmidt took over as CEO. Page then

served as President of Products until 2011, when he resumed the role

DEPT OF MBA ,SSIMS 16


GOOGLE LTD

Sergey Brin

is one of the co-founders of Google alongside Larry Page. Born on August 21, 1973, in Moscow,

Russia, Brin immigrated to the United States with his family at the age of six. He studied computer scienc

e and mathematics at Stanford University, where he met Larry Page.

Brin and Page collaborated on a research project at Stanford that led to the development of the PageRank

algorithm, which formed the basis of Google's search engine. Together, they founded Google in 1998,

initially operating out of a garage in Menlo Park, California.

Brin served as the President of Technology at Google, overseeing the technical infrastructure and research

efforts. His contributions to Google's early success were significant, particularly in scaling the company's

operations and refining its search algorithms.

DEPT OF MBA ,SSIMS 17


GOOGLE LTD

Beyond his work at Google, Brin has been involved in various philanthropic and technological ventures. In

2004, he and Page established Google.org, the philanthropic arm of Google, dedicated to addressing global

challenges such as poverty, climate change, and access to education and technology.

Sundar Pichai

is an Indian-American business executive who has been the CEO of Google since 2015 and the

CEO of Alphabet Inc., Google's parent company, since 2019. He was born in Madurai, India, and earned his

degree in Metallurgical Engineering from the Indian Institute of Technology Kharagpur. Pichai holds an M.S.

DEPT OF MBA ,SSIMS 18


GOOGLE LTD

in Material Sciences and Engineering from Stanford University and an MBA from the Wharton School of the University of
Pennsylvania.

He joined Google in 2004 and initially worked on the Google Toolbar and then Google Chrome, which

becamethe world's most popular web browser under his leadership. His successful management of these

projects led to his rise within the company. As CEO, Pichai has overseen significant developments and

expansions, including advancements in artificial intelligence, cloud computing, and hardware p roducts.

INDUSTRY PROFILE:

Google LLC is an American multinational corporation and technology company focusing on online
advertising, search engine technology, cloud computing, computer software, quantum computing, e-
commerce, consumer electronics, and artificial intelligence (AI). It has been referred to as "the most
powerful company in the world" and is one of the world's most valuable brands due to its market
dominance, data collection, and technological advantages in the field of AI. Google's parent company,
Alphabet Inc. is one of the five Big Tech companies, alongside Amazon, Apple, Meta, and Microsoft.

Google LLC

Each letter of "Google" is colored (from left to right) in blue, red, yellow, blue, green, and red.

The Google logo used since 2015

DEPT OF MBA ,SSIMS 19


GOOGLE LTD

Formerly : Google Inc. (1998–2017)

Company type: Subsidiary

Traded as

NASDAQ: GOOGL, GOOG

Industry: Internet

Cloud computing

Computer software

Computer hardware

Artificial intelligence

Advertising

Founded: September 4, 1998; 25 years ago[a] in Menlo Park, California, United States

Founders; Larry Page

Sergey Brin

Headquarters:Googleplex, Mountain View, California, U.S.

Area served;Worldwide

DEPT OF MBA ,SSIMS 20


GOOGLE LTD

Key people:Sundar Pichai (CEO)

Ruth Porat (CFO)

Thomas Kurian (CEO of Google Cloud)

Products: Android, Nest, Pixel, Search, Workspace, Waze

Number of employees;53,861 (2012)

Parent: Alphabet Inc.

Subsidiaries; Adscape

Android; Charleston Road Registry

DeepMind: Endoxon

Feed Burner: Fitbit

Image America: Kaltix

Nest Labs: re CAPTCHA

YouTube : Zip Dash

ASN:15169

DEPT OF MBA ,SSIMS 21


GOOGLE LTD

Google was founded on September 4, 1998, by American computer scientists Larry Page and Sergey
Brin while they were PhD students at Stanford University in California. Together, they own about 14%
of its publicly listed shares and control 56% of its stockholder voting power through super-voting stock.

The company went public via an initial public offering (IPO) in 2004. In 2015, Google was reorganized
as a wholly owned subsidiary of Alphabet Inc. Google is Alphabet's largest subsidiary and is a holding
company for Alphabet's internet properties and interests.

Sundar Pichai was appointed CEO of Google on October 24, 2015, replacing Larry Page, who became
the CEO of Alphabet. On December 3, 2019, Pichai also became the CEO of Alphabet.

The company has since rapidly grown to offer a multitude of products and services beyond Google
Search, many of which hold dominant market positions. These products address a wide range of use
cases, including email (Gmail), navigation (Waze & Maps), cloud computing (Cloud), web navigation
(Chrome), video sharing (YouTube), productivity (Workspace), operating systems (Android), cloud
storage (Drive), language translation (Translate), photo storage (Photos), video telephony (Meet), smart
home (Nest), smartphones (Pixel), wearable technology (Pixel Watch & Fitbit), music streaming
(YouTube Music), video on demand (YouTube TV), AI (Google Assistant & Gemini), machine learning

DEPT OF MBA ,SSIMS 22


GOOGLE LTD

APIs (Tensor Flow), AI chips (TPU), and more. Discontinued Google products include gaming (Stadia),
Glass, Google+, Reader, Play Music, Nexus, Hangouts, and Inbox by Gmail.

Google's other ventures outside of internet services and consumer electronics include quantum
computing (Sycamore), self-driving cars (Waymo, formerly the Google Self-Driving Car Project), smart
cities (Sidewalk Labs), and transformer models (Google DeepMind).

Google and YouTube are the two most-visited websites worldwide followed by Facebook and X
(formerly known as Twitter). Google is also the largest search engine, mapping and navigation
application, email provider, office suite, online video platform, photo and cloud storage provider, mobile
operating system, web browser, machine learning framework, and AI virtual assistant provider in the
world as measured by market share. On the list of most valuable brands, Google is ranked second by
Forbes and fourth by Inter brand. It has received significant criticism involving issues such as privacy
concerns, tax avoidance, censorship, search neutrality, antitrust and abuse of its monopoly position.

DEPT OF MBA ,SSIMS 23


GOOGLE LTD

Google LLC is an American multinational corporation and technology company focusing on online
advertising, search engine technology, cloud computing, computer software, quantum computing, e-
commerce, consumer electronics, and artificial intelligence (AI).

Google is an American search engine company, founded in 1998 by Sergey Brin and Larry Page. Since
2015, Google has been a subsidiary of the holding company Alphabet, Inc. More than 70% of
worldwide online search requests are handled by Google, placing it at the heart of most Internet users'
experience.

Google, the archetype of a tech company, falls under Standard Industrial Classification code 7370, or
“Services — computer programming, data processing, etc.,” part of the service sector of the U.S.
economy and the business services industry group

Google LLC (Google), a subsidiary of Alphabet Inc, is a provider of search and advertising services on
the internet. The company's business areas include advertising, search, platforms and operating systems,
and enterprise and hardware products

TECHNICAL AND OTHER COLLOBORATION:

EXPERT INSIGHTS
Nowhere to Meet? How Google and Others Are Changing How Workers Collaborate

By

Brad Grimes

March 5, 2020

HOK – Open Text Office - Photo courtesy HOK, Credit Richard Johnson Photography

Brad Grimes of AVIXA shares how creating tech-enabled workspaces requires understanding how
people work before understanding how they use technology.

DirecTV office whiteboard walls

DEPT OF MBA ,SSIMS 24


GOOGLE LTD

DirecTV office – Photo courtesy HOK, Credit Eric Laignel, photographer

Technology and the workplace are not separate entities. Collaborative technology is part of nearly every
workflow, integrated into the fabric of how people communicate. At the same time, the modern
workplace is sometimes at odds with itself. Designers are tasked with creating spaces that are flexible
but consistent, support open collaboration but deep focus, promote innovation but enable execution. Oh,
and they should include all the cool technology today’s employees expect.

It’s hard to separate technology from people and space, and anyone who tries to design collaborative
technology into a workspace without considering who will use it, where, and why will fail on some
level. When designing workspaces to make the best use of technology, it starts with focusing on
everything.

CEOs aren’t necessarily asking for new technology, explains Byron Tarry, Executive Director of Global
Presence Alliance (GPA), a consortium of firms delivering audiovisual and communications solutions.
“What executives are asking for is the ability to leverage the company’s people to achieve an advantage.
They want to take their organizations’ collaborative culture and get people working together better.”

Google Singapore

Google Singapore Office, Photo Courtesy of Google

That will include ubiquitous technology, but not to the exclusion of thoughtful design.

“It’s changed how we design spaces,” says Kay Sargent, Director of HOK’s Global Workplace practice.
“It’s no longer about butts in seats. It’s about understanding what people do when they go to an office.
We do a pretty good job of anticipating what technology can do, but where we fail is the social aspect.
How do we balance space and technology to create good work experiences?”

DEPT OF MBA ,SSIMS 25


GOOGLE LTD

Ultimately, to create spaces where workers use collaborative technology to accomplish their goals,
designers, technology integrators, and employees should answer several questions. What is work? What
is a meeting? What needs to be accomplished? How can people, space, and technology support the
goals?

Google meeting space Collaborative technology

Google Meeting Space, Photo Courtesy of Google

Meeting Spaces for Tech-Enabled Collaboration

For example, at many organizations, collaborating is not the same as meeting. Workers can collaborate
ad hoc around a laptop computer in a dining hall, and designers can create those spaces to include
supporting technology — Wi-Fi, power, display screens to gather around. But people may not want to
hold a meeting in that same space — to present information or brainstorm in groups. Just because the
technology exists to meet anywhere doesn’t mean that anywhere is a proper meeting space.

Anyone who’s worked in an open office and needed to meet with colleagues — both in-person and via
videoconferencing — and anyone in the same open office who was trying to get work done, knows the
potential downside of such a design.

“One of the drivers of huddle spaces, for example, is the need to reduce noise pollution around where
people work,” says Jenny Hicks, Head of Technology at Midwich, a U.K.-based distributor of
audiovisual and collaborative solutions. “We’re seeing increased demand for special booths for video
conferencing, and interest in modular design—like meeting spaces on casters. Teams can combine them
together to make an ad hoc, larger meeting space.”

Google, a company known for innovat… and a collaborative culture, is trying to drive meetings into
meeting rooms. There are still plenty of casual spaces for collaboration, but as the company grows, it’s
running out of meeting rooms. Rather than adopt the philosophy that technology lets employees meet

DEPT OF MBA ,SSIMS 26


GOOGLE LTD

anywhere, Google is developing a system of non-traditional, tech-enabled meeting spaces, based in part
on analysis of how its employees work.

whiteboard walls

Fleishman Hillard Office – Photo courtesy HOK, Credit Robery Benson, photographer

“Most Googlers’ work style shifts between focused work and collaboration,” says Gary Keene,
Operations Manager for Googler Engagement. “What we’re finding is that with a lack of meeting room
space, you end up with shadow conferencing—people doing calls at desktops, on their laptops, and in
cafeterias. And while it’s fine to an extent, it begins to become a distraction for people who are doing
focused work.”

For a time, the solution was to have many shared meeting rooms, with simple, intuitive conferencing
systems. The experience was the same in every room; just find one that’s free, turn on the system, and
start meeting.

But even in those situations, meeting spaces can sit idle. And not every team in the organization works
the same or requires the same tools. As a result, Keene says, Google is moving to a meeting space model
based on team needs. The company is giving teams a “space budget”—physical floorspace in otherwise
open work areas—where they can erect a company-provided, modular meeting space. As long as it’s
deployed, the room belongs to the team. If for some reason the team doesn’t need the room anymore, it
can be removed in 24 hours.

“We’ve been supplying modular meeting rooms that we can spin up and redeploy very quickly,” Keene
says. “Within their space budgets, teams can say, ‘We want a four-person meeting room and a phone
booth, please.’ They’re both [videoconferencing]-enabled and maybe the meeting room also has
Jamboard [interactive display]….We’re trying to make meetings and ad hoc collaboration genuinely
frictionless, while at the same time removing the problem of noise distraction in what are predominantly
open-plan offices.”

DEPT OF MBA ,SSIMS 27


GOOGLE LTD

In the U.K. Google office where Keene works, there are about 2,000 engineers and 150-plus modular
meeting rooms deployed at any one time. They’re made of interchangeable, acoustically treated wood
panels, with privacy glass and a door. The audiovisual technology is straightforward — one or two
screens built into a wooden frame, with hardware and cables laid out neatly in a grid underneath and
covered by a snap-on wooden credenza.

“When we designed the building, we designed a modular ceiling grid for any services that need to run
into a meeting room,” explains Keene. “That means that data, power, and AC can just be snapped in.”

Collaborative technology meeting space

Cisco Waterpark Place – Photo cpurtesy HOK, Credit Tom Arban, photographer

Technology That Works Anywhere

As Google’s example shows, from a technology perspective, the challenge is delivering integrated
solutions that work frictionlessly, whether in modular spaces or wherever a company’s employees
decide to meet.

“The requests we get have changed in the last 18 months,” says Hicks. “Previously, it was all about
larger room systems. But now, if there is dead space in a building, then that’s a potential meeting
space.”

Supporting such impromptu build-outs can have its pitfalls. For example, not every company, facility
manager, or IT department will recognize that where it intends to foster collaboration may not support
the necessary infrastructure. GPA’s Tarry says a customer wanted to outfit more than 350 rooms with
audiovisual systems to handle video communications and collaboration. But when GPA integrators
started doing site inspections, they realized half the rooms designated as meeting spaces needed physical
remediation—conduit, wiring, wall reinforcement, etc.

DEPT OF MBA ,SSIMS 28


GOOGLE LTD

Google cafe

Cafe at Google, Photo Courtesy of Google

GPA developed something called Velocity Rooms, which are standardized solutions to support
presentations, conferencing, or collaboration. They include custom components that should work in any
space, regardless of design or construction.

“We need to be able to walk into 99 percent of meeting rooms—sight unseen—and at least get them
working,” Tarry says. “We don’t want to have to touch the rooms physically, yet still know users will be
able to use the tools and collaborate effectively.”

meeting space Collaborative technology

OpenText Office – Photo courtesy HOK, Credit Richard Johnson Photography

Talking to Users About Work

Arriving at the technology solution to support collaboration means learning from users. “We’ve changed
the way we consult with customers,” says Hicks. “Rather than fielding requests for videoconferencing in
a certain number of rooms, we’re focusing less on the [technology] and asking them to go back to staff
and collect feedback about their desired meeting experience, from booking a room, to inviting guests, to
getting network access, to actually running a meeting.”

Hicks says doing this type of needs analysis pays off. Midwich has embarked on several projects in
which taking a user-led approach has significantly altered the solutions that went into those spaces. The
result has been happier customers.

At Google, Keene’s team regularly surveys employees to learn how they work, meet, and collaborate,
and identify obstacles to successful collaboration based on past experiences.

DEPT OF MBA ,SSIMS 29


GOOGLE LTD

google open office

Google Open Workspace, Photo Courtesy of Google

“We don’t view it as an open-office against closed-office argument,” he says. “We ask ourselves how
we can provide a facility that allows individuals to focus when they need to focus and collaborate when
they need to collaborate.”

As critical as technology is to the modern workplace, the spaces where people collaborate need to be
designed around the work, not around the supporting technology. If anything, all the audiovisual
systems associated with conferencing and collaboration need to disappear into the spaces they activate—
or, when not needed, altogether.

MERGERS AND ACQUISITIONS:

Google has a history of engaging in mergers and acquisitions (M&A) to enhance its product offerings,
acquire talent, and expand its market reach. Some notable mergers and acquisitions involving Google
include:

DEPT OF MBA ,SSIMS 30


GOOGLE LTD

YouTube (2006): Google acquired YouTube, the popular video-sharing platform, for $1.65 billion. This
acquisition allowed Google to enter the online video market and strengthen its position in digital
advertising.

Android (2005): Google acquired Android Inc., the company behind the Android operating system for
mobile devices. This strategic move enabled Google to establish a strong presence in the mobile
industry, eventually leading to the development of the Android OS, which powers a significant portion
of the world's smartphones.

DoubleClick (2007): Google acquired DoubleClick, a provider of online advertising technology and
services, for $3.1 billion. This acquisition expanded Google's advertising business and provided access
to DoubleClick's ad serving and management solutions.

Waze (2013): Google acquired Waze, a crowd-sourced navigation app, for around $1.1 billion. Waze's
real-time traffic data and community-driven features complemented Google Maps, enhancing Google's
mapping services.

Nest Labs (2014): Google acquired Nest Labs, a company known for its smart home products such as
thermostats and smoke detectors, for $3.2 billion. This acquisition allowed Google to enter the
burgeoning Internet of Things (IoT) market and expand its presence in connected home technology.

Fitbit (2019): Google acquired Fitbit, a manufacturer of wearable fitness trackers, for $2.1 billion. This
acquisition aimed to strengthen Google's presence in the wearables market and complement its existing
health and fitness initiatives.

DEPT OF MBA ,SSIMS 31


GOOGLE LTD

These are just a few examples of Google's M&A activities over the years. Google continues to pursue
strategic acquisitions to drive innovation, diversify its product offerings, and maintain its competitive
edge in various industries.

DEPT OF MBA ,SSIMS 32


GOOGLE LTD

OBJECTIVES

1. Organize the World’s Information: Google's primary mission is to organize the world's information and
make it universally accessible and useful. This involves continuous improvement of its search algorithms,
expanding its knowledge base, and enhancing the user experience.

2. Innovation in Technology: Google is committed to advancing technology through innovation. This


includes developing new products and services in areas such as artificial intelligence, cloud computing,
machine learning, and quantum computing.

3. Enhance User Experience: Google aims to provide a seamless and intuitive user experience across its
products and services. This includes ensuring that its platforms, like Google Search, YouTube, and Google
Maps, are user-friendly and efficient.

4. Digital Transformation: Google supports businesses and individuals in their digital transformation
journeys. This involves offering tools and platforms like Google Cloud, Google Workspace, and various
advertising solutions to help businesses operate more efficiently and reach their audiences effectively.

DEPT OF MBA ,SSIMS 33


GOOGLE LTD

5. Sustainability and Corporate Responsibility: Google is committed to sustainability and reducing its
environmental footprint. This includes initiatives like achieving carbon neutrality, investing in renewable
Energy and promoting sustainable practices within the company and its supply chain.

6. Global Connectivity: Google seeks to increase global connectivity through projects like Google Fiber and
initiatives to expand internet access in underserved regions. This aligns with their broader goal of making
information accessible to everyone.

7. Privacy and Security: Ensuring the privacy and security of user data is a top priority for Google. The
company continuously works on improving its security measures, data protection policies, and providing
users with transparency and control over their data.

8. Community and Social Impact: Google engages in various initiatives to support communities and drive
positive social impact. This includes investments in education, community grants, disaster relief efforts, and
partnerships with non-profits.

These objectives reflect Google's commitment to innovation, user satisfaction, corporate responsibility, and

overall contribution to technological and societal advancement.

DEPT OF MBA ,SSIMS 34


GOOGLE LTD

CHAPTER - 02
ORGANISATIONAL STRUCTURE

Function-Based Structure:
Engineering: Focuses on product development, research, and innovation. This includes software engineering, hardware
engineering, and technical infrastructure.

Sales: Handles advertising sales, partnerships, and other revenue-generating activities.

Finance: Manages financial planning, analysis, and reporting.

Legal: Oversees legal affairs, regulatory compliance, and intellectual property management.

Human Resources: Focuses on talent acquisition, development, and employee welfare.

Marketing: Manages brand promotion, product marketing, and market research.

Product-Based Structure:

Google’s organizational structure is also segmented based on its product lines. This includes dedicated teams for

major products such as:

Google Search: The core search engine service.

YouTube: The video-sharing platform.

Google Cloud: Cloud computing services.

Android: The mobile operating system.

Google Ads: Advertising services.

Google Maps: Mapping and navigation services.

DEPT OF MBA ,SSIMS 35


GOOGLE LTD

Google Play: Digital distribution service.

Geographical Divisions:

Google operates globally, and its structure includes regional divisions to manage operations in different parts of the world.

This allows the company to address regional market needs and comply with local regulations.

Alphabet Structure:

Since the creation of Alphabet Inc. as the parent company, Google's structure includes a clear division between Google and

other Alphabet subsidiaries. Alphabet oversees Google and other businesses that are separate from Google's core internet
products.

Leadership:

CEO: Sundar Pichai, who oversees the overall strategic direction and operations of Google.

Senior Vice Presidents (SVPs) and Vice Presidents (VPs): Responsible for leading specific functions or product areas.

Directors and Managers: Oversee day-to-day operations within their respective departments or product lines.

Cross-Functional Teams:

Google encourages collaboration through cross-functional teams that bring together experts from different areas to work on
specific projects. This promotes innovation and ensures that diverse perspectives are considered in decision-making processes.

Alphabet Board of Directors:

Google's strategic direction is also influenced by Alphabet’s board of directors, which provides oversight and governance

for the entire organization.

DEPT OF MBA ,SSIMS 36


GOOGLE LTD

DEPT OF MBA ,SSIMS 37


GOOGLE LTD

GEOGRAPHICAL FOOTPRINT

North America:

United States: Google's global headquarters is in Mountain View, California (the Googleplex). The company has

multiple offices across the country, including significant campuses in New York City, Austin, and Seattle.

Canada: Offices in cities like Toronto, Montreal, and Vancouver.

Europe, Middle East, and Africa (EMEA):

Europe: Key offices are located in London, Dublin (the European headquarters), Zurich, Paris, and Munich. Google has a
significant presence across various European countries.

DEPT OF MBA ,SSIMS 38


GOOGLE LTD

Middle East: Offices in cities such as Dubai and Tel Aviv.

Africa: Offices in Nairobi, Lagos, and Johannesburg, supporting initiatives to expand internet access and digital skills.

Asia-Pacific (APAC):

Asia: Major offices in Tokyo, Seoul, Beijing, Shanghai, Singapore (the APAC headquarters), and Bangalore. Google has a

strong presence in India, Japan, China, and other key Asian markets.

Australia and New Zealand: Offices in Sydney and Melbourne.

Latin America:

Brazil: Offices in São Paulo (the regional headquarters) and Belo Horizonte.

Argentina: Office in Buenos Aires.

Mexico: Office in Mexico City.

Data Centers: Google operates data centers across various locations to support its global operations, ensuring low latency

and high availability of its services. Key data centers are located in:

North America: United States (Oregon, Iowa, Georgia, etc.)

Europe: Belgium, Finland, Netherlands, Ireland

Asia-Pacific: Taiwan, Singapore

Research and Development (R&D) Centers: Google has R&D centers around the world, including in the United States

, Canada, United Kingdom, Israel, India, Japan, and China. These centers focus on developing new technologies and

innovations.

Global Initiatives and Projects:

Google Fiber: High-speed internet service available in select U.S. cities.

Project Loon: Aimed at providing internet access to remote areas via high-altitude balloons.

Google Station: Offering free Wi-Fi in public places, initially launched in India and expanded to other countries.

DEPT OF MBA ,SSIMS 39


GOOGLE LTD

FUNCATIONAL AREAS / DEPARTMENTS

1. Engineering and Technology:

- Software Engineering: Development and maintenance of software products and services.

- Hardware Engineering: Design and production of hardware products like Pixel phones and Google Home

devices.

- Research and Development (R&D): Focus on innovation and development of new technologies, including AI

and machine learning.

2. Product Management:

- Responsible for the strategic planning, development, and lifecycle management of Google’s various products

and services.

DEPT OF MBA ,SSIMS 40


GOOGLE LTD

- Works closely with engineering, marketing, and sales teams to ensure product success.

3. Sales and Marketing:

Sales: Manages advertising sales, partnerships, and customer relationships. This includes Google Ads,

Ad Sense, and other advertising products.

-Marketing: Promotes Google’s products and services through various channels, manages brand image, and

conducts market research.

4. Finance:

Financial Planning and Analysis: Budgeting, forecasting, and financial reporting.

- Accounting: Managing financial records, compliance, and audits.

- Corporate Finance: Handling mergers, acquisitions, and investments.

5. Legal and Compliance:

- Legal Affairs: Provides legal support, manages intellectual property, and handles litigation.

- Compliance: Ensures adherence to regulations, policies, and ethical standards.

6. Human Resources (HR):

- Talent Acquisition: Recruitment and hiring of employees.

- Employee Development: Training, career development, and performance management.

- Compensation and Benefits: Managing employee benefits and compensation packages.

DEPT OF MBA ,SSIMS 41


GOOGLE LTD

- Employee Relations: Addressing employee concerns and fostering a positive workplace culture.

7. Operations:

- Facilities Management: Managing Google’s office spaces and facilities.

- Supply Chain Management: Overseeing the procurement and distribution of materials and products.

- IT Support: Providing technical support and infrastructure for Google’s operations.

8. Customer Support:

- Providing assistance and support to users of Google’s products and services.

- Managing help centers, online support forums, and customer service teams.

9. Corporate Development and Strategy:

- Identifying growth opportunities, including mergers and acquisitions.

- Developing long-term strategic plans and corporate initiatives.

10. Public Relations and Communications:

- Managing media relations, corporate communications, and public affairs.

- Ensuring clear and effective communication with stakeholders, including employees, customers, and investors.

11. Corporate Social Responsibility (CSR) and Sustainability:

- Developing and implementing initiatives focused on environmental sustainability and social impact.

DEPT OF MBA ,SSIMS 42


GOOGLE LTD

- Overseeing charitable activities, community engagement, and sustainability projects.

12. Data Centers and Infrastructure:

- Managing the physical and technical infrastructure that supports Google’s services.

- Ensuring reliability, scalability, and security of data centers.

These functional areas work collaboratively to achieve Google’s overall objectives, drive innovation, and

maintain the company’s leadership position in the tech industry.

DEPT OF MBA ,SSIMS 43


GOOGLE LTD

CHAPTER 03

PRODUCT LINE

1. Google Search & Its features — Google search is the most popular search engine on the Web.

2. AdMob — Monetize and promote your mobile apps with ads.

3. Android — Android is a software stack for mobile devices that includes an operating system , middleware and
key applications.

4. Android Auto — The right information for the road ahead.

5. Android Messages — Text on your computer with Messages for web.

6. Android Pay — The simple and secure way to pay with your Android phone.

7. Android TV — Android TV delivers a world of content, apps and games to your living room.

8. Android Wear — Android Wear smartwatches let you track your fitness, glance at alerts & messages, and
ask Google for help — right on your wrist.

DEPT OF MBA ,SSIMS 44


GOOGLE LTD

9. Blogger — A free blog publishing tool for easy sharing of your thoughts with the world.

10. Dartr — Dartr is a brand new programming language developed by Google.

DEPT OF MBA ,SSIMS 45


GOOGLE LTD

Advertising

Google generates most of its revenues from advertising. This includes sales of apps, purchases
made in-app, digital content products on Google and YouTube, Android and licensing and service
fees, including fees received for Google Cloud offerings. Forty-six percent of this profit was from
clicks (cost per clicks), amounting to US$109,652 million in 2017. This includes three principal
methods, namely AdMob, AdSense (such as AdSense for Content, AdSense for Search, etc.)

and DoubleClick AdExchange.

In addition to its own algorithms for understanding search requests, Google uses technology its
acquisition of DoubleClick, to project user interest and target advertising to the search context and the
user history.

In 2007, Google launched "AdSense for Mobile", taking advantage of the emerging mobile advertising
market.
Google Analytics allows website owners to track where and how people use their website, for example by
examining

Click rates for all the links on a page. Google advertisements can be placed on third-party websites in a two-

DEPT OF MBA ,SSIMS 46


GOOGLE LTD

program. Google Ads allows advertisers to display their advertisements in the Google content network,

through a cost-per-click scheme. The sister service, Google AdSense, allows website owners to display these
advertisements on their website and earn money every time ads are clicked. One of the criticisms of this

program is the possibility of click fraud,

which occurs when a person or automated script clicks on advertisements without being interested in the product,

causing the advertiser to pay money to Google unduly. Industry reports in 2006 claimed that approximately 14 to 20

percent of clicks were fraudulent or invalid Google Search Console (rebranded from Google Webmaster Tools in

May 2015) allows webmasters to check the sitemap, crawl rate, and for security issues of their websites, as well as

optimize their website's visibility

Consumer services

Google offers Gmail for email Google Calendar for time-management and scheduling, Google
Maps for mapping, navigation and satellite imagery Google Drive for cloud storage of files Google
Docs, Sheets and Slides for productivity Google Photos for photo storage and sharing Google
Keep for note-taking Google Translate for language translation YouTube for video viewing and
sharing Google My Business for managing public business information and Duo for social
interaction In March 2019, Google unveiled a cloud gaming service named Stadia A job search product
has also existed since before 2017, Google for Jobs is an enhanced search feature that aggregates
listings from job boards and career sites
Some Google services are not web-based. Google Earth, launched in 2005, allowed users to see high-
definition satellite pictures from all over the world for free through a client software downloaded to
their computers

DEPT OF MBA ,SSIMS 47


GOOGLE LTD

 Software
o Google develops the Android mobile operating system as well as

o its smartwatch, television, car and Internet of things-enabled smart devices variations.

o It also develops the Google Chrome web browser, and ChromeOS, an operating system
based on Chrome.

o Hardware
o In January 2010, Google released Nexus One, the first Android phone under its own brand It spawned a
number of phones and tablets under the "Nexus" branding until its eventual discontinuation in 2016,
replaced by a new brand called Pixel.[166]

o In 2011, the Chromebook was introduced, which runs on ChromeOS

o In July 2013, Google introduced the Chromecast dongle, which allows users to stream content from their
smartphones to televisions.

o In June 2014, Google announced Google Cardboard, a simple cardboard viewer that lets the user place their
smartphone in a special front compartment to view virtual reality (VR) media.

o Other hardware products include:

DEPT OF MBA ,SSIMS 48


GOOGLE LTD

PUNCH LINE

Google's current slogan is "Do the right thing," which reflects the company's emphasis on ethical

behavior and corporate responsibility. This replaced their earlier slogan "Don't be evil," which was

part of their corporate code of conduct and aimed to highlight their commitment to ethical practices

and positive impact on society

LOGO

DEPT OF MBA ,SSIMS 49


GOOGLE LTD

TECHNOLOGICAL DEVELOPMENT

Search Engine and AI:

Google Search: Continual improvements in search algorithms, including advancements in understanding


natural language queries (e.g., BERT and MUM algorithms).

AI and Machine Learning: Development of AI frameworks like TensorFlow, which is widely used in the
industry for machine learning applications.Cloud Computing:

Google Cloud Platform (GCP): Offers a range of cloud services, including computing, data storage

and machine learning tools, competing with AWS and Microsoft Azure.

BigQuery: A fully-managed, serverless data warehouse that allows for super-fast SQL queries using the
processing power of Google's infrastructure.

DEPT OF MBA ,SSIMS 50


GOOGLE LTD

Mobile Operating System:

Android: The most popular mobile operating system globally, continuously updated with new features,

security enhancements, and developer tools.

Chrome OS: A lightweight operating system for laptops and desktops, designed to work seamlessly

with web applications and Google's ecosystem.

Hardware:

Pixel Devices: Smartphones and other devices like the Pixelbook and Pixel Slate, which showcase Google's
integration of hardware and software.

Google Nest: Smart home products, including smart speakers, displays, thermostats, and security cameras.

Autonomous Vehicles:

Waymo: A subsidiary focused on developing self-driving car technology, regarded as one of the leaders

in the autonomous vehicle space.

Google Quantum AI: Research in quantum computing, aiming to solve complex problems beyond the

capability of classical computers. They achieved a milestone with "quantum supremacy" in 2019.

Augmented Reality (AR) and Virtual Reality (VR):

Google Lens: Uses computer vision to provide contextual information about objects in the real world

through the camera.

Google ARCore: A platform for building augmented reality experiences on Android devices.

Health and Life Sciences:

DEPT OF MBA ,SSIMS 51


GOOGLE LTD

Google Health: Initiatives in digital health records, AI-powered diagnostics, and partnerships with

healthcare providers.

Verily: Focuses on health research and innovation, including projects like the Study Watch and the Verily
COVID-19 Testing Initiative.

Internet Services and Applications:

Google Workspace (formerly G Suite): A collection of productivity and collaboration tools, including Gmail,
Docs, Drive, and Meet.

YouTube: Continues to innovate with new features like Shorts, a TikTok competitor, and advancements in
video compression and streaming technology.

DEPT OF MBA ,SSIMS 52


GOOGLE LTD

DEPT OF MBA ,SSIMS 53


GOOGLE LTD

CHAPTER 04

SWOT ANALYSIS

Strengths

Market Leadership: Dominance in the search engine market with over 90% market share globally.

Leading position in digital advertising through Google Ads and YouTube.

Innovation and R&D: Strong focus on innovation with significant investments in research and development.

Cutting-edge technologies in AI, machine learning, quantum computing, and autonomous driving.

Brand Recognition: One of the most recognized and valuable brands in the world.

Strong brand loyalty and user trust.

DEPT OF MBA ,SSIMS 54


GOOGLE LTD

Diverse Product Portfolio: Wide range of products and services including Google Search, Android, Google

Cloud, YouTube, and Google Workspace. Integration of hardware (Pixel devices, Google Nest) with software
services.

Global Reach: Presence in nearly every country, serving billions of users worldwide.

Strong infrastructure and data centers supporting global operations.

Weaknesses

Dependency on Advertising: Majority of revenue comes from advertising, making the company vulnerable to
fluctuations in the advertising market. Potential over-reliance on a single revenue stream.

Privacy Concerns: Ongoing issues and scrutiny related to data privacy and user data handling.Fines and legal
challenges from various regulatory bodies.

Complex Organizational Structure: Large and complex structure may lead to inefficiencies and slower
decision-making processes.

Opportunities

Expansion in Emerging Markets: Growing internet penetration in emerging markets presents opportunities for
user base expansion. Potential for increased adoption of Android devices and Google services in these regions.

Cloud Computing Growth:

Increasing demand for cloud services offers significant growth potential for Google Cloud Platform (GCP).

Opportunities to capture market share from competitors like AWS and Microsoft Azure.

Artificial Intelligence and Machine Learning:

Continued advancements in AI and ML can lead to new products and services. Enhancements in existing services

like Google Search, Assistant, and Photos.

DEPT OF MBA ,SSIMS 55


GOOGLE LTD

Healthcare and Biotechnology:


Investments in health technology and life sciences (e.g., Verily, Google Health) could lead to significant
breakthroughs. Opportunities in digital health records, AI diagnostics, and personalized medicine.

Autonomous Vehicles: Progress in autonomous driving technology through Waymo could revolutionize

transportation. Potential partnerships and commercialization of self-driving car technology.

Threats

Regulatory Challenges: Increasing regulation and antitrust scrutiny in the US, EU, and other regions.

Potential fines, restrictions, or forced changes to business practices.

Intense Competition: Strong competition from other tech giants like Amazon, Microsoft, Apple, and Facebook.

Competition in emerging technologies (e.g., AI, cloud computing, autonomous vehicles).

Cybersecurity Risks: Constant threat of cyber attacks and data breaches. Necessity to continuously invest in
cybersecurity measures to protect user data and maintain trust.

DEPT OF MBA ,SSIMS 56


GOOGLE LTD

DEPT OF MBA ,SSIMS 57


GOOGLE LTD

Mc-kinsey 7’S models

Strategy.

Google core business strategy is business diversification and introduction of new products and services in a
regular manner. Google business strategy is also based on the development of a closed eco-system to motivate
customers to use greater range of products and services. Customers usually enter this ecosystem through using
Chrome browser, watching YouTube videos or using Gmail. In no time, they are prompted to use additional
services such as Drive, Play, Calendar, Blogger and others. Alphabet Inc., Google’s parent company also uses
acquisitions business strategy extensively and more than 200 companies and 30 acquisitions were made in 2015
and 2016 alone.

DEPT OF MBA ,SSIMS 58


GOOGLE LTD

Structure

Google was restructured in 2015 to become a wholly owned subsidiary of a newly established parent company
Alphabet Inc. Under the new structure, the company is divided into a number of divisions and each division is
positioned as a separate brand such as Google, Calico, Nest, Access (Fiber) and others

The new structure helps the company to move beyond search engine business and to engage in diversification

Systems
Google operations rely on a wide range of systems such as employee recruitment and selection system, team
development and orientation system, transaction processing systems, customer relationship management
system, business intelligence system, knowledge management system and others. Additionally, ranking
of web-pages according to search queries conducted by Google algorithm is a critically important system for the
business.

Style
Management/leadership
style
Google has a participative leadership style. Through a participative leadership style, Google is able to engage
and involve its employees in decision-making processes and managerial decisions. This also allows the
leadership to regularly interact with the employees and different managerial groups to identify any potential
conflicts for resolution, as well as for feedback regarding strategic tactics and operations. Through its
participative leadership, Google is able to enhance employee motivation, and increase organizational
commitment and ownership amongst employees as well as other stakeholders.

DEPT OF MBA ,SSIMS 59


GOOGLE LTD

Staff
Employee skill level vs business goals
Google has a sufficient number of employees employed across its global operations. Employees for different job
roles and positions are hired internally as well as externally – depending on the urgency and the skill levels
required. Based on this, it is seen that Google has employees who are skilled as per the requirements of their job
roles and positions. All employees are given in house training to familiarize themselves with the company and
its values. External training along with in-house training is provided for skill level enhancement.All job roles
and positions are designed to facilitate the achievement business goals, and as such, employee skill level at
Google is sufficient to achieve the business goals of the company.

Systems
Google operations rely on a wide range of systems such as employee recruitment and selection system,
team development and orientation system, transaction processing systems, customer relationship
management system, business intelligence system, knowledge management system and others.
Additionally, ranking of web-pages according to search queries conducted by Google algorithm is a
critically important system for the business.

Style
Management/leadership
style
Google has a participative leadership style. Through a participative leadership style, Google is able to
engage and involve its employees in decision-making processes and managerial decisions. This also
allows the leadership to regularly interact with the employees and different managerial groups to
identify any potential conflicts for resolution, as well as for feedback regarding strategic tactics and
operations. Through its participative leadership, Google is able to enhance employee motivation, and
increase organizational commitment and ownership amongst employees as well as other stakeholders.

DEPT OF MBA ,SSIMS 60


GOOGLE LTD

Staff
Employee skill level vs business goals
Google has a sufficient number of employees employed across its global operations. Employees for
different job roles and positions are hired internally as well as externally – depending on the urgency
and the skill levels required. Based on this, it is seen that Google has employees who are skilled as per
the requirements of their job roles and positions. All employees are given in house training to familiarize
themselves with the company and its values. External training along with in-house training is provided
for skill level enhancement.All job roles and positions are designed to facilitate the achievement
business goals, and as such, employee skill level at Google is sufficient to achieve the business goals of
the company.

Skill
Employee skills
Google has a commendable workforce, with high skills and capacities. All employees are recruited
based on their merit and qualifications. Google prides itself on hiring the best professionals and
grooming them further to facilitate growth and development

Porter’s Five Forces Model: Google


Michael E. Porter presented the model, named as porter’s five forces model. What is this model all
about? This model is all about the 5 forces that serve as the basis for shaping any industry thus focus
deeply on identification as well as analysis of the following five competitive forces.

1. The competition in the concerned industry

2. New entrants threat into industry

3. The supplier’s power

DEPT OF MBA ,SSIMS 61


GOOGLE LTD

4. The customer’s power

5. The threat of substitute products

If you are looking to get to know about the profitability, attractiveness as well as the competition
intensity of your concerned industry, this model is the best option for you. Here is the short overview of
each force of the model to proffer you a proper understanding about this and also the example of its
implementation on Google.

Competitive Rivalry
This force of this model tells us about our competitors in the concerned industry so that we could
understand all the threats related to it and we could prepare and mold ourselves accordingly. As clearly
mentioned above, the Google faces really tough and strong competition. As per porter’s five forces
model, the tough competition limits the firm’s growth. What are the external factors that are a part of
such a strong competition against Google? There are three most common external factors, which are,
high firm’s diversity, a large number of firms as well as small switching costs.

What are the main competitors against Google? Being one of the largest search engines that are widely
being used around the world, the Google has a number of a competitor, for instance, Yahoo, Apple,
Bing, Comcast and much more. The Biggest service provider is still under development as it proffers
the Google Fiber, Google Class, as well as Chromecast. The main reason for which it faces a tough
competition is the low switching costs as it is really very easy for all the users to switch to the other
competitors.

Bargaining Power of Suppliers


According to the porter forces analysis, the power of the suppliers that is experienced by the Google is
really weak for the reason that there are a number of suppliers to select from. What the potential
external factors that contributes? A Large number of suppliers and the high availability of supply are
the two most common external factors that contribute to the weak bargaining power of suppliers. As a
matter of fact, the effect of any single supplier is weakened to the minimal level when we look at a
large number of suppliers as well as the availability of the supply. So, in this scenario, it becomes really
easy for a company to switch from one supplier to the other. The suppliers of Google are diverse for the
reason that the company has a wide array of products that are varied in nature, for instance, Google
search, Google Fiber and the Google Glass.

DEPT OF MBA ,SSIMS 62


GOOGLE LTD

The Threat for New Entry

This force of the model tells us about how easy or difficult is it for the new entrants to enter into the
concerned market. The reason is that the power of the company definitely has a huge impact of it as
newcomers come to the concerned marketplace for the reason that the powerful and effective
competitors can definitely weaken the company’s position in its market.

This force is moderate for Google. How?The cost of starting up a business for any new firm is not so
high so it is really easy and simple for the other firms to enter the concerned marketplace and compete
with Google. Also, it is not a hard thing to proffer the utmost satisfaction to the regulatory requirements
of the users so the new entrants can easily get the high reputation to compete well against Google.

The Substitution Threat


The last but not the least force of the porter five forces model is about the threat of substitutes. For
instance, if your company isn’t proffering the satisfactory quality and fair prices, all the potential
customers can switch to the other available substitutes.

The television, printing media, radio as well as lots of other advertising channels serve as the basis for
creating the threat of substitution for the Google but up to some moderate level. The two major external
factors that contribute are the availability of substitutes in large number as well as the less switching
costs. Especially the one that is listed later, i.e. low switching cost makes it really unproblematic for the
customers to switch to other services as they have a number of options available in this scenario.

References
Dess, G.G. and Davis, P.S., 1984. Porter’s (1980) generic strategies as determinants of strategic group
membership and organizational performance. Academy of Management journal, 27(3), pp.467-488.
Hlavacka, S., Bacharova, L., Rusinko, V. and Wagner, R., 2001. Performance implications of Porter’s
generic strategies in Slovak hospitals. Journal of Management in Medicine, 15(1)

DEPT OF MBA ,SSIMS 63


GOOGLE LTD

CHAPTER 05

ANALYSIS OF FINANCIAL STATEMENT


Analyzing the financial statements of Google Ltd. (officially Alphabet Inc., its parent company) involves
examining key financial metrics and trends from its income statement, balance sheet, and cash flow statement.
Here's a high-level analysis based on typical financial data points:

Income Statement Analysis


Revenue Growth:
Total Revenue: Alphabet has shown consistent revenue growth, driven by its core advertising business, Google
Cloud, and YouTube.
Year-over-Year Growth: Typically, Alphabet has reported double-digit annual revenue growth. Look for trends in
revenue sources, with particular attention to the growing contribution from non-advertising segments like Google
Cloud.
Profitability:

Gross Profit Margin: Alphabet maintains high gross profit margins, reflecting the scalability and efficiency of its
digital advertising model.
Operating Margin: Reflects Alphabet’s ability to control operating expenses relative to its revenue. High operating
margins are indicative of strong cost management.
Net Income: Consistently high net income highlights strong overall profitability. This is influenced by revenue
growth and operational efficiency.
Balance Sheet Analysis
Assets:

Total Assets: Alphabet’s total assets are dominated by cash and cash equivalents, marketable securities, and

DEPT OF MBA ,SSIMS 64


GOOGLE LTD

significant investments in property, plant, and equipment (data centers, offices, etc.).
Intangible Assets: Include patents, trademarks, and goodwill, especially from acquisitions.
Liabilities:
Current Liabilities: Manageable levels of short-term debt and accounts payable, reflecting Alphabet’s strong
liquidity position.
Long-term Liabilities: Includes long-term debt and deferred tax liabilities, but Alphabet generally has a low debt-
to-equity ratio, indicating financial stability.
Equity:
Shareholder Equity: Reflects retained earnings and additional paid-in capital. Alphabet’s strong equity base is a
result of its consistent profitability and conservative dividend policy.
Cash Flow Statement Analysis
Operating Cash Flow:

Cash Flow from Operations: Strong and growing cash flow from operations, driven by high net income and
efficient working capital management.
Capital Expenditures: Significant investments in infrastructure, especially data centers, which are crucial for
supporting Google’s services.
Investing Cash Flow:

Investments: Includes acquisitions, purchase of marketable securities, and capital expenditures. Alphabet invests
heavily in R&D and strategic acquisitions.
Disposals: Occasionally sells investments or divests non-core assets.
Financing Cash Flow:

Debt Issuance/Repayment: Alphabet’s financing activities include issuing debt when necessary, but it often relies
more on its substantial cash reserves.
Stock Repurchases: Engages in stock buybacks to return value to shareholders and manage dilution.

DEPT OF MBA ,SSIMS 65


GOOGLE LTD

Key Financial Ratios

Liquidity Ratios:
Current Ratio: Measures Alphabet’s ability to cover short-term liabilities with short-term assets. A high current ratio
indicates strong liquidity.
Quick Ratio: Similar to the current ratio but excludes inventory, providing a more stringent test of liquidity.
Profitability Ratios:

Return on Assets (ROA): Indicates how efficiently Alphabet uses its assets to generate profit.
Return on Equity (ROE): Measures profitability relative to shareholder equity. High ROE reflects effective
management and strong profitability.
Leverage Ratios:

Debt-to-Equity Ratio: Alphabet typically maintains a low debt-to-equity ratio, indicating prudent use of leverage.
Interest Coverage Ratio: Measures Alphabet’s ability to pay interest on its outstanding debt. A high ratio indicates
strong earnings relative to interest obligations.

Summary
Alphabet Inc.’s financial statements reflect a robust and growing company with strong revenue growth, high
profitability, and substantial cash reserves. Its low leverage and high liquidity provide a stable financial
foundation, while significant investments in technology and infrastructure support future growth. The company’s
diversified revenue streams, particularly the growth in Google Cloud and other non-advertising segments, are
positive signs for long-term sustainability and reduced reliance on advertising revenue.

DEPT OF MBA ,SSIMS 66


GOOGLE LTD

DEPT OF MBA ,SSIMS 67


GOOGLE LTD

5 YEARS PROFITABILITY

The financial performance of Alphabet Inc. (Google's parent company) over the past five years reflects significant
growth in revenue and profitability, despite some fluctuations in net income.

Revenue Growth:

2023: $307.4 billion

2022: $282.8 billion

2021: $257.6 billion

2020: $182.5 billion

2019: $161.9 billion

The revenue growth has been robust, with the most notable increase occurring between 2020 and 2021, where it
jumped by over 41% (Stock Analysis) (Alphabet Investor Relations).

DEPT OF MBA ,SSIMS 68


GOOGLE LTD

Net Income:

2023: $73.8 billion

2022: $60 billion

2021: $76 billion

2020: $40.3 billion

2019: $34.3 billion

Net income saw a significant rise in 2021 but decreased in 2022. However, it bounced back in 2023, reflecting strong
operational efficiency and cost management (SEC.gov) (Alphabet Investor Relations).

Operating Income:

2023: $84.3 billion

2022: $74.8 billion

2021: $78.7 billion

2020: $41.2 billion

2019: $34.2 billion

Operating income has steadily increased, highlighting the company’s ability to manage its operating expenses
while boosting revenue (Stock Analysis) (Alphabet Investor Relations).

Earnings Per Share (EPS):

2023: $5.84 (basic), $5.80 (diluted)

2022: $4.59 (basic), $4.56 (diluted)

DEPT OF MBA ,SSIMS 69


GOOGLE LTD

2021: $5.69 (basic), $5.61 (diluted)

2020: $2.96 (basic), $2.93 (diluted)

2019: $2.48 (basic), $2.46 (diluted)

EPS reflects the profitability available to shareholders and shows consistent growth, especially in 2023 after a
dip in 2022 (Stock Analysis) (Alphabet Investor Relations).

Free Cash Flow:

2023: $69.5 billion

2022: $60 billion

2021: $67 billion

2020: $42.8 billion

2019: $31 billion

Free cash flow, which indicates the cash available after capital expenditures, has also shown a strong upward
trend, supporting further investments and shareholder returns (Stock Analysis) (Alphabet Investor Relations).

DEPT OF MBA ,SSIMS 70


GOOGLE LTD

MAJIOR AWARDS AND ACHIEVEMENTS OF ORGANISITION IN LAST 5 YEARS

Google Cloud Awards:

2023 Google Cloud Partner of the Year Awards: Recognized for its exceptional solutions and innovative practices
across several categories including Industry Solutions, Application Development, and Data Analytics.

2022 Google Cloud Specialization Partner of the Year for Security: Awarded for their outstanding performance in
providing security solutions.

Sustainability and Environmental Initiatives:

2023 Sustainability Report: Highlighted Google's progress towards achieving net-zero carbon emissions, water
stewardship, and circular economy initiatives. This includes significant reductions in carbon footprints and
advancements in renewable energy use (Sustainability).

Product Innovations and Recognition:

Gemini AI Model: In 2023, Google introduced the Gemini AI, their most capable and flexible AI model, which

has been integrated into various applications such as Bard and Google Cloud services (blog.google).

Google Pixel Series: The introduction of Pixel Fold, Pixel 7a, and Pixel 8 series, which included the first

smartphone with AI capabilities powered by Google Tensor G3 (blog.google).

Industry Leadership:

Premier Partner Awards: Google's annual recognition for excellence in various categories like Brand Awareness,

DEPT OF MBA ,SSIMS 71


GOOGLE LTD

Lead Generation, Online Sales, App Growth, and Workplace Excellence. This awards program highlights

outstanding work in digital marketing and advertising (Premier Partner Awards 2023).

Social and Community Impact:

Crisis Response and Safety: Google has launched tools like extreme heat alerts, expanded flood forecasting, and a
Pollen API, which aids in providing timely information about environmental conditions (blog.google).

These awards and achievements underscore Google's commit

DEPT OF MBA ,SSIMS 72


GOOGLE LTD

DEPT OF MBA ,SSIMS 73


GOOGLE LTD

CONCLUSION

The protection of your data is a primary design consideration for all of Google’s infrastructure, products
and personnel operations. We believe that Google can offer a level of protection that very few public
cloud providers or private enterprise IT teams can match.

Google designed Google Workspace to meet stringent privacy and security standards based industry

best practices. Google has strong contractual commitments regarding data ownership, data use,
security, transparency, and accountability. These commitments ensure you maintain control over your
data and how it is processed, including the assurance that your data is not used for advertising or any
purpose other than to deliver Google Cloud services. In addition, we give you the tools you need to
help meet your compliance and reporting requirements.

Furthermore, because protecting data is core to Google Workspace, we can make extensive
investments in security, resources and expertise at a scale that others cannot. Our investment frees

you to focus on your business and innovation. Google’s operations and collaboration with the security
research community also enable us to address vulnerabilities quickly or prevent them entirely.

DEPT OF MBA ,SSIMS 74


GOOGLE LTD

DEPT OF MBA ,SSIMS 75


GOOGLE LTD

DEPT OF MBA ,SSIMS 76


GOOGLE LTD

DEPT OF MBA ,SSIMS 77

You might also like