Student Example

BUS491
Case 8: Google

I. Current Situation
A. Current Performance
1. Steadily increasing revenues since 2004
2. Advertising accounts for 97% of Google’s revenues
3. Increasing total assets, purchased DoubleClick in 2008
4. Revenue could decrease in the future due to competition and
online advertisement blocking
B. Strategic Posture
1. Mission – Organize the world’s information and make it
universally accessible and useful
2. Put user’s needs first, provide high quality user experience, word
of mouth promotion of Google
3. Objectives – Continue to improve user experience, search
technology and information organization
4. Provide most relevant and useful search results and
advertisements

II. Strategic Managers

A. Executive Team
1. 9 member team which includes co-founders Brin and Page
2. Age range 36-54 – relatively young group of executives, can offer
different perspectives and ideas to improve and grow the
company
B. Board of Directors
1. 9 member team, also includes co-founders Bring and Page
2. 3 members of Board also on executive team

III. External Environment

A. Societal Environment
1. Economic
a. Online advertisement blocking increasing thus reducing
revenues. Companies will not pay Google if their Ads will not be
seen
b. Other devices not adopting Google technology, reducing
revenues. Smart phones don’t necessarily use Google applications.
2. Technological
a. Customers need to be willing and able to accept failure as part
of the process. Technology is innovative and ever-changing,
need to be flexible
b. Embrace technology, drive to higher levels of success.
3. Political-Legal
a. Online services liabilities
 b. Higher credit risk for international transactions, their
monitoring systems are not as advanced.
c. Monopolistic power – Laws could be put in place to restrict
growth if Google gets too large and powerful in the market
d. Data protection, privacy laws – Online shopping, personal
information needs to stay private from hackers
4. Sociocultural
a. Kids are using devices and accessing the internet at a younger
age, increased marketing and sales
b. Multiple ways to connect to the internet with phones, tablets,
computers, ect.
B. Task Environment
1. Global leader in technology, one of the strongest brand recognition
in the world
2. Products and Applications
a. Google Images, GoogleMaps, YouTube, Gmail, ect.
3. Top heavy competition from Yahoo and Bing
4. Entry barriers high – hard business to enter and overtake big
names, new entrants will have trouble competing
5. Steadily increasing net income

IV. Internal Environment

A. Corporate Structure
1. Research and Development, Sales and Marketing, General and
Administration, Operations
2. Executive Team and Board of Directors
3. CEO Eric Schmidt
4. Co-founders Sergey Brin and Larry Page
B. Corporate Culture
1. Open and collaborative, transparent, innovative
2. Google has 19,835 employees, goal to maintain and grow talent,
incentives of bonuses and raises
C. Corporate Resources
1. Marketing
a. 7,338 employees in marketing department
b. Advertising contributes to 97% of revenues
c. New applications, products, services
2. Finance
a. Revenues consistently increasing
b. Current Ratio (Current Assets/Current Liabilities) up to
highest level (10.6)
c. Net Income consistently growing each year
3. Research and Development
a. 7,443 employees in the department
b. Innovation necessary to continue growth
 c. New products and applications necessary to keep up with
competition and stay ahead
d. Continue acquisitions such as YouTube to grow and expand
into different markets
4. Human Resources
a. Rapid employee growth and satisfaction
b. Globally diverse workforce
c. Need to be able to attract and keep top talent
V. Analysis of Strategic Factors
A. SWOT Analysis
1. Strengths
a. Brand recognition and identity
b. Global technology leader
c. Strong leadership
d. Relatively low competition – besides large competitors
2. Weaknesses
a. Staying ahead of the curve, develop and acquire – always an
area of improvement
b. Growth besides acquisitions – build from within
3. Opportunities
a. Acquire new applications and products – small or large
b. Increase international growth and markets
c. Increase the number and diversity of advertisers
4. Threats
a. Identity theft – possibly reducing internet use and online
shopping
b. Alternate technology – non-Google using devices
c. Largest competitors – Yahoo and Bing
d. Foreign exchange rates harming international transactions
and growth
e. Threats to trademarks and secrets
f. Legal and regulatory issues, possible lawsuits
g. Employee retention – could go to a competitor, other tech
businesses
VI. Recommended Strategy
A. Attracting top talent, developing employees and employee retention
B. Developing new applications
C. Enter new markets through advertising and international growth
VI. Implementation
A. Offer competitive pay and incentives to attract and keep employees
B. Continue to fund research and development
C. Attract new advertisers to continue increasing revenues
VII. Evaluation and Control
A. Employee satisfaction surveys to gauge moral, make improvements
B. Monitor financials and be flexible to changing environment
References:

Wheelen, T.L. Strategic Management and Business Policy (14th ed).