ORGANIZATION THEORY

MOB - II

Presented by Group 4

Anjali Chanchal
Ankit
Manish Mishra
Saloni Bhagat
Smriti
Utsav Sinha
 Introduction

Google LLC is an American multinational technology company that specializes in Internet-related services
and products, which include online advertising technologies, search engine, cloud computing, software, and
hardware. It is considered one of the Big Four technology companies, alongside Amazon, Apple, and
Facebook.

 
Vision
“To provide access to the world's information in one click.”

• The company's nature of business is a direct manifestation of this vision statement. For

example, Google's most popular product is its search engine service.

Mission
To organize the world’s information and make it universally accessible and useful
 Key People

CEO CFO Founders

Pichai Ruth Porat Larry Page &
Sundararajan Sergey Brin
 Dimensions of Organizational

CONTEXTUAL DIMENSION

STRUCTURAL DIMENSION Vision

Complexity Effectiveness
Size
Formalization Strategy
Technology
Centralization Environment
Design Option
Evolution
Organogram
Dimensions Of Organization Structure And Size
In

No. of employees : 114,096

Dimensions Organization Structure Comparison with Size

COMPLEXITY HIGH COMPLEXITY Positive

FORMALIZATION LESS FORMALIZED Positive

CENTRALIZATION HIGHLY CENTRALIZED Negative

 Organisation Effectiveness
The efficiency with which an association is able to meet its objectives. This means
an organization that produces a desired effect or an organization that is productive without waste.

Innovative Firm
(Highly Flexible, Low control)

More focus on PEOPLE

More focus on MEANS rather

than ENDS
 Miles and Snow’s Strategic Types

Applying framework to Google

• Analyzer
• attempts to maintain a strong position in market
• R&D to expand new product

• Prospector
• highly flexible with innovation
• finds new market opportunity

STRATEGY GOALS ENVIRONMENT CHARACTERISTICS

Analyzer Stability and Changing Moderately centralized

flexibility

Prospector Flexibility Dynamic Low formalization and

decentralized
 Miller’s Integrative Framework

Strategic dimensions applicable for Google:

Innovation-
Google sets itself apart from competitors through the uniqueness of its products through
innovation.
For example: Google Search – Its algorithm evolves over time to ensure competitive
advantage against Yahoo!, Bing and others.

Market Differentiation-
A corresponding strategic objective is to develop new products or continue improving
existing products based on customer preference, which create customer loyalty.

Breadth-
Google offers a wide variety of products to huge customer base
Caters national as well as international geographic locations.
 Google’s Intensive Growth Strategies
Market Penetration (Primary)
○ The strategic objective - acquire more customers
○ Also, the generic strategy of differentiation ensures competitive products that enable competitiveness in penetrating markets and increase the
company’s market share.

Product Development (Secondary)

○ The strategic objective - develop products to increase revenues.
○ Innovation is at the core of the company, considering its technological nature. 
○ Eg: Tablets, laptops, cloud services, mobile applications, and new Pixel devices.
○ Differentiation through its product design and development processes to support the company’s competitive advantage.

Market Development (Supporting)

○ The company’s objective - attract customers in new market segments through new uses of current products.
○ Eg: Google aims to offer its products to more areas worldwide.

Diversification (Supporting)
○ The objective - achieve growth through new businesses, especially in other markets or industries where the company has insignificant or absent
operations.
○ Eg: Google’s 2006 acquisition of YouTube to establish significant presence in the video hosting service market, and expand the company’s online
advertising presence. 
Technology

Google has an
ENGINEERING
TECHNOLOGY.

It has low formalization and

high centralization with a
moderate span of control.
 Organization Environment

ENVIRONMENT
DIMENSION IN GOOGLE

Complexity High High environmental uncertainty

Formalization Less Dynamic

Centralization High Complex

 Unstable and
complex
Abundant
(organic structure)
 Burns & Stalker

CHARACTERISTICS MECHANISTICS ORGANIC

Task definition Rigid Flexible

Communication Vertical Lateral

Formalization High Low

Influence Authority Expertise

Control Centralized Diverse

 Organizational Design

Five basic elements of an organization:

 Evolution of Google
Google Evolution: A Look Back At Google’s 22 Year Journey From Beta To World Dominance

 Among the list of biggest corporations in the world sits 1998: Google Beta
Google, a company with over 100,000 employees and 1999: Google
a portfolio that just about nobody can compete with. 2000: Google Adwords

 As much as Google dominates the world in 2020, it 2001: Google Images

wasn’t always that way. 22 years ago the company 2002: Google News
looked very different. It was funded with only $100,000 2005: Google Video
and run by a few dozen employees when it began its
2006: Google Weather
journey in 1997 with ambition that seemed like an
intangible dream. 2004: Google Autocomplete
2005: Google Maps
 The search engine giant Google’s core businesses were search, ads and apps. But over the years,
Google diversified away from its main businesses and ventured into several blue sky projects like
biotech, self-driving cars, smart homes and wearable technology.
 As Google moved to new markets and businesses, its investors were concerned about how the money
from the cash cow businesses of Google were being wasted on such yet to be profitable projects.
 With the intent to spell clarity on the amount of investments in each of its business, the company
announced that it would be restructuring with the creation of a new holding company called ‘Alphabet’.
 Post the restructuring; Google would become one of the subsidiaries of the new parent Alphabet.
Google would retain its search and advertising, YouTube, Chrome and Android businesses.
 Other business entities, such as Calico, Nest, Google Ventures, Google Capital and Google X would
be managed under the holding company Alphabet, separately from Google business.
 Larry Page would be Alphabet's new CEO, while Sergey Brin would serve as the company’s president
and Sundar Pichai would be the new CEO of Google.
 Now, Sundar Pichai has replaced Larry Page as the CEO of Alphabet Inc.
 But analysts cautioned that, with the restructuring, Alphabet’s blue sky projects would be under close
scrutiny from investors. If these projects failed to drive revenues, investors could call for pulling the plug
on the funds invested on these projects, thereby thwarting the spirit of innovation at Alphabet.
GREINER CURVE
 Comparis
Dimensions Structure on Environment Technology Organic Structure
with Size

High ENGINEERING
COMPLEXITY HIGH Positive environmental TECHNOLOGY
uncertainty
low Unstable &
FORMALIZATION LESS Positive Dynamic formalization, Complex
high
Complex
centralization
CENTRALIZATION HIGH Negative span of control
- moderate
 References

● http://panmore.com/google-generic-strategy-intensive-growth-strategies

● https://youtu.be/n_Cn8eFo7u8

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