Google Case Study

Table of Contents

1.Company Background Overview        

2.0 External Analysis        

2.1        Political Factors:        

2.2 Economics Factors        

2.3 Social Cultures Factors        

2.4 Technological Factors        

3.0 Internal Analysis        

3.1 Financial analysis        

3.2 Capital Structure        

3.3 Performances        

4. Business Level Strategy        

5. Corporate Level Strategy of Google        

6 .SWOT ANALYSIS 2014        

7. The issue and the Problem of the company        

8. Evaluation and Recommendations        

References        

1.Company Background Overview

Google is an American Multinational technology company specializing in internet- related services and products. Google establish on 1996 as their research project by Larry Page and Sergey Brin when they both pursuing their Phd at Stanford University. Previously the Google known as “Backrub”, the domain been registered on September 1997 and the company was incorporated on September 4, 1998. The headquarters of Google located at Mountain View, California United States. The example of Google product such as Gmail, Google chrome and also the main product of Google is Ad Sense, Ad Word that contribute major profits to the organizations. Align with their vision that is “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 instance, Google’s most popular product is its search engine service. This product enables people to easily access information from around the world. Meanwhile their mission is “To organize the world’s information and make it universally accessible and useful” The company’s nature of business is a direct manifestation of this vision statement. For instance, Google’s most popular product is its search engine service. This product enables people to easily access information from around the world. Google’s vision statement has three variables, namely, world’s information, accessibility, and one click. The firm fulfills the world’s information component of the vision statement by crawling WebPages. The company maintains databases containing indexes of these websites. Google fulfills the accessibility component by offering its search engine services to everyone around the world. The one click component of the vision statement refers to easy access to information. The firm fulfills this component by offering innovative products, such as the easy-to-use Google Search. Thus, the company effectively follows its vision statement.

2.0 External Analysis

The PEST analysis are been used for Google external analysis. PEST analysis are been used to determine the political, economical, social and technological of the organizations. By using PEST analysis can evaluate the organization performances. After make some macro economical factors    using the PEST analysis model, the following  

2.1        Political Factors:

Google is worldwide companies that operate globally, while serve for global Google also need to consider the political factors in other country. These political factors would be different each country, each country and nations has its own political view or law regarding the internet usage. By understanding the law and regulation in other country Google can strategize their business. It is important Google as a multinationals company to analyze the law and regulation so that it would not violate another county laws and regulations. For example in China, Google are been ban by the government since there are not sensitive about the China culture and laws, this make Google loses their market share in China there it is important to analyze the political factors in other country before establish a company or business . On a positive note, most of the political factors affect Google negligibly. Some of these factors are taxation polices, employment laws and environment protection laws.

2.2 Economics Factors

Gross Domestic Product (GDP) was continually rising since very long time. In a giant economy country like United States the average GDP between 3.20% up to 10% at times, meanwhile country like United Kingdom and China GDP is been increased consistently each year  and this can contribute positive momentum to Google. Country with high and stable GDP will give advantages to the Google. Having high and positive GDP will also influence the external and internal investments of Google .In this high GDP country users and the people will search more information hence the will more advertisement are put on Google search engines and this will help the Google to gain positive .The increasing amount users in those country will impacted on Google positively and be able to lead the company to provide more better services and more product features for their users leading it being a strength to Google economically .

Interest Rate either can give a positive impact or negative impact to any organizations .The level impact is depends on Google dealing  in others country Google is an organization that relaying on the investment ,this means when the interest rate are increase progressively ,Google benefits. For example in UK the rate is average about 8.1% ,in US it stands at 6.1% and India at 6.6%.These number determine that the organization in that region of the world will able to get credit facilities and loan to invest or support their company. The more money that company has in their account the more they will spend and invest in advertisements; hence doing that through Google .This will increase the prospect for Google in this market. Meanwhile high interest rate will cause difficulty towards the organization hence the company also will reduce the cost of advertisement and that will cause negative prospect towards Google.