MMP_7_ISM International Strategic Management and Innovation Assignment Sample
Introduction
Google Inc. was founded in the year 1998 buy two PhD students of Stanford University who were studying computer science when they founded the company. The name of the two founders of the company are Sergei Brin and Lawrence Page who were both studying Computer Science in Stanford University when the founded Google Inc. Google is the biggest search engine in the world today and dominate the search engine market alone as it is the best search engine available today which has the maximum users in the world.
The Company is one of the biggest companies in the world and is in the top 5 biggest company in America. Google is also the largest search engine in the world with millions of users all over the world. Today the company is the biggest search engine but this was not the case when the company was started back in 1998. Bothe the founders have put in a lot of work to make the company what it is today.
When they started the company at that time there was no good way of finding information online and finding the right information was a difficult task which required a lot of skills and understanding of the internet as to which way a person can get the information which was needful and it required a lot of effort to filter the information which was not needed and which appeared on the website. So both the founders realized that there is a need of a good search engine in the world so people can find the information which they need without much effort and for that they decided to make a search engine as there were no good search at that time and it was very useful to have a good search engine which can help people find information in a very personalized and specific way so people can get access to information and not get distracted on the noise which come on the website and all the useless information and links which come when searching or something. In the year 2006 around 50 of internet searches were made in Google and around 255 on yahoo.
Later the internet searches for Google increased dramatically and Google because the biggest search engine in the world. This report analysis the micro and macro environments of Google, competitive factor of the company, analysis of the business model of the company, analysis of the business strategies of the company, analysis of innovation strategies of the company and appraisal of organization strategic situation.
Discussion
Analysis of macro environment
Macro environment is all the factors that are the external factors. All the external factors have an adverse impact on the organization externally. This means that these risks occur outside the organization. it is very much required to ensure that no factors affect the organization externally. This can hamper the organization effectively. All the external factors that have an adverse impact on the organization are as follows:-
- Political factors
- Economic factors
- Technological factors
- Socio-cultural factors
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Political Factors:
Government solidness is one of the significant viewpoints in Google’s methodology. In the event that the market is steady, governments help organizations thus these organizations publicize more on Google, subsequently, profiting Google. Furthermore, the majority of the legislatures don’t have distinguished laws for online data sharing, in this way, allowing Google the chance to control laws. Nonetheless, China has made an obstruction for Google by adding guidelines that restrict Google from working on their footing yet this doesn’t influence the by and large achievement of Google world generally.
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Economic Factors:
Net homegrown items (GDP) have been on the ascent since quite a while. They are expanding every year at the normal pace of 3.20% arriving at a significant degree of 17.20% now and again. Nations like South Africa, India, China and United Kingdom have had increments in their GDP every year since the 70’s and this is a positive factor on Google. With the steady and proceeded with development of those nations, Google’s inside and outside speculations will consistently be high in numbers. Clients search more; consequently more promotions are put on Google’s web search tools. The measure of clients around those counters can affect on Google emphatically and lead them to set up better administrations and more items for their clients driving the it being solidarity to Google financially.
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Technological Factors:
The accomplishment of Google is chiefly because of its imaginative ideas and advances, for example, Pagerank in their internet searcher, Adwords as promoting framework, AdSense program, Gmail, Google Spreadsheets and Docs, Google Map, Google Froogle, Google Analytics, Google Desktop, Google Earth, Google Gear, Google Page maker, Google gatherings, Google talk, Picasa and the sky is the limit from there. Every one of these administrations and instruments are proposed for nothing with the expect to make a client’s life simpler, proficient, commonsense and engaging.
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Socio-Cultural Factors:
Information and data is a vital factor of human turn of events. Google is a head of society that is increasingly more worldwide in light of the fact that its main goal is to coordinate the world’s data and make it all around available and valuable to everybody. Socio-social elements for Google’s PEST examination incorporate customs, values, cultural patterns, and society assumption for organizations. These general public assumptions can be assembled into: populace segment, pay dispersion, way of life change and level of training. Google isn’t restricted to a specific segment populace; Google is a worldwide organization that offers worldwide clients with worldwide administrations and worldwide information free of charge with just one state of being associated with the Internet. Consequently there is no limitation on a particular segment, culture or explicit pay appropriation. This gives Google a solid preferred position on the lookout. Its instruments are offered to everybody and consequently anybody, anyplace on the planet can publicize on Google and increment their benefits.
Analysis of micro environment
The micro environments of the company are the internal environment of the company which includes the things which affect the company in a more specific way. One very useful tool which is used for micro analysis is Porter’s five force analysis which is a very effective analysis tool and is used by companies all over the world to analysis companies and the micro environments of companies. The porters five force analysis includes the analysis of 5 areas of the company which are:
- Competitive rivalry- The company Google faces a strong force of competition in the industry as there are a lot of companies in the industry which offer similar service in the world and which take the share of Google even though Google is one of the biggest companies in the industry. The company faces a lot of competition in the industry by many companies that offer the same kind of products and services in the industry like Microsoft, and etc. There are a lot of companies in the industry, and there are also a high diversity of technological companies in the world currently and the switch cost of customers is also low which is a strong force.
- The bargaining power of suppliers- The bargain power of the supplier is a weak force in the case of Google as the bargain power of the supplier is low in the industry and Google has a upper hand in this. There is a high availability of supply of the services and there are also a lot of suppliers in the industry which weakens the bargain power of the supplier in from of Google’s business making it a strong company ad giving it the advantage. Plus there are also small and moderate sizes of individual suppliers of Google which is also a weak force and in which Google gets the benefit.
- The bargaining power of buyers- The bargaining power of the buyers in the case of Google is also a weak forces the buyers don’t hold a lot of force on the company and the company has become so strong the people are more in the need of the service of the company rather than the company needing the customer. The reason for the weak force of bargain power of buyers in the company are that the company has a small size of individual Google customer which is a weak force, the company also has high demand for the products and services of the company which makes it a weak force and that the customer get average quality of information in the industry which is also a moderate force.
- Threat of substitute- the threat of substitution to Google is neither strong nor weak but is moderate which means that there are a little chance of substitution to Google. As the company makes the most money from advertising there are a lot of other places where people and company do through advertisements like Facebook, Instagram and other social media sites which gives Google fairly good competition in advertising business. There is moderate switching cost, high availability of substitute in the industry, and low performance of substitute.
- Threat of new entrants- The threats of new entrants is a moderate force which means that as there a lot of IT companies sin the world today that can make efforts and have the means to make a competition for Google but are not doing so for some reason. The cost of doing business sis moderate, the cost of brand development is high which the biggest reasons is why company re not entering this industry and there are room for ore companies as the users of internet in the world are increasing over time.
Competitive success factor
Google’s competitive advantage is it gives a staggeringly quick hunt and instruments to help the overall web crawler. Contending web search tools, for example, Bing or Yahoo! would need to build up their foundation to coordinate the speed and extensiveness that Google has. Google’s image strength upholds worldwide seriousness. In the SWOT examination model, this inward essential factor pulls in objective clients despite rivalry with firms like Apple, Samsung, and Microsoft. Then again, high ability for mechanical advancement fortifies item improvement, which keeps up the organization’s edge against rivals that are additionally innovatively progressed. This strength identifies with Google’s corporate culture’s effect on human asset abilities for development. Additionally, different licenses enable the business to set up and keep up the productive highlights of its shopper hardware and online administrations. Furthermore, this SWOT examination of Google incorporates business broadening as an inward factor that reinforces the enterprise. For instance, activities in different enterprises, for example, PC programming and equipment, computerized content appropriation, web based publicizing, and distributed computing administrations, supplement each other to make an environment of items that urge clients to remain with the organization. Besides, the undertaking’s enormous hierarchical size reinforces upper hands by enhancing economies of scale and authoritative versatility against outer powers, for example, the ones analyzed in the Porter’s Five Forces Analysis of Google LLC. In this part of the SWOT investigation, the qualities advance intensity and business development in an industry climate where innovative improvement makes high dynamism.
Analysis of business model
Google is the greatest web search tool on the planet today and overwhelm the web search tool market alone as it is the best web crawler accessible today which has the most extreme clients on the planet. The Company is probably the greatest organization on the planet and is in the best 5 greatest organization in America. Google is additionally the biggest web crawler on the planet with a large number of clients everywhere on the world. At the point when they began the organization around then there was nothing but bad method of discovering data on the web and tracking down the correct data was a troublesome undertaking which required a ton of abilities and comprehension of the web with respect to what direction an individual can get the data which was needful and it required a great deal of exertion to channel the data which was not required and which showed up on the site. So both the organizers understood that there is a need of a decent web search tool on the planet so individuals can discover the data which they need absent a lot of exertion and for that they chose to make a web crawler.
The business model of the company6 Google Inc. is very diverse and some of the ways the company earns its money are:
Google ads
The company has been selling spaces in its website since 2000 and the space in the website is sold for decent amount of money form which the company makes a lot of money. The company essentially rents space in its website and platform so that people and other companies can rent the space and run their advertisement on the website as the website of the company has a lot of traffic and a lot of people used Google back then to search for information. Later the company launched Ad words which was a system through which advertisement in the Google website was every systematic and the company promoted advertisements on its website.
In this system company used to bid from advertisement in the Google platform and the person with the highest bid would get the platform for advertisement in the website. The people who would win the bid would get the link to advertise their website or product or service on the Google platform which people would see a lot and this would promote companies and increase the engagement of companies. The company with highest bid would get the best space which would have the best interaction with people that visit the website of Google and this and so like this the company had various sites and space which the company used to give for rent to people. I the year 2005 the company gained 99% of its revenue from advertising and then the company started to focus a lot on advertising which was around 6 billion dollars. After this period the company kept coming up with new ideas and models to increase the revenue from advertising and maintains the high revenue from advertising.
Google search engine
The search engine of Google saw the fist products of the company and the first service of the company which the company provided which was basically that the company has a website in which there was a lot of information where the people could find all kinds of information in the world about anything and everything’s. At the time Google came up with its search engine there were very few search engines in the world and the few that were there were very complicated to understand so very few people used to use it.
This was the unique point of Google search engine I, Google tries to make its search engine easy to understand and use and make the website such that people are able to understand the website and is simple to use. Later the company made a lot improvements in its website which improved the results people would get on searching for things and the result because very specific with time. Google generated a lot of revenue from its search engine because it as easy to use and understand and this was the reason why Google became the biggest search engine and gained popularity. The success of the absence of Google is entirely on the success of the search engine of the website. If the website and the search engine of Google was not as popular as it is today no one would pay Google for advertising.
Google services
After the success of the Google search engine and the Ad sense program of Google the company started diversifying its business and making a lot of business tool which could help people do business and studies in a better way. The company made a lot of tools and services like Google maps which is one of the most used navigation system in the world. Google colander is another very common colander and organizer which is used by millions to organize their year and day to day life and plan it in affective way. The Gmail is the mailing system made by Google which is one of the most popular and most used mail service in the world as it offers benefits and services which no other company can offer like cloud storage and simple and easy to use interface.
The company also makes a lot of Te company made around 10 billion in 2006 and after that the CEO of the company changed and then the company made a lot new services like Google spreadsheet which is like excel spreadsheet and serves the same purpose, 3D cousin which is also a popular service, Google earth which helps people see detailed data and maps of various places in the world with the help of satellite. Google also makes a lot of revenue form play stores and other mobile and android services.
Analysis of business strategy
The Google inc. is one of the biggest companies in the world and makes use of great strategies which are used by the company in order to get the work done in the company, make the most f the employees of the company and maintain the innovation and creativity of the company. The Company has a great work culture in the company which enables the employees of the company to work in the best interest of the company. The company culture promotes creativity; innovation and strategic and critical thinking which are all very important skills and make the employees perform in a better and more appropriate way. Some of the strategies which are used by the company are mentioned below:
- One of the biggest strategies of the company is the way the company makes the employees work in the in clusters of three or four people. The company has free cafes in the office of the company and also has free snack rooms where the employees of the company sit and discuss ideas and innovation of products and services of the company. The reason why the company provide free snack so that the employees in the company feel free and happy as they are never starving and focus on the work as much as possible. The employees are allowed to work in small group and given guidance so that they don’t make expensive mistakes in the company which can cost a lot to the company. Still the employees of the company re given a lot of freedom to try different ideas and innovation which is one of the main reason s why Google has been such a great innovator and creative company.
- The employees of the company spend around 70% of their time and energy ion the advertising business of the company as it is the main business and the most one making business of the company. The employees spend their time trying to increase the revenue of the company form advertising, monetizing the revenue, search patters, likes and dislikes of millions of people, though process of societies, likes of countries, dislikes of countries and etc are all noted and remember and analyses in the company by the employees of the company with the help of various tools nd employees which enable the company to increase the revenue and better serve the people and the customers of the company. The company lets the employees 10% of their time on wild fun with is just a lot of experiments of ideas and trying out new things in the company doe by all the employees of the company. This is a fun session in which the employees are made to enjoy their work and made to work in a fun way on different ideas and concepts. And the last examining 20% time of the employees is spent on non core products of the company which the employees are given the responsibility to work on in many different tools and services of the company and a make improvements in the tools and services of the company. This way the employees never get bored in the company and also enjoy their work which makes them very effective and productive.
- The company also hires employees in a very unique way buy making employees solve a complex puzzle and the employees who solve the puzzle get a link of a website where they also have to solve a more complex puzzle and after solving the complex puzzle the company allows the employees to submit their CV in the portal of the company from which the employees are selected whether they will be selected in the company or not. In this kind of situations the company tries to see the problem solving skills of the employees as to how the employees solve the problem which are very difficult and complex which let the company know about whether they are a good match to work n the company or not and then the company considers the candidate to work for them.
Analysis of innovation strategy
Strategy is making out the most ideal path conceivable to accomplish accomplishment by choosing the alternatives accessible to the association and development is executed to accomplish these essential objectives. So development ought to be focused on. To get upper hand, advancement ought to be proficient and viable to make long haul progress. It rearranges and offers help to the creative work of the association. The creative objectives ought to cling to the destinations of the business. It ought to be clear, straightforward, should a legitimate vision to build the operational productivity.
Steps
Steps to develop innovation strategy are as follows:-
- Determining the objectives
- Knowing the customers and competitors
- Defining value propositions
- Developing core capabilities
- Establishing innovation
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Determining the objectives:-
The first towards the development procedure is the arrangement the points and targets of the association. The system ought to be characterized well to execute developments appropriately. All the variables influencing the business ought to be remembered. The targets ought to be clear all together to locate the intention behind executing the advancement system. It should plan to be the main association in market. So the advancements required ought to be arranged to turn into the main rival on the lookout.
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Knowing the customers and competitors:
The necessities of the customers should be prominent to the customers. If the customers demand more, the affiliation needs to meet the presumptions for the customers by propelling its thing. It is outstandingly central to think about the emerging examples of the business areas. The adversaries in the business areas start to upgrade according to the premium of the market. So it is imperative to know all the competitors available keeping watch and their improvement methodology. If the competitors are known, the affiliations should know to give more pleasing results to the customers than the competitors. In any case, genuine necessities are individual and express. It describes how more improvements should be made when diverged from various adversaries to attract more customers. This ought to be conceivable through worth turn of events.
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Defining value propositions:
The target of development is to make upper hand. Worth ought to be added to set aside the client’s cash with the goal that they get back to the association every single time. For this the item ought to be helpful, reasonable and solid contrasted with different items accessible on the lookout.
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Developing core capabilities:
Then, arranging of advancement system ought to be made by the abilities. Simply in the wake of examining the capacities, it is conceivable to advance. For instance, if an association is intending to enhance, it will require interior abilities and information to do as such.
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Establishing innovation:
The last advance is execution and legitimate usage of the development strategy. In light of the multitude of variables, the inventive methods and frameworks must be applied. It ought to be guaranteed that all the activities taken are executed precisely.
Sources of innovation
The sources of Innovation system of Google are as follows:-
- To have a mission
- Think big but start small
- Continual innovations and not instant perfection
- Look for ideas everywhere
- Sharing of decisions
1) To have a mission:-
The mission of Google is to gather data from worldwide and make it open and helpful for its kin. This advancement is utilized to control all the choices taken by Google. For instance, Gmail was made to give more stockpiling and to address the issue for web email usefulness.
2)Think big but start small:-
Google accepts that whatever the drawn out objectives may be, it ought to be just actualized with little choices. Regularly associations don’t have the foggiest idea where to begin from. For instance, when Google Books was presented by Larry Page, individuals thought that it was badly arranged to peruse the immense data. So he actualized to scanner to san the pages for consumer loyalty. Today there are around 10 million books accessible in their Book Search list.
3) Continual innovations and not instant perfection:-
Google had expressed that regardless of whether there are disappointments, the advancements ought to be proceeded. There ought to be no stop at the advancement cycle. The work should go on at any expense. For instance, Adwords delivered on 1999 was not an event development as nobody tapped on the advertisements. Nonetheless, Google in as yet attempting to improve it and has not abandoned it yet. They run 10,000 promotions consistently is as yet refreshing themselves.
4) Look for ideas everywhere:-
Google accepts that every single representative should give proposals for smooth running of the business. Everybody should offer their input and in the event that the assessment clicks, at that point ought to likewise be actualized. For instance, Google had set up a thought board on the divider at Google’s base camp. Any proposals and thoughts ought to be appended to the board.
5)Sharing of decisions:-
All the thoughts and choices made by Google are under the information on its representatives. It empowers the conversation and helps in return of thoughts. It can prompt inventive results. For instance, when the group of Google Translate and Google Talk were connecting with one another, the possibility of language interpretation in Google Talk sprung up and presently it is a triumph.
Innovations by Google
- Google chromebook- It the OS series of laptops and desktop. It was launched on 2011. It supports all Google apps.
- Google maps- It was implemented to make navigation easy for common people.
- Google assistant- it is an artificial intelligence based service. It interacts with the user and also makes notes and performs tasks accordingly.
- Google scholar- it is the academic journal directory. It provides with all the journals, articles and books.
- Google fibre-it is an internet connection service which offers ultra-fast connections ranging from 100 Mbit/s to 1 GBit/s.
- Google glass- it is supposed to worn to keep a track of what the user sees and hears.
- Google translate- it was launched in 2006 and it helps in translating more than 13 types of languages.
Appraisal of organization’s strategic situation
The Google inc. is one of the biggest companies in the world and makes use of great strategies which are used by the company in order to get the work done in the company, make the most of the employees of the company and maintain the innovation and creativity of the company. The Company has a great work culture in the company which enables the employees of the company to work in the best interest of the company. The company culture promotes creativity; innovation and strategic and critical thinking which are all very important skills and make the employees perform in a better and more appropriate way.
The company has been using a lot of great strategies which create a win-win situation for both the customers of the company and the company itself. Like for example the company and the advertising of the company is made in such a way that it does not distracts the reader from the work they are doing while subtly giving them the information about the advertised and the products and services of the advertised for which if the user is interested in can click and if is not interested in cannot click and continue doing their work. The company makes the advertisement simple so that it does not distract the reader and at the same time allows the advertiser to increase their click rates by giving them tools which will increase the click rates of the company nd the advertisement of the company. The company Google earns money from showing the website on their platform and then charges company to increase their click rates which will generate more benefits and clicks.
Conclusion
The method of preparation the worldwide procedure in a business to accomplish key fit among the association’s assets and the climate where it works is known as global vital administration (ISM). The point of this is to make techniques which can assist the business with coming to at a global level. It characterizes measures to be taken to grow the business abroad and contend in the worldwide market. For a specific association it is vital to improve its strategy and supplies with time. Development is very crucial for proceed with the achievement of the associations. All the factors have been justified very well before evaluating all the factors related.
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