Diagnosis of the Situation of Google - Research Paper Example

? MGT450 Final Paper Table of Contents Table of Contents 2 Introduction 3 Diagnosis of the Situation of Google 4 Problems/Issues That Need To Be Addressed 5 Analysis of the Identified Problems and Issues 6 The Appropriate Core Concepts and Analytical Tools to Describe the Ins And Outs of the Situation of Google 7 Pros and Cons of Various Action Alternatives 10 Recommendations 11 Conclusion 13 References 14 Introduction In this era of globalization and industrialization, introduction of information technology (IT) has changed the entire scenario of business world. IT is the technique which is mainly concerned with the technology in order to deal with varied types of information. It mainly deals with attainment, processing, storage and distribution of verbal, graphic, textual and numerical facts with the help of microelectronic techniques such as computers. IT mainly includes wide ranges of computer software, programming language and hardware, which transmit information into visual design with the help of multimedia. Thus, it can be depicted that introduction of internet services enabled the connection of several worldwide users into a single framework with the help of ‘internet protocol suites’ (IPS). IT or more specifically, internet service acted as a revolution, which changed the entire global economy. IT is one of the most successful strategies whose implementation enhanced the market share and the brand recognition of many search engines namely Google, MSN, AOL, Yahoo and Ask Jeeves among others. Besides, Google is the most reputed player in this context (Googleusercontent, n.d.). IT has created high impact on the global environment, which eased both individual and business activities thereby augmenting the pace of growth of varied search engines. In this research paper, a brief introduction about the organization of Google is described along with its current situation analysis. Moreover, the problems and issues faced by the association are also specified and a diagrammatic presentation of a particular problem is also shown along with recommendations and conclusion. Diagnosis of the Situation of Google Google Inc. is a reputed multinational corporation of the United States of America specializing in software and internet based services. It has gained worldwide prominence due to it service of online search engine, which is utilized by varied users all around the world in order to accumulate various information and facts. It mainly operates through online websites and file transfer protocol (FTP) servers, which are vital for the transmission of varied facts and figures from one place to the other. Google web exploration engine is primly owned by Google Inc. The prime objective of Google web exploration engine is to investigate several information and data in numerous online web pages. Moreover, it also helps in interconnecting individuals located far apart. Prior to the implementation of IT, the business scenario of Google was entirely different as compared to recent times. Prior to ‘dot.com bubble’, in the year 2000, the market share of Google was lower than one percent (The Center for Research on Information Technology and Organizations, 2007). Google Inc. gained momentum after the introduction of IT techniques as one of its corporate strategies. After implementation of IT, the brand image and recognition of Google enhanced to a larger extent, which proved rather beneficial for the organization. It helped to improve the profitability of Google by US$100 billion, thereby positioning itself as the market leader among others. The market share also increased by 57.81 percent by 2004 and it increased to about 66.63 percent by the year 2006, which is quite noteworthy (The Center for Research on Information Technology and Organizations, 2007). Hence, it can be depicted that the identity and uniqueness of Google altered due to the adaptation of IT tactics. Problems/Issues That Need To Be Addressed Although Google is a reputed and renowned organization in the world, it is facing quite a few problems, which can prove to be detrimental for the association. The most important problem which Google faced in order to sustain in this global market is selection of appropriate and efficient employees. This signifies that certain employees of Google do not have requisite accurate technical knowledge about software designing which proved harmful for the organization. Due to which, the business of the organization is largely hampered thereby declining the market share and corporate image in the market. Apart from this, the other noteworthy dilemma which is faced by Google is retention of employees. The employees working in Google do not sustain for long run due to low payments, poor management techniques and poor mentoring which proved to be a significant issue. This is because a large amount of money is spent on the training and development programs of the employees in order to enhance their skills and knowledge. In addition, diverse working environment of Google is the other imperative issue which offers considerable impact on the employees (Chen, Chung, Liu, & Jun, n.d.). Diverse culture can lead to employee conflicts thereby declining morale and dedication towards work. It largely hampers the productivity and the profitability of the organization. Thus, it can be apparently depicted that the above mentioned issues or problems need to be addressed by Google in order to sustain its market share and brand loyalty among others in the market. Otherwise, it might hinder the pace of growth of the organization in this competitive market. Analysis of the Identified Problems and Issues In order to sustain in this competitive environment, it is essential to cope up with varied challenges and diverse environmental circumstances. In addition, it is also necessary to resolve the internal problems as well. This is essential to retain the position and corporate image of an organization in the market. Thus, there are varied techniques which can be utilized in order to resolve these issues e.g. Fishbone Diagram. It is a technique of analytical thinking which is used to solve certain specific problems. It also helps in analyzing the causes and the effects of the problems as well. Management High diversity poor management skills Low pay scale poor mentoring Higher salaries varied creativity Benefits Market place Fishbone Diagram (Source: Improhealth, 2009). From the above depicted diagram, it can be said that due to above specified problems, the employees of Google do not sustain in the organization for a long run. As a result, the productivity of the organization is hampered to a large extent which also hinders the revenue of the organization. This is quite detrimental for the organization to retain its position in this competitive market, because if a former employee joins another organization, all the business secrets might get revealed. Therefore, it can easily threaten an organization’s efficiency. Hence, with the help of Fishbone Diagram, an organization can analyze the exact causes of the problems which might facilitate in solving them in the near future. The Appropriate Core Concepts and Analytical Tools to Describe the Ins And Outs of the Situation of Google In this era of globalization, it is essential to implement certain core concepts and analytical techniques in order to retain an organization’s market share and corporate image. It is also necessary to enhance its productivity and profitability thereby increasing its brand identity in the market. With the help of varied analytical tools, the dedication and commitment of the employees can also be improved, which thereby helps in enhancing the total sales and revenue of the organization. Moreover, with the help of these tools, the strengths and weaknesses of an organization can also be analyzed which can lead to its betterment in future years. There are certain tools and techniques that can be utilized to examine the situation of Google. Strengths: Simple Interface Comprehensive results without any confusion for the users Reputed search engine Market share of US$185.61 billion in the year 2009 Weaknesses: Contextual search algorithms are at times not accurate Google business model is complex Weak presence regarding the ‘social-networking space’ Opportunities: New Acquisitions Using larger value contents on the websites Google can increase localized vendors for paid advertisements Wide opportunities in searching new groups or individuals Threats: High competition Legal trials Low control over indexing strategies Desertion of information skills Source: (Abt, 2007). Thus, from the SWOT analysis, the strengths and weaknesses of Google can be identified along with varied opportunities and threats that might be beneficial for the enhancement of its corporate image. Apart from this, the weaknesses can be reduced thereby augmenting the strengths in order to compete with other market leaders. Apart from SWOT analysis, the other important tool, which can be utilized in order to examine the situation of Google, which might be beneficial for its future success is Porter’s five forces model. Porter’s five forces model is also the other important diagnostic tool, which is utilized for the evaluation of the environmental situations. Forces Impact on Google Supplier Power Dominancy in regional basis rather than globally Introduction of a new search tool by Microsoft into its explorer Threat of onward integration Barriers to Entry Search tools can be scalable in an easy way Improvement of the search engines of Yahoo and Microsoft Competitive Rivalry Strong brand uniqueness of Google Rival search techniques are also similar to Google search engines i.e. MSN or Yahoo search engines Utilization of search tools without precise referencing Threat of Substitutes Highly skilled employees are required to maintain the software technology Loss of business secrets of the company due to employee turnover Innovative services Buyer Power Large number of substitutes such as MSN, Yahoo Diversification to other search engines Danger of backward integration Source: (Porter, n.d.). Thus, from the above described analysis, it can be evaluated that although Google is a reputed organization still it comprises of varied threats and substitute service providing competitors, which can create obstacles in its path of growth. This is due to continuous innovations and improvements, varied new search engines are invented, which might prove detrimental for Google. Other than these, there exist several competitors such as MSN, Yahoo and Rediff among others. Thus, Google should also attempt to engage highly efficient and effective employees in order to improve varied new services in order to attract more and more customers. It would be beneficial to enhance its market share and customer awareness thereby augmenting its customer loyalty and responsiveness. It can also improve its profitability and corporate position in this competitive market. Google should therefore attempt to reduce its weaknesses by virtue of its strengths. This can decline the risks or threats associated with the business. In addition, from the above mentioned techniques, the situation and the condition of Google can be examined, so it should endeavor to offer high concentration on the research and development department in order to increase number of customers. Pros and Cons of Various Action Alternatives In the above mentioned analysis, two techniques are described which highlights the current scenario of Google in this competitive market. Among them, one is SWOT analysis and the other is Porter’s five forces model. SWOT analysis is one of the well-known techniques, which is used to evaluate the current market condition of an organization. It is used as a source of information in order to prepare strategic plans and policies for the betterment of the organization (Gamble & Thompson, 2011). This is due to the fact that it helps in providing accurate results which facilitates the end-users and reduces confusions. Google is used as a reputed search engine by the users around the world. As a result, it enhances the corporate image and market share of Google. Besides, it also includes certain specific weaknesses as well. It offers less ‘social-networking spaces’, which hinders its brand identity and uniqueness. Moreover, at times, it also offers inaccurate results, which hinder customer dependency and responsiveness. Apart from these, Google also includes varied opportunities as well. Due to high brand recognition, Google can increase localized vendors and also offer larger contents for the utilization of the users. Google also comprises certain threats or cons as well. The search engine sector has become highly competitive due to emergence of varied rivals namely Yahoo and MSN. In addition, low controlling power over indexing strategies is also creating a hindrance for the business of Google. Thus, Google is required to take certain steps and prepare strategies in order to enhance its productivity and revenue. Porter’s five forces model has also offered certain pros and cons as well. Introduction of an innovative search tool by Microsoft named Bing is quite threatening for Google. Thus, improvement of the search engines of Google is essential in order to reduce business risks. Besides, primarily due to high brand image, Google still remained as a market leader in this sector. This is highly essential in order to retain its market share, which can be possible only by retaining the employees for long run. Otherwise, business secrets may be revealed by any other competitor that might be harmful for Google. Hence, it is very essential to retain the experienced and knowledgeable employees for future growth and development of Google. Hence, it can be revealed that both these strategies of SWOT analysis and Porter’s five forces model is utilized for analyzing the pros and cons of Google in order to enhance its strengths and reduce its weaknesses. These techniques have revealed certain facets which need to be taken care of to retain its corporate image and market share in this competitive market. Recommendations Thus, it can be avowed that Google should attempt to engage certain skilled and knowledgeable individuals in order to offer inventive services to its customers. Google should endeavor to retain the employees thereby fulfilling their primary needs in order to sustain in this competitive market. It would also prevent the organization from losing its business secrets, which might prove detrimental in future times. In addition, Google should also attempt to enhance its strengths thereby reducing its weaknesses so that it can retain its position in the market. This can be possible only if the organization offers high concentration over the research and development in order to include various inventive modules. This can attract more and more customers as compared to others, which might be beneficial for Google. In addition, the management of Google should work in a group while designing strategies for the improvement and development of the organization. Hence, the management of Google should attempt to implement the above discussed strategies or policies in order to enhance its position and market share. Conclusion Conclusively, it can be affirmed that introduction of IT created a worldwide revolution, which enhanced the passion of search engines with the help of internet. Moreover, it also augmented the growth and the productivity of varied search engines thereby improving their position in the market. Among numerous search engines, the brand image of Google is quite significant and renowned, which is one of the greatest strengths of the organization. It has been recognized that in order to cope up with alternating changes, Google should also attempt to introduce varied inventive services in order to draw more customers thereby enhancing consumer dependency and responsiveness. This can be possible only if the employees can be retained in the organization of Google, thereby reducing staff turnover. It is very essential to retain its corporate image and brand uniqueness among other competitors. Hence, it can be depicted that pre-planned strategies and tactics are most important techniques which an organization should utilize in order to cope up with the challenges of globalization. References Abt, L. (2007). Google Inc. marketing case study analysis. Retrieved from http://yealynne.com/portfolio/writing/lynne_abt_google_marketing_plan.pdf Chen, K., Chung, G., Liu, K., & Jun, A. (n.d.). Organizational behavior fall, section b. Retrieved from http://www.contrib.andrew.cmu.edu/~kathyc/files/written/google.pdf Googleusercontent. (n.d.). Enabling trade in the era of information technologies: breaking down barriers to the free flow of information. Retrieved from http://static.googleusercontent.com/external_content/untrusted_dlcp/www.google.com/en//googleblogs/pdfs/trade_free_flow_of_information.pdf Gamble, J., & Thompson, A. A. (2011). Essentials of strategic management: the quest for competitive advantage. United States: McGraw-Hill Irwin. Improhealth. ( 2009). Fishbone diagram. Retrieved from http://www.improhealth.org/fileadmin/Documents/Improvement_Tools/Fishbone_diagram.pdf Porter, M. E. (n.d.). The five competitive forces that shape strategy. Retrieved from http://www.ascendcfo.com/pdfFiles/HBR-The%20Five%20Competitive%20Forces%20That%20Shape%20Strategy.pdf The Center for Research on Information Technology and Organizations. (2007). Strategic use of information technology-Google. Retrieved from http://www.crito.uci.edu/papers/2007/google.pdf Read More