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GOOGLE GOOGLY
Case Study
BUS 675, SPRING 2015
Professor Doyle W. Young
By: Lucia G Rodriguez
And
Jennifer Ceballos

GOOGL

Introduction
Googles company founded by Sergey Brian and Larry Page considered an entrepreneurial place.
Google is one of the best places to work for throughout the world, seen as the one of the most
fast-moving, consensus-based organization of the century. Google has a sustainable competitive
advantage that offer and enable its employees to establish innovation and continuous
improvement. Such environment calls for employees to develop and thrive in such a competitive
place and still maintain negative by-products of rapid growth to a minimum. In order to keep
that autonomous culture google has been faced with some challenges such the rapid and
tremendous growth of the company, services, products, that were used by many people. So, in
order for Googles company to continue having this successful environment, and in order to keep
that advantage and grow financially and geographically, Google has to confront certain
challenges such as keeping their core elements stablesuch problems show up when growth of a
company is inevitable.

Key External Factors

Google Economy revenue in 2007 were $16.6 billion, with $4.2 billion of net income.
Company Culture informal culture stablished from the very beginning. Employees are
given exercise balls instead of movable office chairs, dogs were permitted at work.
Googlers Morale is pretty high, employees are offered free meals,
Google organizational Structure company focus on management, sale organization,
engineering, business deals, product management, and consensus.
Hiring practices Googley required skills are to be able to be flexible and possess
initiative.
Compensations Google offer a base salary, bonus, stock options, and an extensive set
of benefits and perks.
Training new hires received training primarily of learning about Google cultural norms
and shared language. Computer classes are paid to those that want to learn and want to
become more effective in their positions. Free language classes, and finance classes as
well.
Trends continuous innovation throughout the company is encouraged, employees are
encouraged to take risky decisions and work on risky projects. Formal and informal
mechanism used by employees, and 20% of engineers time is spent working on
innovations, which at the end such innovations are incentivize ranging from
compensations to job improvement.
Recognitions given to valuable employees in a cash or paper format such as stock
grants that may be worth $1 million.
International Consistency international expansion, google offered many products in
different languages.

Key Internal Factors

Google AdSense online sales and operations had approximately 3,000 employees, most
were based at the companys headquarter in Mountain View, California.
After four years, Googles employee count had grown to over 17,000 and more than 40%
were based outside of the U.S.
Google have two major advertising services, AdSense and AdWords.
Page and Brin developed an algorithm that ranked internet results
In 1999, AdWords software was stablished.
By late 2000, Google has established partnerships with leading websites such as AOL and
Yahoo.
Software systems such as Google Book search, Google News, and Google Finance
introduced between 2004 and 2007.
Google introduced a set of communication and collaboration services including, Gmail,
Google Calendar, Google Docs & Spreadsheets, and Bloggers.
Other new products included Google Checkout for online transactions, Google Maps, and
Google Mobile.
In 2007, Google was attracting 587.8 million users, 484.7 million visitors
Other products and services supported by AdWords and AdSense. Products offerings
were broken down into categories are Search, Advertising, Applications, Enterprise, and
Mobile.
Easy to search all types of information such as blogs, desktops files, maps, and books
offered thru AdWords and AdSense. Applications included popular services such as
Gmail, Picasa, Google Docs, and Google Calendar.
In 2007, Google acquired Video-sharing site YouTube.

Significant Factors
Google was developed in 1988 by two computer science students from Stanford
University. Google became most popular and successful due to their mazing and
extremely informative search engine. In 2000 the search engine became the driving force
behind their success due to the innovation of Ad words. Many companies could pay
google to place certain words on the search engine to help promote the various
businesses.
Google then hired a new CEO, Eric Schmidt, in 2001. That is the year google generated
over $440 billion dollars in revenues and over 1million in profits. Google has over 680
employees and most of them. Google finally went public in 2004 making a $2 billion
Initial Public Offering (IPO).
Google began their real success in 2007 generating over $16.6 billion in revenue and
$4.2billion in net cost. Google had 62.4% of internet shares and almost 600 million users
each month. The company now had over 16,000 employees located around the world.

Google had a fast expansion and in doing this they were able to work on a global scale.
They generated over 405 of revenue outside the US.
Google had become the largest organized function including sales, engineering, product management
and product marketing.
Employee Benefits. Google offers incredible benefits to their employees. On site
healthcare center, free meals, fitness center, paid maternity leave $500 allowance to go
towards a cleaning lay, meals out etc.
Hiring. Google has a heavy filtering hiring process. They will have an induction and
training to get right into the culture of google.
Culture. Google started a flat organization with informal training, 360 degree
performance reviews and consensus decision making. Google employees were
encourage to devote one day a week to work on any project of their choice. Google has
employees all over the world. The employees are encouraged to form a strong
communication between each other.
Structure. Mesh organizational structure. This allows all to share responsibility in the
decision making which makes up for great teambuilding.

Summary of Findings
Googles main competitive advantages include quicker delivery of products by reducing
the lead-time from the creation of products and services to the users and advertisers and
its stakeholders. Also, innovation of new products, and extraordinary benefits to its
employees such as compensation packages, perks, on-site healthcare, free meals,
swimming pools, work-out facility, video games and free classes to its employees.
Google has well stablished core values. Other traits of Google culture were a Flat
organization, informal training processes, 360 performance reviews, and consensus
Oriented decision making. Company allows any employee to participate during their
meetings, innovation welcomed, risk taking strategy (which means it means if employee
fails he or she is allow to relearn techniques)

Financial Analysis
As long as Index profits margins are high, they will be able to have sustainable worth
because they will have money to invest in newer products, and to continue expanding to
the rest of the world.
According to Index 1, company generated $440 million of revenues and $100 million of
profits during 2002.
Google went public in 2004 (tickler GOOG), raising $2 million.
By December of 2007, Google was attracting 587.8 million users each month, and had
62.4% market share for searches.

Google was performing and creating higher profits than Yahoo who only had 12.8%
market share for searches and 484.7 million visitors during the same year.
Google revenues in 2007 were $16.6 billion, with $4.2 billion of net income. About half of
the revenues were generated outside the USA.
Googles Share price on January31, 2008, was $564.30, generating a market
capitalization of $176.8 million.
Share price reflected 664% growth from the IPO price of $85.
Stock price rose to $108.31 on its day of trading.
Online advertising generated 99% of Googles revenues all which came from two
services, AdWords and Adsense.
Googles International expansion
Google offers many products in different languages, some of them in over one hundred
languages and international domains.
Google had problems codifying Googles culture and transporting it outside of California,
but successfully was able to stablish its expansion in a short matter of time.
Kim Scott, Director of Googles AdSense online sales and operations hired people to work
for the international office. People that work for Googles international offices had to
learn to interpret Googles culture for that location.
Google was able to balance between cultural diversity and cultural homogeneity among
Google offices around the world.
Zaras international strategy has big potential because it adopted a balanced mixture
of standardization and customization: It followed standard procedures in selecting
and entering a certain market, which made scaling operations easier (flagship store,
market test for 4P, expanding into countries with similar culture-favorable micro and
macroeconomic conditions, backward market-based pricing, reporting, and ordering
procedures).
Google maintain its international consistency by offering many products in many
countries with many languages.

Critical Issues
Users Obstacles
Advertisers Obstacles
Lack of visibility across the company manifested in terms of replication of effort.
- Multiple working on the same project
- Hard to figure out who is working on what
- Man-hours wasted
- Engineering spending 20% of their time in the same projects others would be working
on.
- Potential lack of visibility
- Lacking tools to help provide more transparency
- Change of running out of market dynamics
Google continued work practices despite slower growth, tightening margins, and
increasing size.

Potential decrease in growth

- Google may become unable to meet customers expectations, especially with such high
demanding and growth of its two most famous applications; AdWords and Adsense.
- Google offered more than 40 products, broken into categories; search could become
intricate to customers, stakeholders and Googlers.
- Running the risk of having Google products become cloned or their ideas stolen (ideas remasked).
Unable to maintain Google Googley
- Unable to meet customers expectations, employees high demand jobs could turn into
something undesirable.
- Google search engines cold become stalked and loose its power.
- Investing too much into new products could be risky and the index of sales could be
risky.
- Googlers becoming unintentional, not curious and unware and been able to get along with
the rest of group.

Recommendations
Expanding internationally, Google search engines should follow short-term strategy by
continuing collaborating across regions, there is a total of 8 Tiers focus on providing world-class
account management to the largest publishers that operated as a global team. By continue
collaboration, and by continuing to share best practices, and by focusing on key problems the
company or Adsense online sales and operations network will acquire more revenues and
continue to grow at a fast speed (world-wide). By acquiring European markets, especially India,
and long-term strategy by sustaining sales in the US market company will soar its sales.
Google will not have problems entering the third world countries without changing
business structure; however, things would be less difficult is Google partners up with a
local business.
Google needs to consider potential challenges and work on those. Increase training to
their employees, locally and abroad.
Google needs to develop more applications or software.
Google must break down barriers of communication and teach overseas employees the
English language. In order to continue living such a high demanding culture.
In order to prevent problems is a good idea to maintain small working groups these at the
Corporate, Company, Organization, Department, Divisions, or Branch Level. This will
allow anyone to access and to easily locate or find the information, and employees.
Google would need to continue adhering to its values to help prevent work frustration
from its employees. High moral on jobs is the number one priority for any company.
Reconsider innovation of software, hardware, search engine, and products.
Take new products abroad and implement new strategies across continents.
Increase advertisement cost to reach new customer.
Company need to identify driving forces of potential problems in the company,
encourage participants to attend all staff meetings to learn about new up-dates and issues

the company may be undergoing, build a strong culture, ask questions, deliberate a strong
task force, avoid unnecessary meetings, put into effect best practices to make the
organization strong, and train in all ways.
Company must maintain cordially and mutual symphony this will allow employees to
have autonomy.
When the company start showing signs of slowing down its time to revisit the core
elements of the company, and make sure the company sticks to these to stay balance.

Conclusion
Google is a learning organization, offers products, and services that other companies do
not have. Mission is very well stablished which is to organize the worlds information and
make it universally accessible and useful.
Googles competitive advantage is that it covers all phased of programming process
design, products, and service such as the Google Toolbar, and search results for wireless
devices. It has a flexible keyword-targeted advertising program called AdWords; a
keyword targeted advertising hardware program (or software) that enables the company to
continue making money.
Google portrayed a rational process in which all managers make decisions that allow the
company to adjust perfectly to the environment in which they operate. The Rational
Model of Decision Making is a three-stage process that managers use to solve problems.
Google is an organization considered to-be engineering centric. The company top
management focuses on setting up functional groups in engineering, product management,
product marketing, sales, operations, legal and finance.
Google online sales and operations focused on providing world-wide class account
management to the largest population, and operated as a Global Team. Team shared
practice with North America, Europe, Middle East, African, Asia Pacific, Latin America,
and Japan.
Googles hiring philosophy is that they will do whatever it takes to ensure that every
single person hired is an A player. A prospect Googler must have flexibility,
collaborative spirit (evidence of well rounded) these components are necessary to be able
to culturally fit into the organization.
Google organization design is to use congruence model, intended to support the firms
strategy; an organization that supports relentless innovation such as Leadership, Task
Design, People, Structure, and Culture.
Even though Google has a successful business model that differs from that of traditional
online advertising search engines, it also has disadvantages that can affect its sustainable
growth. For example, the company must focus on potential cultural and organizational
challenges. Challenges include bureaucracy, a lack of visibility, speedy decision-making,
and maintaining the Google culture overseas.
Management should screen the internal and external environment to adjust its business
practice.