Final Google[1]

221 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
221
On SlideShare
0
From Embeds
0
Number of Embeds
16
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • In the tech industry, you need to be proactive rather than reactive
  • Final Google[1]

    1. 1. Strategic Audit Presentation By: Cody Fergusson Professor: Kathleen Fitzsimmons Advisor: David Pollon Date: May 6 th , 2011
    2. 2. <ul><li>Current Strategy </li></ul><ul><ul><li>Current Performance </li></ul></ul><ul><li>Internal / External Scan </li></ul><ul><li>Strategic Alternatives </li></ul><ul><li>Growth Strategy </li></ul><ul><li>Cloud Computing </li></ul><ul><ul><li>Research and Development </li></ul></ul><ul><ul><li>Mergers and Acquisitions </li></ul></ul><ul><li>Mobile </li></ul><ul><ul><li>Strategic Partnerships </li></ul></ul><ul><li>Evaluation and Control </li></ul>Table of Contents
    3. 3. <ul><li>Have a growth strategy </li></ul><ul><ul><li>Mobile First </li></ul></ul><ul><ul><li>Cloud Computing </li></ul></ul><ul><ul><li>Socializing their services </li></ul></ul><ul><ul><li>Hiring new employees </li></ul></ul>Current Strategy
    4. 4. <ul><li>US Internet Search Market Share = 66% </li></ul><ul><li>Cash = $34.975 Billion </li></ul><ul><li>96% of revenues still come from advertising </li></ul><ul><li>Have acquired 95 companies since 2001 </li></ul>Current Performance Analysis
    5. 5. <ul><li>Strengths </li></ul><ul><ul><li>Brand name </li></ul></ul><ul><ul><li>Cash reserves ($35 billion) </li></ul></ul><ul><ul><li>Corporate culture </li></ul></ul><ul><li>Weakness </li></ul><ul><ul><li>Lack of infrastructure </li></ul></ul><ul><ul><ul><li>Android </li></ul></ul></ul><ul><ul><ul><li>Cloud computing </li></ul></ul></ul><ul><ul><li>Inability to socialize search </li></ul></ul>Internal Analysis
    6. 6.   2004 2005 2006 2007 2008 2009 2010 Sales $3,189,223 $6,138,560 $10,604,917 $16,593,986 $21,795,550 $23,651,000 $29,321,000 Gross Profit $640,192 $2,017,278 $3,549,996 $5,084,400 $6,631,969 $8,312,000 $10,381,000 Gross Margin 20% 33% 33% 31% 30% 35% 35% General and Administrative $188,151 $386,532 $751,787 $1,279,250 $1,802,639 $1,668,000 $1,962,000 Total long-term liabilities $43,927 $107,472 $128,924 $610,525 $1,226,623 $1,746,000 $1,614,000 Google Internal Financial Analysis
    7. 7. <ul><li>Threats </li></ul><ul><ul><li>Predicting the future correctly </li></ul></ul><ul><ul><li>Competition: Yahoo! and Bing </li></ul></ul><ul><ul><li>Loss of engineers and managers </li></ul></ul><ul><li>Opportunities </li></ul><ul><ul><li>Technology </li></ul></ul><ul><ul><li>Personal Advertising </li></ul></ul>External Analysis
    8. 8.   Google Microsoft Apple RIM Nokia Profit Margin 28.43% 31.76% 22.36% 17.14% 4.26% Operating Margin 34.35% 40.10% 29.02% 23.30% 5.13% Return on Assets 12.99% 18.63% 20.88% 25.13% 3.82% Return on Equity 20.19% 43.96% 38.78% 41.24% 8.80% Total Debt $ 5.10 B $ 13.16 B 0 0 6.94 B Current Ratio 4.9 2.76 1.93 2.06 1.65 P/E Ratio 19.73 10.17 16.51 7.59 12.49 Market Capitalization $ 173.21 B $ 215.84 B $ 320.33 B 25.07 B 34.28 B Total Cash $ 36.68 B $ 48.72 B $ 29.23 B 2.12 B 17.10 B Operating Cash Flow $ 11.67 B $ 26.66 B $ 26.48 B 4.01 B 5.4 B External 2010 Financial Analysis
    9. 9. <ul><li>Retrenchment </li></ul><ul><ul><li>Too hot </li></ul></ul><ul><li>Stability </li></ul><ul><ul><li>Why? </li></ul></ul><ul><li>Growth </li></ul><ul><ul><li>Yes, but how? </li></ul></ul>Strategic Alternatives
    10. 10. <ul><li>Continue to invest in our future through… </li></ul><ul><ul><li>Cloud Computing </li></ul></ul><ul><ul><ul><li>Research and Development </li></ul></ul></ul><ul><ul><ul><li>Mergers and Acquisitions </li></ul></ul></ul><ul><ul><li>Mobile </li></ul></ul><ul><ul><ul><li>Strategic Partnerships </li></ul></ul></ul>Growth Strategy
    11. 11. <ul><li>Invest heavily in cloud computing </li></ul><ul><ul><li>Servers & infrastructure around the world to prevent outages, overloads </li></ul></ul><ul><ul><li>Boost division (R&D) </li></ul></ul><ul><ul><li>Renewable energy </li></ul></ul><ul><ul><li>Security </li></ul></ul>Cloud Computing First
    12. 12. <ul><li>Location: Redwood City, CA </li></ul><ul><li>Estimated Price: $90 million </li></ul><ul><li>Added Value: </li></ul><ul><ul><li>Security in the cloud </li></ul></ul><ul><ul><li>2,500+ customers </li></ul></ul>Cloud Computing: Altor Networks
    13. 13. <ul><li>Location: San Mateo, CA </li></ul><ul><li>Estimated Price: $70 million </li></ul><ul><li>Added Value: </li></ul><ul><ul><li>5,000+ Customers </li></ul></ul><ul><ul><li>Employees: Pioneering the field </li></ul></ul>Cloud Computing: Appirio
    14. 14. <ul><li>License Google Cloud to public and private sector </li></ul><ul><li>Sell advertisements through new data collected </li></ul><ul><li>Create better synergies around Google </li></ul>Cloud Computing
    15. 15. Future of Mobile
    16. 16. <ul><li>Google supplies: </li></ul><ul><ul><li>Phone, brand name </li></ul></ul><ul><li>Visa, MasterCard, Discover, Amex supply: </li></ul><ul><ul><li>Security, engineering, worldwide operations, brand name </li></ul></ul><ul><ul><li>Visa already has PayWave (VPay in Europe) </li></ul></ul><ul><ul><li>MasterCard has PayPass Service </li></ul></ul><ul><li>Search data and transaction data </li></ul>Mobile: Strategic Partnerships
    17. 17. <ul><li>Why? </li></ul><ul><ul><li>Dependence </li></ul></ul><ul><ul><li>Highly targeted mobile advertising = $ </li></ul></ul><ul><ul><li>Increase synergy with Google Offers = $ </li></ul></ul><ul><ul><ul><li>Discounts if you pay w/ Android </li></ul></ul></ul><ul><ul><ul><li>Collect data on consumer spending </li></ul></ul></ul>Mobile: Strategic Partnerships
    18. 18. <ul><li>Cloud Computing </li></ul><ul><ul><li>Users, both private and public sector </li></ul></ul><ul><ul><li>Market share </li></ul></ul><ul><li>Mobile </li></ul><ul><ul><li>Market share </li></ul></ul><ul><ul><li>Increased advertising sales (revenue) </li></ul></ul>Evaluation and Control
    19. 19. <ul><li>http://www.google.com/apps/intl/en/business/cloud.html </li></ul><ul><li>http://appirio.force.com/cloudecosystem/ </li></ul><ul><li>http://www.networkworld.com/supp/2009/ndc3/051809-cloud-companies-to-watch.html </li></ul>Sources

    ×