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Google - Strategy Management

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  • 1. The importance of being 0959512 0959265 1031112 1019763 4/11/2011
  • 2. Agenda Introduction 1. Appraise Google’s architecture. How well suited is it to the company’s present competitive situation? 2. In which sector of the Goffee-Jones matrix would you place Google? How appropriate is that culture for the challenges confronting the company? 3. Analyse Google’s belief system. Are any parts of its paradigm outdated? Conclusion Reference10/17/2012 2
  • 3. Introduction10/17/2012 3
  • 4. More about Google... Incorporated in 1998 by two computer PhD students from Stanford University, Sergei Brin and Lawrence Page. Organize the worlds information and make it universally accessible and useful An aid to the user not an distraction. (gaining perfect position in search engine).10/17/2012 4
  • 5. 1. Appraise Google’s architecture. How well suited is it to thecompany’s present competitive situation?Architecture •Flat hierarchy (light employees supervising) •Autonomy (Working in informal Structural way, clusters of 3-4) hierarchy •Devolution (participative decision making) Contracts & •Economic incentives (sharing risks andValues & Relationships Information rewards ex: preference of structuralbelief systems (internal & infrastructure external) chaos) Control systems Easy monitoring and managing employees •“We love our employees, and we want them to know • “wild fun” • Google provide high it” •Light quality of employment • Google minded supervision package • enjoyable working • Unique working atmosphere environment (gym, • Trust10/17/2012 massage room and etc.) 6
  • 6. 1. Appraise Google’s architecture. How well suited is it to thecompany’s present competitive situation?Main competitors: Yahoo.com, facebook.com, Microsoft and otherCompetitive advantages :• High speed of making decision and Outstanding teamwork• Employees have right degree of independence (The “70-20-10 rule”)• Easy transfer of information and knowledge• Unique environment condition in an organization which provide high level of motivation and long term interest of employees• Hiring process (solve puzzle)Conclusion : Unusual Google inc architecture helps company to compete in changing environment10/17/2012 7
  • 7. 2.a. In which sector of the Goffee-Jones matrix would you placeGoogle?Theory:Two types of social relations Sociability and Solidarity. Sociability: measure of emotional non-instrumental relations where individual regard one another as friends. Solidarity: is the degree to which people think together in the same ways, sharing tasks and mutual interests. Goffee R and at. all., (1999)10/17/2012 8
  • 8. 2.a. In which sector of the Goffee-Jones matrix would you place Google? Networked CommunalHigh • high level of trust • strong team working • high levels of empathy • sharing the firm’s mission and • open door policy predominates value, risks and rewards • more loyalty to social group • strong friendship relations rather than organization • possibility of poor performance • productivity can be low Sociability • difficult to sustain • social ties are weak •Low consciousness of organizational • communications are focused on membership business matters •People work with shut door • encouraged competition between • employee rarely agree with employees organization objectives • high performance • employees stay as long as theirLow personal are met Fragmented Mercenary Low Solidarity High 10/17/2012 9
  • 9. 2.a. In which sector of the Goffee-Jones matrix would you place Google? Based on the dimensions of Sociability and Solidarity, culture at any organization can be divided into four types: Level of Sociability is high: Friendly working environment with small supervision. High Employees working in small clusters. Networked Communal Google Wi-Fi to keep employees connected 24/7.Sociability TGIF-meeting to celebrate team accomplishments. Fragmented Mercenary Level of Solidarity is high: Low Equitable sharing of risks. Low High ‘Boldly go where no one has gone before.’ (Leeds to Solidarity enthusiasm). ‘Innovation is our Bloodline.’ (Employees are clear about the competition). Corporate Identity ( Nooglers & Xooglers) 10/17/2012 10
  • 10. 2.b. How appropriate is that culture for the challengesconfronting the company?• Changing environmentLow flexibility of organisation culture because of strong culture (strong reliance on founders values)Strong culture keeps high loyalty to organization• CompetitionLow control: Stimulate the creation and sharing of new Googlye ideasLow control: Light supervision may lead to companies unsustainability in competitive environment (facebook, youtube) Saporito, 201110/17/2012 11
  • 11. 2.b. How appropriate is that culture for the challengesconfronting the company?10/17/2012 12
  • 12. 3.a. Analyse Google’s belief system.10/17/2012 13
  • 13. 3.a. Analyse Google’s belief system.10/17/2012 14
  • 14. 3.b. Are any parts of its paradigm out-dated?10/17/2012 15
  • 15. 3.b. Are any parts of its paradigm out-dated?10/17/2012 16
  • 16. Conclusion10/17/2012 17
  • 17. Reference• Haberberg A and Rieple A.,(2008), Strategic Management, Oxford university Press NY• Goffee R and at. all., (1999), Harvard business review on managing people, Harvard Business Press USA• Google Buzz: Killed (2010-2011) International Business Times, Fri, 14 Oct 2011, Regional Business News, International Business Times, Fri, 14 Oct 2011 (http://web.ebscohost.com/ehost/detail?sid=fac1adb4-e4bd-4e60- bfb1- 8f6b18236b07%40sessionmgr11&vid=2&hid=19&bdata=JnNpdGU9ZWhvc 3QtbGl2ZQ%3d%3d#db=bwh&AN=231614%2F20111014)• www.google.com• Saporito, Bill (2011), Refreshing Google, Time177 (5), p48-4910/17/2012 18
  • 18. 10/17/2012 19
  • 19. 10/17/2012 20

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