Ahn, Soo Jin Moon, Sung Jin Saendawibadhana, Theerawat 1
Agenda 1 3 Click to add Title Diagnosis of Problems 1 5 Click to add Title Recommendation 1 1 Click to add Title What happen to Wal-Mart? 2 4 Click to add Title Google Overview Click to add Title Alternatives 2
It would talk about what happen to Wal-Mart while Sam Walton alive and passed way.
What management change from the period between 1999 before and after Sam Walton age…
The purpose of present this story is to compare the case to the innovative company from different industry phenomenon.
Agenda 1 3 Click to add Title Diagnosis of Problems 2 2 Click to add Title Google Overview 1 5 Click to add Title Recommendation 1 1 What happen to Wal-Mart? 4 Click to add Title Alternatives 4
Google? “Google” has originated from “Googol,” which represents the 100 square of 10(10100). Thelargest “Search Engine” over the world & more than 4 billion URLs ⇒ The leading company! Mission To organize the world's information and make it universally accessible and useful Google Overview Larry Page (Co-Founder) Sergey Brin (Co-Founder) Eric Schmidt (CEO) 5
Google’s most revenues come from online advertising
Google Overview - Financial Performance 6
Focus on the user and all else will follow You can make money without doing evil It’s best to do one thing really, really well There’s always more information out there. The need for information crosses all borders. Fast is better than slow Philosophy You can be serious without a suit Democracy on the web works You don’t need to be at your desk to need an answer Great just isn’t good enough Google Overview Creative & Autonomous Organizational Culture! 7
10% AdSense Off-line Google Movies 20% Google Talk AdSense Google Reader Base Book Search Google Code 70% Gmail Search Desktop Search Google Earth Google Pack Mobile Search Froogle Google Suggest Wi-Fi
Google’s business is evolved strategically to Enhance/Expand/Extend.
They allocate their engineering efforts by 70/20/10 rules
High Factory Strategic Open API Open Platform Ads Impact on Biz Operation Search Engine Support Turnaround Low High Low Impact on Strategy Business Model Evolution 8
Core of Business Model While Google have been the role of keystone in eco-system and Google’s value mainly come from Eco-system by sharing much of their value within their open platform Search partner sharing rate 35~70% Share the Ads revenue Advertiser Revenue Share with Contents publisher Open the platform for Consumer Mash ups with Commerce Mash ups with Service Provider Revenue share with Producer Eco System within Google Platform
Agenda 2 Click to add Title Diagnosis of Problems 1 5 Click to add Title Recommendation 1 1 What happen to Wal-Mart? 2 4 Click to add Title Google Overview Click to add Title Alternatives 2 3 10
Symptoms Ecosystem entities and even foreign governments voiced their concerns 1 The company neglected customer service 2 Google’s management was unresponsive, self-centered, and dangerously cocky 3 Cause Expanding scope is too broad Diagnosis of Problems 11
Symptoms Dual-class equity structure( Top management would control over 80% shareholder vote) 1 Google’s unusual reliance on a top management trio, concerned that the lack of clear hierarchy 2 3 Google Managers’ refusal to provide earnings guidance to Wall Street analyst Cause Unique Corporate governance Diagnosis of Problems 12
Symptoms 1 Google too much depend on personal judgments such as using “Don’t be evil as the phrase” “Some say Google is God, Others say Google is Satan 2 Google’s management was unresponsive, self-centered, and dangerously cocky 3 Cause Make their own rule Diagnosis of Problems 13
Agenda 1 3 Click to add Title Diagnosis of Problems 1 5 Click to add Title Recommendation 1 1 What happen to Wal-Mart? 2 Click to add Title Google Overview 2 4 Click to add Title Alternatives 14
Problems – Mind Map Eco-system hurt 2. Make our own rule 1. Too broadly expand 3. too unique corporate governance self-centered, Cocky Delay the decision refusal to disclose earning guidance diligent judgment Dual class equity structure for Top 3 manager transparent management?
Solution and Alternatives Google should choose whether refocus on core business or enter new market to form a new eco system for sustainable revenue source However whether they choose between two alternatives, we recommend process restructuring not to make subjective decisions Alternative 1 Refocus on Core businesses ; Search and Advertisement Alternative 1 Process Restructuring + Refocus on Core businesses 1. Too broadly expand Alternative 2 Enter New Market to For New Eco-System 2. make our own rule Alternative 2 Process Restructuring + Enter New Market Must to do Restructure and Set the decision Process ( Suitable for Google Culture ) 3. too unique corporate governance
Analyze Alternatives We choose “Alternative 1. “ : Reinforce internal competency then, to ready for future
Recommendations Announcement Raise Issues Share through the company Community Vote make it real Open Competition What can be process restructuring? According to Google philosophy, set the process in order every employee to be able to raise the issue and have almost equal power for decision making set the scope, priority, R & R, Systemize
Corporate Social Networking and Knowledge Management system
Recommendation Refocus one Core Businesses Restructure the process reorganize decision making process Open Cooperate Social Networking Site for vigorous Communication Assure more advertisement source We recommend Google refocus and reorganize the corporate for the stable move in the future then, extend their scope to the new market with Eco-system Alternative 1 Process Restructuring + Refocus on Core businesses “Make our own rule” might make us self-centered Make strategic decision with all employees Build Knowledge Management System Transparent corporate culture to be a role model in the market Try not to get nervous existing players Keep the eco-system ensure advertisers and search technology Try not to touch existing Biz Model “Don’t be evil” is not enough, “Be Nice” Set the new norm Be nice!