Strategic Plan on Google


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I had to do a final project consisting of an entire strategic plan for a Fortune 1000 company. I chose Google because I love most of their products. The powerpoint begins from the start of thinking about strategy all the way through implementing it and revising it when necessary. Everything in between falls in this Powerpoint as well. It is one of my personal favorites.

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  • Strategy is the knowledge of goals, uncertainly of events, and the absolute need to consider the likely actions of others. Strategy is important because it is impossible to foresee the future. It deals with long term developments, innovation of new products or processes, new methods of providing products and markets that must be looked at and developed in the future. Strategy takes into account the probable behavior of potential and current customers as well as competitors (Strategy – Definition and Features).
  • Strategic planning and control focuses on deciding on changes in an organization’s culture or resources used, policies governing these new processes and the use of resources and strategies to obtain them.Management planning and control ensures that the resources are obtained and used effectively and efficiently in the organization’s objectives.Technical planning and control discusses the relationship between acquiring and use of these new resources with outputs and resources that are already in place such as financial, accounting, and quality control.Long-range planning goes beyond the current year but is not always considered strategic in nature such as in operating or technical advances (Barnet)
  • The balanced scorecard is meant to be in addition to traditional financial indicators. Managers are frequently instructed to chose a select few critical indicators within the four perspectives. By doing so, the scorecard can function as the “cornerstone of a company’s current and future success (Putting the Balanced Scorecard to Work, 1993). The information of the balanced scorecard provides balance between external and internal measures like operating income and new product development, respectively. When used properly, the scorecard can show managers performance measures already accomplished and encourages new growth. Ultimately, the balanced scorecard is a central point to an organization’s efforts, communicates as well as defines priorities for not just managers, but employees, investors, shareholders, and customers (Putting the Balanced Scorecard to Work, 1993).
  • There are three types of innovation. The first is discontinuous innovation and is sudden and has a huge impact on a company’s business. The second is continuous innovation which is gradual and incremental. The third type of innovation is dynamic which describes how a company can adapt to the changing market and customer behavior (Role of Innovation in Change Movement).A company ultimately would like to have continuous innovation at its center so that it introduces refinements to products, new products or services in such a way that the consumer and employees can adapt and adjust in steps. You will see notice how when Google implements a new product or service, they do so in manner that allows customers to get acquainted with the new product and have the time to adjust to learning a new process. Google also does this when it phases out one of its services or products that are no longer beneficial to the company, most recently, the demise of Google Reader. Google announced this in stages over a period of months. This gave current customers the ability to move their reading material to a new arena but more importantly, gave them the time to try out different substitutes. By allowing the gradual change, Google experienced much less fret and claims that they did not care about their consumers. Continuous innovation has a side effect of keeping consumers and employees happy which is one of Google’s “Truths”.
  • Although Google strives to be the “perfect search engine” (Our Products and Services – Company – Google) – they also enable and disburse many other applications, products and services for businesses and for the consumer on the internet. The programs they provide businesses are the backbone of their own business and have enabled entrepreneurs and publishers all over the world to grow their own business. Their advertising programs help businesses find customers and enable publishers to make money from their content. They build products that make the internet better for all consumers and enable a more dynamic and better experience on the web. Google provides the ability for people to find items on the internet faster and more simply than any before them. They are committed to an open web, involving them in various projects to make it easier for developers to contribute to the world wide web (Our Products and Services – Company – Google).
  • Google’s Mission Statement is “to organize the world’s information and make it universally accessible and useful” (Images – Google)
  • Google does not have a vision statement but rather a philosophy of ten things that they know to be true and follow all across the board.1. Focus on the user and all else will follow – whether they are designing a new internet browser or providing a original look to their homepage, they are focused on providing the best user experience possible.2. it’s best to do one thing really, really well – Google considers themselves to “do search” really really well. They focus on solving search problems, know what they do well, and how they can do it better.3. Fast is better than slow – “We may be the only people in the world who can say our goal is to have people leave our website as quickly as possible” (Ten things we know to be true – Company – Google). They shave off excess bits and bytes from pages to increase efficiency to the consumer.4. Democracy on the web works – Google’s search algorithms relies on millions of individuals posting links on websites to determine which other sites offer content of value. They assess the importance of every page using their famous and patented PageRank system.5. You don’t need to be at your desk to need an answer – considering the world is increasingly mobile – people want access to information wherever they are and whenever they need it.6. You can make money without doing evil – the money generated by Google is from offering search technology to companies and sale of advertising on their site. The difference is that they don’t allows ads unless they are relevant, and are always labeled as “Sponsored Link” so they don’t compromise the integrity of search results and they don’t think advertising needs to be flashy.7. There is always more information out there – once pages our indexed by HTML – Google’s engineers then turn to information that is not readily accessible which can sometimes be easy as adding a phone number or as integrated as adding whole databases.8.The need for information crosses all borders – although Google was founded in California, their mission is to facilitate access to information for the entire world and in every language.9. You can be serious without a suit – Google was built around challenging work but believes that great, creative things are more likely to happen with the fun and right company culture.10. Great just isn’t good enough – being great is a starting point and not an endpoint for those at Google as they set themselves apart by knowing we they cannot reach yet means that they will have to stretch to get closer to those further goals and aspirations (Ten things we know to be true – Company - Google).
  • Search leader – Google’s search share in the US remains stable at 66% Effective advertising model – Google’s advertising conversion is 3 times higher than the industry standardWide moat – Google has $45 billion + in cash on its booksHousehold name – “Google It” has become a common phrase among billions (Heller, 2012).Quality and customer experience are the primary objects – everything Google does is of the highest qualityAccess to the largest group of internet users worldwide – 79% of the world’s desktop search market and 89% of the mobile market belong to GoogleStrong patents portfolio – in 2012, Google added 1,151 patents and was the 21st business highest in numbers worldwideProduct integration – almost all of Google’s products and services integrate with each other forming their own ecosystemCulture of innovation – still with thousands of products in innovation, many unique products are offered by Google each year (Google SWOT analysis, 2013).
  • Mobile monetization – although users are twice as likely to click on ads on their desktops, they are half as likely to click on mobile ads (Heller, 2012).Relies on one source of income – more than 90% of Google revenue come from online advertising3. Unprofitable products – Google has many products and services that add little value for the business and make only losses, decreasing their profits (Google SWOT analysis, 2013)
  • Online video – online video is a megatrend and if Google can capitalize on this, there is over $64 billion in television advertising dollars at stakeChromebooks – Google finally released a laptop and priced it at a reasonable $249 which you cannot beat Social networks – Although Google has struggles in this area they are topping themselves everyday by adding innovative and new additions to their social networks (Heller, 2012)Growing number of mobile internet users – Google has the advancements to create a platform that can be used to display ads for mobile device usersObtaining patents through acquisitions – Google will grow and compete successfully if it obtains more new patents by acquiring companies that have strong patent portfoliosDriverless electronic cars – Not only has Google introduced but has successfully tested driverless cars in Nevada, USA which can be easily installed in any future model and obviously a huge technical step (Google SWOT analysis 2013)
  • Apple – if they get more competitive by removing Google’s YouTube to be on Apple Devices and now Google Maps are not allowedMicrosoft – if they start bringing the once technically giant awake, Google could be in for a surpriseFacebook – it Facebook, with its social graph, figures out how to advertise better or search better, Google needs to keep an eye on themIBM – they have the potential to give Google a run for their money and pose a unique threat to Google and it’s busienss adventures (Heller, 2012).
  • Innovate and create – ready to market one new product a year while having three new ideas for innovation in following periodsMaintain previous pricing by having profit margins above 23%Never exceed a turnover rate for employees of 5% in a monthCorporate social responsibility – maintain charitable donations of over $1 billion a year through grants, technology and employee service hours (Google Strategic Case Analysis)
  • Google has used productive innovation and differentiation as its strategy analysis and choiceProduct innovation is “the development and market introduction of a new, redesigned or substantially improved good or service” (What is product innovation?)Differentiation is “the results of efforts to make a product or brand stand out as a provider of unique value to customers in comparison with its competition” (What is differentiation?)
  • Coordinated leadership – “classic leadership molecule” – which is made up of essential leaders that function as a single and effective team Commitment to cutting edge – Google has always been re-working the basics, creating “Universal Search”, then “Realtime Search”, and “Google Instant” is enable searching on the internet both more revealing and convenient than everWide expansion – this began with Google News in September 2002 which enabled users to an easy way to increase their news source by 4000 different entities.Subtle marketing – Google has been very adaptable to discretely make itself a brand name and marketing itself in such ways to foresee this. One such way is Google Doodles (Faille).
  • Some of the areas that Google faces as far as strategic controls are largely effected by environmental factors such as the Google outrage most recently. Also, in 2003, Google failed to provide search results for 20% of traffic for about 30 minutes according to Google’s documentation.New technology also brings new control and evaluations for Google. This includes that face that people are searching more using their mobile devices, hand-held calendar books, Kindle books and the like (Hummer, Jones, Wilde, & Ellison)
  • Strategic Plan on Google

    1. 1. GOOGLE COMPANY Holley Jacobs MT 460 Management Strategy and Policy A Strategic Plan of Google
    2. 2. STRATEGY • Strategy – from the Greek words meaning “leading/moving army” • “A general direction set for the company and its various components to achieve a desired state in the future” (Strategy – Definition and Features)
    3. 3. STRATEGIC CONTROL • Strategic Planning and Control • Management Planning and Control • Technical Planning and Control • Long-range Planning (Barnet)
    4. 4. BALANCED SCORECARD • Measures of performance for customers • Measures of performance for internal processes • Measures of performance in innovation • Measures of performance in improvement activities (Putting the Balanced Scorecard to Work, 1993)
    5. 5. INNOVATION IN CHANGE MANAGEMENT Types of Innovation Discontinuous Innovation Continuous Innovation Dynamic Continuous Innovation (Role of Innovation in Change Movement)
    6. 6. GOOGLE’S FOUNDERS Google Facts • Founded – 1998 • Inc. – September 4th, 1998 • Initial Public Offering (NASDAQ) – August 19, 2004 • Headquarters – Mountain View CA • Industry Served – Internet • Revenue - $50.17 Billion (2012) • Profit - $10.7 Billion (2012) • Employees – 53,861 (2012) Larry Page and Sergey Brin (Company – Google)
    7. 7. BRIEF OVERVIEW OF PRODUCTS AND SERVICES  For Business Helps businesses succeed on and off of the web.  For Internet Build products to make the web better (Our Products and Services – Company – Google)
    8. 8. GOOGLE PRODUCTS & SERVICES (Products – Google)
    9. 9. GOOGLE PRODUCTS & SERVICES (Products – Google)
    11. 11. GOOGLE’S MISSION STATEMENT (Images – Google)
    12. 12. TEN THINGS WE KNOW TO BE TRUE 1. Focus on the user and all else will follow. 2. It’s best to do one thing really, really well. 3. Fast is better than slow. 4. Democracy on the web works. 5. You don’t need to be at your desk to need an answer. 6. You can make money without doing evil. 7. There’s always more information out there. 8. The need for information crosses all borders. 9. You can be serious without a suit. 10. Great just isn’t good enough. (Ten things we know to be true – Company – Google)
    13. 13. GOOGLE’S STRENGTHS 1. Search Leader 2. Effective advertising model 3. Wide moat 4. Household name (Heller, 2012) 5. Quality and customer experience are the primary objects 6. Access to the largest group on internet users worldwide 7. Strong patents portfolio 8. Product integration 9. Culture of innovation (Google SWOT analysis 2013)
    14. 14. GOOGLE’S WEAKNESS ES 1. Mobile monetization (Heller, 2012) 2. Relies on one source of income 3. Unprofitable products (Google SWOT analysis 2013)
    15. 15. GOOGLE’S OPPORTUN ITIES 1. Online video 2. Chromebooks 3. Social networking (Heller, 2012) 4. Growing number of mobile internet users 5. Obtaining patents through acquisitions 6. Driverless electronic cars (Google SWOT analysis 2013)
    16. 16. GOOGLE’S THREATS 1. Apple 2. Microsoft 3. Facebook 4. IBM (Heller, 2012)
    17. 17. GOOGLE’S LONG TERM OBJECTIVES 1. Innovate and create 2. Maintain premium pricing 3. Employee retention 4. Corporate social responsibility (Google Strategic Cases Analysis)
    19. 19. GOOGLE’S CRITICAL SUCCESS FACTORS NOT JUST IT’S INTERNET SEARCH ENGINE… SUCCESS  Coordinated leadership  Commitment to cutting edge  Wide expansion  Subtle marketing (Faille)
    21. 21. REFERENCES Putting the Balanced Scoredcard to Work. (1993, September). Retrieved from HBR Org Web site: Study case of Google: SWOT Analysis. (2012, August). Retrieved from Speak About Marketing Web site: Google SWOT analysis 2013 | Strategic Management Insight. (2013). Retrieved from Strategic Management Insight Web site: analyses/google-swot-analysis.html Barnat, R. P. (n.d.). Strategic Mangement: Elements of Strategic Management. Retrieved from Introduction to Management: Comapny - Google. (n.d.). Retrieved from Google Web site: Faille, C. (n.d.). Google's Key Success Factors. Retrieved from Small Business Web Site: key-success-factors-27311.html
    22. 22. REFERENCES CONT’D Google Products. (n.d.). Retrieved from Google Web site: Heller, S. (2012, October 31). Here's What Google's SWOT Analysis Revealed. Retrieved from Mottle Fool Web site: Hummer, B., Jones, G., Wilde, A., & Ellison, S. (n.d.). Google Strategic Plan. Retrieved from Daily Speculations Web site: Our Products and Services - Company - Google. (n.d.). Retrieved from Google Web site: Role of Innovation in Change Management. (n.d.). Retrieved from Management Study Guide Web site: Strategy - Definition and Features. (n.d.). Retrieved from Management Study Guide Web Site: Ten things we know to be true - Company - Google. (n.d.). Retrieved from Google Web site:
    23. 23. REFERENCES CONT’D What Are the Four Types of Strategic Control? (n.d.). Retrieved from Small Bsuiness Chron Web site: What is innovation? (n.d.). Retrieved from Business Dictionary Website: What is product innovation? (n.d.). Retrieved from Business Dictionary web site: