Eric Schmidt and Google: Interactions with Business, Government and Society
Upcoming SlideShare
Loading in...5
×
 

Eric Schmidt and Google: Interactions with Business, Government and Society

on

  • 253 views

 

Statistics

Views

Total Views
253
Views on SlideShare
253
Embed Views
0

Actions

Likes
0
Downloads
2
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Eric Schmidt and Google: Interactions with Business, Government and Society Eric Schmidt and Google: Interactions with Business, Government and Society Presentation Transcript

  • eric schmidt dealings with government
  • Dealing #1 - Google vs. China + U.S. en.wikipedia.org/wiki/ksloo/dealing1 Google’s Executive Chairman Eric Schmidt ran into various problems while ...... The Chinese Government persisted in their requests ..... The Stop Online Piracy Act (SOPA) was vehemently opposed by ... Dealing #2 - Google in comparison with Microsoft en.wikipedia.org/wiki/ksloo/dealing2 Google is currently facing anti trust with the EU government..... A case which is similar to that of Microsoft which was concluded only just recently....What is google doing about this and why did they not learn from the Microsoft’s case Dealing #3 - Google and NASA en.wikipedia.org/wiki/ksloo/dealing3 Google gains the exclusive right to the National Aeronautics and Space Administration (NASA)’s Moffett airfield at an annual rent of $1.3million ...... The deal was struck......scientific research.... Eric Schmidt - Wikipedia, the free encyclopedia en.wikipedia.org/wiki/Eric_Schmidt Eric Emerson Schmidt (born April 27, 1955) is an American software engineer, businessman and the current executive chairman of Google. From 2001 to 2011, ...
  • • www.google.cn lasted only 5 years • Strict rules and regulations - Censorship of search results (e.g. Tiananmen Square) - Reveal data about enemies of the government • Numerous hacking attempts over 5 years Human Rights Activists
  • • 30+ MNCs were periodically cyberattacked, but none took Google’s side • Internal strife • Google calls it quits
  • • Stop Online Piracy Act (SOPA) • Google can be forced to take down links to any form of copyrighted content on the Internet • • “A threat to free speech” Runs contrary to Google’s values of having a “free internet”
  • th the ‘big titioned wi Google pe et against f the Intern shots’ o SOPA eric schmidt dealings with government Blacked out its website to raise awareness Managed to contribute towards getting SOPA unsigned
  • Tw o Countries ONE Issue •Government wants to censor the Internet by force •Goes against the values of Google
  • Lesson #1 es. valu our to y t ick S
  • Lesson #1: Stick to your values. Google’s Core Principles #4: Democracy on the web works #6:You can make money without doing evil
  • Lesson #1: Stick to your values. (China) Get the backing of shareholders Lower profits in the short-run No other firm stood by Google, all were driven by profit Eric Schmidt “demoted” from CEO to Executive Chairman
  • Lesson #1: Stick to your values. (China) “Won't some people say that you have a fiduciary responsibility to your shareholders to maximize profit?” When we filed for our IPO, we attached to the document a statement about how we wanted to run our business.We said we were going to be different.We said that we were going to be motivated by concerns that were not always or strictly business ones.This is an extension of that view.This was not a business decision —the business decision would obviously have been to continue to participate in the Chinese market. It was a decision based on values.We tried to ask what would be best from a global standpoint. - Eric Schmidt
  • Lesson #1: Stick to your values. (U.S.) > SOPA
  • Lesson #1: Stick to your values. (U.S.)
  • Lesson #1: Stick to your values. (Benefits) Garner support of shareholders even though you may lose profits Friedman - What if your shareholders do not solely seek to maximize profits? Branding: “A firm with a soul” Play to your shareholders’ preferences (Americans advocate freedom and democracy) May not lose profits in the long run
  • Lesson #1.1 es. valu our to y t ick S You can also use it as a cloak .
  • Lesson #1.1: Stick to your values You can also use it as a cloak. Lower Profits V Low A Market Share L Core Business U Affected E S
  • Lesson #1.1: Use values as a cloak. (China) Problems? Losing money Market share remained stagnant at 5-7% over 5 years Loss of investor confidence Solution? Storm out of China vehemently Exit China with greater investor loyalty
  • Lesson #1.1: Use values as a cloak. (U.S.) Problems? SOPA would directly affect Google’s core business (search and advertising) Instant decrease in revenue Solution? Rally the public to protest Block SOPA and improve public image
  • Lesson #1.1: Use values as a cloak. (Benefits) Friedman Win-win Situation
  • Dealing #1 - Google vs. China + U.S. en.wikipedia.org/wiki/ksloo/dealing1 Google’s Executive Chairman Eric Schmidt ran into various problems while ...... The Chinese Government persisted in their requests ..... The Stop Online Piracy Act (SOPA) was vehemently opposed by ... Dealing #2 - Google in comparison with Microsoft en.wikipedia.org/wiki/ksloo/dealing2 Google is currently facing anti trust with the EU government..... A case which is similar to that of Microsoft which was concluded only just recently....What is google doing about this and why did they not learn from the Microsoft’s case Dealing #3 - Google and NASA en.wikipedia.org/wiki/ksloo/dealing3 Google gains the exclusive right to the National Aeronautics and Space Administration (NASA)’s Moffett airfield at an annual rent of $1.3million ...... The deal was struck......scientific research.... Eric Schmidt - Wikipedia, the free encyclopedia en.wikipedia.org/wiki/Eric_Schmidt Eric Emerson Schmidt (born April 27, 1955) is an American software engineer, businessman and the current executive chairman of Google. From 2001 to 2011, ...
  • ?
  • Case Facts Originated with a 2008 complaint brought by UK price comparison site Foundem, French legal search engine ejustice.fr, and Microsoft’s Ciao. European Commission opened investigation in Nov 2010 - Still ongoing Reports that the Commission plans to slam Google with a 400+ page “Statement of Objections” Originated with a Dec 1998 complaint from Sun Microsystems The Commission sent Microsoft a Statement of Objections alleging that Microsoft was denying disclosure of interface information which rival work group server operating system vendors needed to interoperate with Microsoft’s dominant Windows PC operating system.
  • Case Facts The Commission confirmed that reports on a 400+ page “Statement of Objections” were based on 3rd party speculations and not official information - They were conducting their own investigation Headed by Joaquin Almunia, European competition commissioner Eric Schmidt said that Google has no stomach for such a lengthy legal battle The Commission sent a second Statement of Objections.This: i) confirmed and expanded the interoperability objections; and ii) alleged that Microsoft had engaged in anti-competitive tying of its Windows Media Player product with its operating system Headed by Bo Vesterdorf, European competition commissioner Microsoft’s legal battle lasted 10 years
  • Market Share  Market Share  Google  Bing  Mircoso'  YANDEX  RU  Apple  Mozilla  Opera  Yahoo!  Google Pie Chart Microsoft Pie Chart en.wikipedia.org/wiki/ksloo/image1 en.wikipedia.org/wiki/ksloo/image2 314 x 357 - ... Google ... Pie chart of Market Position 320 x 357 - ... Microsoft ... Pie chart of Market Position
  • Accusations Google’s business practices: 1. Boosting of Google products in search results ahead of other companies’ similar offerings e.g. Google+ 2.The “Quality Score” is manipulated, with the purpose of making companies pay more for higher rank. 3. Companies such as Twitter and a number of observers have suggested being artificially boosted in Google search results over other longer standing social networks. This Decision found that Microsoft had abused its dominant position in the PC operating system by: 1. Refusing to supply competitors in the work group server operating system market necessary interface information - Ordered Microsoft to disclose, within 120 days, complete and accurate interface information on reasonable terms. 2.Tying its separate Windows Media Player product to its Windows PC operating system, thereby harming competition. - Ordered Microsoft to provide, within 90 days, a version of Windows which did not include Windows Media Player.
  • What Did They Say? i) Shows more detailed answers higher up in its search results to help users get to information faster ii) Denied deliberately disadvantaging rivals iii) 5 Dec, Eric Schmidt met with EU antitrust commissioner amidst rumors that the European commissioner might impose major restrictions on Google iv) Almunia said the meeting was just to exchange views Microsoft claimed that the implementation of the Decision would: i) harm its intellectual property rights ii) interfere with its commercial freedom iii) alter market conditions irreversibly iv) interfere with Microsoft’s commercial freedom by forcing it to abandon its “basic design concept” for the Windows PC operating system v) damage Microsoft’s reputation - “A developer of quality software products”
  • Probable Outcomes A maximum fine of up to 10% of their global turnover ($6.67 billion) May be forced to change its operations in the region to comply with the regulations set by the Commission Decision to file complaint only in end March Consequences Cost the world’s top maker of software 1.67 billion Euros in fines and penalties Forced to alter its operations and business model in the region
  • Lesson #2 set ions ulat reg ollow F ies. bod ning over by g
  • Lesson #2: Follow regulations set by governing bodies. Governments/ Governing Bodies
  • Lesson #3 our ork y an w ou c Y out wndra und y aro wa ns. actio ent ernm gov
  • Lesson #3: You can work your way around drawn-out government actions. Getting into trouble with the government need not necessarily be detrimental to the company Benefits > Costs? Uncertainty...
  • Lesson #3: You can work your way around drawn-out government actions. Potential Benefits: Google’s Business Practices (boosting of own products in search results e.g. Google+) Facebook revenue of US$668 million in 2011 Potential revenue can be derived from Google+ if it can successfully phase out Facebook
  • Lesson #3: You can work your way around drawn-out government actions. Possible detriments: Fine (up to 10% of their global turnover) - Microsoft were fined US$1.67 billion Forced to change its operations in the region - Microsoft had to alter its operations
  • Lesson #3: You can work your way around drawn-out government actions. Uncertainty Whether Google products will take off Increase of revenue Time period before conclusion of antitrust case Whether EU will find Google guilty VS Fines Payable Restrictions on operations
  • Lesson #3: You can work your way around drawn-out government actions. Possible? Only able to change their way of operations
  • Dealing #1 - Google vs. China + U.S. en.wikipedia.org/wiki/ksloo/dealing1 Google’s Executive Chairman Eric Schmidt ran into various problems while ...... The Chinese Government persisted in their requests ..... The Stop Online Piracy Act (SOPA) was vehemently opposed by ... Dealing #2 - Google in comparison with Microsoft en.wikipedia.org/wiki/ksloo/dealing2 Google is currently facing anti trust with the EU government..... A case which is similar to that of Microsoft which was concluded only just recently....What is google doing about this and why did they not learn from the Microsoft’s case Dealing #3 - Google and NASA en.wikipedia.org/wiki/ksloo/dealing3 Google gains the exclusive right to the National Aeronautics and Space Administration (NASA)’s Moffett airfield at an annual rent of $1.3million ...... The deal was struck......scientific research.... Eric Schmidt - Wikipedia, the free encyclopedia en.wikipedia.org/wiki/Eric_Schmidt Eric Emerson Schmidt (born April 27, 1955) is an American software engineer, businessman and the current executive chairman of Google. From 2001 to 2011, ...
  • Google and NASA •Struck a deal in 2005 for joint development in: •Data management •Distributed computing •Bio & Nano-technology •R&D for entrepreneurial space industry
  • Annual rent of US$1.3million H211
  • Google vs NASA: Background of the deal Deal struck in the name of Google’s scientific research Only 4 jet planes were to occupy the airbase Jet planes supplied with jet fuel from the Department of Defense NASA charges Google/H211 a lower price for fuel
  • Google vs NASA: Background of the deal Not everyone can use this airfield; NASA has specific criteria to determine who can partner with us and whether they may use their aircraft at Moffett. All requests by a private entity undergo a rigorous review process and every request must demonstrate a relationship to NASA missions.
  • What it really was... Google quietly increased the size of the fleet Little was done about the promised research on greenhouse gases Jets were used for leisure purposes
  • What it really was... (Google’s joyrides) December 2007: H211 Gulfstream spotter in Tortila for the wedding of Larry Page at Richard Brenson’s privately-owned Necker Island. 13 May 2010: H211 Gulfstream V departed Moffett for an airport in Southern France, where Google held an event for its advertisers at the Cannes Film Festival. 18 May 2010: Eric Schmidt attended a party for Mick Jagger in Cannes. 9 July 2010: Boeing 762 left for Tahiti, where a solar eclipse could be viewed on July 11. Amongst the viewers were co-founders Larry Page and Sergey Brin. 15 July 2010: A plane went back to Tahiti to pick up the Googlers.
  • Google and NASA (Conclusions of the Consumer Watchdog) Google abused its reputation and relationship to secure the deal Real intention? To use the airbase for their own convenience and for vacations
  • Google and NASA (Conclusions of the Consumer Watchdog) NASA demonstrated preferential treatment of Google (because of Schmidt) and H211 - Humanitarian Air Logistics also requested permission, but received a different response. NASA agreed to the deal due to mercenary purposes.
  • Lesson #4 you hat is e w prom not ver. Do deli d to nten not i do
  • Lesson #4 : Do not promise what you do not intend to deliver. Google Deal struck in name of scientific research Places expectations on Google for research outcomes Public NASA Newsworthy Reports and runs stories of the deal Media
  • Lesson #4 : Do not promise what you do not intend to deliver. Effects: - Reputation - Credibility May affect Google’s future deals with the Government
  • Lesson #4 : Do not promise what you do not intend to deliver. What Google should have done: Be more aware of the media attention and public expectations placed on them Focused more on producing research findings, as promised
  • Lesson #5 e as leng chal very ee e S (and nity ortu opp an it). ise axim m
  • Lesson #5 : See every challenge as an opportunity (and maximize it). Research was to be on greenhouse gases and global warming, But Google did... ... NOTHING! They should have: Produced useful results to build their reputation Looked at possible plans for Strategic CSR
  • any questions?
  • thank you!