Google Recommendations and Implementations Strategies


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This group paper was written in my Managing Organizations class with Dr. Chio at the University of Washington Tacoma. This paper describes the recommendations and implementation strategies to be taken when the SWOT Analysis of Google was revealed.

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Google Recommendations and Implementations Strategies

  1. 1. Group A-5 Google Recommendations and Implementation Strategies Rachel Brown, German Brynza, Tien Phan, Cale Ramsaur, Jena Smith Mgmt 300, 12/9/09
  2. 2. II Though Google Inc. has remained a well-known, respected company, it is essential for the organization to focus on the continual improvement and enhancement of operations in order to generate revenue and remain dominant in the world of search engines. Key recommendations have been reached that will reinforce methods that may be beneficial in the company’s long-run economic success and sustainability: the awareness of ethical issues concerning human rights, and also the actualization of a more efficient R&D department. By capitalizing on these opportunities, Google will have the advantage to improve weaknesses, fortify its position against threats, and utilize the company’s strengths. Recommendation #1 – Ethics Though Google has built a reputation on innovation and customer convenience, the company has had a tendency to disregard customer ethical concerns, and other moral dilemmas such as communications and pricing. Due to these weaknesses, Google should implement a human rights approach, addressing ethical apprehensiveness accordingly. Through this approach, Google would be more attentive to customer’s moral entitlements and what they should expect in regards to protecting their privacy and also honest pricing strategies. Because of Google applications such as G-Mail and Google Search, there is an increased risk of invasion of privacy. This is due to the fact that past searches are recorded and deleted inbox items are retained. Another issue at hand is Google’s online map service, Street View, which has been accused of taking pictures of people’s private homes and property. Street View was unveiled at the Where 2.0 conference in San Jose, California. However, “within hours of the photographs of downtown San Francisco and New York hitting the Internet, bloggers were posting images of people, their faces visible, being arrested, sunbathing and urinating in public” (Knight, 2007). Another ethical dilemma Google is currently facing is in the company’s working relationships with customers and advertisers concerning honesty in communications and pricing strategies. Google’s cost per click advertising fee and ranking policy is confusing and makes it complex for marketers to predict how much their ad will cost, and where it would be positioned (Google Inc., 2008). Advertisers
  3. 3. III should have the right to know what to expect when pricing their ads in order to avoid any misconstrues that may arise. According to New York Time’s editor Miguel Helft, “Google derives almost all its revenue from text ads that appear next to Internet search results and on thousands of partner Web sites” (Helft, 2009). By improving the relationship and understanding of advertising clients, Google can continually increase its market share, generating more profits. Specific Implementation #1 – Ethics Though Google could credit much of its success to the fact that it provides convenient, relevant search inquiry information, it must address the issues and conflict between convenience and privacy. On November 5, 2009, “the company announced the service, called Google Dashboard… [which] pulls together many controls Google has offered people for a while, such as the ability to see and delete their search history” (Vascellaro, 2009). Google executives claimed that the new service was designed to provide consumers with greater control and clarity over their personal data. Google also decided to blur all the faces and car plates that were once visible in its feature Street View, and announced which city it planned on photographing in advance (Google Street View, 2009). In the addressing of privacy and a human rights approach, Google will increase customer loyalty through security and trust. Currently, Google’s main source of revenue is from advertisements on Google AdWords; however, as recommended, the advertisers should be informed of how much their ad will cost and where on the website it will be positioned. If Google notified its customers as to where their ads’ ranks were based on the number of clicks they received, then the advertisers could decide whether or not they want to invest more money on their cost-per-click each day, enabling their ads to appear longer on the search engine, and in doing so, provide higher ranks and profits. By implementing this policy, Google could further motivate advertisers to invest more funding into ads that have less clicks, which would provide Google with greater profits.
  4. 4. IV Recommendation #2 – Expansion of R&D While it is essential to address Google’s privacy issues, an equally important recommendation would be to strengthen and maximize the company’s current Research and Development (R&D) team. There are two specific areas that the R&D team should focus their efforts on. The first area is to increase Google’s brand name recognition through advertising, and the second is to further pursue telecommunications. Other search engines, including Bing and Yahoo, have followed Google’s lead in establishing brand equity through advertising, continually gaining ground on the company and becoming increasingly competitive. Due to this increased risk of lost profits and popularity to adversaries, Google needs to develop more efficient ways to solidify their position in the market. Recently, Google revised its trademark policy, providing easier means for advertisers to include brand names in the text of their ads (Tartakoff, 2009). Though this is a good step, the R&D team needs to build and improve upon this so that there may be more advertising and therefore, more exposure of the company’s brand name, Google. The second area of interest that the R&D team should pursue is that of communications. In accordance with the burgeoning of Internet use, consumers are now accessing the Internet through their cell phones, creating a vast, surging market. Due to this trend, it is vital for Google’s R&D team to implement and take advantage of the company’s recent acquisition with AdMob. With AdMob, Google will be equipped with data on cellular phone applications. Through them, Google will be better informed of statistical information about how people are currently using iPhone applications, how responsive they are to the advertising within those applications, and how loyal users remain (Shafer, 2009). This acquisition will be helpful in determining what implementations are necessary in the recently evolved Droid applications created by Google. Finding a niche in the telecommunications world would mean an increase in the strength and overall profits of Droid products, providing another efficient source of income. Through strengthening the R&D department, Google has an opportunity to utilize its opportunities and strengths, enabling the company to be a mainstay in the proliferating world of
  5. 5. V telecommunications. To accomplish these things, the expansion of R&D must be implemented through several steps. Specific Implementation – Expansion of R&D Due to the fact that Google is a virtual company and has branches disperse around the nation, the expansion of the R&D department will be much more simple. Because there is a limited amount of tangible items, Google has limited buildings and physical space. With this advantage in mind, Google should follow three specific steps to expand its current R&D department: assess finances, globalize through capitalizing on dispersed branches, and formulate virtual teams. The first action Google must implement is to amass the finance department and determine how much money should be set aside for the expansion of R&D, keeping in mind the company’s assets and liabilities. In establishing this budget, many factors must be kept in consideration for future endeavors and financial obligations, including emerging opportunities or even liabilities. With roughly 70% of R&D funding spent on efforts to improve the company’s search and advertising programs, the finance department should determine and decipher whether or not these improvements are effective and efficient. There may be different ways of limiting search and advertising programs, increasing the funds that could potentially be used elsewhere, result in future gain (Elgin, 2006). After analyzing several different contingencies, the finance team should conduct and produce a budget that elucidates the amounts of finances that can be set aside for the expansion of the research and development department. The next step Google should take is to accumulate and assemble an experienced analyst team that will conduct research to ascertain the most efficient strategy of where to establish R&D branches that will yield the greatest success. Several different concerns should be addressed in executing this research: Where are we going to set up the R&D branches? How much funding is going to be allocated for them? Will the company benefit from the newly implemented branch? In determining answers to these apprehensions, the analyst team should apply management decision skills to establish the most efficient strategy as to where to locate the new branches, benefiting Google in the short and long run.
  6. 6. VI Lastly, in order to effectively expand R&D, there should be sufficient communication. Communication should be used when setting up new facilities and branches globally. It is imperative for Google to maintain relations between branches and headquarters. The process of communication and use of synergy between the teams allows for the compilation of information and creativity, such as creating a new product or service. In order to enable communication amongst employees, Google should assemble knowledgeable and advanced technicians to establish and maintain effective and efficient means to do so. Phone calls, e-mails, and blogs are not always the most effective way to maintain relations, especially when in regards to new innovations. However, the use of video conferencing and virtual private networks could provide more secure ways for employees to communicate live, such as broadcasted meetings. With the implementation of technological improvements, virtual teams could communicate much more proficiently, limiting the amount of time required to travel to necessary meetings. General Implementation Though the stated recommendations will impose a great deal of adaptations in the company, particularly in the R&D department, the steps necessary to implement organizational change will likely ease the process, making the alteration viable. These steps Google must partake in involve establishing goals, communication, permitting others to act innovations, establishing norms, and instituting criteria for successfulness that will also observe and monitor changes. Through these steps Google will better implement its opportunities, gaining the support and confidence from its employees in the process. In order for the first recommendation to be implemented successfully, Google must address the company’s position on the importance of social responsibility and recognize that it has been deficient thus far. Being that privacy concerns are a growing issue since the advent of the Internet, Google needs to recognize the importance of reassuring customers to maintain a positive brand image, which should be communicated to the company’s personnel so they too can support the change. In regards to the second recommendation, R&D must understand that “change leads to new ideas, technology, innovation, and improvement”, all of which are vital in thinking creatively (Fandt et al, 2010,
  7. 7. VII p. 275). In order to keep up with competitors, the R&D team must work together through each stage of team development, including forming, storming, norming, performing, and adjourning. In order to institutionalize the changes, Google should refreeze the new procedures by offering incentives to employees. In offering premiums, Google would reinforce the changes by making employees feel as though the latest changes were now part of the norms of the business. The last action that Google should make when implementing changes is evaluation. Through evaluating, management will better understand whether or not the change will be effective and will also establish the necessary criteria to make the change. Conclusion In conclusion, Google has the opportunity to reassess its position in regards to customer’s ethical concerns along with those of its advertisers. In strengthening these relationships through trust, Google will see increased profits. Google also has the resources necessary to implement an R&D department that will remain innovative, which is important in taking advantage of the recent surge in telecommunications. Through implementing organizational change efficiently Google has the opportunity to better its long- term success and maintain its brand equity.
  8. 8. VIII References Barrett, C.W., Musso, C.S., & Padhi, A. (2009, February 13). Upgrading R&D in a Downturn. Forbes. Retrieved November 30, 2009 from Elgin, B. (2006, July 21). Google R&D Pays Dividends. Business Week. Retrieved December 1, 2009 from Ganapati, P. (2009, February 13). Google to Take a Hefty Cut on Android Application Sales. Wired. Retrieved December 1, 2009 from Google Inc.: SWOT Analysis. (2008, November 06). Retrieved Monday, November 30, 2009 from Sooper Tutorials website: swot-analysis.html Google Street View Faces Swiss Legal Challenge. (2009, November 13). Retrieved from Wall Street Journal website: Helft, Miguel. (2009, July 16). “Google’s Profit Surges in Quarter.” The New York Times. Retrieved Monday, November 30, 2009 from Internet Usage Statistic. (2009). Retrieved November 15, 2009 from Internet World Stats Web site: http:// Knight, Sam. (2007, June 01). “All-seeing Google Street View Prompts Privacy Fears”. Times Online. Retrieved Monday, November 30, 2009 from Times Online website: Schafer, Ian. (2009, November 10). “Why Google’s Acquisition of AdMob isn’t just about Advertising.” Forbes. Retrieved December 1, 2009 from Tartakoff, Joseph. (2009, May 15). “Google Revises Trademark Policy to Allow Brand Names in More Ads.” Forbes. Retrieved December 1, 2009 from www. Vascellaro, Jessica E. (2009, November 5). “Google Creates Privacy Dashboard.” Wall Street Journal. Retrieved December 7, 2009 from website: creates-privacy-dashboard/