Google Inc. is a multinational organization that was founded by Larry Page and Sergey Bin on September 4, 1998 and it went public on August 19, 2004. Both Page and Bin were obtaining their Ph.D.s from Stanford University and were later known as ‘Google Guys’.
Google is public corporation that deals with research, cloud computing and advertising. Google has also launched its applications after it bought android. It generates most of its revenues from advertisements through its application called ‘AdWords’. The company’s objective was to gather useful and creditable sources of information and made it universally accessible. Google believes that the best way to do it is to put the user’s need before theirs. The company’s unofficial slogan by Google engineer Paul Buchheit is ‘Don’t be evil’. The main office of the company is situated in Silicon Valley in California.
Google Political Analysis
Google has gathered immense knowledge of politics of the world and has given the public an easy access to it. Where it has vastly influenced the outcomes of elections, it had managed to cost some business to the company also. For example, the broadcasted information regarding politics had China concerned as it had violated the privacy to sensitive information. Google had to undergo censorship issues but still the company’s business and reputation suffered and may continue to do so. Google is stashing its earnings in foreign banks, like any other U.S. company, to circumvent the taxes. But the U.S. government is pressurizing the companies to transport that money to the state. This could cause Google to spend heavily to avoid taxes and might put a restraint on its cash flow.
Google Economic Analysis
The economic success of Google can be determined by the fact that it has become verb from a noun. Globalization has increased it user ship multiple times. Even during the fiscal crisis in 2007-2009, many companies took a massive downfall but Google’s revenues managed to decline only 3% in 2009. The revenues generated by Google are immensely stimulated by the impact of macro-economical factors like USD rates, inflation rates, interest rates, tax regulations etc. but Google has been able to cope negative global crisis due to its leadership in it its products and services. Google has captured 49% of the search engine market as compared to his competitors. Two years after it went to public, the stock market of Google went up to five folds. According to the research done in 2007, it generated about $10 billion per capita.
However there is a downside to its economical situation as well. The cash that Goggle keeps overseas is exposed to exchange rates. For example, if the value of dollar is high, the company could be forced to bring a lot of money back to the state. And if the dollar is cheap, the company would be force to exchange it with a strong currency. As far as taxes are concerned, Google is in deep talks with France about the assumed tax noncompliance.
Google Social Analysis
Socializing via internet has increased the pace of our lives. Where Google has emerged as leading search engine it is still challenged by the competitors in social networking. Google has strategically designed its products like Google+, Google Play Store, gmail etc while considering the needs of its users. Its products are impacted by demographic changes and consumer views as well. For example in China, most users were aged between 18 and 24 belong to privileged class living in urban areas. Therefore Google has to implement security measure to ensure their privacy according to the rules and legislature. The social networks like ‘Facebook’ pose a threat to Google as it is gaining strength and offers online advertisement as well and has urged Google to improve its services to match the user preferences. The escalating use of mobile phones has benefitted Google as it has launched its android system and has brought everything at just a touch away from its users.
Google Technological Analysis
In 2007, Google invested $890 million in research and development. This is the most any company has invested in its research in that year (Hertzberg, 2007). In 2003, it said to have invested $8 billion in R&D. Google thrives on its extensive research. (CASEY, 2014). Google invests heavily in research to satisfy its clientele. The extensive dispersal of information and communication requires rapid and effective change in technology. Google has to keep pace with the rapidly advancing technology while keeping an eye on the costs.
The advanced technology has made it easy to develop an app for each Google product so Google has to strive against such competitors. For example people are not using search engines but shopping apps for buying their stuff.
Google Environmental Analysis
Technology comes at a price. Google has to deal with unlikely hazards to ensure its user’s safety. The internet is full of hackers and sham. Google has to guarantee a safe working space against such scams. Google can use its position in market to emphasize the ecological hazards and its solution.
Google harbors a very warm and friendly internal environment for its workers. Internal environment includes the events and office culture within the company that affect its employees and management. Its environment boosts up their confidences and calls to their sense of creativity. When not at work, the workers enjoy different outdoor games. Google hires diversified people who might share different language or culture but all have a common vision. Since the company is not designed to earn profit only, it works very hard to meet the demands and needs of its user.
Google Legal Analysis
Every company has to work within the limits of law and order. Similarly Google can exploit the prospects of improving the security conditions for its users. It can exploit more ways to discourage plagiarism among its users. There are other laws and restrictions that govern the research and technology sector. Google has to abide by the law and regulations. The case of French tax compliance against Google is one problematic issue company has to deal with.
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