BUS 421 Final: Case Scenario #1
Thomas Edison State College
October 2012
Emily Schemelia
Executive Summary
Case Scenario # 1
Given the increasing regulations of the Internet and email by the Government of China, recommend to the CEO of Google whether the company should continue to operate in China, the world’s fastest and among the largest growth markets.
Google should definitely continue operations in China, even if it means limiting the amount of information that is disseminated to Google China. While filtering information is the opposite of everything Google stands for, Google can still disseminate information to the Chinese public while abiding by the information laws set up by the
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Because of this, there is a case that companies like Google, look forward to making sure that they penetrate the market in order to produce better outcomes, which also leads to a fast growth for the organization. The economy in China is doing well. China has in its recent years reached financial stability. This is due to the fact that there is a high level of domestic demand. Because of this, many companies around the world begin to invest in the Chinese market. China is also one of the fastest growing when it comes to Information Technology and has been able to attract companies such as Google and even Microsoft. It has been forecasted that the Internet industry in China is expected to increase at a rate of about ten percent within the next five years. This is great news because Google will be able to benefit.
Advantages of Doing Business in China: As mentioned previously, there are many organizations around the whole world that perform their business in China. They do business in China due to the fact that China has a reliable market. It is also expected that the organizations doing business in China will continue to grow. Some advantages of doing business in China are that it is a major emerging market around the world. Also there are a lot of opportunities for organizations to invest in China for a longer period of time due to expanding of technology and
On the other hand, knowledge of the political and legal environment of China will be fundamental. Information on their laws and regulations, such as foreign trade policies, product standards, tax laws and requirements, trade barriers, labor laws, etc. are extremely important when assessing China as a potential market for our company. Finally, a thorough research on China’s market conditions, such as potential competitors, market trends, market opportunities and threats, potential risks, unique market characteristics, etc. will be necessary to obtained a complete evaluation of the country before entering the market.
Today, Google, Inc. is worth more than General Motors, McDonald's and Disney combined, and the company continues to model the way in the global technology industry in which it competes. In fact, the company's name has become a verb and it is common practice for consumers to "Google" what they want to find online. To determine how Google, Inc. reached this dazzling level of performance in a relatively short period of time, this paper provides an analysis of the three external environments in which Google competes, the general environment, the industry environment and the competitor environment. Next, a discussion of two specific strategic issues as well as opportunities and threats that are facing Google, Inc. is followed by a summary of the research and important findings in the conclusion.
Google Inc. is one of the leading corporations in the Global IT industry. It has various strengths and core competencies which make it the number one company in
China is the largest market in the world, and probably the hardest business environment. This narrative reflex China’s immense diversity, complexity, and its enormous competitive intensity is unrivalled versus the world.
The Worstall article discusses the strategy to end censorship of the internet in two ways. The first is to switch the Chinese search engine and then redirect users to a mirrored version (Worstall, 2015). Google’s settings are precise and competitive with numerous search engines such as Ask.com, Bing, Yahoo, to name a few. To bring down the China firewalls, Google has the capability to do so without interference from Chinese authorities, however, this is a big gamble for Google. Services such as Gmail have been difficult to access in the past, nevertheless, Google is used globally and “blocking the company entirely would have immediate and disastrous economic consequences” (Smith, 2013).
If I were the senior vice president for international markets for Google, I would recommend that Google not remove search results as it goes against Google’s policies. China’s firewalls would still prevent some of the results from being viewed but the results would be there. If Google absolutely needed to be part of the China market for business reasons a compromise similar to what is in place now could be reached. Where results are removed, but people could still access Google.com and see the unfiltered results.
China is reaching new levels making it a top choice for many global managers. China accounts for more than a third of global growth over the past seven years. (Legarde, 2015) The country has worked hard in creating economic growth and although it has been slow it has been successful. They are gaining on economic and financial stability. As a relocation specialist I would inform the global manager and his family what they can expect when relocating to China.
China has established itself as an economic power on a global scale. A national transition in industry, finance and technology has placed china at the top of the list as an appealing global trade partner. Chinese Manufacturing has led the way to a boom in exports and recognition for the Chinese workforce as a world leader in cost effective manufacturing. A shift in work force has provided inexpensive labor, paired with a strong economy China has also positioned itself among the top world leaders for global exports. China went from an under-developed country to emerge as a leading world economy among economic powerhouses like the United States and the European Union.
Breaking into the China market successfully can seem like an almost impossible task to foreign companies with limited or no experience of doing business there. Some of the key challenges that foreign companies face when entering the China market for the first time are many in number as it
Opening The quick advancement and progress of the internet across the world has led to many great opportunities for American business. However, this advancement has pushed the bounds for some countries on their stance for the free flow of information. This has been the problem for Google and its relationship with China. The restrictions set up by the Chinese government go against the ideas and ethics of Google. However, the presence of Google will likely help push political change by opening some doors for accessing information. This will also have the added opportunity of maximizing Google’s corporate interests.
Google is a multibillion dollar business empire. It has experienced major growth over the years. This growth has majorly been attributed to their advertising venture facilitated by other services like search engine, various productivity tools such as Gmail and Google docs, and enterprise products such as Google Search Appliances and Google Apps Premier Edition. Google's early success was from its ability to give people a search algorithm that they could search for any information needed and the results produced were highly relevant ADDIN EN.CITE Keith H. Hammonds200396(Keith H. Hammonds, 2003)969619Keith H. Hammonds,How Google Grows...and Grows...and Grows Fast Company200331st March, 2003New YorkFast Companyhttp://www.fastcompany.com/magazine/69/google.html( HYPERLINK l "_ENREF_4" o "Keith H. Hammonds, 2003 #96" Keith H. Hammonds, 2003). Google gave also a clean homepage design which had no interactions such as advertising and sponsored links. Google also made innovation one of their core values , and they also had unique corporate image with engineers, innovators and leaders all on board. Lastly, their success came from their important investments in infrastructure which offered more web page loading rate ADDIN EN.CITE BrandZ201098(BrandZ, 2010)989843BrandZ,"Top 100 Most Powerful Brands of 2011"2010http://www.millwardbrown.com/libraries/optimor_brandz_files/2011_brandz_top100_chart.sflb.ashx201227th April( HYPERLINK l "_ENREF_1" o "BrandZ, 2010 #98"
Base on the first assessment, refer to the PESTEL and Porter’s 5 Forces analysis (Appendix 6.1), the most attractiveness in China is the point of huge increasing population which have recorded 1,370,536,875 (National Bureau of Statistics of China 2012) on 2011. And as one of the BRIC countries, China has also recorded a 7.4% of GDP growth rate in 2012 (Trading Economics 2012), which is an evidence showing China is a strong emerging market. Regard to the technology used, China has relatively lower penetration rate than the other two countries. But operating business in China has a lower cost than the other two countries, example as the labour cost.
This paper deliberates the internal and external factors about the Google industry, and the ways it affects the four functions of management. The internal factors include the company’s strength and weakness that displays their success or downfall. The internal factors reveal the company’s strength on how well it can meet their goals. The internal factors of an industry are factors of good or poor planning because it exposes their ethics, diversity, globalization, and so forth. On the other hand, the external factors may involve with their outside competition, social legal, technology changes, political, and economic environment. The external factors show their duties to
This paper will discuss a comprehensive strategic plan for google. First, an analysis of Google’s competitors: Microsoft, yahoo and Amazon analyzed. A critical analysis of Google’s operational and business strategy follows that. Then Google’s approach to corporate strategies that include vertical integration, diversification and Google’s global reach.
Government stability is one of the major aspects in Google's strategy. If the market is stable, governments help businesses and so these businesses advertise more on Google, hence, benefitting Google. In addition, most of the governments do not have identified laws for online information sharing, thus, giving Google the opportunity to manipulate laws. However, China has created a barrier for Google by adding regulations that forbid Google from operating on their terms. For example, according to UKessays (2013), "Chinese Government launched a surveillance system called Golden Shield for monitoring civilian use of Internet."