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International Business Environment (IB701)
A Case Study on “Cross-Cultural Framework”
Submitted To: Dr. Patrick Foong
Regent International Education Group
Aowrongajeb Chowdhury Session-August, 2013.
Level-7, Diploma in Business (Advanced) Regent International Education Group
Date of Submission: 20th September, 2013.
Question-1: What influences strategy development in Google?
As Google is a giant corporation and it is the market leader, so its strategy should be distinctive and unique. To keep upward its growth, Google always consider some factors which influence very much in the mean time of establishing its strategies that are given below:
Google tries to adopt new trend to get comparative advantages than that of its competitors. This new tendency influences Google to set up its strategy. Google launched its share through open IPO system by which buyers bought share on the basis of the fair price, this new trend in USA established a distinctive theme for Google. Google also set up its governance structure with a two-tier board of directors. As a result, there is a distance between management and shareholders, therefore management can get freedom to run this company.
Rivalry is another factor which also influences Google to set up its strategy. In the age of 21st century there is a huge completion among the rivals. To avoid completion against its competitors such as Microsoft, Apple & yahoo etc and also to get more advantage from market, Google prefer acquisition strategy.
Technology is one of the key factors which influence Google to establish its strategy. At the age of advanced technology, every moment many technologies are introduced by different corporations. Usually customers will prefer that corporation which provides a wide range of technology coverage and, of course, most updated technology. So Google provides service in Blogging, Radio, TV Advertising, Online payment service, Social Network and mobile Operating System.
Google’s culture always influences to its strategy. It has its own culture in where employee can do anything whatever they want and they are doing work whenever they feel better. So they can be easily managed.
So, competition pressure, innovation of technology, new trend and privilege of its own culture always influence Google to establish its strategy in the proper way.
Question-2: What are the strengths and weaknesses of their approach?
As every approach has strengths and weaknesses, Google’s approach also has both of them. The strengths of the approach of Google are given below:
1) Evaluation by Peer:
In Google’s environment, engineers work in a small group who are independent and their performances are evaluated by their peer, not by their upper level management. As there is a competition between peers to get promotion and reward, they try to do their best in the work place. Another think is that as there is a good relation between them, so they are co-operative and close to each other, so corrective actions can be taken promptly at the initial stage.
Engineers can spend 20% of their work time to personal projects which motivates them to introduce new products and create new knowledge. It facilitates many things for their employees include meals, messages and swimming pool. This freedom encourages employees to do a lot of works and invents new things for Google.
3) Highly qualified employees:
Every year thousands of talents apply for job in Google. It recruits employees through arrogant tests and interviews and they also must pass from leading universities with master or doctorate degree. They recruit only employees against a psychometric profile of Googleness. So, they can hire and retain a fairly predictable employee population who are highly manageable.