Executive Summary
Google is perhaps one of the most successful dot.com companies of the new millennium. Although the company was developed during a time when the popularity search engines had not yet peaked, Google managed to find innovative and creative methods not only to make search engines popular but also to make search engines profitable. The end result of this process has been the creation of a publicly traded company that currently worth more than $8 billion. While taking Google public has offered a huge influx of capital into the organization—allowing Google to better manage its growing competition—the organizational changes that have been wrought as a direct result of Google's IPO have been somewhat difficult to assess. An organization which once prided itself on a relaxed corporate culture, in which employees were allowed to bring their pets to work, is now faced with the imposition of a corporate structure that warrants the imposition of management and the possible decline of innovation in the workplace.Arguably, the changes that have occurred at Google are quite significant. In light of these changes, this investigation argues that Google should shift its focus from creating a “perfect search engine” to one of focusing on innovation as a principle means to remain ahead of the competition. While it is indeed true that Google has created the best search engine on the Internet, competitors such as Yahoo and MSN, which already have well structured portals in place, are now challenging Google to create similar services.
[...] Specifically, Schmidt and Varian (2005) in their analysis of the Google organization note some of the changes that have been undertaken in the organization as a principle means to create an innovative work culture. According to these authors, Google employs the following tactics to create an innovative culture for the organization: Cater to every need Google provides everything that employees need to remain productive. This includes: first class dining facilities, gyms, laundry rooms, salons, carwashes and dry cleaning services. By removing barriers to productivity, Google is able to keep employees focused. [...]
[...] To this end, this investigation considers an examination of the Google organization, its strategic plan, and its long-term objectives. Through a careful assessment of these issues, it will be possible to provide an overall assessment of the likelihood that Google will meet its strategic goals. Further, using the data collected on the Google organization, it will be possible to provide specific information on what steps the company should take in order to achieve its long-term goals. Upon completion of this analysis, a formal plan for the strategic development of Google will be presented along with a review of the best practices of strategic management that will enable the organization to effectively meet its objectives. [...]
[...] Even though Google will rely on innovation to make this happen, its commercial and financial success are an integral part of the process as well. Internal and External Business Environment Considering the internal business environment that is currently in place at Google, researchers have noted that the external changes that have taken place in the organization in recent years—IPO and increased competition—have changed the internal dynamics of the organization to some degree. In particular, it has been noted that while Google's innovative and bootstrapping culture have served as the basis for the initial success of the organization, the introduction of investors into the infrastructure of the organization has forced some degree of formalization onto the organization. [...]
[...] For this reason, management of the organization must find new and innovative methods for establishing innovation as the basic force that drives product and service development. The strategic choice to focus on the creation of a perfect search engine should be put aside, until Google can definitively establish itself as an industry leader. Critical Success Factors Given the nature of Google's business, there are numerous critical success factors (CSFs) that can be put in place to measure the overall success of the organization. [...]
[...] With the realization that Google is currently financially healthy, it seems somewhat disconcerting to recommend that the organization begin to incur debt as a means to generate more long-term wealth; however, if Google is to create long-term financial stability for its stockholders, the organization must consider expanding its operations and investing in further development. If Google were to increase its liabilities through investment, this process would have a negative impact on the overall liquidity of the organization. However, with a current ratio of even a significant decline would not have a detrimental impact on the organization (Key statistics, 2006). [...]
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