Management Decision Making for Google Strategy - myassignmenthelp

Question: Discuss about the Management Decision Making for Google Strategy. Answer: Google Strategy Googles individual goal formulation stresses its customers focus. In the Googles IPO documents, the Googles founders posited: Our goal is to develop services that substantially improve the lives of as many people as possible. In the pursuit of this goal, Google could undertake things which the Company believe have positive impact on the world, even when the near-run financial returns are never apparent. In the Googles 2005 Annual Report, the Company stated; they are devoted and committed to serving the users with the best feasible experience (Cusumano, 2016). The statement continued and indicated that what such a customer service entails is explicated more precisely in the Google Mission statement: to organize the information of the world and make such information accessible as well as useful universally. Yet, the Companys swift as well as seemingly chaotic growth has engaged an array of diversification initiatives. Among them remain consistent with the Companys mission like Google Book Search, which entails the digitization of a huge share of the global books, and the Googles search engine mobile version. Some of the Googles diversification, however, are never directly connected to the companys focus on the organization as well as provision of access to information. Such include; (i) selling ads in the magazines, television and newspapers; (ii) ushering a suite of the online office software the company is selling for the small portion of the price of the Office of Microsoft; (iii) offering the e-mail service also known as the Gmail; (iv) provision of free Google WiFi; (v) development as well as acquisition of software for scheduling as well as monitoring radio advertisements; (vi) entrance into the online video sharing, for example, the acquisition of YouTube in 2006 November at 1.65 billion dollars; and (vii) entrance into the in-game advertising by acquiring Adscape in 2007, January. The driving force behind such Googles initiatives seems to be the Companys desire for the exploitation of Googles core resources as well as capabilities. Particularly, the position of Google as the global dominant search engine (Google has fifty-seven percent of the global total internet searches) implies that the traffic volume via the Googles website provides the Company an enormous market access potential. Googles dominance of the online advertisement being greater than percent of the United States online advertising revenue similarly provides Google a powerful position in the whole advertising industry. Googles incentive for expanding past the search engine business are further strengthened as well, by the Companys enormous capacity for the acquisition of other firms, as evidenced by the 2 major resources: Googles eleven billion dollars cash mountain besides Googles one-forty billion dollar market capitalization. The vivacious, entrepreneurial corporate culture alongside the Companys human resources (who are renowned for their energy, technical skills as well commitment) alongside the Companys capabilities for the informal collaboration provide marvelous potential not only for the generation of novel initiatives but also for the integration of such initiatives as well as acquired business alongside technologies within the Companys prevailing business system. Can Apple sustain its leadership in this market? Apples sustainable competitive advantage must stem from software and the firm needs to utilize their market share as the key shield. In the absence of more innovation, the company will be flirting with catastrophe. The Apple (NASDAQ:AAPL) is just everyone, from other tech giants to the small startups gunning for them. In the face of all these, the company has succeeded to sustain and maintain its leadership position in high end smartphone sector/market. Apple has a huge margins, huge loyal base as well as generate enormous quantities of hype with each release of smartphone. Hardware matters so little to Apples long term success, and hence Apples software is the core to Apple maintaining leadership. Apple has for a long time established an insular, differentiated ecosystem as well as a stronger brand of quality. These together have culminated in Apples competitive advantage, however, these are already being washed away. Maintaining Apples competitive advantage will remain its key to keeping its leadership position in the high-end smartphone market (McGrath, 2013). At the moment using the VRIO (Valuable, Rare, Imitable and Organize to Value) method points towards Apples sustainable competitive advantage. The value of Apple is unhidden and its rarity lies on its software design, its high cot to imitate emerges from its network effect, software design and brand and Apples evidence that it is organized to capture value lies on its income statement. The firms future sustainable is questioned as its sustainable competitive advantage it has enjoyed since the iPhones launch is fast eroding. Nevertheless, Research and Development expenses have surged by four billion over the previous two years, hence it is good that Apple is working on something (Johnson, Whittington, Scholes, Angwin Regnr, 2013). Unless Apple does something substantial with IOS 11 release, it will be opening itself up to Google and Samsung to assume market share. The future value of Apple seems not look like it has space for moving upwards. Apple investment appears increasingly risky due to the stiff competition and Apples innovation uncertainty alongside high valuation. Apple needs to prove its ability to innovate without Steve Jobs at its helm. Advising Illy StarbucksStrengths include high profitability, quality as well as highly ethical. The firm has created itself premium coffeehouse-chain notwithstanding the firms enormous global presence relative to rival food-chains. It has outstanding quality products, apparently environmentally-friendly as well as comparatively consistent between its locations (Pisano, 2015). Consequently, Starbucks is able to charge its clients higher prices that many individual are willing as well as ready to pay. Not solely does it imply enormous profits, but further has internationally acknowledged as 1 of the superlative coffee-shop chains. Higher efficiency alongside effective reinvestment strategy: A great portion of Starbucks profits are reinvested back into its expansion as evidenced in its ongoing-growing quantity of locations which it boast. It is evident that Starbuck has an effectively-schemed strategy for growth that appears to be functioning well for the business. Excellent employees treatment. It is acknowledged for treating its staff extremely well, and has been in the past listed as 1 of the Fortunes Top 100 Places to Work For. Starbucks weaknesses include higher price point. Whereas its higher price-point was its strength, it is also the main weaknesses. Starbucks hefty price tags on certain products including basic coffee alternatives bar abundant of clients who could else make it a share of their everyday lives (Geis, 2015). Whereas Starbucks premium quality alongside good ethical values could be appealing, some people lack such much cash to spend on the coffee cup. Another weakness is lack of exceedingly exclusive products. Whereas it could be recognized for its frappucinos, pumpkin spice lattes, as well as big chocolate chip cookies, it lacks most of rare and inimitable market. Several of other coffee chains, shops or else, offer identical products though solely outstripped by its huge brand name. Illys strengths include lower price point and overly unique and rare products. Illys weakness include lack of reinvestment strategy. For Illy to build a competitive advantage it should maximize on the Starbucks weaknesses and turn them into its strengths and use Starbucks strengths to strengthen its weaknesses. Principal challenges of cheap chic strategy design and implementation Merging low cost with differentiation advantage remains an appealing mixture for any firm. The challenge, however, is pulling it off. Differentiation characteristically adds cost-in enhanced design, variety, quality as well as additional attributes. Hence, for the cheap chic strategy to work there is a need for differentiation gains to compensate the extra cost engaged. For IKEA, TARGET, HM and Zara among other successful exponents of this strategy, the core is to uphold a basic model of a low-cost operator yet to add a few of distinguishing features of increased upscale operators. Nevertheless, reconciling stylishness alongside low cost might be challenging (Frank, George Narasimhan, 2004). It needs reconciling scale with pace and nimbleness. It calls for fast-cycle design, production alongside distribution, as well as alertness to market trends are required in fashion retailing. Major retailers like Wal-Mart ad Sears lack systems which allow such pace alongside responsiveness. Designing a Cheap Chic Strategy For a novel restaurant chain, a cheap chick approach might engage a range of strategies: A McDonalds kind fast-food operation which encompassed an increasingly higher standards of the cuisine. The restaurants with the ambiance as well as dcor linked with increased upscale restaurants but with a degree of turnover as well as standardized menu which allowed low cost of the operation like the UKs Pizza Express. References Cusumano, M. A. (2016). Is Google's alphabet a good bet?. Communications of the ACM, 60(1), 22-25. Frank, R. J., George, J. P., Narasimhan, L. (2004). When your competitor delivers more for less. McKinsey Quarterly, (1), 48-59. Geis, G. T. (2015). Semi-organic growth: Tactics and strategies behind Google's success. John Wiley Sons. Johnson, G., Whittington, R., Scholes, K., Angwin, D., Regnr, P. (2013). Exploring strategy text cases (Vol. 10). Pearson. McGrath, R. G. (2013). The end of competitive advantage: How to keep your strategy moving as fast as your business. Harvard Business Review Press. Pisano, G. P. (2015). You need an innovation strategy. Harvard Business Review, 93(6), 44-54.