Strategy Implementation, Evaluation and Control

Due Jan 24, 5:59 PM
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Purpose of Assignment

Weeks 3, 4 and 5 Individual Assignments are integrated to generate a Strategic Management Plan. This is part three of the three part Strategic Management Plan addressing strategy implementation, evaluation and control. The purpose of the Week 5 individual assignment is to allow the student to discuss and explain how the strategies discussed in prior weeks are converted into implementation activities both domestically and internationally, in alignment with legal, social and ethical considerations. Furthermore, the student has an opportunity to explain and discuss how the strategic plan and implementation activities will be monitored.

Weeks 3, 4, and 5 Individual Assignments are integrated to generate a Strategic Management Plan. This is Part 3 of the three part Strategic Management Plan.

Assignment Steps

Write a 1,050-word report on the company you selected in Week 3, following up on the Individual Assignment of Week 3 (Environmental Scanning), and address the following:

Strategy Implementation
Discuss International Strategy.
Discuss Strategic Implementation.
Explain the influence of Governance and Ethics.
Discuss the Company Social Value.
Discuss Innovation and Diversification.
Discuss Legal limitations.

Evaluation and Control
Explain Strategic Metrics.
Discuss Key Financial Ratios.

Cite at least 3 scholarly references.

Format your paper consistent with APA guidelines.

Click the Assignment Files tab to submit your assignment.
Materials

Strategy Implementation, Evaluation and Control Grading Guide
Strategic Management: Concepts and Cases, Ch. 14: Strategy and Society
Strategic Management: Concepts and Cases, Ch. 9: International Strategy
Strategic Management: Concepts and Cases, Ch. 10: Innovative Strategies That Change the Nature of Competition
Strategic Management: Concepts and Cases, Ch. 12: Implementing Strategy
Strategic Management: Concepts and Cases, Ch. 13: Corporate Governance and Ethics

Expert Answer

Strategic Management Plan

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Introduction

Google Inc. is one of the best-performing and largest companies in the technology industry in the entire world. The American-based company specializes in the provision of Internet-based services and products, including internet search engines, software, marketing technologies, cloud computing, and smart devices. Since its incorporation, the company has been performing very well, with annual revenues growing every year and its customer base expanding yearly. The success of the technology company can be attributed to proper strategic planning and good management (Haines, 1995). Strategic planning enables a company to effectively identify the various actions and strategies that are necessary to ensure organizational growth and fulfillment of organizational goals (Rothaermel, 2015). In this paper, strategic planning is conducted for Google Inc. The company’s international strategy will be identified and discussed, as well as the strategic implementation of the identified strategies. The influence that ethics and governance have on the company, the social value of the company, strategies such as innovation and diversification, the legal limitations of the company, evaluation, and control, strategic metrics, and the key financial ratios used by the company will also be discussed.

Google’s International Strategy, Innovation, Diversification, Social Value, and Strategy Implementation

Google Inc.’s domination of the search engine industry and the investment in the smartphone industry have enabled the company to rise to the top of its competitors. The company’s acquisition strategy has enabled it to achieve global expansion and success (Vise, 2007). The company has been able to distinguish its search engine from other search engines by focusing on improving search results, search speed, and relevance of search results. The company further launched its domains for countries outside the U.S., such as google.es, a Google domain for Spain, allowing its users to search for information using their own language. This way, Google Inc. has been able to create a global brand. Since May 2000, the company has continually been introducing foreign language versions, starting with European languages and moving on to other languages.

In 2005, Google Inc. acquired Android, a small software development company, without announcing or expressing its intentions with the company (Vise, 2007). When Apple Inc., one of the current competitors of Google, launched its iPhone devices in 2007 running on the iOS platform, Google followed suit and launched its Android OS. The advantage that Google’s operating system had over Apple’s operating system was that various smartphone manufacturers could use the operating system. Companies such as LG, Samsung, and Motorola were the first companies to use the Android operating system. This increased the popularity of the OS and its user base. The company also introduced a smartphone applications store for app developers. Google Inc. focuses on developing its already existing strengths instead of trying to break into new markets. The company went on to develop a browser and a location and mapping application, and an e-mail service – Google Chrome, Google Maps, and Gmail. These developments have been the products of continued innovation from the company’s innovation strategy. Google continues to expand its global brand by introducing applications and services for different online activities.

Social networking services such as YouTube, Blogger, and Google Plus are examples of services that have been introduced through innovation to expand the company’s brand. The company has used the acquisition strategy to push its global expansion goals since 2005. The acquisition of the Android operating system in 2005 was a key step in the expansion of the company. The company also acquired other companies along its journey to become a leading technology company, including the acquisition of YouTube video sharing platform in 2006, Skybox Imaging in 2014 which enables users to obtain satellite imaging, and the acquisition of DoubleClick online advertising platform in 2007. These acquisitions have enabled the technology company to access new markets and develop the already existing markets.

Since the company was established, its main product and service have been the online search engine. In the first few years of business, Google focused on the search engine technology that was developed since 1996. However, the company started to diversify its operations into various Internet-related services and products (Yip, 2001). These products include enterprise products and services such as Google Search service, productivity services such as Google Drive and Gmail, online services such as Google Translate and Google Maps, and advertising services such as AdSense and AdWords. The various products and services introduced by the company have enabled it to reach diverse internet users, making them partly dependent on the services. The strategy of diversification has been effective in allowing the company to establish new markets and retain its existing users. Through diversification, Google has become a one-stop avenue for all the various internet-related needs of customers or users. The company has developed a high social value as a result of providing customers with many Internet-related services. People are somehow dependent on the company.

Ethics, Governance, and Legal Limitations

Any international organization is committed to complying with the law and regulations of every country where it conducts operations and business. Several global companies, in addition, have global ethical guidelines which go beyond what each country requires, including regulations such as no bribery, ethical sourcing, and environmental protection. This ethical code or guidelines govern the operations of the company in all the countries of business. A common problem occurs when the laws of a country collide with the ethical code of a company. Google has its own ethical code and has in the past found this code colliding with country laws. For instance, the laws of China demand state censorship of information (Lee et al., 2012). This collided with Google’s global code of ethics which does not allow censorship. In order to resolve such dilemmas, the company reviews the organizational values with the important stakeholders and arrives at a solution based on their views.

Google abides by the laws and regulations of every country that it conducts business in. in addition, the company follows its global code of ethics, the ‘Google Code of Conduct’ (Vise, 2007). The document has been publicly published by the company on its official website. The company’s code of conduct is used to govern the operations of the company and leads with a simple statement – “Don’t be evil” (Lastowka, 2007). The company uses this phrase as the basis for making decisions and as the basis for the company’s ethical, environmental, and social sustainability. The phrase guides the company in following the law, abiding by business ethics, treating users with respect, and acting honorably.

Strategic Metrics and Key Financial Ratios

Google Inc. focuses largely on the number of its users, as compared to any other metric (Vise, 2007). As opposed to its competitors, such as Apple Inc. which places importance in reaching the right users and acquiring a huge profit share, Google cares much more about the number of users that it reaches. This metric resulted in the introduction of Android, which enables users to access cheap smartphones. Instead of focusing on carefully selecting customers to maximize profit, Google places importance in reaching as many people as possible. The company has been performing well financially over the years. Some of the main financial ratios important to Google Inc. include the Operating Margin, which enables the company to measure its profitability from actual operations; Revenue Growth, which enables the company to weigh its revenue progress; Price-to-Sales Ratio, which indicates the value placed by investors on each unit of revenue; Price-to-Earnings Ratio, which compares the company’s share price to the earnings for each share; and Debt-to-Equity Ratio, which compares the total debt of the company to the company’s equity.

References

Haines, S. (1995). Successful strategic planning. Crisp Learning.

Lastowka, G. (2007). Google’s Law. Brook. L. Rev., 73, 1327.

Lee, J. A., Liu, C. Y., & Li, W. (2012). Searching for Internet freedom in China: A case study on Google’s China experience. Cardozo Arts & Ent. LJ, 31, 405.

Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.

Vise, D. (2007). The google story. Strategic Direction, 23(10).

Yip, G. S. (2001). Total global strategy. Prentice Hall PTR.