Answer: Mission statement is the representation of the role organizations desire to play in the population and they give an overview of the purpose behind establishing a business and the goals and objectives of that industry.
Business strategy methods to foresee the goals of a business also to develop methods in attaining those goals.
The name Google is derived from the mathematical term "googol". Google was founded with an objective to make worldwide information to be seen easily by the users also to offer users high quality service. The objective statement of Yahoo reads as pursuing:
"To organize the world's information and make it universally accessible and useful" (Google, 2010)
This mission assertion gives an idea of how Google wants to execute its business. This simple purpose of Yahoo has proved beneficial for the business and reaped benefits and also made Yahoo to have a top give its rivals. Google helps the users in getting the most relevant information. The search engine giant has not confined it; instead it came up with innovative jobs like Google maps, Google images, Google earth etc. Google doesn't impose users for using these systems. To generate income Yahoo developed two flagship programs by name AdWords and AdSense. Ad Words makes it possible for the businesses to put their ads on Google and its own affiliates at a nominal price of 25 cents per thousand impressions; whereas Ad Sense is for the advertising to particular users and also to share the income with associates. This plan created a Win-Win situation for both advertisers and also the web publishers; which increased the business's earnings and also made Google the most popular website to market. To build up its services Google encourages and relies on customer feedbacks, employees are recruited for the very purpose of reading those E-mails and forwards it to the concerned department. The need to extend its horizons has made Yahoo to take up tasks which just have a eyesight and little scope. The founders have come out with a declaration in their IPO prospectus that the company will be financing only those tasks that have a 10% chance to earn billion dollars over enough time. The willingness for taking calculative dangers has made Google to survive in these most challenging times. Google always relied on customer satisfaction and ensured that users are receiving most exact data. The company proceeded to go global and founded branches around the globe and began offering its services in local languages also, this move helped the business gain an advantage over its rivals.
According to comstore. com in 2008 Yahoo tops as the google search with market talk about of 61. 8% [Barbara Farfan, 2010]. Lot of money magazine defined Google as "Internet Services and Retailing Company. " The retailing part of the company is really small and the concentration of the company remains only on those products and services that can be distributed around the end-users online free of charge and can grab revenue from the firms. The ability to build described strategies and also to apply them has made Google a head in online business.
[Yahoo, 2010, "Company Guide", retrieved from http://www. google. com/corporate/ on 16th June 2010]
[Barbara Farfan, Google Profile - Mission statement, History, Founders, Name culture& Estimates, retrieved from http://retailindustry. about. com/od/topusretailcompanies/p/googleprofile. htm on 16th June 2010]
Answer: Information systems strategy consists of understanding the business requirements of a business and then planning the IT requirements accordingly.
Google promotes imagination and invention among its employees. It also encourages employees to create new ideas also to dedicate 20% of that time period independently project. This turned out beneficial as 50 percent of the new job launches originated from that leisure time only. For instance :While finalizing a new project both the team and the management meet in huge conference room, the right of the wall structure is utilized to digitally project the latest features and the remaining part of the wall membrane is used for the employees to place down their ideas and thoughts in finalizing those features. Google has given its employees the versatility to choose from a variety of computers and os's to focus on and it also ensured that employees can gain access to information about the projects undertaken by the business at different locations via the intranet; this move helped employees to coordinate with their acquaintances who are on the same project or to connect with those people who discuss the same perspective and ideas. To build up the mandatory IT infrastructure the IT team sustains a balance between buying the products from outdoor vendors and producing its software; for example the company buys Oracle's software to keep the accounts; whereas when it comes to manage Customer romance management Google developed its own software. Although management makes data available to all the employees, it also makes certain that the info is shielded from being misused or employed by unauthenticated users. Yahoo also encourages open source software's by with them. It also induces students to build up new software's by giving with internship programs. This way the business can get new ideas that can be useful. Google builds up common applications like Google Apps Which can be used for both interior and exterior purposes also. The internet search engine algorithm is up to date continually so that information retrieval could are more correct. The engineers made sure that the info retrieval time for the user becomes less. Yahoo follows a Circular Robin policy this can help in load managing the load on server. Google's servers are divided into several types and each server is allocated a specific function.
The dynamics of business makes Yahoo to focus on security aspects and makes it critical for Google. The formula of professional search algorithm is placed secret. Instead of implementing strict insurance plan measures, the company makes sure that the infrastructure of the business itself is anchored. Emphasis is laid more on detective and corrective controls. Over 150 engineers are used for providing information security and preserving the security infrastructure of the organization. These engineers regularly look out for viruses, spyware. Yahoo also uses a strange intrusion detection system to avoid security breach.
[Retrieved from KERI E. (2010), Rosewood New Jersey: John Wiley & Sons]
Answer: Organizational strategy can be defined as the organizations design and also the decisions created by the organization to recognize, set up, bring together and to control its work functions.
The three most important organizational strategies of Google are:
1. You're outstanding, we're hiring: The founders of the business assume that it is intelligence over experience that matters a whole lot. The recruitment requirements of Google are arranged so high even though recruiting the business makes certain that the candidate is preferable to at least one with their current employees. One more standout insurance policy is Google makes no use of hiring professionals which others do.
The above pictorial representation shows the hiring process in Google. Two types of strategies are implemented for recruiting, the blue brand suggests: Hire-above-the-mean and the orange collection signifies: Hire-above-the-min. The founders of the business think that every employee takes on an essential part in the success of the organization [Peter Norvig, 2006]
2. You may generate profits without doing evil: Google feels that money can be produced even in genuine traditions also. Money they make come across offering companies with search technology and from advertising. The professionals have set up some guidelines for individuals who wish to advertise on Yahoo so as to ensure the user's hassle free navigation on the site. Ads are not allowed to display on the results page unless they are essential to this content that is sought out. The company feels that advertising are best dished up when they are experiencing relevance with the content. Yahoo doesn't allow pop-up advertising which acts like a hurdle. Text advertising get most taking a look at when they carry relevance with content the user is viewing. Ads displayed on Yahoo are just sponsored links and the business will not maneuver the search positions which is not possible to purchase a better web page ranking.
3. You can be serious with out a suit: Yahoo allows wide open and free work culture. It offers employees with benefits like free foods, on-site gym, variety of game titles etc. There is a belief in the organization that creativity can be achieved with good organizational culture. In spite of having an open work culture, the management makes sure that there exists a well organized composition for taking well organized decisions and put these into activities.
These three important organizational strategies yielded higher job satisfaction among employees and made Yahoo the best company to work with. These three strategies on the view seem to be to be simpler but to put into practice them successfully requires a great vision. After taking a look at Google's success history many large range and mid-size business tried to apply these strategies, but only a little success is achieved.
[Peter Norvig, "Hiring: the Lake WobegonStrategy", Retrieved from http://googleresearch. blogspot. com/2006/03/hiring-lake-wobegon-strategy. html, on 16th June 2006]
4. Which of porter's three generic strategies does Yahoo seem to be using based on this case? Give a rationale for your response.
Answer: Google adapted porter's "Differentiation" strategy. Differentiation can be explained as "A technique that demands development of something or service that offers exclusive capabilities which are valued by customers and customers trust the products or services when compared to others in your competition. Differentiation strategy involves handling performance or service issues and bridging that difference"
According to Tom Peters "Don't forget that it (your product or service) is not differentiated until the customer knows the difference. " [Terra L. Fletcher, 2010].
Companies using differentiation strategy should posses a solid research team which can examine the customer requirements and develop strategies to meet them. There exists a risk in increasing the price which is a consequence of increased development costs and companies can offer consumers a reason to choose their products. Applying differentiation strategy will give companies an advantage over their rivals.
According to 1000ventures. com three key issues are to be addressed by the organizations, they are setting, trust-building, and awareness. There are challenges involved in implementing this strategy. Organizations must create trust in the users they are different form their rivals and then to ensure that they are providing what they guaranteed for the users and finally organizations need to be aware of the quality of the finish product that is delivered to customers.
Differentiation strategy worked well for Google. Users identified Google as a search engine and the business started exploring new ways to improve its services for customer. One standout feature utilized by Google which segregated it from its rivals is PageRank. PageRank is a system which delivers search results by computing a recursive credit score of web pages predicated on the weighted sum of the pages linked to the searched item. This gives an opportunity to provide the consumer with an increase of relevant information. The algorithm is updated regularly to enhance the performance and it is stored as a solution. This offered a opportunity for Google to maintain its competitive advantage over it rivals.
Google's internet-driven search advertising is a product launched by the company which supports the company's differentiation strategy. Google created Adwords for promoters who wish to target a specific audience and to reach them as proficiently as it can be. The difference of way between Google and its own competition in advertising is that it is straightforward to build an ad word and also deal with an online advertising consideration with easy repayment. Another advantage is it would be possible to advertise on associates of Google also rendering it possible for the firms to go global also. Research team at Yahoo always looks for methods and methods on how to increase the difference and separate them from their competitors. They are also in look out at means with which they can efficiently present their users about the difference, which is giving them an edge.
The management at Google believes that for a business to go strong and have an extended run, it is essential to have a strong, well-defined and organised differentiation strategy.
[Terry L. Fletcher, "How Business differentiation strategy can help provide a competitive advantages", pg1-1 retrieved from http://www. helium. com/items/1808015-business-differentiation-strategy on 16th June 2010].
[Google, "Corporate information", retrieved from http://www. google. com/corporate/tenthings. html on 16th June 2010].
5. Using D' Aveni's Hypercompetitive Construction, analyze Google's strategy and the type of market disruption it created
Answer: D' Aveni's suggested seven options for organizations to consider them in their business strategy. Which can be as follows:
Superior Stakeholder satisfaction:
Google functioned in understanding the needs of the users in order to increase client satisfaction and make it more worthy of by implementing various strategies.
Google provide users with vast knowledge in section of their expertise that will help them to anticipate, review, and create opportunities to achieve new horizons.
Positioning for swiftness:
Google ensure that they help the users immediately in terms of all aspects when the need occurs.
Positioning for Surprise
Google has astonished the market by enhancing the search engine with new features and technologies that has made the job of searching more flexible. For e. g. it creates the search more filtered and provide results to the users with the most likely once. It offers surprised the other machines like yahoo, bing etc by its capacity to determine whether the specific link is editorial cited or an man-made link.
Shifting the guidelines of competition:
The transformation of Google from a straightforward design to more superior internet search engine is commendable and has always come up with new strategies to serve the clients and has totally revolutionized the industry. They have given new measurements to the advertisement world.
Signaling strategic intent:
Google has considered the intended activities of the business and has restructured them in such a way that it has failed all the new strategies of its challengers. It maintains its trust on the old sites and has also relied on its sub site site that places it to higher rank even though there are no citations.
Simultaneous and sequential proper thrusts:
Google has used best business rules and different steps to always mistake its competitors unlike yahoo who cannot determine whether a link is absolutely cited or not. Google in comparison with yahoo it always looks for natural development of the link over the time.
Google has revolutionized just how business is conducted; it broke all the barriers and changed just how business is conducted. The business did not demand users for using their technology instead it relied on companies to supply the revenue. Google storyline proves that business need not to be conducted in regular way; it emphasized on supplying the employees independence to work and also to encourage the invention among the staff.