SWOT is a professional acronym for the idea that every organization has Strengths, Weaknesses, Opportunities, and Threats. Even a successful, global leader in technology like Google is not exempt. Strengths and Weaknesses are generally considered internal, while Opportunities and Threats are generally considered external.
The SWOT shown above is only a brief overview of some of the elements in each quadrant. Below the bulleted items will be expanded upon with support and explanations. StrengthsInnovative Leadership: Google counts some of the most innovative minds in the the technology industry as their own. Co-Founder Larry Page is especially recognized for being a leader in innovation. CEO Sundar Pichai is the highest rated CEO on Glassdoor.com for 2017 (Glassdoor, 2017). Profitable Revenues: Google consistently has stellar profits in the tens of billions, and in the past five years the profitability has only increased. Ceteris paribus, those profits will continue to rise. (Alphabet Inc., 2017) Strong Core Product Offerings: The core product offerings that Google has are top in their class. Search, Android, Maps, Chrome, YouTube, Google Play, and Gmail are the lineup with over a billion monthly users. (Alphabet Inc., 2017). Google Search is the premier search engine on the web, and Google Scholar is making strides in creating easier access to academic sources. The Android OS for smartphones is the only competitor to Apple's ios. Maps is incredibly accessible, and with the acquisition of Waze, Google has made Maps even more accurate. Chrome is a streamlined browser with many useful add-ons available, but without the bloatware that frequently comes with other browsers. YouTube is the source for user created video content on the web, it is being utilized more and more by organizations and for educational purposes. Google play is not only an appstore for the Android mobile platform, but also offers streaming music and video services. E-books and magazine subscriptions are also available. Gmail is one of the top free e-mail providers and is gaining more users everyday, especially with the advent of organizations using them for their professional address purposes. Excellent Employee Culture: Glassdoor.com shows Google as having 4.4 out of 5 stars, this rating is based on 7.5K reviews. Google has received multiple awards for the best company to work for over the years, notably six years in a row as #1 on Fortune Magazine's Listing. (Fortune, 2017) Management Practices: The management practices at Google are so revered that the Harvard Business Review featured a piece last month on the release of those management practices. The takeaway, simple is not obsolete (Sadun, 2017). WeaknessesRed Tape and Bureaucracy: According to the course text, Organization Theory & Design, 12e by Richard L. Daft, Google is in the 4th stage of organization development, the crisis that Google is facing is sited at "Too much red tape" (Daft, 2016). Google is already combating this crisis by bringing back co-founder Larry Page to "cut the bureaucracy and bring back and entrepreneurial spirit" (Daft, 2016). So large, some areas lack focus: Google, and now Alphabet Inc. has so many fingers in so many pies that some product areas lack focus and are not reaching their full potential. The organizational restructuring that is currently ongoing is working to combat this weakness. Hiring process overly complex: There are jokes that float around job hunters comparing interview difficulties to what one would expect to experience at Google, especially when related to problem solving questions that seem to make no sense for the position desired. Glassdoor.com has a rating system for the hiring process for users. Google is rated as above average difficulty but overall positive experience. OpportunitiesExpand Google Docs Office Suite: Google is the go-to for so many of the products under its umbrella, however the Google Docs office suite, while improving constantly still has ample room to improve and expand capabilities. Developing Markets: In today's global economy it is hard to imagine that there are still places that are unreachable by the internet superhighway. As developing countries come online Google has the opportunity to gain a foothold in those markets. In the 2016 Annual Report Google states, "We believe that technology is a democratizing force, empowering people through information. We are helping people get online by tailoring hardware and software experiences that suit the needs of emerging markets, primarily through Android and Chrome. We’re also making sure our core Google products are fast and useful, especially for users in areas where speed and connectivity are central concerns" (Alphabet Inc., 2017). This lends itself to the idea that this is an opportunity that Google is pursuing. Revenue Stream Diversification: There are many areas that are under tapped for revenue streams. The smartphone and tablet market has many offerings but google's releases are few and far between. Expand Entertainment Streaming: Netflix, Amazon Prime, Hulu, and Pandora, are household names in the entertainment streaming market. Google Play is under recognized and underutilized in this market sector. This presents a huge opportunity for Google to strengthen its offerings in this market. Digital Home Integration: Amazon's Alexa and Apple's Siri control the universe; not in reality but there is a future that could be close. The Google Assistant tries, but simply is not there yet. The Google Home sector is working toward this, so again it is an opportunity that Google is moving to capitalize on. Green Technologies: In the 2016 Annual Report, Google indicated that with climate change being a real concern that by 2017 Google would be at 100% renewable energy for its operations. THis was from a goal set in 2012. Further monies are being invested into green technology research and development, often with Google employees being the individuals to beta test and review products (Alphabet Inc., 2017). Everyone is going green, and everyone is looking for green solutions. This is an excellent opportunity for a global organization with a strong entrepreneurial spirit to make a difference. ThreatsThese threats are extrapolated from the 2016 Annual Report. There were others listed, but some can be discussed under a single bullet. Intense Competition: "We face intense competition. If we do not continue to innovate and provide products and services that are useful to users, we may not remain competitive, and our revenues and operating results could be adversely affected." (Alphabet Inc., 2017) Some of the biggest competitors that Google faces are other leaders in the Tech Industry; Apple and Amazon. Apple users are fiercely loyal and often live a life completely dependent on the brand. This means that a huge threat is that if just one user switches to an iPhone or and iPad Google could lose business with the entire family and across multiple product lines. Amazon is a leader for online shopping and quickly becoming one of the best sources for entertainment streaming, both video and audio. Their acquisition of the Audiobook provider Audible was a huge bonus for them. Amazon also offers inexpensive tablets in their Kindle Fire line, however Amazon products are completely non-compatible with Google services, to the point that you cannot actually download the Gmail app on a Kindle Fire. This is another threat to Google's consumer base. Primary Revenue Stream: 88% of Google's revenue came from advertising in 2016 (Alphabet Inc., 2017). That is a lot of eggs in one basket. If that revenue stream were to change, and not for the better Google would be in some serious trouble. If Google's net income was $19.4B in 2016 (Alphabet Inc., 2017), 88% of that would be $17.1B from advertising, leaving only $2.3B from other revenue streams. Risky Investment Practices: Any innovative and entrepreneurial organization is going to have to make risky investments. The higher the risk, the higher possible reward, however that is also true of failure. Huge risks can translate to huge failings. Dependence on Technology Adoption: This was touched upon in the other areas but it is so true. If Google technology is not adopted on a large scale than the products are worthless, regardless on the value of those products. For example, Google Play has a lot to offer but the ability to stream music and TV offerings is hindered by the fact that it is not available through many of the commonly used hardwares such and vehicle systems, smart TVs, and Roku type devices. Government Regulation and Legal Ramifications: The law is a specialty unto itself, but as a global innovator in technology and a large organization with frequent acquisitions laws and regulations can and do pose very real threats. The 2016 Annual Report summarizes in multiple sections the following statements: "We are subject to increasing regulatory scrutiny that may negatively impact our business. Additionally, changes in policies governing a wide range of topics may adversely affect our business...A variety of new and existing laws could subject us to claims or otherwise harm our business...We are regularly subject to claims, suits, government investigations, and other proceedings that may result in adverse outcomes...We may be subject to legal liability associated with providing online services or content...Privacy concerns relating to our technology could damage our reputation and deter current and potential users from using our products and services...If our security measures are breached resulting in the improper use and disclosure of user data, or if our services are subject to attacks that degrade or deny the ability of users to access our products and services, our products and services may be perceived as not being secure, users and customers may curtail or stop using our products and services, and we may incur significant legal and financial exposure...We are, and may in the future be, subject to intellectual property or other claims, which are costly to defend, could result in significant damage awards, and could limit our ability to use certain technologies in the future"(Alphabet Inc., 2017). Erring on the side of caution to accurately report threats that include large amounts of legalese, direct quotations were used. Even though the SWOT shows more threats than opportunities that does not make Google a weak company or investment. There are infinite opportunities available for Google to take advantage of and there is little doubt that Alphabet Inc. and Google will remain at the top for many years to come. BibliographyAlphabet Inc. (2017, February 2). Alphabet Inc. 2016 Annual Report Form 10-K. Retrieved September 24, 2017, from https://abc.xyz/investor/pdf/2016_google_annual_report.pdf
Daft, R. L. (2016). Organization Theory and Design Twelfth Edition. Boston, MA: Cengage Learning. Fessler, L. (2017, August 21). Google is sharing its management tools with the world. Retrieved September 24, 2017, from https://qz.com/1058563/these-are-googles-tools-for-effective-management/ Fortune. (2017). Google. Retrieved September 25, 2017, from http://fortune.com/best-companies/google/ GOOG Profile | Alphabet Inc. Stock. (2017, September 24). Retrieved September 24, 2017, from https://finance.yahoo.com/quote/GOOG/profile?p=GOOG Google Career Overview. (n.d.). Retrieved September 24, 2017, from https://www.glassdoor.com/Overview/Working-at-Google-EI_IE9079.11,17.htm Sadun, R. (2017, August 25). Google's Secret Formula for Management? Doing the Basics Well. Retrieved September 24, 2017, from https://hbr.org/2017/08/googles-secret-formula-for-management-doing-the-basics-well
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Google, the primary company that operates under the conglomerate of Alphabet Inc is a technology company headquartered in Mountain View, California in the greater San Francisco Bay area (Yahoo!Finance, 2017). The transition to Alphabet Inc in 2015 was one that restructured the organizational design of the company into sectors to maximize the efficiency and effectiveness of the organization overall. Most revenues, 88% in 2016 (Alphabet Inc., 2017), are generated through advertising income, as Google is one of the most iconic search engines in the world. They focus on two different types of advertising, performance and brand. Programmatic advertising is a third sector, though with a smaller focus than the previous two. “Google’s core products such as Search, Android, Maps, Chrome, YouTube, Google Play, and Gmail each have over one billion monthly active users”(Alphabet Inc., 2017). To determine if an organization is efficient or not is to examine those organizational goals that focus on inputs, use of resources, and costs. To score Google on an efficiency scale of 1-5, first examine profitability. While Google and many other tech industry companies have reputations for superfluous spending, that reputation is an industry standard and most of those expenses are credited with increasing efficiency and effectiveness. Google knows that their greatest resource is human capital. The net income, or profit, for Google has risen steadily over the past five years, growing incrementally from $10.B in 2012 to $19.4B in 2016 (Alphabet Inc., 2017). Google is certainly efficient and is a leader in the technology industry and global companies overall. Glassdoor.com rates google at a 4.4, rounding to the nearest whole number, that is a 4.(Glassdoor.com, 2017) Because human capital is one of the most valuable resources that Google possesses, Google also receives a 4 in efficiency. To determine if an organization is effective or not is to examine those organizational goals that focus on outputs, products or services, and revenues. To score Google on an effectiveness scale of 1-5 is both a challenge and not one simultaneously. Empirically, Google scores a 5 without hesitance. Theoretically scoring Google on the effectiveness scale is a greater challenge; not due to a lack of information, but a surplus. The textbook Organization Theory & Design, 12e by Richard L. Daft, lists sixteen indexed locations of the company within that text alone (Daft, 2016). Google is more than a company, it is a culture, and is even used as a verb, demonstrably by the snarky internet site LMGTFY.com, an abbreviation for “Let Me Google That For You”. Here is a great example of its use: http://lmgtfy.com/?iie=1&q=Efficiency+and+Effectiveness. Though isolating relative information on a company that is so integrated into life in the new millenia is a challenge, the scoring remains a 5.
According to Alphabet Inc’s 2016 Annual Report, Google states that “Our vision is to remain a place of incredible creativity and innovation that uses our technical expertise to tackle big problems” (Alphabet Inc., 2017). The 2016 Annual Report further states “Google’s mission to organize the world’s information and make it universally accessible and useful has always been our North Star”(Alphabet Inc., 2017). To operate and stay true to the above vision and mission a company would almost have to be in quadrant “D” out of necessity. According to the course text, Fast Company ranked Google as number 1 on the 50 Most Innovative Companies in 2014 (Daft, 2016). This supports the placement of Google in quadrant “D”. BibliographyAlphabet Inc. (2017, February 2). Alphabet Inc. 2016 Annual Report Form 10-K. Retrieved September 24, 2017, from https://abc.xyz/investor/pdf/2016_google_annual_report.pdf
Daft, R. L. (2016). Organization Theory and Design Twelfth Edition. Boston, MA: Cengage Learning. GOOG Profile | Alphabet Inc. Stock. (2017, September 24). Retrieved September 24, 2017, from https://finance.yahoo.com/quote/GOOG/profile?p=GOOG Google Career Overview. (n.d.). Retrieved September 24, 2017, from https://www.glassdoor.com/Overview/Working-at-Google-EI_IE9079.11,17.htm For My MBA F617 Class Organizational Theory for Managers I had to create an introduction to share with my peers. Video was recommended and it was to include: Name, Year and Major in the Program, Past Work Experiences, Current Work, and Something Unique. Here is my video, enjoy.
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