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
1 Comment
Nicole
9/27/2017 02:22:41 pm
These two assignments (SWOT and E&E) are done very well! Good job! Your grades for these assignments are now posted on Blackboard.
Reply
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |