Strategic direction

All posts tagged Strategic direction

Strategic Direction Conclusion

Published May 9, 2014 by Mayrbear's Lair
Google-Workspace

Google Headquarters

It is clear that the leaders of Google comprehend the importance of strategic management and the effects it has in a competitive environment. In fact, it is evident from the strategic direction they have been moving in that the firm has developed effective strategies to help them continue to achieve successful outcomes. Coulter (2010) explained that in a business arena, competition exists everywhere because every firm in business wants to succeed and earn a top position in their marketplace (Coulter, 2010). For example, when other search engines like Bing and Ask.com entered the marketplace, Google knew it had to work harder to maintain its position at the top and many agree they have done an impressive job to remain there.

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Needless to say, the Google story is a fascinating one. Rees-Mogg (2007) described the data technology firm as a $150 billion company that was developed to use powerful mathematical systems to search for information. They have been so successful that their site boasts a half a billion visitors every month. In fact, in 2007, CEO, Eric Schmidt, stated that from all the data they gather from consumers, the company will have accumulated enough information to give them the capacity to act as each individual’s intimate personal adviser (Rees-Mogg, 2007). That fact is both impressive and alarming. Google claims their mission is to organize the world’s information and make it globally useful and accessible. But many are concerned that the strategic direction they are headed in will rob citizens of something they value more than anything … their privacy.

google headquarters

In conclusion, the findings of my research on the Google Company reveals substantial evidence of an effective management team who developed efficient operating systems to guide the strategic direction of the firm. In addition, they have achieved high performances, successful outcomes, and maintain a strong position in the global marketplace. Based on my analysis, the recommendations I would make for the firm is that they continue on the innovative trajectory they are on. However, I would also caution that with great power comes great responsibility. Because of all the personal data they collect from their users, without implementing a strategic direction that includes a strong ethical culture, this scenario sets a stage that is ripe for a gross abuse of power. In other words, under the management of leaders that engage in behavior of misconduct, acts of greed, and deception, their technological capabilities can also serve as a tool to cause destruction and harm to others. Let’s hope the leaders at Google do not sell out to the likes of those who aspire to achieve outcomes like a Lex Luthor.

That’s it for this week. Let’s have a great weekend everyone … and keep organized in the process!

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“When a person really desires something, all the universe conspires to help that person to realize his dream.” ― Paulo Coelho

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References:

Coulter, M. (2010). Strategic management in action (5th ed.). Upper Saddle River, NJ: Pearson Education, Inc.

Rees-Mogg, W. (2007, Ma 27). How Google wll satisfy all our lives. Mail on Sunday, 63.

Strategic Direction (Part 1)

Published May 5, 2014 by Mayrbear's Lair

strategy

This week the focus of my research work takes a look at the different methods successful organizations implement to manage a firm’s strategic direction. To illustrate this concept, I have chosen a Fortune 500 company and will identify the corporation’s strategic direction, as well as provide recommendations for changes that could be valuable in future endeavors. The organization I chose to focus on was Google. The reason I chose this firm is because I use many of their products and wanted to learn more about this company I have been supporting. Plus, I was fascinated to find out more about the business strategies they incorporate which have allowed them to achieve meteoric levels of success.

google

Google was founded in 1998 and currently serves billions of consumers around the world. The firm provides a variety of services for individual people as well as for businesses. Larry Page, the organization’s co-founder and CEO, reveals that Google’s initial strategic direction was to provide the perfect search engine that understands exactly what the consumer needs and provide them exactly what they want (Google, 2013). Since that time, however, the firm has incorporated expansion tactics in the strategic direction process that has helped them grow by including other products and services that go beyond that of their search engine capabilities.

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Their expansion strategies, for example, have guided the firm to include the addition of technologies such as Gmail, Google Docs, Google Drive, and the internet browser Chrome. In addition, the firm has branched out and developed partnerships with other corporations like LEGO to create a collaboration that allows users access to 3D technology so they can develop and publish their own creations (Chrome + LEGO: You can build whatever you like, 2014).

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As if that weren’t enough, the firm also expanded their efforts into the mobile phone industry. For example, in 2012, Google purchased Motorola to help promote their smartphone brand Android. However, because of the high level of competition in the smartphone industry, the firm recently adjusted their strategic direction by selling Motorola to Lenovo for $2.91 billion dollars.

GooMoto

The strategy behind this move was to provide better services to consumers. For instance, Google strategists believe that Lenovo has the ability and expertise to restore Motorola as the major industry player it once was using the Android ecosystem as a means to achieve this. This strategic decision was based on Lenovo’s impressive experience with hardware as well as their impressive level of global reach.

from-google-to-lenovo

Lenovo, in the meantime, will keep Motorola’s brand identity, while Google retains the vast majority of Motorola’s patents which they intend to use to support the Android system (Lenovo to acquire Motorola Mobility, 2014). In short, to expand the firm’s abilities and capabilities, Google’s partnering with LEGO, in addition to the sale of Motorola to Lenovo, were corporate strategic moves that were designed to move the organization forward by utilizing a horizontal integration growth strategy. In other words, rather than go up against their competitors, Google implemented a strategic direction that combined their operations with that of their competitors. This brilliant move served to help them both meet their goals and establish a competitive edge in the market place.

Wednesday’s post will take a closer look at other strategic moves that helped Google navigate their path as a leader in the global arena.

Until then … let’s continue to work on getting organized!

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“Truth is by nature self-evident. As soon as you remove the cobwebs of ignorance that surround it, it shines clear.” — Mahatma Gandhi

 

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References:

Chrome + LEGO: You can build whatever you like. (2014, January 28). Retrieved February 2, 2014, from googleblog.blogspot.com: http://googleblog.blogspot.com/2014/01/chrome-lego-you-can-build-whatever-you.html

Google. (2013). Retrieved February 1, 2014, from Google.com: http://www.google.com/about/company

Lenovo to acquire Motorola Mobility. (2014, January 29). Retrieved February 2, 2014, from googleblog.blogspot.com: http://googleblog.blogspot.com/2014/01/lenovo-to-acquire-motorola-mobility.html