Question

PART 3 ORGANIZATIONAL LEADERSHIP 396 OPENING CASE Application As chief executive officer, Larry Page is responsible for Google's product development and technology strat- egy Sergey Brin co-founded Google Inc. with Larry Page in 1998. Today, he directs special projects. Eric Schmidt. In other words, Googe is a change-driven, not a status-quo, organization Google certainly strives for a strategy-culture fit. As Google's leadership sees it, great, creative things are more likely to happen with the right company culture.At Google, there is an emphasis on team achievements and pride in individual accomplishments that contribute to its success former CEO, is the executive chairman of the board. Together, these three men provide strategic leadership at Google. Google's mission is to organize the world's information and make it universally accessible and useful. By providing the best user experience, Google and its leadership team The company puts great stock in its employees who are described as energetic and passionate. Google strongly believes in diversity. Its employees come from diverse believe that they can build a company that will create more value, not just for its users but ultimately for its share- backgrounds with creative approaches to work and play The company's culture is adaptive, yet casual and very informal. This culture type is key to Google's holders. Its business model is based on providing a free information search engine to millions of subscribers in ex success as an innovator Idea generation is the first step to new product development. At Google, it is not uncommon for a new idea to emerge in a café line, at a team meeting, or at the change for the sale of ads that appear alongside its search engine results. Google's advertising programs range from simple text ads to rich media ads that help businesses find customers and help publishers make money off of their content. The company also provides cloud computing tools for businesses that save money and help organizations be more productive. Google has on its Web site a page titled "Ten things we know to be true."The 10th item states, "Great just isn't good enough." This 10th item discusses Google's goal-setting strategy. "We set ourselves goals we know we can't reach yet, because we know that by stretching to meet them we can get further than we expected goals, a mark of strategic leaders whose vision stretches gym. What sets Google apart from its competitors is the dizzying speed with which new ideas are traded, tested, and put into practice. Google is one of the world's most dominant com- panies. Google can be accessed in 120 languages and available in 50 countries worldwide. By any standard or metric, Google is a standout company, and perhaps the main reason for its superiority is its remarkable style of leadership Google's results speak for its performance. The com pany reached $1 billion in revenue in six years, ten years faster than Microsoft. The Google brand is valued at $100 billion, making it the world's first "one-hundred oogle sets stretch way beyond what others think is possible. Through innova- tion and iteration, Google aims to take things that work well and improve upon them in unexpected ways."We try to anticipate needs not yet articulated by our global audi- ence, and meet them with products and services that set new standards. This is the essence of strategic leadership billion" brand OPENING CASE QUESTIONS: I. How effective has the executive leadership team of Schmidt, Page, and Brin been in providing the kind of strategic leadership that Google has seen anticipating customer needs and then designing innovative so far products/services that will satisfy those needs. The strate- 2. Critique Google's mission statement. 3. How well do Google's long-term objectives gic management process is about having the right vision, setting challenging objectives, and formulating the right strategies to achieve these objectives and keep mov- balance with the interests of its stakeholders? 4. Describe Google's business environment. How well is Google adapting to it? ing toward the vision. Google is certainly pursuing a dif- ferentiation strategy. Google is always looking for new opportunities where it can make a difference. "Ultimately 5. What type of strategy is Google pursuing, and why do you think the leadership team has cho- sen such a course rather than the alternatives? our constant dissatisfaction with the way things are becomes the driving force behind everything we do."

Answer 1

1. The leadership team of Schmidt, Page and Brin has created a successful revenue generating model of keyword advertising. This is implied from the fact that Google has revenue generation in billion dollars. Yes, in the last financial quarter in 2010 alone the company has exceeded profits of $2 billion. Google’s current stock price is $530 per share. This has proved that the long-term objective of share holder value has been met and it has also exceeded the expectations. Thus, the performance showcases that the leadership team has been highly effective in all the areas of responsibility. They have successfully implemented the strategies to make Google a successful company.
2. Google’s mission statement is to make the information and data to be universally accessible by all and make it useful. This has been a highly successful mission statement providing guidance and direction for the company in its field. The mission statement also includes a phrase to organize the world’s information which has been made possible through the search engines of Google.
3. Google’s leadership team strongly believes that in the long run, Google would be able to provide maximum share holder and customer value by providing the customers great satisfaction through their user experience. That is why they brought talented and motivated workforce onboard. This has made the company become more successful by increasing the quality of the search results in search engines. Thus, revenue and profits has increased drastically. Google provides generous compensation packages and benefits to its employees to motivate and retain them. The Corporate Social Responsibility of Google has made the company increase the economic growth and job opportunities to the public. Google understands the requirements of its various stakeholders such as employees, community groups, share holders, etc and takes all efforts to meet their requirements.
4. Google is an online company and operates in the internet sector which undergoes fast and rapid changes in technology. The user needs changes constantly and so is the technology to offer the users’ needs is changing accordingly. Google has well adapted to the turbulent business environment and has created networking system using the commercial hardware to support the collection, storage and retrieval of the data any time required. The competition is intense in the competing environment due to the existence of Yahoo and Facebook. The company’s socio-cultural environment also keeps changing as the demographic changes takes place in the world.
5. The strategy that the leadership team has adapted is the innovative strategy. The leadership trio felt that innovation is required to create solutions that meets the user preferences in the fast paced business environment.