Value Based Management of Organizations & Hr - Google Case

Value Based Management of Organizations & HR

This is a take-home exam and you are free to discuss the case questions among your classmates but you are required to write your answers individually. Please select one and only one answer for each of the multiple-choice questions after reading the GOOGLE, Inc. case. Use the space provided after each question to justify your answer. (10 points each)

In your written answers please include the following two elements:

a- Justify your choice by providing evidence from the case

b- Define the specific technical term that is part of your choice

1) As the case indicates on page 3, Google developed a specific set of objectives early on, such as, focus on the user; it is best to do one thing really well; fast is better than slow. These principles are the basis of

a) Google's business model (My Answer)

b) Google's business strategy

c) Google's organizational strategy

d) Google's business change strategy

There were two keys for Google's success. The first was enhancing the relevancy of web search results and the other was monetizing search traffic so that a financially viable business model could be established. So, Let's look at the 3 main principles of Google;

- Focus on the user; Google has focused on providing best user experience possible.They have built the most loyal audience on the web by always placing the interest of the user first.

- It is best to do one thing really well; Goggle does search. They are focused exlusively on solving search problems ranging from known areas to unexplored areas.

- Fast is better than slow; People wants relevant answers and they want them right now.

If Google could not build such a loyalty by focusing on user, then the system could not be financially viable since number of visitors would be less. If google could not focus on the one thing that they can do really well than they could not be as succesffull in the relevancy of search results as today. And if their system was not fast, then the users would switch to the one which is more faster. Then again number of users would drop and model will not be financially viable.

Business model is a set of assumptions about how an organization will perform by creating value for all the players on whom it depends, not just its customers. Google's business model explained above had created a value to its Ecosystem including companies to which Google outsource some business functions, customers, instutitions, regulatory agencies, media outlets, direct competitors, and firms that need technology to perform their business.

2) Which of the following best describes the ecological strategy of Google, Inc.?

a) Niche

b) Commodity

c) Keystone (My Answer)

d) Physical dominator

Web services industry face a rapid and constant change. The level of turbulence and innovation is very high in this business. It is very obvious in the case that firms are in a race of innovation. They have to create new services and functionalities in order to create a value to their users. In addition, Inter-firm relationship complexity is high. For example, Google has to work with and should have relationship with Motorola, Vodafone, Blacberry and etc.. in order to develop Google News for mobile devices services. Or with Palm and Airtel in order to lunch and operate Google Earth services. Therefore, since there is a high level of turbulence and high level of complexity of inter-firm relations, Google ecological strategy is 'Keystone' (Value Dominator) strategy.

3) A healthy business ecosystem is characterized by several dimensions such as productivity and robustness. Based on the information provided in the case, which of the following dimensions is the most successful in the web search services industry because of Google's actions?

a) Robustness

b) Productivity

c) Niche creation (My Answer)

d) Problem solving

Niche creation is the ability of a network to exhibit variety, or the ability to support a diversity of firms in the ecosystem through the cretion of valuable new functions. One way to assess niche creation is to look at the extend to which emerging technologies are actually beign applied in the form of a variety of new business and products. As