Google and the Government of China: A Case Study in Cross-Cultural Negotiations SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Global Business
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Google and the Government of China: A Case Study in Cross-Cultural Negotiations
Based on the negotiation between Google and the Chinese government to allow access by Chinese citizens to a high-speed Chinese version of the Google search engine. In order to reach agreement with the Chinese government, Google had to agree to allow the government to censor access to some sites turned up by Google's search engine. In agreeing, Google compromised its open-access policy. There were inquiries into the agreement by the U.S. Congress and some outcry from U.S. citizens.
Swot Analysis of "Google and the Government of China: A Case Study in Cross-Cultural Negotiations" written by Christopher Grogan, Jeanne Brett includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Google Chinese facing as an external strategic factors. Some of the topics covered in Google and the Government of China: A Case Study in Cross-Cultural Negotiations case study are - Strategic Management Strategies, Cross-cultural management, Ethics, Government, Negotiations, Social responsibility, Strategy and Global Business.
Some of the macro environment factors that can be used to understand the Google and the Government of China: A Case Study in Cross-Cultural Negotiations casestudy better are - – central banks are concerned over increasing inflation, talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, increasing energy prices, there is backlash against globalization, challanges to central banks by blockchain based private currencies, supply chains are disrupted by pandemic ,
wage bills are increasing, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of Google and the Government of China: A Case Study in Cross-Cultural Negotiations
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Google and the Government of China: A Case Study in Cross-Cultural Negotiations case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Google Chinese, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Google Chinese operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Google and the Government of China: A Case Study in Cross-Cultural Negotiations can be done for the following purposes –
1. Strategic planning using facts provided in Google and the Government of China: A Case Study in Cross-Cultural Negotiations case study
2. Improving business portfolio management of Google Chinese
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Google Chinese
Strengths Google and the Government of China: A Case Study in Cross-Cultural Negotiations | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Google Chinese in Google and the Government of China: A Case Study in Cross-Cultural Negotiations Harvard Business Review case study are -
Low bargaining power of suppliers
– Suppliers of Google Chinese in the sector have low bargaining power. Google and the Government of China: A Case Study in Cross-Cultural Negotiations has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Google Chinese to manage not only supply disruptions but also source products at highly competitive prices.
Highly skilled collaborators
– Google Chinese has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Google and the Government of China: A Case Study in Cross-Cultural Negotiations HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Global Business segment
- digital transformation varies from industry to industry. For Google Chinese digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Google Chinese has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Sustainable margins compare to other players in Global Business industry
– Google and the Government of China: A Case Study in Cross-Cultural Negotiations firm has clearly differentiated products in the market place. This has enabled Google Chinese to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Google Chinese to invest into research and development (R&D) and innovation.
Effective Research and Development (R&D)
– Google Chinese has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Google and the Government of China: A Case Study in Cross-Cultural Negotiations - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Superior customer experience
– The customer experience strategy of Google Chinese in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Google Chinese is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Training and development
– Google Chinese has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Google and the Government of China: A Case Study in Cross-Cultural Negotiations Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Organizational Resilience of Google Chinese
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Google Chinese does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Google Chinese has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Ability to recruit top talent
– Google Chinese is one of the leading recruiters in the industry. Managers in the Google and the Government of China: A Case Study in Cross-Cultural Negotiations are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Innovation driven organization
– Google Chinese is one of the most innovative firm in sector. Manager in Google and the Government of China: A Case Study in Cross-Cultural Negotiations Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Google and the Government of China: A Case Study in Cross-Cultural Negotiations | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Google and the Government of China: A Case Study in Cross-Cultural Negotiations are -
High cash cycle compare to competitors
Google Chinese has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Slow decision making process
– As mentioned earlier in the report, Google Chinese has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Google Chinese even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Google and the Government of China: A Case Study in Cross-Cultural Negotiations, in the dynamic environment Google Chinese has struggled to respond to the nimble upstart competition. Google Chinese has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Capital Spending Reduction
– Even during the low interest decade, Google Chinese has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Lack of clear differentiation of Google Chinese products
– To increase the profitability and margins on the products, Google Chinese needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Google and the Government of China: A Case Study in Cross-Cultural Negotiations that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Google and the Government of China: A Case Study in Cross-Cultural Negotiations can leverage the sales team experience to cultivate customer relationships as Google Chinese is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Google and the Government of China: A Case Study in Cross-Cultural Negotiations, it seems that company is thinking about the frontier risks that can impact Global Business strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Google and the Government of China: A Case Study in Cross-Cultural Negotiations HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Google Chinese has relatively successful track record of launching new products.
Need for greater diversity
– Google Chinese has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Skills based hiring
– The stress on hiring functional specialists at Google Chinese has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Increasing silos among functional specialists
– The organizational structure of Google Chinese is dominated by functional specialists. It is not different from other players in the Global Business segment. Google Chinese needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Google Chinese to focus more on services rather than just following the product oriented approach.
Opportunities Google and the Government of China: A Case Study in Cross-Cultural Negotiations | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Google and the Government of China: A Case Study in Cross-Cultural Negotiations are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Google Chinese in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Google Chinese can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Google Chinese to increase its market reach. Google Chinese will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Learning at scale
– Online learning technologies has now opened space for Google Chinese to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Buying journey improvements
– Google Chinese can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Google and the Government of China: A Case Study in Cross-Cultural Negotiations suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Google Chinese to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Google Chinese to hire the very best people irrespective of their geographical location.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Google Chinese can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Google Chinese can use these opportunities to build new business models that can help the communities that Google Chinese operates in. Secondly it can use opportunities from government spending in Global Business sector.
Creating value in data economy
– The success of analytics program of Google Chinese has opened avenues for new revenue streams for the organization in the industry. This can help Google Chinese to build a more holistic ecosystem as suggested in the Google and the Government of China: A Case Study in Cross-Cultural Negotiations case study. Google Chinese can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Google Chinese in the consumer business. Now Google Chinese can target international markets with far fewer capital restrictions requirements than the existing system.
Low interest rates
– Even though inflation is raising its head in most developed economies, Google Chinese can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Building a culture of innovation
– managers at Google Chinese can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Global Business segment.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Google Chinese to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Threats Google and the Government of China: A Case Study in Cross-Cultural Negotiations External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Google and the Government of China: A Case Study in Cross-Cultural Negotiations are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Google Chinese can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Google and the Government of China: A Case Study in Cross-Cultural Negotiations .
Increasing wage structure of Google Chinese
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Google Chinese.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Google Chinese business can come under increasing regulations regarding data privacy, data security, etc.
Technology acceleration in Forth Industrial Revolution
– Google Chinese has witnessed rapid integration of technology during Covid-19 in the Global Business industry. As one of the leading players in the industry, Google Chinese needs to keep up with the evolution of technology in the Global Business sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Shortening product life cycle
– it is one of the major threat that Google Chinese is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Google and the Government of China: A Case Study in Cross-Cultural Negotiations, Google Chinese may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Google Chinese will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Stagnating economy with rate increase
– Google Chinese can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Google Chinese needs to understand the core reasons impacting the Global Business industry. This will help it in building a better workplace.
Environmental challenges
– Google Chinese needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Google Chinese can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Consumer confidence and its impact on Google Chinese demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Weighted SWOT Analysis of Google and the Government of China: A Case Study in Cross-Cultural Negotiations Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Google and the Government of China: A Case Study in Cross-Cultural Negotiations needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Google and the Government of China: A Case Study in Cross-Cultural Negotiations is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Google and the Government of China: A Case Study in Cross-Cultural Negotiations is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Google and the Government of China: A Case Study in Cross-Cultural Negotiations is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Google Chinese needs to make to build a sustainable competitive advantage.