Globalisation of Google

Topics: Globalization, Strategic management, Google Pages: 15 (4209 words) Published: September 1, 2010
Introduction
Globalization can be defined as the integration of the world economies by allowing free movement of trade, technology and people (Daniel et al, 2009). Furthermore, the developments in technology are perceived as a driving force of globalisation (Denton & Al-Shamali 2000). This tends to be identified and observable in every day to day activity primarily due to the emergence of internet technology. The internet is globally integrating and merging the different nations of the world. The impact of the internet cannot be over emphasized; it has provided a common base upon which countries from the entire world are able to communicate and share information leading to a wide spread of values, culture and trade (Luthans and Doh, 2009). The impact of the internet technology on globalization includes the globalization expansion and improvement in the business strategies (Luthans and Doh, 2009. Google incorporated (inc.) which was formed in 1998 view the internet as a means for sharing the entire world’s data and to allow users a simple and quick mechanism to access this data. Its primary function is organising the world's information and making it universally accessible (www.google inc.com)

This article will analyze the global strategy of Google Inc’s. subsidiary in the Chinese market. It will also examine the set backs of Google, a multinational company (MNC) faced in entering China, in terms of government policy and cultural differences on its strategy. The first section briefly discuses a literature review of the integrated responsiveness (IR) framework which is used in the analysis of the international strategy of the company. This frame work was adopted in the analysis of Google because it is foundation for international strategy and also to examine the extent to which Google responded to the Chinese market. The second section will analyse Google as it carries out its international strategy in the Chinese market, while the third section focuses on the competitor analysis of other MNC’s in the internet search engine industry in China by comparing market share, customer satisfaction and company activities. Hence, recommendations will then be suggested to improve the internalisation strategy of Google in China. Google China was chosen for this article because of its recent threat to withdraw its operation from the Chinese market due the government censorship policy which is in conflict with Google’s mission and motto (Skynews.com)

Literature review
The integration-responsiveness framework has long been used in the analysis of international firms in foreign markets. Prahalad (1975), Doz (1976), and Prahalad and Doz (1987) designed the basis for the extensive research on international strategy. Giving a different view to international strategy, the main concept of the I-R framework is that companies operating internationally should be able to meet up with the need to respond to local demands and pressures imposed by government or consumers and at the same time exploit the market opportunities due to firms’ multiple country locations (Roth and Morrison, 1990). The core idea of integration is to exploit the benefits of across national border, while responsiveness concerns the need for local customization and adaptation, and the two factors work in opposite directions (Benito, 2005).

The Global integration and local responsiveness (GI-LR) model The GI-LR model is a conceptual framework for analyzing strategy in the international business of firms. Roth and Morrison (1990, p. 543) suggests that “in considering business as the unit of analysis, the integration-responsiveness (IR) framework has been suggested as a model for “mapping” or distinguishing international business strategies”. This model was developed from early studies of the “I-R” model by Doz and Prahalad, 1991; Prahalad, 1975; Barlett and Ghosal, 1989; Prahalad and Doz, 1987). Based on the assumption that business managers tend to share different...


References: Argenti et al., 2007. The Experts Offer Advice on Google. Journal of Business Strategy. 28 (3) p.23-25.
Baden-Fuller, C., Stopford, J.M. (1991), "Globalization frustrated: the case of white goods", Strategic Management Journal, Vol. 12 pp.493-507.
Bartlett, C.A., Ghoshal, S. (1987), "Managing across borders: new strategic requirements", Sloan Management Review, Vol. 28 No.4, pp.7-17.
Bennis, W, 2004. Google’s Growth Engine: Leading edge. Coiinsight [online] , available via Business Source Premier . [accessed 1/2/2010].
Birkinshaw, J. (1996), "How multinational subsidiary mandates are gained and lost", Journal of International Business Studies, Vol. 27 pp.467-95.
Brenkert, G, 2008. Google, Human Rights, and Moral Compromise. Journal of Business Ethics 85 (4).
CARR, D, 2006. How Google Works. Baseline [online] July .Available via Business Source Premier [Accessed 3/2/2010].
Christopher, B , 1979. Multinational Structural Evolution: T he Changing Decision Environment in International Divisions. Ph.D. thesis, Harvard Business School, 1979.
Christopher, B, 1981. "Multinational Structural Change: Evolution vs. Reorganization." In The Management of Headquarters Subsidiary Relationships in Multinational Corporations. Gower.
Cusumano,. M., 2005 Google: What It Is and What It Is Not. Technology Strategy and Management.48 (2).
John Daniels, Lee Radebaugh, Daniel Sullivan, 2009. International Business, 12/E :Pearson
Doz, Y.L., Prahalad, C.K
Delaney, K, 2006. ‘‘Yahoo outlines stance on privacy and free speech’’, The Wall Street Journal.
Di Fan, Chris Nyland and Cherrie Jiuhua Zhu (2008) Strategic implications of global integration and local responsiveness for Chinese multinationals: An area for future study. Management Research News. 31 (12) pp. 922-940.
French, H. (2006), ‘‘Despite web crackdown, prevailing winds are free’’, The New York Times, 9 February.
Hamilton,.J. Knouse, S and Hill, V , 2008. Google in China: A Manager-Friendly Heuristic Model for Resolving Cross-Cultural Ethical Conflicts. Journal of Business Ethics 86:143–157.
James S. O’Rourke,. J, Harris,. B and Ogilvy,. A, 2007. Google in China: Government Censorship and Corporate Reputation. Journal of Business Strategy. 28 (3) pp. 12-22.
Johaansson, J.K., Yip, G.S. (1994), "Exploiting globalization potential: US and Japanese strategies", Strategic Management Journal, Vol. 15 pp.579-601
Grossman, L and Hannah, B
Hill, C., 2007. International Business: Competing in the Global Marketplace. 7ed. Boston: McGraw.
Hill, .C., 2005. International Business: Computing in the Global Marketplace. 5ed. Boston: McGraw.
Kedia, B.L., Nordtvedt, R., Perez, L.M. (2002), "International business strategies, decision-making theories, and leadership styles: an integrated framework", Competitiveness Review, Vol. 12 pp.38-52.
Michel, C, 1964. The Bureaucratic Phenomenon. Chicago: Chicago University Press.
Morrison, A.D, Roth, K. (1992), "A taxonomy of business-level strategies in global industries", Strategic Management Journal, Vol. 13 No.6, pp.399-417.
Pfeffer, J., and Salancik,G . TheE xternal Controlo f Organizations. New York: Harper& Row, 1978. Porter,M ichael." Note on the ReproductionE quipmentI ndustry."H arvardB usiness School case study, forthcoming
Prahalad, C.K., Doz, Y.L
Prahalad, C.K., Doz, Y.L. (1987), The Multinational Mission: Balancing Local Demands and Global Vision, The Free Press, New York, NY
O’Rourke, J.S., Harris, B
Ohin, B,. 1993. Interregional and International Trade. Cambridge: Harvard University
Roth, K., Morrison, A.J
Roth, K., Schweiger, D.M. and Morrison, A.J. (1991), ‘‘Global strategy implementation at the business unit level: operational capabilities and administrative mechanisms’’. Journal of
International Business Studies
Roth, K., Morrison, A.J. (1990), "An empirical analysis of the integration-responsiveness framework in global industries", Journal of International Business Studies, Vol. 21 No.4, pp.541-64.
Rugman, A., 2001. VIEWPOINT: The myth of global strategy. International Marketing Review, 18 (6) pp. 583-588.
Stanley, D, 1982. Transforming Organizations: The Key to Strategy Is Context Organizational Dynamics. Journal of International Business Vol. 15, No. 2 pp.64-80.
Vernon, R., 1983. 'Organizing and Institutional Responses to International Risk '. Cambridge University Press, New York.
Vise, D and Mark, M., 2005. The Google Story: Journal of Product & Brand Management, Vol. 16 (1) p.257-68.
Vise, D. 2006. Google: Foreign Policy, No. 154 (May - Jun., 2006), pp. 20-24 : Washingtonpost.Newsweek Interactive, LLC
Yip, G.S
Zhang, M., (2010). Structure and Strategy of MNC’s. International Business Management Module. Nottingham Business School.
http://www.google.com/corporate/ Company Overview [available online]
Martin, K (2006) http://www.corporate-ethics.org/ [online]
http://www.mps.gov.cn/English/menu_5_1.htm
www.google.com.(2009) Clinton in 'open, candid ' Google talks with China accessed 5/2/2010 available [online] http://www.google.com/hostednews/afp/article/ALeqM5hJS7bjC8YoJT0EnjrySaE8W-P8pQ
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Globalisation Essay
  • Essay about GLOBALISATION
  • Essay about Globalisation
  • Globalisation Essay
  • Essay about Globalisation
  • globalisation Essay
  • Globalisation Essay
  • globalisation Essay

Become a StudyMode Member

Sign Up - It's Free