Google’s Case Study
Google has made strategic steps in business through innovation. The company ventured into mobile apps, making them accessible to smartphone users. In addition, the corporation has ventured into self-driving cars, a technology with great potential. However, other companies such as Yahoo, Bing, and upcoming mobile app developers are challenging Google’s competitive advantage. Besides prospective limitations, such as competition from other technology firms, Google’s distinctive governance structure, corporate culture, and organization processes have the potential in achieving the company’s growth strategies.
Google Distinctive Governance
Google’s distinctive governance structure plays a critical role in the growth of the company. It offers a platform for innovation and creativity, attracting the best talent in the world. The company employs exceptional ways to manage innovations. It encourages its engineers to spend more time, whether individually or in groups, working on their favorite projects. In fact, this autonomy led to the creation of Google News and Gmail. Hence, to ensure faster project implementation, the organization encourages its engineers to work in groups.
Google prefers high-risk projects with prospects of more returns. Innovations and creativity in the IT industry represent the major advantage. Through the challenges experienced by the company, the management created a 70/20/10 rule with 70% of the revenue being invested in the core business, 20% being spent on the extended core business such as Gmail, and 10% devoted to innovation (Edelman and Eisenmann 7). Therefore, under distinctive governance, engineers are encouraged to be more creative with more time being allocated to innovative projects.
Google’s Organizational Process
The organizational process at Google encourages teamwork. Organizational processes at the company motivate employees to be creative and innovative. For instance, employees are encouraged to create prototypes, which are later developed and launched in the market. The organizational structure plays a crucial role in promoting the development of products that facilitate competition and performance in the technology industry. Although the company’s management was against the public offer, the process was later initiated, boosting its financial position (Edelman and Eisenmann 5). Therefore, the organizational processes, including IPO, have given employees flexibility and the freedom to innovate, hence increasing their job satisfaction.
Google’s Corporate Culture
Google’s corporate culture promotes creativity among the staff. Additionally, it guarantees freedom and sufficient time to create new ideas, technologies, products, and business models. The innovators and the CEO are concerned about the company’s long-term gain rather than the short-term performance (Edelman and Eisenmann 6). It is evident that the corporate culture at Google ensures that workers have the freedom to create and test new ideas, which guarantees the growth of the company and risks diversification.
How Google’s Organizational Structure Supports Company Success
Organizational design has a significant impact on the management and future of the firm. The norms and values define the organizational culture demonstrated by the employees. Google’s structure ensures that the company’s future would be successful by encouraging creativity. The organizational structure plays a significant role in the continuity of any business, especially in the technology industry (Edelman and Eisenmann 7). Google strives to satisfy employees’ needs while motivating workers to take risks and become innovative. The working environment is favorable since the company offers reasonable wages that attract the best talents in the technology and management fields. Hence, employee satisfaction encourages innovation and supports organizational growth.
As is evident from the case study, Google is considered one of the best companies in terms of employee satisfaction. The organization provides better remuneration and comfortable working conditions than most of its competitors. Additionally, distinctive governance, corporate structure, and organizational processes play a vital role in the success of the corporation. Therefore, the whole setup of Google Company encourages creativity and innovation, making it one of the best companies to work in.
Edelman, Benjamin, and Thomas Eisenmann, “Google Inc. in 2014.” Harvard Business School, 2014, 1-24.