Google stakeholder analysis study paper

Excerpt from Exploration Paper:

Introduction

The global entity staying studied is Google. This can be a company that operates around the globe, with a a few different products and business lines. It is also one of the wealthiest companies in the world, with significant revenue and profits. This essay is going to perform a stakeholder analysis of Google.

Stakeholder #1 Employees

The companys employees certainly are a major stakeholder. They depend on Google for their livelihoods. It has a few several dimensions, as well, and we will consider at this through the hierarchy of needs lens. Most certainly the employees rely on Google to succeed to enable them to still have careers, to pay the rent and buy meals. But for Google, staff are also presently there specifically due to company culture, and the possibilities that they could have there. Various employees see Google while an employer of choice, and so on their behalf the buy-ins are a bit higher than just a job; they can make money somewhere else, but they might not be able to accomplish their higher order needs at only any old firm.

Employees certainly are a powerful stakeholder group because they are how the firm runs. A powerful employee base is necessary for any company like Google to stay to enjoy competitive advantage available on the market. If staff feel that the organization is not satisfying their needs, they can choose an additional company from which to operate, especially true if the reputation that Google provides of being capable of attract the best people is true. The company as a result has to make sure that the requires of this stakeholder group are being achieved in order for the company itself to continue to flourish.

Stakeholder #2 Shareholders

Just like all publicly-traded companies, Yahoo is beholden to the pursuits of the shareholders. The straightforward view of managements requirement to the shareholders is the Milton Friedman look at that the sole responsibility of business is to increase the profits. The thinking should go that investors invest in Google specifically for their ability to generate profits. Indeed, when it is assumed the fact that price an individual pays today for a Google share is definitely fair worth, then they wants the company to enhance its riches so that the worth of their expense grows.

Shareholders typically physical exercise their electric power over the business via the Table of Company directors. Shareholders choose the Panel, and the Panel exerts control of management. In case the shareholders are unhappy particularly the larger institutional ones- chances are they are likely to install a Board even more friendly for their needs. Therefore, one of the things administration has to carry out is to maintain the shareholders content, which commonly means saving strong economical performance, successfully introducing new products, and that sort of thing. Provided that the company is usually profitable plus the value of the shares can be increasing, then there is small reason to believe that this shareholder group can be disgruntled. In most cases, Googles shareholders are probably pretty happy with the overall performance in the company.

Stakeholder #3 the US Government

Google is usually an American firm, so the American government is the beneficiary of the taxes that Google pays. The California government is likewise a named beneficiary as are the governments with the counties and municipalities where Google functions. If the extreme competition above Amazons second headquarters in just about any indication, there is high recognized value of having that type of elite organization in a particular jurisdiction. The US government not only receives federal income taxes on the cash flow that Google earns (which is a lot), but it also will get taxes in things like worker salaries, and shareholders capital gains. As a result, the US government should certainly ideally want to see Google do well, especially if that earns funds overseas and uses American talent for making that happen. Also, since Google is among the highest-profile American companies on the globe now, there is certainly considerable fascination that the US has that Google ought to be seen doing well. Extraordinary performance reinforces things like the global desirability of America as being a place to start a company, for example.

Stakeholder #4 Foreign Governments

Yahoo has an interesting relationship which includes foreign governments, particularly the Peoples Republic of China. There are plenty of places on the globe where totalitarian regimes possess sought to manage the circulation of information with their people. The reality is that the PRC is one of the handful of places where they’ve been able to thus successfully. As a result, foreign governments are often stakeholders in Google, because Google represents open access to information, the ability to counter spin and verify facts. To get governments that lie to their people, Yahoo is very much a great enemy, which is no even more obvious than in China, where Google has received to dictaminador search results to do business in the area.

Stakeholders #5 Advertisers

Promoters are a stakeholder as well. They pay Google for placing ads. Google makes most of the money coming from these marketers. The relevance to administration is simple the advertisers will be who pays the expenses. Thus, Yahoo needs to make certain that their needs are taken care of. Because of this Google needs a well-priced offering, cheap enough that it delivers good value to the consumer, but high priced enough that the company can easily earn good margins. The reality is that Google has become quite adept at prices. It nonetheless adds worth for advertisers, and is becoming one of the planets dominant promoting platforms.

Marketers want to get to audiences. The search function, along with the other array of features that Yahoo provides to Internet users, are the key to getting the traffic. Google must also know as much as possible about the traffic in order to serve advertising most successfully. At the end of the day, the capacity of Google to meet the needs of advertisers, which include competitive costs and RETURN ON INVESTMENT, must be juxtaposed against the requires of additional groups.

Reconciling Stakeholders Requirements

For the most part, the stakeholder demands are not mutually exclusive. For a global company, the true challenge comes from finding a method to align the interests with the major stakeholder groups. When the stakeholder groups of Google are examined, it really is clear that every one plays a critical role in the survival from the company. Advertisers pay the bills. Shareholders and personnel need the firm to prosper, as does the government. The one wild card are definitely the foreign governments, who have much less stake inside the ongoing accomplishment of Google. This is where the greatest tension lies.

First, nevertheless , the synergy between the hobbies of most of Googles significant stakeholder groups should be mentioned. Googles employees benefit from the company giving them jobs, in particular if they happen to be finding that individuals jobs offer them more when it comes to pay and opportunity that equivalent careers elsewhere. The one thing about workers is that they want to get paid. Therefore there is a mutual interest between employees and advertisers absolutely free themes need Yahoo to deliver a great product, plus the employees ought to deliver this great product for the reason that the company continually have consumers.

The needs of the investors are just because aligned with all the needs in the advertisers/customers. The shareholders will need there being customers, lots of them. Nevertheless , shareholders want Google to maximize profit. That puts them at chances with clients who would prefer that Google takes a nominal margin, and employees who want to get paid as much as possible. For now, nevertheless , everybody seems happy with the balance that Google has struck between these three distinct interests.

The united states governments fascination is, well, interesting. The company provides taxes, and people, so naturally the US government wish to see Yahoo succeed. Having said that, it rightly has no explanation to proper care if Google succeeds or if a few other company succeeds. Maybe there is also a point the place that the US has generated up a national reliability relationship with Google and would like the business to succeed simply so it will not have to build the relationship from scratch with somebody else. But the government authorities interest in Yahoo is more in the generic sense of the monetary value that the company creates, and government authorities ability to take full advantage of that.

The major tension between your different stakeholders is with foreign

Tweet

Related essay