Environmental Research: Google Company


The report consist of two parts. The first section targets the impact the micro and macro environment has on Google Company, which is the largest search engine in the world. It analyses on the factors that can be a negative or positive effect to the business. The statement will first target and analyse on the six macro environmental factors which are economical, global, politics, socio-cultural, technical and demographical. Following macro environmental factors will be the micro environmental factors that are companies, opponents, customers, general population, intermediaries and suppliers. The second section focuses on the (evaluation of the organizational culture)

Importance of Macro and Micro environment factors

Macro and Micro environment factors are area of the external environment. The exterior environment includes a variety of factors beyond your company entrance doors that they typically don't have much control over. Controlling the advantages of the internal operations and knowing potential opportunities and risks beyond their businesses are secrets to business success. A knowledge of macro and micro marketing environment forces is essential for planning. It can help an enterprise to compete better against its rivals. These factors also help out with the recognition of opportunities and risks and enables a business to take benefit of emerging strategic opportunities.

Macro environmental factors

Baines et al (2009: 77) focus on that the macro environment sorts the basis of varied elements which formulate the larger part of the society, these factors straight impact a small business. The six macro environmental factors which are being centered on will be; cost-effective, global, political, socio-cultural, technological and demographical. A macro-environmental evaluation includes examination of elements and cable connections in the business's widest environment. Macro environment identifies those factors which can be external to company's activities, nor concern the immediate environment. It comprises general makes that influence all business activities in market. The macro environment cannot be handled by the organisation and hence the organization needs to adapt to the needs of the macro environment (Johnson et al, 2011: 65).

The economic environment constitutes of financial conditions, economic plans, and the economic system that is important to exterior factors of business. The financial conditions of the country includes the nature of the market of the united states. The general economic situation in the region, conditions in learning resource markets like money, material, market raw materials components, services, resource markets and so forth which affect the supply of inputs to the organisation, their costs, quality, availableness and consistency of supply of products and services. It determines the economic power and weakness on the market. The purchasing ability of the average person depends after the monetary factors like current income, price, personal savings, flow of money, credit debt and credit availability. People income circulation pattern analyses the marketplace possibilities and impacts on venture and development procedure for the united states. The option of economic resources of the united states and the amount of the economical income of the country may also have impacts on the organization. These are the important determinants of business strategy in the company for formulating, implement and managing of economic guidelines. Economic environment identifies the nature and course of the current economic climate within which business company are to operate. For instance, in growing country, the reduced income may be reason behind the very popular for the merchandise and services of the business. In countries where in fact the investments and income are steadily and rapidly increasing, business prospects are generally bright and further investments are motivated. In developed economics, substitution demand accounts for a considerable part of the total demand for many consumers durables whereas the substitute demand is negligible in the producing countries. The economic conditions of any country control the spending power of individuals so therefore the net income of a technology based company is negatively impacted by adverse financial conditions (Morrish, 2011: 113).

Gross home products (GDP) have been on the top since a very long time. They are simply increasing each year at the average rate of 3. 20% achieving a high degree of 17. 20% at times. Countries like China, India, South Africa, and UK have had boosts in their GDP each year since 1970 which is a positive factor for Yahoo. With the secure and continued development of these countries, Google's interior and external investments will be high in amounts. The amount of users around those counters can impact on Google positively and cause them to set up better services and much more products because of their users leading the it being a strength to Google economically. Interest can have a positive or negative effect on any company, these impacts are chosen depending on the company's dealings. Google is a company that depends on investments, this means when interest levels increase steadily in a country, Google benefits. In United Kingdom, the rate average is defined to about 8. 2% in USA it stands at 6. 1% in South Africa at 13. 3% in India at 6. 6% and in China at 6. 4%. These quantities mean that companies for the reason that region of the world will be able to take out loans and invest or support their company. A lot more companies have money, the greater they'll be willing to invest on advertisements, hence doing through Google. However, company advantages from it and increases their overall income. In the past few years, USA, UK, India, South Africa and China have all noted an average increase in inflation rate of 2. 5-9. 5% each year. This means that raw materials in these countries have become more expensive each year and this causes the firms to improve the prices of the products and getting ultimately more cash out of it.

Globalization is the closer incorporation of countries and individuals of the world which has been as a result of the tremendous reductions of costs of travel and communications and the breaking down of artificial obstacles to the movement of goods, services, capital, knowledge and a lesser degree, people across edges (Joseph Stiglitz, previous chief economist at the globe Bank)

The impact of globalization on International business alludes to a considerable variety of business exercises attempted crosswise over national fringes. Along with quickly broadening globalization, worldwide business has turned into a mainstream point and has drawn the awareness of business officials, government authorities and academics. International business is not quite exactly like local business. With the international level, the globalization of the world economy and the contrasts between countries present both opportunity and difficulties to global organizations. Business managers need to observe the globalized business environment when buying international essential decisions and in overseeing ongoing global operations.

Many economists imagine globalization may be the reason for key trends on earth overall economy such as: Lower wages for labourers, and higher profits, in American economies, The surge of migrants to cities in poor countries Low inflation and low rates of interest in spite of strong development. Globalization has accelerated in the last 20 years. During a amount of relatively strong economic growth, world exports as a show of GDP increased from under 20% in 1994 to over 32% in 2008, and whilst global trade fell back 2009, consequently of the global slowdown, but bounced back in 2010. Increasing international investment can be utilized as one measure of growing financial globalization.

As the internet develops its grasp on foreign business sectors, it was a natural progression for an extremely successful company to be delivered from the web to increase its functions into these fledgling nations. As the use of internet in international market segments, like Japan, Europe, and China for example, are simply just beginning to take shape, the amount of new internet surfers in these business areas keeps growing at a more noteworthy rate than in america. .

Google, which generates the vast majority of its earnings from advertising sales, have centred their attentions to these markets with boundless potential. Google officials anticipates as its vicinity in exterior countries expands so will the development of the company and eventually underneath line. Some of the most recent home elevators Google's financial position is the fact it gets relatively under 66% of all income domestically. This information is slated to change drastically as overseas operations develop. Among the variables that have permitted Google to experience such successful development is that the prevalence of the brand was spread through verbal rather than costly advertising us dollars. Using the populations in foreign business industries much bigger than in the Unites States it would seem to be that an equation for success. On the other hand, what has been an equation for achievement in america does not generally mean success in other parts of the world. A part of Google's intend to help internet clients in exploring inconceivable methods of information quickly was to digitize library accumulations from the best libraries in the U. S.

Ultimately, Google I believe, has ventured into another region by widening itself into remote control markets. Also with all explorations you will see growing agonies. Yahoo is set to be victorious, as confirm by its development and its eagerness to develop. It did hit a few humps on the way, yet they comprehend them and also have well balanced as needs be and efficiently.

I believe to reach your goals in foreign markets a corporation must make use of the tools it was founded on that allowed them to increase into globalization. A company must be frontward thinking, and wide open minded. The company must be aware of cultural dissimilarities and be hypersensitive to them, and be able to adjust to different environments. We should recognize that a business model that worked in a single country may not work within the next country. It will be important to possess proper personnel in place from each international market that see the vision and quest of the U. S Company, but can also translate the mission for everyone else to understand (Vise David A. 2005)


UK Essays. November 2013. Environmental Factors Which Influence Marketing Decisions Marketing Article. [Online]. Available from: http://www. ukessays. com/essays/marketing/environmental-factors-which-influence-marketing-decisions-marketing-essay. php?cref=1 [Accessed 12 May 2015].

Google Globalization Case. "[Online] Available from:

http://www. 123helpme. com/google-globalization-case-view. asp?id=165326/ =1 [Accessed 12 May 2015].

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