Competence-based compensation

Ilona Gras, Roos Fuchten, Shanira Maduro, Isabella Brymora, Clemens Nauta, Jacob Worm & Julie
Custers
Company profile
History
- 4 september 1998, United States
- Found by computer scientists Larry Page and Sergey Brin
- They began writing a program for a search engine, which resulted in a widely
popular research paper titled “The Anatomy of a Large-Scale Hypertextual
Web Search Engine”
History
- Next, they began developing Google. The name represents the immense
amount of information that a search engine has to shift through
- CEO as of 2015 is Sundar Pichai
Vision & Mission

Mission
“to organize the world's information and make it universally accessible and
useful.”
World’s information, organization, universal accessibility & usefulness as primarily elements

Vision
‘’to provide access to the world’s information in one click.’’
World’s information, access and one click as primarily elements
10 Core Values

1. Focus on the user and all else will follow.

2. It’s best to do one thing really, really well.
3. Fast is better than slow.
4. Democracy on the web works.
5. You don’t need to be at your desk to need an answer - How Google Works
by Johnathan Rosenberg
6. You can make money without doing evil.
7. There’s always more information out there.
8. The need for information crosses all borders.
9. You can be serious without a suit.
10. Great just isn’t enough.
Products
Google offers a big variety of products. These products can be divided in a few sub-categories. These
subcategories are:
- Web-based products (e.g. Google Search)
- Advertising service (e.g. Google Ads)
- Communication and publishing tools (e.g. Google Art Project)
- Development tools (e.g. Google App Engine)
- Security tools (e.g. Google Safe Browsing)
- Map-related products (e.g. Google Maps)
- Statistical tools (e.g. Google Analytics)
- Operating systems (e.g. Android)
- Desktop applications (e.g. Google Chrome)
- Mobile web applications (e.g. Google Drive)
- Mobile standalone applications (e.g. Gmail App)
- Hardware (e.g. Chromecast)
- Services (e.g. Google Cloud Platform)
Products
Products
Products for Business
Products for Developers
Organizational structure
Revenue
 Market share

For the market share, we focused on the search engine market since that is Google’s main market
Market share
Distribution growth
Competitors
profile
Apple
● iOs is the biggest challenger to Google Android OS
● Apple’s market value is above $1 trillion dollars
● Market value keeps increasing
Microsoft
● Microsoft and Google compete in several areas including:
- cloud technology
- search advertising
● Microsoft Bing is the second largest search engine
● Both companies invest in:
- artificial intelligence
- Internet of Things
Amazon
● Amazon Web Services and Microsoft Azure are taking the lead in the cloud
business industry.
● Amazon is the toughest competitor in the cloud industry
Facebook
● The leading social media platform
● Most competition is in the area of advertising
● Facebook’s share in mobile advertising has grown faster in recent years.
● Facebook is actively growing to become a favourite of marketers
Competitive
advantages
Main competitive advantages
Google has three major competitive advantages because of its size, innovation,
and market position:

- Powerful infrastructure

- Innovative services

- Market share
Powerful infrastructure
Firstly, Google has an incredibly powerful
infrastructure. Google does not disclose the
number of data centres or servers they
operate. However, their services would not
be possible without their infrastructure
which makes it hard for competitors to copy
or even try to rival Google. Even if they had
the computing know-how, they would have
to spend billions building from the ground
up to establish the backbone of their
operations. This makes Google’s
infrastructure a sustainable competitive
advantage.
Innovative services
Google’s second competitive advantage
has to do with the fact that it offers a lot
of innovative services. The incredible
value of these services lies in the fact that
Google can offer nearly all their services
at zero cost to web users. Because of the
number of services and users, Google is
able to offer an attractive advertising
model and make billions of dollars every
year.
Market share
Google’s last major competitive advantage is their market share. Google’s market
share in various industries is not only a sign that the company’s strategies are
paying off, but also creates a strong competitive advantage. In fact, the word
“Google” has even become noun as people often say “I’ll just Google it,” as a
reference to searching the Internet. This is not only good for Google’s brand, but
it also gives Google an edge for any new products or services they wish to launch.
Customer loyalty also plays a role because individuals using Google’s services are
less likely to try other competitors since they may feel comfortable using and
understanding Google’s products such as their search engine or Android operating
system.
Market structure
With only a few large firms providing search answers to many millions of queries,
the search engine market structure is oligopoly. One way in which oligopolies
compete is product differentiation. Any copycat activity challenges their ability to
differentiate.
Business Strategy
Strategy & strategy focus
Online search has always been the main service and product of Google. The company initially capitalised
on its search technology that it began developing since 1996. But it later diversified to different Internet-
related products and services.

The varied Internet-related products and services have enabled Google to corner diverse Internet users
and make them dependent to a certain extent. Take note that these products and services are
complementary, thus benefiting users due to ease of use from familiarity and hassle-free transition using
a single all-access account.

Diversification is an effective business strategy of Google because it has allowed the company to create
new markets and retain existing customers or users, thereby creating a general consumer base of
Google-dependent Internet users. Furthermore, diversification has enabled the Internet giant to position
itself as a one-stop venue for all Internet-related needs.
Long-term strategic choices
Differentiation generic strategy

Market penetration Bigger share of global of the global

online advertising market

Offer Fiber product to more states

Market development
in the future

Develop new products & new

Product development models
Create more channels for income
generation
 Business strategy analysis - Ansoff Model

The strategic alternatives for Google are, according to the figure, the following:
- Market Penetration: In market penetration the firm is looking to
increase its market share with the products it already provides
to the markets it already operates. It’s a low risk strategy.
- Market development: Existing products are provided into new
markets in other countries or in different market segments.
- Product Development: New products are developed to meet
changing needs in existing markets.
- Diversification: New products are provided to new markets.
A firm uses customer awareness on its brand so as to develop
new products that meet different needs.

⇒ Google has extensive products, reaching to different markets; list of

competitors therefore seems endless. That is why Google needs to
continuously develop new products, new markets as well as market niches
in existing markets
New Product Development
Considering the case of Google they seem to adapt a new product development strategy. Considering
products such as google glasses or the self-driving car, it seems that the company also has been
following a diversification strategy by providing new products to target groups of different market
segments, than what the core business was addressing.

The company seems to have opened a lot of operational fields that haven’t been explored adequately. In
order to increase its market share in these fields, to enhance brand’s strength and to manage costs
effectively it seems appropriate to follow the new product development strategy. The self – driving car,
for example, is introducing the company to another fierce competitive environment, i.e. the automotive
industry.
HRM/HCM
The secret of Google’s success is its innovative work culture. This culture drives commitment. Some key facts about its
culture are as follows:

- Committed employees driven by a passion for innovation.

- Efficient leadership that empowers and strives to create an environment of trust.
- Recognition and incentive system that encourages performance and innovation.
- Learning environment that ensures continuous learning and growth.
- Top leadership committed to technological innovation
- Inclusive policies that encourage diversity

Google’s success is because of its culture and work environment and its HR has played a major role in sustaining these
things. Google’s organizational structure supports a system made to pursue innovation. Google’s HR nurtures its creative
and innovative company culture by formulating policies that hire and retain the best talent. If Google has stood at the top
as the best employer for years continuously, the reason is that its focus on HR management is exceptional.
Corporate values (Spencer & Spencer)
Job Analysis
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Isabella Brymora / 19219903

JOB
COMPENSATION
Compensable Factors
Factor Subfactors

Organizational Awareness
Impact and Influences
Core Expertise

Organizational Commitment
Relationship Building
Team Leadership
Teamwork
Developing Others
Managerial
Conceptual Thinking
Self-Control
Directiveness
 Achievement Orientation
Initiative

Customer Service Orientation

Analytical Thinking
Functional
Flexibility

Interpersonal Understanding
Information Seeking
Concern for Order
Self Confident
Education
Technical
Working Experience
Comfort Level
Working Condition
Worker Safety
Core Competencies
Core Subfactors
Managerial Subfactors
Functional
Subfactores
Technical Subfactors
Working Condition Subfactors
And now,
calculate the
salary...
Salary Calculation
Analysis
As a leading international organization, Google should strive for rather high
salaries. Also because they are striving for the best employees, inhariting skills
like innovativeness, creativity, high flexibity and problem-solving skills. Qualities
like these should be additionally valued, as they tend to accelerate a companies
growth.

This calculation is based on companies values, the competencies they search for
in people and benchmarking. However, whilst doing my calculation, I realized
that it isn’t always very easy to find benchmark data in order to be able to
compare the salary. I imagine, that this also imposes an issue within real
companies. Through data found onthe website Glassdoor Salary Benchmark, I
tried to adjust the salary in my examples to a realistic value.
Conclusion
Calculating a salary follows a given structure, making the salary fair and uniform
throughout the whole company. Also, it implies and takes into account various
competencies the company is searching for, whereas each competency is valued
seperately for each job position. Through this approach a clear personal profile
can be identified, and also the salary can be calculated on a justified basis.
This assignment gave me an insight into one of the tasks fulfilled in the Human
Ressource Department. The creation of job positions and their occupation is
closely linked with the Corporate Values. Therefore, a company needs to be very
well aware of its values and its mission in order to build the company on their
basis consistently, also when searching for the appropriate and fitting workforce.

Furthermore, I realized that this method is giving companies the possibility to

calculate the salary uniformly and fairly.

As a future job applicant I now know, that there are certain competencies
employers are searching for and that they probably rely their salary on
benchmarking, which is going to help me during the preparation for interviews.
References
Google's Mission Statement and Vision Statement (An ...panmore.com › google-vision-statement-mission-statement

https://de.scribd.com/document/343163891/Official-Report-on-Google

http://panmore.com/google-vision-statement-mission-statement

http://panmore.com/google-generic-strategy-intensive-growth-strategies

https://notesmatic.com/who-are-the-competitors-of-google/

https://element-360.com/googles10corevalues/

https://www.glassdoor.com/Salaries/indonesia-solution-architect-salary-SRCH_IL.0,9_IN113_KO10,28.htm