The Company Introduction

By: Chopitea, Genzo Igarta, Joash Molina, Juan Miguel Torres, Jose Carlos Of MGT141 / AY01

Cruz, Ferris John Joven, Nio Steven Santamaria, Aeron

Outline
I. II. Company Overview by Nio Joven Corporate History by Ferris Cruz

III.
IV. V.

Products and Services by Miguel Molina

Industry and Environment by Genzo Chopitea Financials by Carlos Torres

VI.

Management and Leadership by Aeron Santamaria

VII. Employee and Workplace Environment by Joash Igarta VIII. Conclusions and Insights

Company Overview

Company Overview
What Google is and what it does Larry Page, the co-founder and CEO, once described the perfect search engine as something that understands exactly what you mean and gives you back exactly what you want. Since he spoke those words Google has grown to offer products beyond search, but the spirit of what he said remains. Googles Goal: To make it as easy as possible for you to find the information you need and get the things you need to do done.

http://www.google.com/about/company/products/

Company Overview
Googles Mission: To organize the worlds information and make it universally accessible and useful.

Googles Unofficial Motto: Dont be evil. (General Code of Conduct) It is about: providing our users unbiased access to information focusing on users needs and giving them the best products and services that they can following the law acting honorably treating each other with respect
http://www.google.com/about/company/; http://investor.google.com/corporate/code-of-conduct.html

Company Overview
Google Facts: Founded 1998 Founders Larry Page and Sergey Brin Incorporation September 4, 1998 Initial public offering (NASDAQ) August 19, 2004 Headquarters 1600 Amphitheatre Parkway Mountain View CA 94043
http://www.google.com/about/company/

Company Overview
Google Facts: In one of the most anticipated Initial Public Offerings, Google raised $1.67 billion in August of 2004. Today, Google has over 12,000 employees in offices throughout the world.

Googles mission statement and corporate culture reflect a philosophy that you can make money without doing evil and that work should be challenging and the challenge should be fun. These beliefs dominate life at Google.

http://jobsearchtech.about.com/od/companyprofiles/a/google.htm

Corporate History

Corporate History
When Larry met Sergey Founders Larry Page and Sergey Brin met at Stanford University in 1995. By 1996, they had built a search engine (initially called BackRub) that used links to determine the importance of individual webpages.
http://www.google.com/about/company/

Corporate History
Google Inc. Larry and Sergey named the search engine they built Google, a play on the word googol, the mathematical term for a 1 followed by 100 zeros.

Google Inc. was born in 1998, when Sun co-founder Andy Bechtolsheim wrote a check for $100,000 to that entitywhich until then didnt exist.

http://www.google.com/about/company/

Corporate History
Gmail: No Joke On April Fools' Day in 2004, we launched Gmail. Our approach to email included features like speedy search, huge amounts of storage and threaded messages. Broadcast Yourself In 2006, we acquired online video sharing site YouTube. Today 60 hours of video are uploaded to the site every minute. Cat videos, citizen journalism, political candidacy and double rainbows have never been the same.
http://www.google.com/about/company/

Corporate History
The Little Green Robot Arrives Amidst rumors of a Gphone, we announced Androidan open platform for mobile devicesand the Open Handset Alliance, in 2007. The Comic Heard Round the World Word got out about Google Chrome a day ahead of schedule when a comic book introducing our new open source browser was shipped earlier than planned. We officially launched on September 2, 2008.
http://www.google.com/about/company/

Corporate History
Trivial Highlights in Googles History: David Filo, co-founder of Yahoo and fellow Stanford Alumnus, was one of the first to encourage Larry Page and Sergey Brin to come up with Google. Like its arch-nemesis Apple, Google was first established in a garage in Menlo Park, California. In June 1999 a group of major venture capital firms, Sequoia Capital and Kleiner Perkins, plowed $25 million in the company. They bet that Google would be the last search engine standing by the start of the new millennium. Google realized that Bill Gates attempt to embed Microsofts browser into the operating system in 1998 was the future of the Internet. However, Gates was struck down by the U.S. government since he was trying to sell it for a profit. Google came in with a different angle.
http://www.submittoday.com/history_of_google.htm; http://www.businessdictionary.com/article/710/google-andinnovation-a-history/

Products and Services

Products and Services

Googles Primary Products and Services

http://www.google.com/intl/en/about/products/

Products and Services

Googles Complete List of Products and Services: Google has a total of 168 products and services with primary classifications of web-based products, operating systems, desktop applications, mobile applications, hardware and secondary services.

http://en.wikipedia.org/wiki/Google_products#Mobile_applications

Products and Services

Googles Complete List of Products and Services: Google has a total of 168 products and services with primary classifications of web-based products, operating systems, desktop applications, mobile applications, hardware and secondary services.
29 Search Tools (Google Search, Google Alerts, etc.) 10 Advertising Services (Google AdWords, Google AdSense, etc.) 29 Communication and Publishing Tools (Google Docs, etc.) 13 Development Resources (Google Code, Google Go) 9 Map-related Products (Google Maps, Google Transit, etc.) 8 Statistical Tools (Google Analytics, Google Refine, etc.) 3 Operating Systems (Android, Google Chrome OS, Google TV) 14 Desktop Applications (Google Chrome, Google Toolbar, etc.) 18 Mobile Web Applications (Google Calendar, Google Reader, etc.) 20 Mobile Standalone Applications (Google Music, Google Sync, etc.) 11 Hardware Products (Nexus 4, Chromebook and etc.) 4 Secondary Service Offerings (Google Public DNS, Google Ideas, etc.)

http://en.wikipedia.org/wiki/Google_products#Mobile_applications

Industry and Environment

Industry and Environment

Any companys product or service defines the industry to which it belongs to. Googles numerous offerings of products and services has allowed it to enter a wide variety of industries and opportunities. Constant innovation is what has led Google to its current status as a prevailing power in its industries and is what will most likely keep it above its competitors.

Industry and Environment

Internet Information Providers Industry: It is Googles main industry as dictated by their products such as the Google Search Engine, Google News, Google Translate, Google Alerts, Google Image Search and etc. Google is classified by the US Stock Exchange in this industry along with competitors Yahoo, Facebook, LinkedIn, Groupon and AOL.

http://ycharts.com/rankings/industries/Internet%20Information%20Providers/enterprise_value

Industry and Environment

Internet Information Providers Industry: As of January 18, 2013, Googles performance as compared to industry competitors include the following: Ranked #1 in market capitalization, which measures total value of issued shares, at more than 230 billion USD; Ranked #8 in return on equity, which measures a firms profitability, at 17.18%. As of January 20, 2013, Googles financial rankings among its industry competitors also include the following: Ranked #1 in enterprise value, which is a measure of a companys total value, at more than 220 billion USD; Ranked #11 in current ratio, which measures ability to pay short-term obligations, at 3.937 is to 1.
http://finance.yahoo.com/q/in?s=GOOG; http://ycharts.com/rankings/industries/Internet%20Information%20Providers/market_cap

Industry and Environment

Internet Information Providers Industry: In recent news, the US Federal Trade Commission ruled that Google had no violations regarding anti-trust or anti-competition statues with its internet search engine. The trigger for the investigation was Googles competitors, including Microsoft, who accuse the search giant of violating antitrust statues with its search business. The US Federal Trade Commission later found out that Google has been favoring its own products when producing search results but FTC Chairman Jon Leibowitz says that these actions were not undertaken without legitimate justification.
http://topics.nytimes.com/top/news/business/companies/google_inc/index.html

Industry and Environment

Internet Information Providers Industry: In recent news, the US Federal Trade Commission ruled that Google had no violations regarding anti-trust or anticompetition statues with its internet search engine. In addition, companies that rely on Google to drive traffic to their site have complained that Google adjusts its search algorithm to favor its own growing number of commerce sites. In conclusion, Google has agreed to comply with and take certain actions regarding the problems that relate to search in search advertising.
http://topics.nytimes.com/top/news/business/companies/google_inc/index.html

Industry and Environment

Online Advertising Industry: It is Googles indirect industry as dictated by opportunity given the nature of their products and services. It is Googles primary revenue-earning industry.

Form 10-Q, Google 2012 3rd Quarter SEC Filling: http://investor.google.com/pdf/20120930_google_10Q.pdf

Industry and Environment

Online Advertising Industry: In its 3rd Quarter SEC Filling of 2012, Google admits that 96% of their company-wide revenues come from online advertising. Google AdWords is the advertising program which enables users to place text-based and display ads on Google websites that Google uses generate most of its revenue. AdWords advertisers pay Google on a cost-per-click basis, which means that an advertiser pays Google only when a user clicks on one of its ads. AdWords advertisements are also available on a cost-perimpression basis that enables advertisers to pay Google based on the number of times their ads appear on Google websites.
Form 10-Q, Google 2012 3rd Quarter SEC Filling: http://investor.google.com/pdf/20120930_google_10Q.pdf

Industry and Environment

Online Advertising Industry: Google AdSense refers to the online programs through which Google distributes their advertisers AdWords ads for display on Google Network Members websites. For Googles AdSense program, advertisers also have the same option as to whether payment to Google shall be made on a cost-per-click basis or on a cost-per-impression basis. Google also pays their Google Network Members advertising fees from advertisers.

Form 10-Q, Google 2012 3rd Quarter SEC Filling: http://investor.google.com/pdf/20120930_google_10Q.pdf

Industry and Environment

Online Advertising Industry: (Googles Mobile Advertising for 2011)

http://gothtml5.com/2011/12/20/mobile-2011-numbers-infographic/

Industry and Environment

Online Advertising Industry: (Googles Advertisers during 2011)

http://www.wordstream.com/articles/google-earnings

Industry and Environment

Online Advertising Industry: (Googles Advertisers during 2011)

http://www.wordstream.com/articles/google-earnings

Industry and Environment

Online Advertising Industry: According to an article of the New York Times, Google uses the technology of cookies from users for real-time bidding. Real-time bidding is an auction where advertisers pay to for the opportunity of sending ads to individual consumers. Advertisers buy access to send ads to specific consumers whose preferences align with their product based on their search history as detected by cookies of websites such as Google.
Please enable Chrome to accept cookies then try again

http://www.nytimes.com/2012/12/02/magazine/who-do-online-advertisers-think-you-are.html?pagewanted=all

Industry and Environment

Online Advertising Industry: According to an article of the New York Times, Google uses the technology of cookies from users for real-time bidding. Real-time bidding takes away some of the fairness in the online marketplace as it allows companies to send ads for products that are much more expensive to consumers who have been profiled with higher buying capacities based on their online interactions. Eric Schmidt, Executive Chairman of Google, said that mobile devices would soon do things we havent begun to think of like sorting details of our preferences and tastes and offering suggestions that anticipate our desires and questions before we have even asked.
Please enable Chrome to accept cookies then try again

http://www.nytimes.com/2012/12/02/magazine/who-do-online-advertisers-think-you-are.html?pagewanted=all

Industry and Environment

Online Advertising Industry: According to an article of the New York Times, Google uses the technology of cookies from users for real-time bidding. Real-time bidding has the tendency to make the consumer as the product which is sold to advertisers. In effect, some consumers will be valued higher than others as they create internet personalities and live in a more valuable virtual world in the eyes of the advertisers.
http://www.nytimes.com/2012/12/02/magazine/who-do-online-advertisers-think-you-are.html?pagewanted=all

Please enable Chrome to accept cookies then try again

Financials

Financials
Financial Information: In 2010; Revenue from Google Websites increased by 15% , in terms of growth rate, compared to last year, which resulted to $29,321,000. This is where 66% of revenue came from, 1% lower than last year. Revenue from Google Network Members Websites increased by 16%, in terms of growth rate, which resulted to $1,626,000 increase. The percentage of this to the companys revenue was the same as last year as 30%. Advertising revenues also increased by 15% and made an essential increase of $5,347,000. With all the increasing percentage in revenues, the overall increase was by 15% and is now $29,321,000. Googles Consolidated income for 2010 was exactly $10,381,000 which is about 35% of their revenue. Googles income from operation is the same as its consolidated income, which resulted to 35% of their revenue or $10,381,000.

http://investor.google.com/financial/tables.html

Financials
Financial Information: In 2011; The increase in Google Website revenue was only by 10% which is lower than the 15% increase last year, in terms of growth. Despite the slow increase, it still produced to $26,145,000 Revenue from Google Network Members Websites decreased by 5% of its growth but still increased revenue by $1,594,000 Advertising revenue increased by 6% only but made a big difference and resulted to an $8,295,000 increase, which is good compared last year. Google Revenues only increased by 5% in terms of growth, which is slow compared to the 15% increase last year, but was still good to produce $37,905,000 Consolidated income from operations decreased by 4% in growth and only produced a difference of $1,361,000 compared to last year Total Google income is as the same as consolidated income which decreased by 4% and produced only $1,361,000
http://investor.google.com/financial/tables.html

Financials
In recent news: Google is recovering from a mistake by one of their employees that caused a great decrease of stock value and resulted to revenue below expectations of their financial analyst in their Q3. According to CEO Larry Page, Google has more future growth chances. Focusing more on their technological innovations on Motorola, it will resume to its normal operations where expectations are met. This means that Google is at its recovery stage and just making sure to resume their expected revenues for the Q4 through reducing risks and focusing more on long term innovations would get them back on track.

http://www.pcworld.com/article/2012668/after-google-disappoints-page-points-at-future-growth-chances.html

Financials
In recent news: Googles Treasurer reminded Wall Street to lower their estimates on their Q4. Their current situation is still to recover from their past 3rd quarter mistake, which means Google may not be able to meet the estimated revenue Wall Street made. Still focusing on technological innovations, they still get most of their revenues from their search business. The problem is that more and more companies are competing in that areas of business like Facebook, who recently made Graph Search. Still competing with other brands, Google is also struggling to gain a large market share on smart phones.

http://seekingalpha.com/article/1121901-ahead-of-q4-report-google-s-treasurer-reminds-wall-street-to-revise-estimates-lower

Management and Leadership

Management and Leadership

Executive Officers: Larry Page, CEO As Googles chief executive officer, Larry is responsible for Googles day-to-dayoperations, as well as leading the companys product development and technology strategy. Eric E. Schmidt, Executive Chairman As executive chairman, he is responsible for the external matters of Google: building partnerships and broader business relationships, government outreach and technology thought leadership, as well as advising the CEO and senior leadership on business and policy issues.
http://www.google.com/about/company/facts/management/#section-leadership

Management and Leadership

Executive Officers: Sergey Brin, Co-Founder Today, he directs special projects. From 2001 to 2011, Sergey served as president of technology, where he shared responsibility for the companys day-today operations with Larry Page and Eric Schmidt.

Nikesh Arora, Senior Vice President and Chief Business Officer Nikesh oversees all revenue and customer operations, as well as marketing and partnerships.

http://www.google.com/about/company/facts/management/#section-leadership

Management and Leadership

Executive Officers: David C. Drummond, Senior Vice President and Chief Legal Officer Today as senior vice president and chief legal officer, he leads Googles global teams for legal, government relations, corporate development (M&A and investment projects) and new business development (strategic partnerships and licensing opportunities). Patrick Pichette, Senior Vice President and Chief Financial Officer Patrick Pichette is Googles chief financial officer.

http://www.google.com/about/company/facts/management/#section-leadership

Management and Leadership

Googles Organizational Chart:
Knowledge Mobile and Digital Content Geo and Commerce People Operations
Communications and Public Policy

Board of Directors

Executive Officers

Youtube and Video Google.org Chrome and Apps Engineering Advertising Technical Infrastructure

http://www.google.com/about/company/philosophy/

Management and Leadership

The Google Philosophy (10 things): 1.Focus on the user and all else will follow. 2.Its best to do one thing really, really well. 3.Fast is better than slow. 4.Democracy on the web works. 5.You dont need to be at your desk to need an answer. 6.You can make money without doing evil. 7.Theres always more information out there. 8.The need for information crosses all borders. 9.You can be serious without a suit. 10.Great just isnt good enough.

http://www.google.com/about/company/philosophy/

Management and Leadership

Google Leadership (Project Oxygen): According to an article of the New York Times, in 2009 Google set out a project to build better bosses which was code-named Project Oxygen. As only a data-mining giant like Google can do, it began analyzing performance reviews, feedback surveys and nominations for topmanager awards. They correlated phrases, words, praise and complaints. Later that year, the people analytics teams at the company produced what might be called the Eight Habits of Highly Effective Google Managers.

http://www.nytimes.com/2011/03/13/business/13hire.html?_r=2&scp=1&sq=Google%E2%80%99s%20Quest%20to%20Build %20a%20Better%20Boss&st=cse&

Management and Leadership

Google Leadership (Project Oxygen): Eight Habits of Highly Effective Google Managers: 1.Be a good coach 2.Empower your team and dont micromanage 3.Express interest in team members success and personal well-being 4.Dont be a sissy: Be productive and results-oriented 5.Be a good communicator and listen to your team 6.Help your employees with career development 7.Have a clear vision and strategy for the team 8.Have key technical skills so you can help advise the team
http://rapidbi.com/google-project-oxygen-8-point-plan-to-help-managers/

Management and Leadership

Google Leadership (Project Oxygen): In addition, Google also identified 3 Key Manager Pitfalls in their organization: 1.Have trouble making a transition to the team 2.Lack a consistent approach to performance management and career development 3.Spend too little time managing and communicating

http://rapidbi.com/google-project-oxygen-8-point-plan-to-help-managers/

Employee and Workplace Environment

Employee and Workplace Environment

Googles Message to its Employees: Do Cool Things That Matter. How does Google hire? Google is always looking for their next Noogler (new Google employee) someone who is good for the role, good for Google, and good at lots of things. Google looks for people who are great at lots of things, love big challenges and welcome big changes. Google does not have too many specialists in just one particular area. Google looks for people who are good for Google, and not just for right now, but for the long term.
http://www.google.com/about/jobs/lifeatgoogle/hiringprocess/

Employee and Workplace Environment

Google Benefits: When it comes to Googles benefits and perks, they have everything youd expect from a large company, like health insurance, retirement benefits and so on. But they also offer way more than the basics. Examples: On-site physicians and nurses, convenient medical services, and comprehensive health care coverage Travel insurance and emergency assistance even on personal vacations New parents get time off and some extra spending money for their newborns Reimbursements for classes or degree programs of student employees Free legal advice and, in the US, also get common legal services at a generous group discount
http://www.google.com/about/jobs/lifeatgoogle/benefits/

Employee and Workplace Environment

The Google Workplace: Google topped Fortune magazine's list of Best Companies to Work For 2012, knocking the nearly paternalist SAS Institute from the top perch. The Web giant claimed the top spot on the strength of both its financial performance-- revenue, profits and share price all climbed--and employee gratitude for its corporate culture. Fortune noted that Google employees have access to bocce courts, bowling alleys, and, of course, free food.

http://news.cnet.com/8301-1023_3-57362103-93/google-is-the-coolest-workplace-in-the-u.s.-again/ ;

Employee and Workplace Environment

The Google Workplace: Google Inc. saw its employee-satisfaction rating soar by more than a third, 37 percent, from 2011 to 2012. The jump in Google's score was the result of improved employee support and growth, a category that saw an 80 percent rise among Google workers.

The rise in reported happiness among Google employees is likely the byproduct of the company's efforts to keep talent from fleeing. In recent years, some employees became disenchanted with Google's business model and bolted for other Silicon Valley companies perceived as being more innovative, such as Facebook.

http://jobs.aol.com/articles/2012/08/17/why-google-employees-are-happier-than-ever/

Employee and Workplace Environment

How Larry Page Built One Of The Best Places To Work For: In an interview with Fortune Magazine, Larry Page talks about Google and its workplace environment: You want to be working on meaningful, impactful projects. Larry Page gives employees the freedom to choose a project which they want to work on. He explains that if employees are working important things that can change the world, his employees would be excited to go to work everyday. It's important that the company be a family, that people feel that they're part of the company, and that the company is like a family to them. When you treat people that way, you get better productivity.

http://tech.fortune.cnn.com/2012/01/19/best-companies-google-larry-page/?iid=F_F500M

Conclusions and Insights

Conclusion and Insights

Company Overview: Google can be thought of as a model of transparency from the outside looking in. Based on its company overview, Google is exactly what it says it is like looking within. Corporate History: Googles has a rich history which helped them create their identity. Their history was full of opportunities, innovation and belief in their founders. Up to this very day, Google still has the same identity. Products and Services: Google has thought of offering almost every product and service imaginable that is in line with their primary business. It is also worth noting that Google offers most of these products and services for free.

Industry and Environment: Google is in of the most challenging industries in the world because of their constant need for innovation. Because of this, they need to act in a way that maximizes all opportunities for them to survive.

Conclusion and Insights

Financials: Google is still at its stage of recovering from their decrease in investments and revenue due to internal lapses. Google still plans to grow through technological innovations and gain additional revenue from operations other than their search business. Google, despite their performance last quarter, is still expecting growth in the near future through long term planning. Management and Leadership: Googles success is attributable to their management and leadership strategies. Googles leadership and management strategies are planned forr and effective. In addition, they have a strategy that other companies might not think of using. This strategy is to hire different managers that will have a unique role in the entity. Employee and Workplace Environment: Google has a high financial performance and its working environment is one of the best in the world. Google, unlike the other companies, gives high gratitude to its employees by giving them perks such as free food everyday, relaxation places such as a spa, fitness gyms and free transportation.