Google’s Strategy in 2010 Essay

What is Googles business model?The answer is labyrinthine because it makes up of lots of different factors. The top 10 principles of Googles unified philosophy is what keeps them doing what they do best. (Gamble, 2010, pg. C-175).1.Focus on the user and all else will follow.2.Its best to do bingle thing really, really well.3.Fast is better than slow.4.Democracy on the web works.5.You dont fatality to be at your desk to need an answer.6.You can make money without doing evil.7.Theres always more training out there.8.The need for information crosses all borders.9.You can be all overserious without a suit.10.Great just isnt good enough.Their mission statement is to steer the worlds information and make it universally accessible and useful. (www.google.com). These 10 principles live with helped them achieve their goal within their mission statement. Google has kept it transparent but efficient. These 10 principles have guided them from the beginning and it has work. They dont ne ed to fix something that is not broken. Examine the financial reports in the event to determine the comp anys realizeability, liquid state, leverage and activity ratios. Based on these ratios what is your assessment of the companys performance? Justify your answer? advantageousness ratios are measures of performance that indicate what the firm is earning on its sales or assets or equity. There are the run profit margin, net profit margin, return on total assets, return on equity, and basic earning exponent ratios. (Mayo, 2007).Operating profit margin = Earnings before interest and taxes/gross revenue8,381,189/23,650,563 = 35.4%Net profit margin = Earnings after interest and taxes/ gross sales6,520,448/23,650,563 = 27.5%Return on total assets = Earnings after interest and taxes/ get along assets6,520,448/40,496,778 = 16.1%Return on equity = Earnings after interest and taxes/ fair play6,520,448/36,004,224 = 18.1%Basic earning power = earnings before interest and taxes/Total asset s8,381,189/40,496,778 = 20.6%leverage ratios measure the firms use of debt financing. There are 2 ratios debt/net worth ratio and debt ratio. (Mayo, 2007).Debt/net worth ratio = Debt/ loveliness4,492,554/36,004,224 = 12.4%Debt ratio = Debt/Total assets4,492,554/40,496,778 = 11.0%Activity ratios measure how rapidly the firm is turn of events its assets into cash. The two activity ratios are inventory perturbation and receivables turnover. Google does not have any inventory so there is no inventory turnover. (Mayo, 2007).Receivables turnover = Annual sales/Accounts receivable23,650,563/3,178,471 = 7.4%Liquidity ratios measure the ease of which assets may be converted into cash without loss. There are two liquidity ratios quick and certain ratio. (Mayo, 2007).Quick ratio = menstruation assets Inventory/Current liabilities29,166,958-0/2,747,467 = 10.6%Current ratio = Current assets/current liabilities29,166,958/2,747,467 = 10.6%Since Google does not have any inventory, the quick ratio and current ratio is the same. This shows that Google does have more assets than current liabilities. Overall, Google is doing extremely well all over the board. Their debt ratio is low sit down at 11 percent. They paid their bills on time because their receivables turnover is academic term at 7 percent. Investors have intercourse that Google is a good company to pervert stock into. Perform a SWOT analysis of Google.StrengthsNumber one search engine with established nameSimple port wine-user friendlyTheir interface has 88 different languages-Global usageLocalized search resultsInfrastructureimpuissanceContextual ads targeted by click fraudCant go to offline productsOpportunitiesAcquisitions of other businessIncrease online announceAlliances/partnerships with other companiesLaunched their own operating systemGoogle TV ThreatsFacebookClick fraudYahoo, Microsoft, and AmazonSlow frugalityDescribe Googles honour chain of mountains. What is the source of the companys rival rous advantage?Since Google does not have any raw materials to process into holy goods like a traditional company, their value chain is different. Ben Morrow (2009) their value chain is more nuanced. Google gathers all the web users it can (the raw material) by tempting them to use its stellar search product with highly relevant results delivered promptly. Then, by assorted signs (text advertisements) it directs these same web users in the form of traffic to its advertising partners who transform the traffic into conversions or sales on their sites (finished good). Their added value is that they know where to direct the users to their sites that they needed to go.The source of Googles competitive advantage is encyclopedism by doing as stated by Hal R. Varian, Googles chief economic expert (Lohr, 2008). Basically, they arelearning from their competitors. For example, with Microsoft antitrust problems, they are now making antitrust training is needed for Google managers (Lohr, 200 8). Some of Googles competitive advantages are their value, rarity, imitability, and substitutability. Value because it is part of their value chain. Rarity because their user interface is so simple and user friendly. Also, it is awkward for competitors to imitate because of the large infrastructure requirements to serve the relevant pages quickly. Google has servers all over the world all synced up and all running on a very large quantity of RAM, fast computer memory. (Morrow, 2009).ReferencesLohr, S. (July, 7, 2008). The New York Times. Google, dosage Master of the Market. Retrieved on April 11, 2012 from http//www.nytimes.com/2008/07/07/technology/07google.html?pagewanted=1&_r=1. Mayo, H. (2007). Basic Finance An creative activity to Financial Institutions, Investments & Management 9 Edition. Thomson United States. Morrow, B. (Feb. 22. 2009). Internal Analysis of Google Inc. Retrieved on April 11, 2012 from http//www.benmorrow.info/research/internal-analysis-of-google-inc/. Th omson A., Peteraf, M., Gamble, J., & Strickland, A.J. ( 2012). Crafting & Executing Strategy. McGraw-Hill.