2015 Google Analysis Group ProjectManagement 201

THE MAVERICKSDanielle Lehner, Sergio Morales, Claire Mooney, Yunhan Yan, Mark Nawalaniec

Table of Contents● Mission Statement and Values……………………………………………………….... ● About Google………………………………………………………………………...● Financial Highlights…………………………………………………………………..● Organizational Culture………………………………………………………………...● Google’s Strengths, Opportunities, and Challenges………………………….…………...● Corporate Social Responsibility Assessment…………………………………………….● Leadership Performance Assessment…………………………………………………....● Google’s Future……………………………………………………………………….● Works Cited…………………………………………………………………………..

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Mission Statement and ValuesGoogle’s mission is to organize the world’s information and

make it universally accessible and useful.

What Google Values To Be True

1. Focus on the user and all else will follow 6. You can make money without doing evil2. It’s best to do one thing really, really well 7. There’s always more information out there 3. Fast is better than slow 8. The need for information crosses all borders4. Democracy on the web works 9. You can be serious without a suit5. You don’t need to be at your desk to need an answer 10. Great just isn’t good enough

Google, INC. 3

About GoogleWhat Google Does For You

Larry Page, our 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. With all our technologies—from search to Chrome to Gmail—our goal is to make it as easy as possible for you to find the information you need and get the things you need to do done.

What Google Does For Business

We provide a variety of tools to help businesses of all kinds succeed on and off the web. These programs form the backbone of our own business; they’ve also enabled entrepreneurs and publishers around the world to grow theirs. Our advertising programs, which range from simple text ads to rich media ads, help businesses find customers, and help publishers make money off of their content. We also provide cloud computing tools for businesses that save money and help organizations be more productive.

What Google Does For The Web

We build products that we hope will make the web better—and therefore your experience on the web better. With products like Chrome and Android, we want to make it simpler and faster for people to do what they want to online. We’re also committed to the open web, so we’re involved in various projects to make it easier for developers to contribute to the online ecosystem and move the web forward. And we work hard to create a web that’s better for the environment, by using resources efficiently and supporting renewable power. The web has evolved enormously since Google first appeared on the scene, but one thing that hasn't changed is our belief in the endless possibilities of the Internet itself.

(Google, INC. 2015)

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Financial Highlights of Google• Consolidated revenues increased 18.9% to $66.0 billion, primarily driven by an increase in advertising revenues generated by Google websites and an increase in other revenues, and to a lesser extent, an increase in advertising revenues generated by Google Network Members’ websites.

• Revenues from the United States, the United Kingdom, and Rest of World were, $28.1 billion, $6.5 billion, and $31.4 billion, respectively.

• Cost of revenues was $25.7 billion, consisting of traffic acquisition costs of $13.5 billion and other cost of revenues of $12.2 billion. Our traffic acquisition costs as a percentage of advertising revenues was 22.9%.

• Operating expenses (excluding cost of revenues) were $23.8 billion, primarily driven by labor and facilities-related costs for our research and development and sales and marketing functions, advertising and promotional expenses, and stock-based compensation expense.

• Income from operations was $16.5 billion.

• Effective tax rate was 19.3%.

• Net income was $14.4 billion with diluted earnings per share of $21.02.

• Operating cash flow was $22.4 billion.

• Capital expenditures were $11.0 billion.

GOOGLE INC. | Form 10-K pg. 21 5

Organizational Culture● Team Orientation- HIGH

○ Googlefest is a social event that gives Google employees time to meet with other employees from various departments and other various businesses.○ Every Friday, Google founders and leaders debrief employees on new products launched, competitors, financial performance, etc.○ Googleplex has bowling alleys, volleyball courts, basketball courts, rock climbing walls, pool tables, lounging areas, and an overall lively

environment for their employees to enjoy during their breaks and to converse with other Googlers. (Google Inc., 2015)

● Attention to Detail - HIGH○ BrizTech VR - Google Cardboard Headset allows deep and intense customization focusing on the littlest of details you want into order to make the

best out of your virtual reality headset. ○ Google Maps allows you to see real-time traffic, transit, and street level imagery. Google Earth lets you explore the ocean and moon.

■ Washington Monument in Google Maps ables to see the shadow of it in regard to the time of day and where the sun is located● Innovation/ Risk Taking - HIGH

○ 70/20/10 rule: 70% of every work day is dedicated to projects given by management, 20% of time dedicated to coming up with new products and/or ideas, and 10% of their time toward individual passion projects. (Thompson, 2015)

○ Another innovation from Google that did quite well in 2014 was its range of autonomous vehicles, which reached a milestone of 500,000 driver-free miles last year. (Fletcher, 2015)

○ One of Google's emerging products is a contact lens embedded with a glitter-sized sensor that can measure glucose levels in tears. (Farr, 2015)○ Shopping Express is one of the company’s innovations, experimenting with the idea of same-day delivery. Very few companies offer this service

and is now in direct competition with the Amazon Now concept. (Fletcher 2015)

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Organizational Culture● Outcome Orientation - HIGH

○ BizOps works on a range of critical projects and issues--growth strategies for products like YouTube and Chrome, engineering prioritization and global sales force alignment, partner development and strategy work in emerging markets. (Google Inc..2015)

○ Dogfooding: Google often offer Googlers advance access to products, allowing them to test features and make product improvement suggestions.

● People Orientation - HIGH○ Parental Leave: Google provides generous parental leave benefits. In 2014, Google moved away from traditional maternity/paternity leave to try a

broader primary caregiver model - 110 days job protected.○ 28 days a year of holidays and vacation after working for one year. ○ $25,000 adoption benefit and 60 days paid adoption leave.○ Google employees receive free food cooked by a company chef, are provided with bus rides to work, and are allowed to travel through the

building on scooters and bicycles (Thompson, 2015). ● Aggressiveness - HIGH

○ Google is making an aggressive move by making a move to grow Google Apps for Work by making it easier and cheaper to use than the direct competitor Microsoft, who’s Enterprise Agreement is what ensures their loyal customers. (Weinberger, 2015).c

○ Supporting Pirate Bay ( an illegal torrent site for music) by making it a top search suggestion and creating ads around it to attract consumers. ● Stability - GOOD

○ The broad diversification of products/services offered emphasize that they’re not just a search engine, they’re a company about making money.○ Google seperated it’s core business and other ventures into smaller constellations under the name Alphabet. ○ “Plans to resell access to Sprint and T-Mobile's networks in a bid to improve wireless pricing/performance, and drive more revenue” (Zemen,

2015)○ “Throw it at the wall and see what sticks” is the common term that Googlers use.○ Many projects that don’t end up in the market. Risks on new innovative products can cost them in profits.

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Strengths & Challenges● Strengths

○ Google’s search engine is used for over 70% of the world’s queries (Sun, 2015)○ Android powers nearly 80% of smartphones worldwide○ Youtube’s acquisition in 2006 has generated it’s worth by over $39 billion (Sun, 2015)○ Broad diversification of products (Thompson, 2015)○ Google has a group of bright individuals that truly challenge their capabilities

● Challenges○ Google faces a lot of legal action because of its competition○ Driverless cars may be the future of automobiles, but Google’s cars have had accidents (CBS, 2015)○ Facebook is challenging Google for providers of real-time news (Smith, 2015)○ Google faces high employee turnover rates

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Opportunities● Opportunities

○ Expand Google Fiber--Google’s own internet service provider (Thompson, 2015)○ A competitive retail market against Amazon (Weinstein, 2014)○ Acquisition of UBER or LYFT if the driverless car is successful○ Penetrate markets with consumer electronics, especially mobile oriented markets○ Robotics Projects since they just purchased Boston Dynamics (Nemcick-Cruz, 2015)

Google’s strengths are a few reasons as to why they dominate the tech industry. However, their challenges may be causing their growth to slow, as many subject matter experts have speculated. Fortunately, Google is a risk taker, and there is no doubt they will continue to research their opportunities and exploit them as much as possible in their favor!

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Corporate Social Responsibility AssessmentAssessment:As a whole, Google does live up to its mission statement and values. It holds its employees above all else and strives for excellence in all aspects of their market. They organize the world’s information in a way that is extremely accessible and always useful. Everyone uses Google; there is no denying that it is a global superpower that will continue to succeed.

1. “Google’s Project Loon launched over a remote Brazilian school to provide Internet in the classroom, a huge help to schools like Linoca Gayoso School in Agua Fria, Brazil” -Amy McDonald, Deseret News, August 2014

2. “The defining characteristic of today’s successful companies,” the authors write, “is the ability to continually deliver great products. And the only way to do that is attract smart creatives and create an environment where they can succeed at scale.” -Steve Lohr, New York Times September 28, 2014

3.“The logic is, that if you treat your own people well you are open, honest, and a caring company. And through its focus on this dimension, Google has been able to be seen as a local company in many countries around the world.” - Jacquelyn Smith, Forbes, October 2, 2014

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Corporate Social Responsibility Assessment4.“One of the biggest problems with missions statements is deciding how honest to be. The clinical cleanliness of your internal mission might be very different from the one perceived by the great unwashed. While Google believes it might be organizing the world’s information, some might perceive it as taking the world’s information and making a canyon-full of money from it, in every possible way.” -Chris Matyszczyk, CNET, November 3, 2014

5. “Google doesn’t stress out about work-life balance among its employees: work this meaningful and fulfilling isn’t just “work.” -Nicholas Lemann, The New Yorker, December 2014

6. “Google is far from replacing its main source of cash flow, but it is finding unique ways to make money on different products and services.”- Connor Forrest, TechRepublic, January 16, 2015

7. “The search giant has made aggressive moves on multiple fronts toward good citizenship, but it is clear that, as one of the world’s largest corporations, every single effort is paying off” -Curt Moreno, Line Shape Space, February 10, 2015

8. “By valuing an open and transparent company culture, Google teaches its employees that it believes them to be trustworthy and have good judgment. That, in turn, empowers them.” -Jillian D’Onfro, Business Insider, April 2015 11

Corporate Social Responsibility Assessment9. “Google continuously innovates in the technologies and applications that produce ad revenue. As a result, advertisers and users stick with Google” -Bhaskar Chakravorti, Washington Post, June 16, 2015

9. “We are focused everyday on developing big new opportunities across a wide range of businesses. We will do so with great care regarding resource allocation.” -Salvador Rodriguez, IB Times, July 16, 2015

10.“To maintain its leadership as an innovative technology firm, Google must address the interests of its stakeholders through suitable corporate social responsibility (CSR) policies” -Pauline Meyer, Panmore Institute, August 22, 2015

11. Google ranked #1 on CRS National Rankings: ““Governance” was judged on openness and transparency and ethical behavior, and “workplace” was judged based on employee treatment and how much a company provided equal opportunities.” - -Max Miceli, US News, September 17, 2015

12.. On the value “Don’t Be Evil”- “It’s a bold mandate, one other big companies haven’t had the guts to operate under, not because it’s reductive, but because they worry that they can’t live up to it.” -Lily Newman, Slate, November 3, 2015

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Leadership Performance AssessmentLeadership performance assessment overall: Exceptional

1. “With more than 55,000 employees, getting the different divisions within Google to play nice together is an ongoing challenge. Pichai seems to have a knack for it. Since taking over Android, he’s made big strides with Google Now by creating interdisciplinary teams from the company’s Android and search departments.”--Exceptional-Victor Luckerson, Time, August 10, 2015

2. “Here's where the human element comes into play. Accounts of Pichai over the years present him as a genuinely caring, empathetic and insightful person. He's helped smooth out political and managerial troubles, weaving together teams and promoting people who do good work.” -- Exceptional-Devin Coldewey, NBC News, August 11, 2015

3. “Sundar has a tremendous ability to see what’s ahead and mobilize teams around the super important stuff.” -- Exceptional- Robert Mcmillan and Rolfe Winkler, The Wall Street Journal, August 11, 2015

4. “Pichai is well liked by many in the software community at large for his affable manner and friendly approach to his subordinates and contemporaries.”-- Exceptional-Jordan Rohan, The Indian Telegraph, August 12, 2015

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Leadership Performance Assessment5. “Pichai’s genius and hard work did not make him lose his popularity within the confines of Google. Many insiders say that he is well-liked, and more importantly, well-respected. He was popular for being able to maneuver office politics without stepping on too many shadows, a feat that is hard to accomplish in the corporate world.”-- Exceptional-Rav De Castro, Cruxial Cio, August 12, 2015

6. “Many em-ploy-ees have praised Pi-chai for his man-age-ment style, paint-ing him as a com-pas-sion-ate lead-er who re-cruited, ment-ored, and in-ves-ted in the people who worked for him.”-- Exceptional-Alice Truong, National Journal, August 12, 2015

7. “Sundar never has a bad day. His positive energy is contagious and his optimism attracts the best talent.”-- Exceptional-David Streitfeld and Mike Isaac, The Seattle Times, August 16, 2015

8. “To sum it up, Sundar's hard work, intelligence, smartness, overall attitude, team spirit all helped him to become the reach the position that he has achieved today”. -- Exceptional-Maya Kamath, Tech Warm, August 16, 2015

9. “I am really impressed with how invested Google is in your well-being and career growth. I've never had a conversation with my past managers about career trajectory as much as I've had at Google. Google really trained the manager to be proactive about their employees' growth. I enjoy that the most.” -- Exceptional-Jillian D’Onfro, Inc., September 30, 2015

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Leadership Performance Assessment10. “With the new Google, Pichai plans to make it a more human workplace, but without compromising on the skill and drive of the people involved at every level.” -- Exceptional -Daniel Fuller, Android Headlines, October 24, 2015

11. “Pichai scores very high on the likeability scale and has the ability to make tough decisions without rubbing people up the wrong way. The words colleagues use most often to describe him are ‘affable’ and ‘nice guy.’”-- Good-Uttara Choudhury, Khabar, September 2015

12. “Pichai has proven capable of roping in leaders people like; his next trick might be to fend off concerns that Google is going too soft.”-- Good-Mark Bergen, Recode, October 23, 2015

13. “They keep you at work and they help you to be more productive. I've never met anybody at Google who actually took time off on weekends or on vacations. You may not hear management say, 'You have to work on weekends/vacations' but.” -- Unsatisfactory-Jim Edwards, Inc., September 30, 2015

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Google’s Future● Google’s growth may decrease due to increased pressure from competitors, however, their history shows that today’s society

values them at high value (Mark)● To counteract growth slowing down, Google may move into new industries by acquiring more companies and further their

ability to innovation. (Mark)● The financial stability and positive feedback that employees provide gives proof the company will continue to prosper. (Claire)● Their innovating ideas combined with the nonstop advancements in the technological world, Google will continue to be a

dominating force in the tech community. (Claire) ● Future acquisitions will give Google the opportunity to take over multiple media channels which puts their name in even bigger

lights, attracting more consumers, which lead to higher revenue. (Danielle)● Google’s future holds great things in store for them, however, with their incessant experimentation and the method of guess and

check, it can be costly and damaging to their finances and time.(Danielle)● If Google doesn’t penetrate the social media market in some manner better than Google plus, it could mean their downfall of the

future. (Yunhan)● If Google can find a way to gain more leverage against Apple, then they may have the opportunity to take a bigger market share

of the phone and computer industry. (Sergio)

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15. Jordan, R. (2015, August 12). Sundar Pichai : A Leader With Users in Mind Will Take the Helm at Google. The Indian Telegraph. Retrieved November 18, 2015.

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