Introduction Page and Sergey Bin (Google, 2017). Google

Introduction

Google is
one of the world’s leading innovators and are also one of the top companies
that have successfully ‘gone global’. According to Google’s official website
the company started in the year 1998 by Larry Page and Sergey Bin (Google,
2017). Google provide many different aspects to different markets across the
globe. Firstly, Google is the number one search engine worldwide. In 2016
Google owned 64% of the search market share which was a huge difference
compared to their main competitors Bing who only had 21.4% of the market share
(ComScore, 2016). The company offer a lot of different products to the market.
Google have a very complex and diverse product range and also have a strong
corporate image throughout the world. According to Fortune Google is the best
global company in the world to work for as it offers many benefits to staff
(Fortune, 2014).

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Collins
define globalisation as “the process enabling financial and investment markets
to operate internationally, largely as a result of deregulation and improved
communications.” (Collins, 2017) Google are a perfect example of a company who
have successfully “gone global.” Google is available in most countries
throughout the modern world. There are main
aspects of globalisation that have defined Google’s success to go global. There
are many different reasons for globalisation that according to BBC (2014) these
include “Improvements in transport which ensure decreased shipping costs
from country to country. This also helps transport a large amount of goods
quicker. Another is “Freedom of trade –  organisations like the World Trade Organisation (WTO) promote
free trade between countries, which help to remove barriers between countries.”
“Improvements of Communications” is another,
this is when online communication has helped communication between countries. “Labour
availability and skills”, this is when many different countries have different
minimum wage limits compared to others. This is a reason why a lot of tech
firms choose to have their products made in less economically developed
countries so they can make their products to a high quality at a lower price. (BBC,
2014)

There are different views to globalisation according to
Wetherly and Otter (2014:266). These include Neoclassic and Neoliberal views of
globalisation. Neoclassical is stated by Adam Smith within Wetherly and Otter
(2014:45) “Modern day neoclassical economics focuses in quantifying and
modelling the economic behaviour that underpins the effective functioning of
the price mechanism.” According to Investopedia “This
theory coincides with the idea of rational behaviour theory, which
states that people act rationally when making economic decisions.” This means
that Neoclassical Economists believe that the public make decisions based on if
they feel the product they are buying is of a certain value to them. The other
view of globalisation is neoliberal. The Guardian (2017) states that neoliberal
means “it denotes a preference for markets
over government, economic incentives over cultural norms, and private
entrepreneurship over collective action” This suggests that this
view favours the markets, economic incentives and private entrepreneurship over
higher factors.

Wetherly
and Otter (2014: 263) suggests there are six main aspects of globalisation
which include international trade, Globally organised production and investment
flows, migration, communication flows, cultural flows and rapid technological
change.

Rapid Technological Change

Rapid technological change has helped benefit Google in
many ways. Firstly, Google is a provider of technological advances within
recent years as they are tech giants within today’s technological market. Paul
Scharre at CNAS (2017) suggest that “Technology is changing our world at an
astonishing pace. In the
span of a few short years, the internet, mobile devices, and social media have
transformed how we communicate and get information about the world.” These
technological advances show how a company like Google can benefit overall from
such examples as social media and the internet as Google would use these types
of technological advances to advertise and show how people interact with their
products. Since Google are a very popular tech company they can benefit from these
rapid technological advances. For example, Google has a specific aim to
introduce the first driverless car to the market. Google have also never
produced a car before which is a first for the tech giant. Although with the
rapid technological advances in today’s society Google could very much succeed
with this move. The financial times (2017) states that Googles driverless car is
“Potentially
one of the most disruptive new technologies, as well as one of the most hyped,
driverless cars have been at the centre of a race between big automakers and
technology companies in the US, China and Europe.” There are many different
advantages and disadvantages of this aspect of globalisation. Karehka Ramey at
useoftechnology (2013) suggest that the advantages include quicker means of
communication, encourages innovation and creativity, improves on human
resources management, saves time and it also creates mobility for the company.
They then go on to suggest that disadvantages include high maintenance costs,
causes distraction, can make staff lazy and not want to do their job to their
full potential and it can also affect work relations between staff. Overall
this aspect is one of the most important for google going global as they are a
tech giant within today’s world.

Communication Flows

Communication
flows are very important to any company especially Google. There are different
variations of communication that include internal and external communication.
Internal is when the communication is inside the company and external is
outside the company. Stated by Wetherly and Otter (2014:265) “Globalization has
been greatly influenced by the speed with which communications have improved in
the world, both in terms of transport and communications.” Google would
transport many of their products from their product range internationally to
ensure the biggest impact of sales, revenue and profit. By having a good
overall communications system in place this would be possible for them.  This aspect of globalisation has many
advantages and disadvantages. The advantages are that by having a good overall
communications system in place Google can ensure internal or overseas
communication is operating the way it should be to achieve the highest overall
aims and objectives for them as a company. Another is that communication is the
number one aspect of success. Without a good since of communication Google will
not know what tasks needs to be done and completed. Disadvantages include
conflict within the company. Conflict can leave a company in a bad way. Forbes
states (Forbes, 2013) that conflict within a company has two outcomes the first
being “A valued employee just leaves because
they’re miserable working at your company” or “It builds, becomes bigger, and
then finally erupts, causing a full-blown crisis.” This a bad for a company
especially Google as with being such an international company everything needs
to work in the correct order. Overall communication flows are a key asset to
success for Google. With having a good since of communication in place they
will be able to work to achieve every aim and object they want to obtain to
keep the company running in the correct order.

Globally Organised Production and
Investment Flows

Having a
company that has globally organised production and investment flows allows them
to plan ahead and ensure each and every production and investment move is the
correct one to benefit Google. This ensures that no time is wasted when making
decisions for aspects of the company for example what way to make a certain
product on the production line or which company to invest money into. Wetherly
and Otter States that “Businesses have recognized the advantages of organizing
production across national boundaries to take advantage of lower costs and the
specialist benefits of different geographical locations.” (2014: 264) With
making production in less economically developed countries Google can save a
high amount of money that can be used to create products. Google would offer
investments to other company’s and they would also gain investments from other
companies into their own. Google is reportedly investing $875m to tech giants
LG to offer a curved screen display to their customers for their new smart
phone concept. This shows that Google have plenty of money behind them as a
company to even invest such a large amount of money for one product from their
product range. (TechCrunch, 2017) This aspect of globalisation comes with many
benefits as well as drawbacks. Benefits include that it initially saves money
from production costs for Google as they can run production in countries with a
lower earning amount, this gives Google a good corporate image with offering
jobs within struggling parts of the world and it also allows Google to generate
a high profit as they are saving money on production. Drawbacks include that
investments may not work out in the long run which means Google can lose a high
amount of sales, revenue and profit. Another is that even though Google have
stated that are a “responsible manufacturing company” that are against the
likes of child labour, fair wage and anti-human trafficking (Google, 2016) many
may feel they could still be doing this behind closed doors. Overall this
aspect of globalisation is an important one to Google as for them it is a main
point to consider when looking into globalisation.

 

International Trade and the
Creation of the Global Market

International
trade and the global market is a huge aspect for Google and has had a huge
impact on the company. Wetherly and Otter (2014: 263) state that “Trade itself
is a vital feature of economic activity within countries or regions. Without
trade, business would not be able to benefit from the ability to specialize and
the associated benefits of an efficient division of labour.” This shows that
Google wouldn’t be able to initially benefit as a business as trading
internationally creates a whole new horizon for the company by introducing a
whole new group of individuals to supply their products to. With Google being a
global company they can gain a higher amount of business opportunities and this
can gain them even more sales, revenue and profit to enhance their company
further. Trading internationally can have many benefits and drawbacks. International
trade also allows Google to present their products such as their tablets, smart
phones, smart watches and search engine to countries that contain a higher
number of nationals. This is good for Google as this can allow them to
advertise to a wider range of people. Benefits include it makes better
relations between countries, creates a higher amount of capital for Google to
expand their company even more, creates jobs in different countries and it
allows countries to receive a more diverse range of products. According to Kimberly
Amadeo (The Balance, 2017) she suggests drawbacks include “reduces jobs in
domestic industries that can’t compete on a global scale.” It leads to “job
outsourcing” which is when a company such as Google would change the overall
dynamic of how they interact with customer complaints to save money for themselves
due to cheaper labour charges within different countries. Overall international
trade and the creation of the global market are a massive aspect for Google
with going global. This allows Google to generate a high income of profit to
allow them to generate a higher amount of sales, revenue and profit overall.

 

Conclusion

Overall
all these aspects contribute to Google’s success in “going global.” By taking
all of these aspects on board Google will have a clear view of how each can benefit
and effect their company back. With planning ahead Google can avoid bad
outcomes and overall bad corporate decisions that may lose the company sales,
revenue and profit. Globalisation is a huge segment that Google want to keep
being a success. With doing so this will allow the company to achieve high aims
and objects to ensure the best overall outcome and allow them to gain a huge
amount of income from different countries and regions all over the globe.

 

 

 

 

 

 

 

References

1.    
Google (2017) From the garage to the Googleplex, Available
at: https://www.google.com/intl/en/about/our-story/ (Accessed: 30th December 2017).

2.    
Lella (March 16,
2016) comScore Releases February 2016 U.S. Desktop
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3.    
Hackett (October 23,
2014) The 25 Best Global Companies to Work
For, Available at: http://fortune.com/2014/10/23/global-best-companies/ (Accessed: 30th December 2017).

4.    
HarperCollins
Publishers (no date) Definition
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5.    
BBC (2014) Transnational corporations, Available
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6.    
Wetherly & Otter
(2014) The business environment: themes and issues
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7.    
Wetherly, & Otter(2014). The business environment: themes and issues
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York, USA: Oxford University Press.

8.     Jon Russell (April 10,
2017) Google is
reportedly investing $875M in LG Display to give the Pixel a curved screen, Available at: https://techcrunch.com/2017/04/10/google-is-reportedly-investing-875m-in-lg-display-to-give-the-pixel-a-curved-screen/ (Accessed: 10th January 2018).

9.    
Google (2016) Responsible
Supply Chain, Available at: https://www.google.com/about/responsible-manufacturing.html (Accessed: 10th January 2018).

10.  David Roth (July 29,
2013) Supporting
Healthy Conflict In The Workplace, Available at: https://www.forbes.com/sites/davidroth/2013/07/29/supporting-healthy-conflict-in-the-workplace/#4c51c1761822 (Accessed: 15th January 2018).

11.  Investopedia (2018) Neoclassical Economics, Available at: https://www.investopedia.com/terms/n/neoclassical.asp (Accessed: 15th January 2018).

12.  Dani Rodrik (2017) The fatal flaw of neoliberalism:
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13.  Paul Scharre (JULY 19,
2017) Making Sense
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14.  Richard Waters
(November 7, 2017) Google owner
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16.  Kimberly Amadeo
(October 06, 2017) International
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