The internal environmental analysis is concerned with the evaluation of internal efficiencies that allows an organisation to achieve effectiveness over their operational performance. The internal environment of an organisation can be better assessed through various important strategic management tools such as resource based view, value chain. These strategic tools are applied in respect to Google Corporation in evaluating its internal environment as follows:
Identification of Firm’s Resources: In respect to Google Corporation, the analysis of the company revealed that it has significant amount of tangible as well as intangible resources. As for instance, the brand name of Google is the most important intangible resource, as Google is popularly known as the most effective search engines in major parts of the world. Apart from this, the human capital is another major tangible resource that is available to the organisation as the company has highly skilled and talented workforce across the world that allows in performing innovations effectively. These are the key tangible and intangible resources that allow Google to achieve leading position as the search engine service providers.
Capabilities: In terms of capabilities, they imply the ability of the company to transform its resources in a productive manner. The analysis of Google indicates that the company has wide range of product category that significantly adds towards the organisational capability. These mainly include Gmail, Youtube, Orkut, Google Images, Google Maps, Language translation software, News, Calendar and academic books and scholars. All these capabilities of the company adds significantly in achieving higher level of growth.
Core Competency: Apart from this, the most important tangible resources of Google Corporation are its highly skilled and talented employees that perform innovation at regular basis in order to ensure that their search engine continues to occupy the leading position in the industry. Another major key internal resource of Google is its presence, as the company has more than 70 offices in around 40 countries across the globe. It has strong management team that comprises of key members such as Larry Page, the CEO of the company.
Value Chain Analysis: This is another important strategic tool that helps in identifying the core processes that are utilised by companies in order to provide their final products and services to the end consumers. The value chain analysis comprises of primary activities and certain support activities. The primary activities are ones that suggest about the core delivery of products or services as performed by businesses such as inbound logistics, operations, outbound logistics, sales and services etc. The support activities provide support in providing services to final consumers and this include R&D, human resources, technology etc. In respect to Google Corporation, the inbound logistics can be defined as the information requirements of the users from internet (Schmitz, 2005)
The operations can be the input of information or key words over Google search engine and the output is generated in the form of information details that are being sought by the users. In this way, the primary activity of providing search engine services is performed at Google. However, in providing such primary activity, the support activities are crucial. As for instance, the support activity in the form of skilled human resource professional allows for the performance of innovation and this in turn allows users to effectively perform their searches. Apart from this, the role of R&D is also crucial and it is the technological advancement that allows Google in supporting its search engine.
Thus, both the primary activities and support activities are crucial in providing search engines services to its users.
Financial Condition: The financial condition of Google seems to be effective and this is quite easily evident from the performance as achieved by Google over last few years. There has been a significant growth in the earnings of the company which implies that Google has good financial condition. The strong financial performance of Google is clearly indicated below:
(Source: Google Investor, 2013).
The above graph indicates a rising trends with respect to the financial performance of Google and this shows stronger financial condition of the company.
(Source: Atkins-Kruger, 2011).
Further, the financial performance of Google can be identified from the growth in the revenue, income and profit margin of the company from the graph indicated below:
The graph above implies that there is a sharp rise in the revenue of the company during the four quarters of 2012 and this is also clearly evident with respect to the net income earning potential of the company which has also increased significantly during the four quarters period. Apart from this, the profit margin show a little decline during the third quarter of 2012, but it again rises in the fourth quarter. Overall, the performance of the company seems to be effective enough in terms of enabling higher growth to it.
Current Objectives and Strategies: The current objective of the Google Corporation is to achieve reduction over cost in delivering search engine services. Cost efficiency is the most important criterion in any kinds of business and it is equally applicable in respect to Google because a higher level of cost efficiency helps in providing organisational products and services at cheaper rates to its customers. This leads to the attainment of better customer satisfaction and thereby positive overall performance of the company. Apart from the objectives, the strategic goals of Google are to perform acquisitions of other major search engine provider to maintain its leadership position in the industry. Although, Google has already occupies the leading position in the industry, but it can further achieve growth through performing the acquisitions of small search engine providers. Hence, the strategic goals of Google have been to achieve higher growth through acquisition.