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 and SWOT analysis. These strategic tools are applied in respect to Google Corporation in evaluating its internal environment as follows:
Resource Based View: This is an important strategic tool that indicates about the key resources available to an organisation and they provide them with the opportunity to carry out their operational processes effectively. The resources of an organisation can be tangible or intangible resources (Henry, 2008). 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 most important tangible resources of Google Corporation is its highly skilled and talented employees that performs 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. These are the key tangible and intangible resources that allow Google to achieve leading position as the search engine service providers.
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.
SWOT Analysis: This is another important strategic tool that helps in analysing the internal effectiveness of an organisation. The SWOT analysis stands for strengths, weakness, opportunities and threats. A SWOT analysis of Google Corporation is performed as follows:
Strengths: As far as the strength of Google Corporation is concerned, the main strength point of Google is that the company has good brand reputation. It is recognised as leader in the search engine industry and established itself as the most reputed brand. Because of strong recognition in the industry, Google is not required to do any kinds of marketing because of its strong reputation in the industry. The operation cost of Google is low because of the application of low cost UNIX web servers. Further, Google provides interface to 88 languages for diverse users and it is another major advantage with Google. The growing performance of Google is another major strength, as despite US financial crisis and recessionary situations across major part of the country, Google has achieved a rise in its US revenue, international revenue as well as the number of headcounts as indicated in the graph below:
(Source: Atkins-Kruger, 2011).
Weakness: The higher level of growth and recognition is a significant weakness of Google because there are various dummy sites that aim at manipulating the ranking of Google. The actual traffic analysis is not possible as per Google’s link based ranking and this is another major weakness of Google.
Opportunities: In terms of opportunities, Google has significant growth opportunity, as it is very vast in reaching for new contents. There is a demand for search engine that provides higher access to information easily and Google search engine is essential enough in supporting these particular needs of the users. Since, Google has occupied a leadership position in the industry, the growth opportunities are also higher through additional Google services such as adwords and advertising at Google.
Threats: In terms of threats, there are certain major threats to Google and the major one is the increasing threats of hackers. They are destroying the web servers and this may impact the services of Google to a significant extent. In addition to this, the rising competition within the search engine industry is another major threat to Google in effectively satisfying the needs of its customers. The cost per click policy of the Google might also acts as a discouraging factor to the users of the search engine, and this might also adversely impact the overall performance of the company. The search engine provided by Google may not cope up with the advanced techniques or search engine policies and this might adversely impact the overall reputation of the company.