The Company Introduction

By:
Chopitea, Genzo Cruz, Ferris John
Igarta, Joash Joven, Niño Steven
Molina, Juan Miguel Santamaria, Aeron
Torres, Jose Carlos
Of MGT141 / AY01
 Outline
I. Company Overview by Niño Joven

II. Corporate History by Ferris Cruz

III. Products and Services by Miguel Molina

IV. Industry and Environment by Genzo Chopitea

V. Financials by Carlos Torres

VI. Management and Leadership by Aeron Santamaria

VII. Employee and Workplace Environment by Joash Igarta

VIII. Conclusions and Insights

Company Overview
 Company Overview
What Google is and what it does
• Larry Page, the 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.

• Google’s Goal: “To make it as easy

as possible for you to find the
information you need and get the
things you need to do done.”
http://www.google.com/about/company/products/
 Company Overview
Google’s Mission: “To organize the
world’s information and make it
universally accessible and useful.”

Google’s Unofficial Motto:

“Don’t be evil.” (General Code of
Conduct)
It is about:
• providing our users unbiased
access to information
• focusing on users needs and giving
them the best products and
services that they can
• following the law
• acting honorably
• treating each other with respect
http://www.google.com/about/company/; http://investor.google.com/corporate/code-of-conduct.html
 Company Overview
Google Facts:
• Founded
1998
• Founders
Larry Page and Sergey Brin
• Incorporation
September 4, 1998
• Initial public offering
(NASDAQ)
August 19, 2004
• Headquarters
1600 Amphitheatre Parkway
Mountain View
CA 94043

http://www.google.com/about/company/
 Company Overview
Google Facts:
• In one of the most anticipated Initial
Public Offerings, Google raised $1.67
billion in August of 2004.

• Today, Google has over 12,000

employees in offices throughout the
world.

• Google’s mission statement and

corporate culture reflect a
philosophy that you can “make
money without doing evil” and that
“work should be challenging and
the challenge should be fun”. These
beliefs dominate life at Google.

http://jobsearchtech.about.com/od/companyprofiles/a/google.htm
Corporate History
 Corporate History
When Larry met Sergey
Founders Larry Page and
Sergey Brin met at
Stanford University in
1995.

By 1996, they had built a

search engine (initially
called BackRub) that used
links to determine the
importance of individual
webpages.

http://www.google.com/about/company/
 Corporate History
Google Inc.
Larry and Sergey named the
search engine they built
“Google,” a play on the word
“googol,” the mathematical
term for a 1 followed by 100
zeros.

Google Inc. was born in 1998,

when Sun co-founder Andy
Bechtolsheim wrote a check for
$100,000 to that entity—which
until then didn’t exist.

http://www.google.com/about/company/
 Corporate History
Gmail: No Joke
On April Fools' Day in 2004, we
launched Gmail. Our approach to
email included features like
speedy search, huge amounts of
storage and threaded messages.

Broadcast Yourself
In 2006, we acquired online
video sharing site YouTube.
Today 60 hours of video are
uploaded to the site every
minute. Cat videos, citizen
journalism, political candidacy
and double rainbows have never
been the same.
http://www.google.com/about/company/
 Corporate History
The Little Green Robot Arrives
Amidst rumors of a “Gphone,”
we announced Android—an
open platform for mobile
devices—and the Open Handset
Alliance, in 2007.

The Comic Heard ‘Round the

World
Word got out about Google
Chrome a day ahead of schedule
when a comic book introducing
our new open source browser
was shipped earlier than
planned. We officially launched
on September 2, 2008.
http://www.google.com/about/company/
 Corporate History
Trivial Highlights in Google’s History:
• David Filo, co-founder of Yahoo and fellow Stanford Alumnus,
was one of the first to encourage Larry Page and Sergey Brin to
come up with Google.
• Like its arch-nemesis Apple, Google was first established in a
garage in Menlo Park, California.
• In June 1999 a group of major venture capital firms, Sequoia
Capital and Kleiner Perkins, plowed $25 million in the company.
They bet that Google would be the last search engine standing
by the start of the new millennium.
• Google realized that Bill Gates’ attempt to embed Microsoft’s
browser into the operating system in 1998 was the future of the
Internet. However, Gates was struck down by the U.S.
government since he was trying to sell it for a profit. Google
came in with a different angle.

http://www.submittoday.com/history_of_google.htm; http://www.businessdictionary.com/article/710/google-and-
innovation-a-history/
Products and Services
 Products and Services
Google’s Primary Products and Services

http://www.google.com/intl/en/about/products/
 Products and Services
Google’s Complete List of Products and Services:
Google has a total of 168 products and services with primary
classifications of web-based products, operating systems, desktop
applications, mobile applications, hardware and secondary services.

http://en.wikipedia.org/wiki/Google_products#Mobile_applications
 Products and Services
Google’s Complete List of Products and Services:
Google has a total of 168 products and services with primary
classifications of web-based products, operating systems, desktop
applications, mobile applications, hardware and secondary services.
• 29 Search Tools (Google Search, Google Alerts, etc.)
• 10 Advertising Services (Google AdWords, Google AdSense, etc.)
• 29 Communication and Publishing Tools (Google Docs, etc.)
• 13 Development Resources (Google Code, Google Go)
• 9 Map-related Products (Google Maps, Google Transit, etc.)
• 8 Statistical Tools (Google Analytics, Google Refine, etc.)
• 3 Operating Systems (Android, Google Chrome OS, Google TV)
• 14 Desktop Applications (Google Chrome, Google Toolbar, etc.)
• 18 Mobile Web Applications (Google Calendar, Google Reader, etc.)
• 20 Mobile Standalone Applications (Google Music, Google Sync, etc.)
• 11 Hardware Products (Nexus 4, Chromebook and etc.)
• 4 Secondary Service Offerings (Google Public DNS, Google Ideas, etc.)

http://en.wikipedia.org/wiki/Google_products#Mobile_applications
Industry and Environment
 Industry and
Environment
Any company’s product or service
defines the industry to which it
belongs to.

Google’s numerous offerings of

products and services has allowed
it to enter a wide variety of
industries and opportunities.

Constant innovation is what has

led Google to its current status as
a prevailing power in its industries
and is what will most likely keep it
above its competitors.
 Industry and
Environment
Internet Information Providers Industry:

• It is Google’s main industry as dictated by their

products such as the Google Search Engine,
Google News, Google Translate, Google Alerts,
Google Image Search and etc.

• Google is classified by the US Stock Exchange in

this industry along with competitors Yahoo,
Facebook, LinkedIn, Groupon and AOL.

http://ycharts.com/rankings/industries/Internet%20Information%20Providers/enterprise_value
 Industry and
Environment
Internet Information Providers Industry:
As of January 18, 2013, Google’s performance as compared to
industry competitors include the following:
• Ranked #1 in market capitalization, which measures total
value of issued shares, at more than 230 billion USD;
• Ranked #8 in return on equity, which measures a firm’s
profitability, at 17.18%.

As of January 20, 2013, Google’s financial rankings among its

industry competitors also include the following:
• Ranked #1 in enterprise value, which is a measure of a
company’s total value, at more than 220 billion USD;
• Ranked #11 in current ratio, which measures ability to pay
short-term obligations, at 3.937 is to 1.
http://finance.yahoo.com/q/in?s=GOOG;
http://ycharts.com/rankings/industries/Internet%20Information%20Providers/market_cap
 Industry and
Environment
Internet Information Providers Industry:
In recent news, the US Federal Trade
Commission ruled that Google had no violations
regarding anti-trust or anti-competition statues
with its internet search engine.

• The trigger for the investigation was

Google’s competitors, including Microsoft,
who accuse the search giant of violating anti-
trust statues with its search business.

• The US Federal Trade Commission later

found out that Google has been favoring its
own products when producing search
results but FTC Chairman Jon Leibowitz says
that these actions were “not undertaken
without legitimate justification”.

http://topics.nytimes.com/top/news/business/companies/google_inc/index.html
 Industry and
Environment
Internet Information Providers Industry:
In recent news, the US Federal Trade
Commission ruled that Google had no
violations regarding anti-trust or anti-
competition statues with its internet search
engine.

• In addition, companies that rely on Google

to drive traffic to their site have
complained that Google adjusts its search
algorithm to favor its own growing
number of commerce sites.

• In conclusion, Google has agreed to

comply with and take certain actions
regarding the problems that “relate to
search in search advertising”.
http://topics.nytimes.com/top/news/business/companies/google_inc/index.html
 Industry and
Environment
Online Advertising Industry:

• It is Google’s indirect industry as dictated by opportunity

given the nature of their products and services.

• It is Google’s primary revenue-earning industry.

Form 10-Q, Google 2012 3rd Quarter SEC Filling: http://investor.google.com/pdf/20120930_google_10Q.pdf

 Industry and
Environment
Online Advertising Industry:
• In its 3rd Quarter SEC Filling of 2012, Google admits that
96% of their company-wide revenues come from online
advertising.
• Google AdWords is the advertising program which
enables users to place text-based and display ads on
Google websites that Google uses generate most of its
revenue.
• AdWords advertisers pay Google on a cost-per-click
basis, which means that an advertiser pays Google only
when a user clicks on one of its ads.
• AdWords advertisements are also available on a cost-per-
impression basis that enables advertisers to pay Google
based on the number of times their ads appear on Google
websites.
Form 10-Q, Google 2012 3rd Quarter SEC Filling: http://investor.google.com/pdf/20120930_google_10Q.pdf
 Industry and
Environment
Online Advertising Industry:
• Google AdSense refers to the online programs
through which Google distributes their
advertisers’ AdWords ads for display on Google
Network Members’ websites.
• For Google’s AdSense program, advertisers also
have the same option as to whether payment to
Google shall be made on a cost-per-click basis
or on a cost-per-impression basis.
• Google also pays their Google Network
Members advertising fees from advertisers.

Form 10-Q, Google 2012 3rd Quarter SEC Filling: http://investor.google.com/pdf/20120930_google_10Q.pdf

 Industry and
Environment
Online Advertising Industry: (Google’s Mobile Advertising for 2011)

http://gothtml5.com/2011/12/20/mobile-2011-numbers-infographic/
 Industry and
Environment
Online Advertising Industry: (Google’s Advertisers during 2011)

http://www.wordstream.com/articles/google-earnings
 Industry and
Environment
Online Advertising Industry: (Google’s Advertisers during 2011)

http://www.wordstream.com/articles/google-earnings
 Industry and
Environment
Online Advertising Industry:
According to an article of the New Please enable Chrome to accept cookies then try
York Times, Google uses the again

technology of cookies from users

for real-time bidding.

• Real-time bidding is an auction

where advertisers pay to for the
opportunity of sending ads to
individual consumers.

• Advertisers buy access to send

ads to specific consumers
whose preferences align with
their product based on their
search history as detected by
cookies of websites such as
Google.

http://www.nytimes.com/2012/12/02/magazine/who-do-online-advertisers-think-you-are.html?pagewanted=all
 Industry and
Environment
Online Advertising Industry:
According to an article of the New York Times, Please enable Chrome to accept cookies
Google uses the technology of cookies from then try again
users for real-time bidding.

• Real-time bidding takes away some of the

fairness in the online marketplace as it
allows companies to send ads for products
that are much more expensive to
consumers who have been profiled with
higher buying capacities based on their
online interactions.

• Eric Schmidt, Executive Chairman of

Google, said that mobile devices would
soon “do things we haven’t begun to think
of” like sorting details of our preferences
and tastes and offering suggestions that
anticipate our desires and questions before
we have even asked.

http://www.nytimes.com/2012/12/02/magazine/who-do-online-advertisers-think-you-are.html?pagewanted=all
 Industry and
Environment
Online Advertising Industry:
According to an article of the New Please enable Chrome to accept cookies then
try again
York Times, Google uses the
technology of cookies from users
for real-time bidding.

• Real-time bidding has the

tendency to make the
consumer as the product
which is sold to advertisers. In
effect, some consumers will
be valued higher than others
as they create internet
personalities and live in a more
valuable virtual world in the
eyes of the advertisers.

http://www.nytimes.com/2012/12/02/magazine/who-do-online-advertisers-think-you-are.html?pagewanted=all
Financials
 Financials
Financial Information:
In 2010;
• Revenue from Google Websites increased by 15% , in terms of growth rate,
compared to last year, which resulted to $29,321,000. This is where 66% of
revenue came from, 1% lower than last year.
• Revenue from Google Network Members’ Websites increased by 16%, in
terms of growth rate, which resulted to $1,626,000 increase. The
percentage of this to the company’s revenue was the same as last year as
30%.
• Advertising revenues also increased by 15% and made an essential increase
of $5,347,000.
• With all the increasing percentage in revenues, the overall increase was by
15% and is now $29,321,000.
• Google’s Consolidated income for 2010 was exactly $10,381,000 which is
about 35% of their revenue.
• Google’s income from operation is the same as its consolidated income,
which resulted to 35% of their revenue or $10,381,000.

http://investor.google.com/financial/tables.html
 Financials
Financial Information:
In 2011;
• The increase in Google Website revenue was only by 10% which is
lower than the 15% increase last year, in terms of growth. Despite
the slow increase, it still produced to $26,145,000
• Revenue from Google Network Members’ Websites decreased by
5% of its growth but still increased revenue by $1,594,000
• Advertising revenue increased by 6% only but made a big difference
and resulted to an $8,295,000 increase, which is good compared
last year.
• Google Revenues only increased by 5% in terms of growth, which is
slow compared to the 15% increase last year, but was still good to
produce $37,905,000
• Consolidated income from operations decreased by 4% in growth
and only produced a difference of $1,361,000 compared to last year
• Total Google income is as the same as consolidated income which
decreased by 4% and produced only $1,361,000
http://investor.google.com/financial/tables.html
 Financials
In recent news:
• Google is recovering from a mistake by
one of their employees that caused a
great decrease of stock value and
resulted to revenue below expectations
of their financial analyst in their Q3.
According to CEO Larry Page, Google has
more future growth chances. Focusing
more on their technological innovations
on Motorola, it will resume to its normal
operations where expectations are met.

• This means that Google is at its recovery

stage and just making sure to resume
their expected revenues for the Q4
through reducing risks and focusing more
on long term innovations would get them
back on track.

http://www.pcworld.com/article/2012668/after-google-disappoints-page-points-at-future-growth-chances.html
 Financials
In recent news:
• Google’s Treasurer reminded Wall Street
to lower their estimates on their Q4. Their
current situation is still to recover from
their past 3rd quarter mistake, which
means Google may not be able to meet
the estimated revenue Wall Street made.

• Still focusing on technological

innovations, they still get most of their
revenues from their search business. The
problem is that more and more
companies are competing in that areas of
business like Facebook, who recently
made Graph Search. Still competing with
other brands, Google is also struggling to
gain a large market share on smart
phones.

http://seekingalpha.com/article/1121901-ahead-of-q4-report-google-s-treasurer-reminds-wall-street-to-revise-estimates-lower
Management and Leadership
 Management and
Leadership
Executive Officers:
Larry Page, CEO
As Google’s chief executive officer, Larry
is responsible for Google’s day-to-day-
operations, as well as leading the
company’s product development and
technology strategy.

Eric E. Schmidt, Executive Chairman

As executive chairman, he is responsible
for the external matters of Google:
building partnerships and broader
business relationships, government
outreach and technology thought
leadership, as well as advising the CEO
and senior leadership on business and
policy issues.
http://www.google.com/about/company/facts/management/#section-leadership
 Management and
Leadership
Executive Officers:
Sergey Brin, Co-Founder
Today, he directs special projects. From
2001 to 2011, Sergey served as president
of technology, where he shared
responsibility for the company’s day-to-
day operations with Larry Page and Eric
Schmidt.

Nikesh Arora, Senior Vice President and

Chief Business Officer
Nikesh oversees all revenue and
customer operations, as well as
marketing and partnerships.

http://www.google.com/about/company/facts/management/#section-leadership
 Management and
Leadership
Executive Officers:
David C. Drummond, Senior Vice
President and Chief Legal Officer
Today as senior vice president and chief
legal officer, he leads Google’s global
teams for legal, government relations,
corporate development (M&A and
investment projects) and new business
development (strategic partnerships and
licensing opportunities).

Patrick Pichette, Senior Vice President

and Chief Financial Officer
Patrick Pichette is Google’s chief
financial officer.

http://www.google.com/about/company/facts/management/#section-leadership
 Management and
Leadership
Google’s Organizational Chart:
Knowledge

Mobile and
Digital Content

Geo and
Commerce

People
Operations

Communications
and Public Policy

Board of Executive Youtube and

Directors Officers Video

Google.org

Chrome and
Apps

Engineering

Advertising

Technical
Infrastructure
http://www.google.com/about/company/philosophy/
 Management and
Leadership
The Google Philosophy (10 things):
1.Focus on the user and all else will follow.
2.It’s best to do one thing really, really
well.
3.Fast is better than slow.
4.Democracy on the web works.
5.You don’t need to be at your desk to
need an answer.
6.You can make money without doing evil.
7.There’s always more information out
there.
8.The need for information crosses all
borders.
9.You can be serious without a suit.
10.Great just isn’t good enough.

http://www.google.com/about/company/philosophy/
 Management and
Leadership
Google Leadership (Project Oxygen):
According to an article of the New
York Times, in 2009 Google set out a
project to build better bosses which
was code-named Project Oxygen.

• As only a data-mining giant like

Google can do, it began analyzing
performance reviews, feedback
surveys and nominations for top-
manager awards. They correlated
phrases, words, praise and
complaints.

• Later that year, the “people

analytics” teams at the company
produced what might be called
the Eight Habits of Highly
Effective Google Managers.
http://www.nytimes.com/2011/03/13/business/13hire.html?_r=2&scp=1&sq=Google%E2%80%99s%20Quest%20to%20Build
%20a%20Better%20Boss&st=cse&
 Management and
Leadership
Google Leadership (Project Oxygen):
Eight Habits of Highly Effective
Google Managers:
1.Be a good coach
2.Empower your team and don’t
micromanage
3.Express interest in team members’
success and personal well-being
4.Don’t be a sissy: Be productive and
results-oriented
5.Be a good communicator and listen
to your team
6.Help your employees with career
development
7.Have a clear vision and strategy for
the team
8.Have key technical skills so you can
help advise the team

http://rapidbi.com/google-project-oxygen-8-point-plan-to-help-managers/
 Management and
Leadership
Google Leadership (Project Oxygen):
In addition, Google also identified 3
Key Manager Pitfalls in their
organization:

1.Have trouble making a transition to

the team
2.Lack a consistent approach to
performance management and
career development
3.Spend too little time managing and
communicating

http://rapidbi.com/google-project-oxygen-8-point-plan-to-help-managers/
Employee and Workplace Environment
 Employee and Workplace
Environment
Google’s Message to its Employees:
“Do Cool Things That Matter.”

How does Google hire?

Google is always looking for their next
“Noogler” (new Google employee) –
someone who is good for the role, good
for Google, and good at lots of things.

Google looks for people who are great

at lots of things, love big challenges and
welcome big changes. Google does not
have too many specialists in just one
particular area. Google looks for people
who are good for Google, and not just
for right now, but for the long term.

http://www.google.com/about/jobs/lifeatgoogle/hiringprocess/
 Employee and Workplace
Environment
Google Benefits:
When it comes to Google’s benefits and perks,
they have everything you’d expect from a large
company, like health insurance, retirement
benefits and so on. But they also offer way more
than the basics.
Examples:
• On-site physicians and nurses, convenient
medical services, and comprehensive health
care coverage
• Travel insurance and emergency assistance
even on personal vacations
• New parents get time off and some extra
spending money for their newborns
• Reimbursements for classes or degree
programs of student employees
• Free legal advice and, in the US, also get
common legal services at a generous group
discount
http://www.google.com/about/jobs/lifeatgoogle/benefits/
 Employee and Workplace
Environment
The Google Workplace:
• Google topped Fortune magazine's list
of Best Companies to Work For 2012,
knocking the nearly paternalist SAS
Institute from the top perch.

• The Web giant claimed the top spot on

the strength of both its financial
performance-- revenue, profits and
share price all climbed--and employee
gratitude for its corporate culture.
Fortune noted that Google employees
have access to bocce courts, bowling
alleys, and, of course, free food.

http://news.cnet.com/8301-1023_3-57362103-93/google-is-the-coolest-workplace-in-the-u.s.-again/ ;
 Employee and Workplace
Environment
The Google Workplace:
• Google Inc. saw its employee-satisfaction
rating soar by more than a third, 37 percent,
from 2011 to 2012.

• The jump in Google's score was the result of

improved employee support and growth, a
category that saw an 80 percent rise among
Google workers.

• The rise in reported happiness among Google

employees is likely the byproduct of the
company's efforts to keep talent from
fleeing. In recent years, some employees
became disenchanted with Google's business
model and bolted for other Silicon Valley
companies perceived as being more
innovative, such as Facebook.

http://jobs.aol.com/articles/2012/08/17/why-google-employees-are-happier-than-ever/
 Employee and Workplace
Environment
How Larry Page Built One Of The Best Places To
Work For:
In an interview with Fortune Magazine, Larry
Page talks about Google and its workplace
environment:
• “You want to be working on meaningful,
impactful projects”. Larry Page gives
employees the freedom to choose a project
which they want to work on. He explains
that if employees are working important
things that can change the world, his
employees would be excited to go to work
everyday.

• “It's important that the company be a

family, that people feel that they're part of
the company, and that the company is like a
family to them. When you treat people that
way, you get better productivity.”

http://tech.fortune.cnn.com/2012/01/19/best-companies-google-larry-page/?iid=F_F500M
Conclusions and Insights
 Conclusion and Insights
Company Overview:
Google can be thought of as a model of transparency from the outside looking
in. Based on its company overview, Google is exactly what it says it is like
looking within.

Corporate History:
Google’s has a rich history which helped them create their identity. Their history
was full of opportunities, innovation and belief in their founders. Up to this
very day, Google still has the same identity.

Products and Services:

Google has thought of offering almost every product and service imaginable
that is in line with their primary business. It is also worth noting that Google
offers most of these products and services for free.

Industry and Environment:

Google is in of the most challenging industries in the world because of their
constant need for innovation. Because of this, they need to act in a way that
maximizes all opportunities for them to survive.
 Conclusion and Insights
Financials:
Google is still at its stage of recovering from their decrease in investments and
revenue due to internal lapses. Google still plans to grow through technological
innovations and gain additional revenue from operations other than their
search business. Google, despite their performance last quarter, is still
expecting growth in the near future through long term planning.

Management and Leadership:

Google’s success is attributable to their management and leadership
strategies. Google’s leadership and management strategies are planned forr
and effective. In addition, they have a strategy that other companies might not
think of using. This strategy is to hire different managers that will have a unique
role in the entity.

Employee and Workplace Environment:

Google has a high financial performance and its working environment is one of
the best in the world. Google, unlike the other companies, gives high gratitude
to its employees by giving them perks such as free food everyday, relaxation
places such as a spa, fitness gyms and free transportation.