Operations Consulting Proposal for Google
Organizations in the current business world face a considerable range of challenges that threaten their performance. These challenges include competition, constantly changing consumer needs, and technology among others. In response to these, businesses are required to embrace business models that will ensure the competitiveness and performance of companies in their markets. The following study examines the problems that Google experiences and the strategies it requires to adopt change for it to remain competitive in the industries it serves. To achieve this, Google’s business model will be examined to show the manner in which it has contributed to its growth. Besides, the resources and data necessary for consulting firms to relay to business the measures to undertake will be discussed. Finally, the financial impacts of operations consulting especially with regard to having positive impacts on business processes will be examined.
When it was established, Google had no business model that could enable it to achieve its desired share in the global markets. Google was a maddeningly unprofitable company and this prompted it to explore effective strategies it could embrace for stability in its resources and revenue. The company managed to make profit margins that were not able to sustain their daily operating costs that saw it sell their search appliances to businesses. Moreover, it started to do a search of their technology that enabled it to have superior abilities to other engines. From this, it managed to change radically and attributed to its change in business models that was strategic. According to Syverson (2011), a business model as a firm’s logic dictating how it operates and manages to create value for all its stakeholders. In essence, it depicts the structure, content, and governance of transactions that are designed to create value through the exploitation of existing business opportunities.
Prior to its growth, Google could have considering embracing some of the items contained in the consulting tool kit to enhance its performance. All this is related to the operations and supply chain management and the first direction Google would take is to define the problem and gather information. The use of this assessment tool could have enabled Google to identify market-specific services that ought to have been offered to the target markets by the company (Poulfelt & Olson, 2010). From the outlook, it is evident that the company gave focus to a micro and highly aggressive business model. The outlook gives that the business marketing employed is serious but in reality, they have a whimsical marketing side with a powerful impact on Google as a brand. This is evident where the search engine of Google machine is updated from time to time.
The updates enable Google home to have interactive features on its gadgets that are designed to engage people in a conversation and in visiting this site. The teams at Google were able to understand that their key to great marketing evolved around the use of viral and creative ideas. In most cases, the use of strategies that are invisible and secretive enabled them to make the brand noticed. Google understood that they needed to be less obvious especially when it came to trying to manipulate their customers and thus, all they needed to do was to influence the market. Therefore, they decided to give an obvious edge over their transparent and cliche marketing. Such are the gaps that they needed to look at because it led to them incorporating a business model that was aligned to their business activities (Poulfelt & Olson, 2010).
Therefore, by looking at Google’s Multi-sided business model, they were able to provide their consumers with a free platform. These web surfers were able to search the Internet and through this Google managed to gain access to their most invaluable data. From this, Google realized the importance of gathering data and the fact that their platform enabled them to generate money through advertising. Currently, the services offered by Google include Gmail, Google Search, Google Docs, and even a dedicated spot that mainly focused on advertisement (Goldfarb, 2014). Such are the services that continue to propel Google in the advertising industry to remarkable heights.
Many people consider advertising see advertising as Google’s main business but this is not the case. The other differentiating factor for Google is that their advertisement platform had insights and analysis of the people’s behavior who are Internet users. This contributed greatly to Google’s value proposition (Jacques, Perry & Kristensson, 2015). All in all the single philosophy that propels Google’s value proposition is the fact that it needs to provide advertising to a targeted people on the global scale. As a result, they used AdWords services that mostly encouraged startups, enterprises, small business and even individuals to advertise their goods and services using an online platform.
The service adopted by Google enabled users to promote their services using Google ads. For most advertisers, their most concern is on ad prices and their return on investment (ROI). Google looked into these parameters and managed to provide them with an option. Having options is a smart move that facilitates growth in business operations and activities. The option that was made available was to optimize the campaigns that were made online. Therefore, they were refined to gave basis to having options such as keywords, search volume, location, and demographic among others. Google AdWords services also gave the business specific targeting features that helped them increase the chance of having users engaged with their products and or services. By this, it is evident that the business model of Google ensured its advertisers have relevant search terms displayed (Goldfarb, 2014).
The business model employed by Google had a revenue stream and this shows its multi-sided platform. In reality, Google’s business model is all about making its money from the “Advertisers” segment. Hence, the more money Google makes is attributed to its ability to display more ads to its web surfers. Nonetheless, Google advertisers are not in a position to advertise space and to do so they have to go through AdWords set standards of a bidding process.
The data needed when engaging in operations consulting for a business like Google relates much on the history. Such information will helpful to the consulting practitioners when deciding and evaluating the proper steps to minimize future losses. As such, the consulting individuals should be able to show Google how their business model failed to meet their goals and objectives. Thus, they need to have solutions for them and show them both sides of the equation. This will entail the good and bad side of the business model being advocated for the advertising service. Moreover, the operations consulting firm should have basic information and or data of Google’s consumer. The other data that is fundamental for the consultants is Google’s financial statement. This help in steering the company forward towards attaining high financial returns.
In reality, the business model employed by Google has seen it have information that is admired by most marketing firms around the globe. Just the mere idea of having repeat usage is what Google enjoys and is what has attracted most users to their platform. Furthermore, Google continues to enrich their platforms due to the presence of a sophisticated target consumer and business that has managed to synchronize the preferences. In addition, it has managed to play well the economic matchmaker game in the advertising industry. Google does not look at competing with others in the industry because it has found a way of monetizing their activities. In such a case, the users are more eager to stop paying for such services and this has seen the organization take a philosophical perspective in their approaches.
In a case like Apple, they face enormous competition from other companies like Microsoft due to the free software made available by Google. Thus, an operations consulting will have financial benefits to the business such as providing its executives with compliance advice. Such a move for the business will mean the protection of their stakeholders and shielding of the company from lawsuits. Moreover, they will develop better information about their company operations and this will enable them to avoid making bad decisions in future operations. Consultancy services show an organization the importance of carrying out internal reforms that would look at exposing their feeble compliance culture and the gaps that were present plus the lack of enforcement in relation to their existing policies (Syverson, 2011).
Consulting interventions are necessary for businesses because they have positive short-run impacts on their productivity, enterprise profits, and on the return on assets (ROA). Through such interventions, managers acquire knowledge that has led them to realize the need to invest more while others have also recognized the fact that they need to shed the unproductive assets. In addition, consulting operations have a positive impact on labor and other input factors of the business. Having administrative data implies that this will influence employment due to the persistent impact consulting operations lays on managerial capital (Bruhn & Bilal, 2011).
Bruhn, M. & Bilal, Z. (2011). Stimulating Managerial Capital in Emerging Markets: The Impact of Business and Financial Literacy for Young Entrepreneurs. World Bank Policy Research Working Paper No. 5642
Goldfarb, A. (2014). What Is Different About Online Advertising? Review of Industrial Organization, 44(2), 115-129.
Jacques, J. T., Perry, M., & Kristensson, P. O. (2015). Differentiation of Online Text-Based Advertising and the Effect on Users’ Click Behavior. Computers in Human Behavior, 50, 535-543.
Poulfelt, F. & Olson, T. (2010). Management Consulting Today and Tomorrow: Perspectives and Advice from 27 Leading World Experts. New York, NY: Routledge.
Syverson, C. (2011). What Determines Productivity? Journal of Economic Literature, 49 (2): 326 — 65.
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