Google in China Case Study

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Among four techniques, I discover that the second technique which is analysis of the document is the most suitable technique in establishing the internal and external risk profiling. This technique works silently without the acknowledge of their people so it will cause less problem and chaos towards Google. The documents need to be analyse properly so problem can be avoid in the future. In dealing with the China government, that puts a lot of guidelines and restrictions towards the multi-national company, Google need to prepare a lot even to the small parts or information gather.

Google need to be ready with the external and internal environment that can change over time. These are the risk identification tools and consists of macro and micro level risk profiling. The macro or known as external environment that change over time are demographic, financial status, income per capita, change of ruler and political structure. Whilst the micro or internal environment are fact finding in identifying the organisation’s activities primarily through questionnaire and checklist an operation manuals.

Thus, it is clearly seen that analysis on documents is the most suitable tool for Google to identify the risk in China.

- [pic 4]Based on the case study, discuss in detail on the general environment uncertainties that faces by Google in China

Strategic and environmental uncertainty. Businesses operate in an ever-dynamic environment. They adjust and adapt to environmental dynamism through a variety of strategic orientations. Strategy is instrumental to the survival of the firm. As Google indicated, organization that match their situation to the environment can improve the performance, while those that do not cope could lead to failure. The relationship between the organization and its environment has two major dimensions. Firstly, the firm’s basic mission should match its environment. Secondly, it should aim at having a competitive edge with other firms that are also trying to get that match. Strategies are formulated to adapt to, respond to, or shape the environment. With any significant change in the level of uncertainty, a change in strategy is necessary to keep the organization in good harmony in the environment. Environmental uncertainty plays a central role in strategy formulation, for it affects not only the availability of resources to the firm and the value of its competencies and capabilities, but also customer needs and requirements, as well as the competition. With the continuing rise in environmental dynamism and complexity, the environment in which businesses operate will also become increasingly uncertain. The management of uncertainty, therefore, will continue to be the main task of management involving the development of mechanisms to reduce, absorb, counter, or avoid it completely.

Macro-environmental uncertainty that act as the dimensions of uncertainty which is uncertainty in the organization’s general environment, including political, regulatory, statutory, and economic conditions. This uncertainty could reduce an organization’s capability for mapping out and pursuing strategic choices. Competitive uncertainty is the inability to establish the intensity of competition in the industry in the future, the relative powers of competitors, their future courses of action and strategies. Market and demand uncertainty is the uncertainty stems from lack of clarity in the dynamics of the market and their effects on the organization’s operations, and demand and supply conditions in the industry. Technology uncertainty is uncertainty pertaining to change in the industry’s technological resources and capabilities. Technological uncertainty has the potential to undermine an organization’s competitive base.

in this situation the environment is highly complex and dynamic and the interconnections between the components of the environment and the organization are unclear. This high level of uncertainty makes decision looks difficult. The telecommunications industry, for instance, is facing several uncertainties relating to technology, demand, government regulations, and a host of other macro environmental variables. All these uncertainties interrelate in capricious ways making it virtually impossible to predict the environment and develop plausible strategic decisions.

There are a lot of general environment uncertainties that faces by Google in china. Firstly, Political and Legal Factors. China has been under the communist party rule for many decades. The communist party implement absolute power over legislations, economic and cultural institutions. In China rules and regulations are not transparent. The legal system is loosely defined, giving rise to various loopholes in the law. When doing business in China, many political and legal considerations must be considered. There are many thing that china government need to insulate illegal substance or illegal information from people in china before they can access into Google. As example China country will not allow their citizen search the word democracy because it will cause problem to their country especially their government if their people know anything about democracy, because their countries utilise a system of despotism and communism. This is because uncertainties happens in China country. After Google entering China market, China government create the Great Fire Wall into Google search engine because they don’t want their people search prohibited thing.

Next is cultural differences in using internet and ethical environment. Google has been criticized for contradicting its own view of having a free and open internet by censoring its search result in china. Criticism has also been directed at Google for the way that it tracks and stores user data, and the appearance of offensive websites in its search results. In China among the internet users, there are many misuses in search engine as an example user like to search into pornography site, and site that not supposed or prohibit to search in China. Because of that Chinese government start to block some site in Google and make people feel not satisfied about that. Google need to follow rules and regulation that the government set from beginning so that this problems will not occurs.

Strategic and environmental uncertainty. Businesses operate in an ever-dynamic environment. They adjust and adapt to environmental dynamism through a variety of strategic orientations. Strategy is instrumental to the survival of the firm. As Google indicated, organization that match their situation to the environment can improve the performance, while those that do not cope could lead to failure. The relationship between the organization and its environment