Macro Environment Analysis of Alphabet Inc.
Macro Environment Analysis代写 One of the techniques for developing an effective corporate strategy involves the use of PESTLE framework of to identify
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Table of ContentsTable of Contents Macro Environment Analysis代写
1 Abstract ————————————————–2
3 Company Overview———————————–2
4 PESTEL Analysis————————————–3
4.1 Political ——————————————–3
4.2 Economic ——————————————3
4.3 Socio-Cultural ————————————3
4.4 Technological ————————————-4
4.5 Environmental ———————————–4
4.6 Legal ————————————————-4
5 Porter’s Five Forces Analysis ———————-6
5.1 Threat of New Entry ——————————6
5.2 Bargaining Power of Suppliers —————-7
5.3 Bargaining Power of Buyers——————–7
5.4 Competitive Threats——————————– 7
5.5 Competitive Rivalry—————————— 8
7 Recommendations————————————- 8
7.1 xxxxxxx———————————————— 8
7.2 xxxxxxxxxx ——————————————–8
7.3 xxxxxxxxxxxxx —————————————9
7.4 xxxxxxxxxxxxxxxx———————————- 9
8 References ———————————————–11
Environmental Analysis of Alphabet Inc. Macro Environment Analysis代写
In an ever changing business environment and increased globalization, companies are faced with the constant need to adapt so as to endure increased competition and expand into the global market. Therefore, companies must develop strategies or plans of action that allow them to meet their long-term goals and objectives and allocate the necessary resources for the implementation of the chosen strategy. One of the techniques for developing an effective corporate strategy involves the use of PESTLE framework of to identify and analyze the external factors that affect business and their implications on the company’s goals and objectives. The framework analyzes the Political, Economic, Social-cultural, technological and Legal influences and their impact to develop a strategic plan of action.
2.CompanyOverview Macro Environment Analysis代写
Alphabet Inc. (formerly Google Inc.) is a multinational conglomerate company founded in 2015 by Larry Page and Sergey Brin and as a thesis project at Stanford University and was later registered as a company in 1998 (Steiber, 2014). The company has its headquarters in California and operates in more than 100 countries registering an annual revenue of $92 billion in 2016 (Jurevicius, 2016). Google, one of Alphabet’s most significant subsidiaries is the main contributor of revenue at 87.9% in 2016.
Other notable subsidiaries include Android, YouTube, search, maps, and Gmail which together have over 1 Billion monthly active users. Although alphabet dominates others in its areas of operation due its innovative products, it faces serious completion from firms such as Yahoo, Microsoft, Baidu, Facebook and Apple (Jurevicius, 2016). Also, the company faces multiple challenges in today’s fluid global market as legislative, political, political and technological drivers continue to transform.
3.Macro Environmental Analysis (PESTLE) Macro Environment Analysis代写
According to Cadle, Paul, & Turner (2010), all organizations must analyze occurring and predicted changes in their area of operation and respond accordingly; failure to which they run a risk of facing serious problems or even the complete failure of the business. They recommend organizations to use of PESTLE framework of analysis and the use of porter’s Five Forces to gain an insight into future problems as well as available and imminent opportunities.
3.1 Political Macro Environment Analysis代写
The political sphere is constantly changing at the domestic and international level and is accompanied by changes in policies and priorities that my negatively affect an organizations ability to produce value effectively (Cadle. et al., 2010). Therefore, it is imperative for multinational corporations like Alphabet Inc. to identify these changes and create a plan of action to cushion such impacts and create new opportunities. Although Alphabet has penetrated and dominated most of the global market, Google its major subsidiary is absent in China-the most populous nation on earth due to political regulations. However, there exists an opportunity as the Chinese government has indicated that Google is welcome back if it abides by government regulations (Huang & Horwitz, 2016).
There is a need for Alphabet to reevaluate its philosophy to accommodate these regulations so as to reap from this huge and lucrative market. Changing political regulations regarding censorship and governments’ quest to acquire troves of private information held in Alphabets’ platforms poses uncertainty as customers become more uncertain of their privacy. Alphabet also faces risks emanating from civil and international strife as global peace is under constant threat.
Tensions in the Korean Peninsula and South China continue to threaten peace between Alphabets main markets. Recurring political issues such as economic sanctions against Iran could prevent Alphabet from freely operating at full potential. On a positive note, the World Bank (2016) has predicted a positive economic growth, especially in the emerging markets. Economic growth, along with a stable political climate in most countries and increased globalization will is set to create a greater demand for Alphabets products.
3.2 Economic Macro Environment Analysis代写
Economic dynamics, even in one major economy can create far-reaching economic difficulties global stock markets and in economies where organizations operate. Surprisingly, Alphabets major subsidiary was able to thrive during the world economic recession that occurred between 2006 and 2009 by putting what Chief Executive Eric Schmidt called “responsible efforts to manage expenses” (Johnson, 2009). However similar IT companies such as Alibaba Inc. experienced a significant decrease in revenues (Kumar, 2011).
Alphabet faces risks posed by currency fluctuations which can reduce significantly. According to Johnson (2009), the company’s revenues in the United Kingdom decreased by 8% in over a period of one year while overall currency fluctuations cost $ 500m in lost profits. Although Alphabet was able to minimize the effect of economic downturn through effective management strategies and production of market leading products, economic hardships are bound to occur thus alphabet needs to formulate even stronger contingencies to cope them.
3.3 Social Factors………… To be contininued
References Macro Environment Analysis代写
Cadle, J., Paul, D., & Turner, P. (2010). Business analysis techniques: 72 essential tools for success. London: British Computer Society.
Huang, E., & Horwitz, J. (2016, October 12). Beijing said Facebook and Google are welcome back to China as long as they “respect China’s laws.” Retrieved April 5, 2017, from https://qz.com/808130/
Johnson, B. (2009, July 16). Google profits rocket despite recession. Retrieved April 5, 2017, from https://www.theguardian.com/technology/2009/jul/16/google-q2-results
Jurevicius, O. (2017, March 29). Alphabet (Google) SWOT analysis 2017. Retrieved April 5, 2017, from https://www.strategicmanagementinsight.com/swot-analyses/google-swot-analysis.html
Kumar, Nidhi Arora. “Impact of global recession on Indian IT industry and effectiveness of e-–business in the era of recession.” Global Journal of Business Management and Information Technology 1.1 (2011): 9-25.
Steiber, A. (2014). The Google model: Managing continuous innovation in a rapidly changing world.