Google Case Study
Corporate Entrepreneurial Strategy
Corporate entrepreneurial strategy refers to an extensive and concurrent transformation in the trend of decisions that an organization makes (Matsuno, Mentzer, and Ozsomer 21). As the vice president of search products and user experience, Mayer has to trust her intuition. The success of Google Company lies on her shoulders. Her job entails making critical decisions that have far-reaching impacts on the organization. Thus, she requires identifying and supporting untested ideas that she believes might help the company to overcome its competitors. Additionally, she needs to embark on a treasure hunt and venture into the underserved niche.
The entrepreneurial strategy entails identifying lucrative markets that are not exploited (Matsuno, Mentzer, and Ozsomer 23). Mayer requires collaborating with other employees to determine technological needs that are not yet met and work towards the development of software to cater to the needs. She ought to objectively analyze the mail list and promote ideas that seem unique and feasible. Google encounters competition from companies like Microsoft. As the vice president for search products, Mayer has the duty to monitor the rival companies and exploit their weaknesses.
Mayer should see the world from the clients’ angle. That way, she can assist the employees that work under her to generate ideas based on the weaknesses of the rival companies and consumer demands. The fact that Google is leading in the development of search products does not mean that the corporation cannot face competition. A seasoned entrepreneur keeps on reinventing the business (Matsuno, Mentzer, and Ozsomer 26). Thus, Mayer should discourage complacency by encouraging employees to come up with novel ideas even if the company does not adopt all their thoughts.
Google’s Approach to Ideas
Entrepreneurial strategy refers to broad and instantaneous changes in the manners in which a company makes decisions. On the other hand, strategy for entrepreneurship relates to a plan that outlines the process of designing, starting, and managing a new business (Matsuno, Mentzer, and Ozsomer 26). Google’s approach to ideas can be viewed as an entrepreneurial strategy. The company adopts ideas based on their feasibility.
It avoids taking ideas that cannot help it outdo its competitors. The entrepreneurial approach constitutes identifying new opportunities and exploiting them. Similarly, Google selects ideas based on how they may help to meet customers’ demands. For instance, the company is keen to offer personalized search engines to customers. It underlines the reason Mayer approved the proposal to develop a novel software that would tailor the search engine services to the needs of the individual client. Mayer’s goal is to ensure that every customer identifies with Google. She can only do this by developing software that meets the needs of the individual client.
The entrepreneurial strategy involves breaking away from the norms (Murray 4). It entails scrutinizing the “best” practices of an organization. Previously, Google kept a list of ideas that enabled it to prioritize its projects. With time, the list grew bigger such that it was hard to stick to it. Eventually, the company had to look for alternative methods of managing ideas. Presently, the company uses an entrepreneurial strategy to harness and exploit novel ideas.
Mayer does not only ensure that new ideas do not overwhelm the company but also viable ideas reach the market. The company does not have a fixed approach to implementing ideas. Rather, it is elastic and can implement any plan based on its commercial viability. Numerous innovations characterize the technology industry. Hence, Google has to ensure that it keeps a tab with the emerging innovations for it to remain relevant. It would be difficult for Google to stay innovative without having an efficient strategy of prioritizing ideas.
Factors of Developing an Entrepreneurial Strategy
Numerous factors are evident in Google’s approach to developing an entrepreneurial strategy. They include economic factors, social factors, and psychological factors (Murray 7). One of the economic factors that are evident in the market. Google prioritizes its ideas based on the demand in the market. The company cannot implement a plan that is not highly demanded no matter how good it may appear. Besides, Google strives to create a monopoly in the search product market. The company embraces ideas that are unique, commercially viable, and meet the needs of the customers as a strategy to establish itself in the search products market.
A company may embrace an entrepreneurial strategy not because it can boost its economic performance, but due to constructive social factors (Murray 9). Admiration and class are some of the social factors that are evident in Google’s approach to developing an entrepreneurial strategy. Google seeks to earn a reputation as the first company to organize global information. Thus, the company has gone the extra mile to launch multiple initiatives such as internationalizing its site and digitizing the global libraries. Google continues to come up with novel ideas and innovations as a way to build its reputation and stand out from competitors.
The psychological factor that is evident in Google’s approach is the desire for achievement. Google’s primary objective is to organize global information. The desire to achieve this goal and be the leader in the search product market has led to the company developing an entrepreneurial strategy that embraces unique and innovative ideas. The company has adopted an innovative and fearless culture to enable it to achieve its goals.
Nothing Unique to Offer Case Study
Investor’s Comment
There is no truth in the investor’s comment. Pizza is not just pizza. The investor forgets that there are different ways of preparing a pizza. Today, a majority of the customers are health conscious. Therefore, customers are unlikely to purchase a pizza that constitutes a high amount of calories. Additionally, different investors may produce distinct pizzas concerning size and ingredients. Hence, it is possible for various investors to provide different pizzas.
The lack of uniqueness is going to hurt George’s chances of success. The rival companies have already built a rapport with customers. Customers know about their products. On the other hand, no customer knows about George. It would be hard for George to persuade customers to purchase his pizzas without convincing them that they are superior to those offered by other investors. Most consumers view uniqueness as something that adds value to a product (Ang 7). It will be difficult for George to gain a commercial advantage in the pizza market since it is presently saturated.
A majority of customers prefer purchasing expensive products that are unique, innovative, and well designed. Therefore, failure to be creative and unique may affect an investor’s capacity to penetrate a saturated market (Ang 11). The secret to success in a saturated market is not selling products at low prices but is unique. George requires being innovative if he wants to attract and retain customers. The most significant thing about being unique is that competitors cannot copy your products or services. George forgets that meeting consumer demands is not sufficient. An investor requires being exceptional to overcome competition and make a substantial profit.
Steps to Uniqueness
George can take numerous steps to make his business venture unique. They include creating a buzz through social media, using innovative packaging, and preparing different varieties of pizza. George’s target market constitutes the university students. Therefore, it is easy to use social media to create awareness among students. A majority of college students have social media accounts. Thus, it is cheaper to reach them through social media than hold a door-to-door promotion.
George’s competitors do not have an established marketing strategy. They rely on direct contact with customers. George should use social media to post pictures of different varieties of pizza that he prepares. Such an approach will encourage students to try their pizza. Additionally, it will make his business appear unique as no other investor has tried the strategy.
George can also make his business venture appear unique by using innovative packaging. Packaging helps a business to look unique and appeal to customers (Grube 785). George can use environmentally friendly materials to package his pizzas. He needs to conduct market research to determine how the competitors package their products. It will give him an idea of how to redesign the existing packaging materials in exciting ways.
On the other hand, George should ensure that his packaging reflects the cost of the pizza. Using too expensive packages may discourage customers from purchasing the pizzas since they may view them as expensive (Grube 789). Packaging facilitates product differentiation. Therefore, George should use unique materials and colors to make his packages attractive. It will help to influence the customer’s perception of the quality of the pizza. Additionally, he should include appealing labels on the package to lure customers into purchasing his pizza. The labels should be designed in a manner that they tell clients about the nutritional value of the pizza.
George should try different varieties of pizza to appear unique. He should determine the types of pizzas that are already in the market and try to diversify his variety. For instance, he can opt to change the ingredients of his pizza. Presently, many customers are health-conscious (Grube 801).
The customers do not prefer buying food products that are rich in calories. As a result, George should exploit the demand for healthy food to produce pizzas that are not rich in calories. Besides, he should try to prepare pizzas with diverse flavors. Changing the shape of the pizza can go a long way towards achieving uniqueness. Rather than cooking round-shaped pizzas, George can try other shapes like rectangles, squares, and even triangles. Nevertheless, he should be keen not to reduce the size of the pizza as it may turn away customers.
Critical Factors that George is Overlooking
George is overlooking many key factors like the capacity of his business, market attractiveness, and marketing strategy. One needs to evaluate the attractiveness of a market before investing his money (Grube 804). George has made little effort to assess the amount of money that he can make from selling pizza. Instead, he has made the decision to venture into this market based on the information gathered from competitors.
Competition in the food industry keeps on changing. Additionally, customer preference varies with time and may have adverse impacts on the business. George is not even certain about the amount of money that he needs to invest. Moreover, he does not know the gestation period that his business might take. Apart from the competition, George is likely to face other obstacles like government and health regulations. Nevertheless, he has not considered these factors to determine the attractiveness of the market. George should take the time to evaluate all the obstacles that he is likely to face in the pizza market. Further, he should determine the exact amount of money that he requires investing and the gestation period of the business before investing.
An investor ought to conduct an appraisal of his/her capacity and resources before investing in any market (Grube 805). George has overlooked the significance of having market knowledge. Besides, he has forgotten the importance of having people with experience in pizza preparation. It will be immature for George to invest in the Pizza market without having adequate information regarding the market as well as experience in how to prepare pizza. Consequently, George should take the time to do market research and get proper exposure to the pizza market. He should visit the university students and inquire about their preferences.
George does not have a clear marketing strategy that outlines how he will create awareness among the students. Instead, he believes that a blend of door-to-door promotion and in-house service will help in marketing his products. Not everything that works in one business can function in others (Grube 806). George cannot gain a competitive edge by copying the marketing strategies of his competitors. Therefore, he needs to sit and come up with an effective marketing strategy. For instance, he can create a social media platform and use it to reach potential customers.
Southwest Airline Case Study
Factors Needed to Reengineer Corporate Thinking
At Southwest Airlines, the employees have the liberty to make decisions on matters that affect their areas of specialization. Moreover, management encourages employees to come up with novel and innovative ideas. The airline’s chief executive officer has abolished the archaic managerial approach and adopted a modern technique that instills fun into the organization. In return, the employees are motivated to work and ensure the growth of the airline.
Reengineering of corporate thinking depends on how an organization “sets it goals, promotes individual accountability, gives rewards, and sets explicit goals” (Haskell 47). Southwest Airlines organizes meetings to set clear goals. The goals help to steer innovations within the company. Moreover, the management of the airline makes sure that all employees are contented with the set goals.
Southwest Airlines has established a working environment that encourages employees to take responsibility for their actions. The company persuades workers to break rules whenever they realize that a certain innovation may help to enhance the services of the airline. The company does not embrace hierarchy. Thus, employees operate with limited bureaucracy, therefore increasing their efficiency. The company shows its commitment to helping employees by organizing numerous training. Southwest Airlines has a university that equips employees with leadership skills. Besides, the school trains employees on how to lead with integrity, which critical to reengineering corporate thinking.
Employee reward is a vital factor that promotes corporate thinking (Haskell 49). It motivates workers and encourages them to strive to realize organizational goals. Besides, employee reward enables workers to cope with challenges and tension related to innovation. Southwest Airlines has a reward system that encourages employees to be innovative. The airline observes the “heroes of the heart” award that promotes innovation and competition amid the departments.
Elements of Corporate Entrepreneurial Strategy
Southwest Airlines enjoys its present success in the airline industry because it has incorporated diverse elements of corporate entrepreneurial strategy in its business structure. The company has numerous qualities that signify its determination to lead the aviation sector in the United States. Southwest Airlines has established a working environment that promotes employee growth. The company trains its employees, particularly new recruits. The training shows that the airline values personal growth.
The objective of promoting personal growth is to help the airline to attract talented workers. The chief executive officer of Southwest Airline helps the workers to realize their full potential. His mentorship role underscores the value that the company places on the corporate entrepreneurial plan. The employees view the chief executive officer as a visionary leader who shares dreams with the workers and helps in their realization. Indeed, the leadership approach that Herb Kelleher applies facilitates the empowerment of new recruits.
The absence of “an authoritarian direction in an organization underscores the role of corporate entrepreneurship in the company” (Ireland, Covin, and Kuratko 21). Southwest Airlines does not apply to authoritarian leadership. The employees are free to become members of a union. Besides, the leadership strives to ensure that it does not instill fear within the workers. It underlines the reason Southwest Airlines is one of the companies with a united workforce.
The unity amid employees facilitates the development of innovative products and services. A reward system is one of the elements of the corporate entrepreneurial strategy that is evident in Southwest Airlines. Rewarding employees engender creativity, thus boosting their output (Ireland, Covin, and Kuratko 24). Southwest Airlines appreciates its employees for their contribution to the development of innovative products. The company has a “heroes of the heart” award that recognizes departments and staff who perform well in their areas of specialization.
Contribution of Herb Kelleher
Herb Kelleher plays a significant role in the creation of an environment that supports entrepreneurial activity at Southwest Airlines. The chief executive officer has established an atmosphere where employees enjoy what they do. As a result, the employees have an opportunity to test their creativity. Indeed, the current level of innovation is a product of the freedom that employees enjoy. The workers have the liberty to interact and share ideas. Moreover, the company allows them to break rules whenever necessary. The chief executive officer communicates freely with the employees. He has created an environment that dispels fear among the employees.
He does not dress in a manner that scares human resources. His grooming has facilitated the establishment of a working environment that allows employees to concentrate on innovation. Kelleher has played a key role in promoting integrity and real leadership in the airline company. He oversaw the establishment of a university where employees are taught how to relate with one another. The university promotes cooperation, trust, effective communication, and mutual respect among the employees. Kelleher formulated a corporate accolade that encourages employees to work harder. The leadership of the company acknowledges that the airline cannot succeed without the contribution of the employees. Hence, the employees are dedicated to their responsibilities because they feel valued.
Works Cited
Ang, James. “Small Business Uniqueness and the Theory of Financial Management.” Journal of Small Business Finance 1.1 (2008): 4-13. Print.
Gruber, Marc. “Uncovering the Value of Planning in New Venture Creation: A Process and Contingency Perspective.” Journal of Business Venturing 22.6 (2007): 782-807. Print.
Haskell, Robert. Reengineering Corporate Training: Intellectual Capital and Transfer of Learning, New York: Routledge, 2006. Print.
Ireland, Duane, Jeffrey Covin and Donald Kuratko. “Conceptualizing Corporate Entrepreneurship Strategy.” Entrepreneurship Theory and Practice 33.1 (2009): 19-46. Print.
Matsuno, Ken, John Mentzer and Aysegul Ozsomer. “The Effects of Entrepreneurial Proclivity and Market Orientation on Business Performance.” Journal of Marketing 66.3 (2002): 18-32. Print.
Murray, John. “A Concept of Entrepreneurial Strategy.” Strategic Management Journal 5.1 (2006): 1-13. Print.