Analyzing Types Of Organizations And The Impact Of Macro Environmental Factors On A Chosen Multinational Organization

MGT5179 Global Business Environment

Explanation For Each Of The Chosen Organization

In the world there are various types of businesses which can be categorized in several groups in relation to their ownership, size, the nature of operations and many others. In relation to ownership businesses can be private, public, sole proprietorship, partnership etc. Private organizations are usually owned by an individual or a group of individuals e.g. NGos, supermarkets etc. Public organizations are usually owned and operated by the government or a state e.g. stadiums, public schools and universities, public hospitals. A sole proprietorship type of business is usually owned by an individual like a shop. A partnership type of business is usually owned and operated by a group of individuals after making a partnership agreement or a partnership. Another type of an organization is a corporation. This is a type of organization which is usually owned by a group of the shareholders and in most of the cases the directors of the company are the one who give the strategy to be pursued by the organization at any given time. The most significant decisions regarding the operation of the company are usually made by the C.E.O of the company. There are also charitable organizations which are usually non-profit organizations which are usually funded by the general public e.g. Cancer Research UK.

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The international business operation for most of the businesses occurs after the success of the business in the local environment. The business needs to have unique formulated strategies to enable it thrive in the international business environment. This study is going to focus on two types of organizations which operate internationally, these organizations are: Google and Cancer research UK.

Google

 

According to Bush (2018) Google was founded on September 4th 1998 by Larry Page and Sergey Page in their process of technology exploration. This guys wanted to do a unique thing with the help of technology and in the process discovered the search Engine. Google is an American based company which serves the entire world with the process of searching for various aspects for various areas (Pan, 2015).

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Google offers answers to various concerns among the people in different parts of the world. It is used by scholars to research on various topics and have an access to various solutions which enhances the choice for the best course of action to be pursued during the process of research. From Google someone can access the history for various people, places, objects etc. in details.

Google’s Inc. size cannot be measured precisely. The data that was generated in 2014 indicated that the organization had over 16800 employees from various parts of the world. The results further indicated that the company had more than 70 offices in more than 40 countries worldwide.

The vision of the company is to become faster, better and enhanced search engine for the users by provision of the solution for all their concerns.

The company’s mission is to become faster and better search engine day by day through proper organization of all the information making it universally accessible and useful.

Google

To provide the best search results

Google is well known in its provision of most the answers from queries by people by sifting through a massive data base filled with various links, publications, websites and directories from its algorithms.

Google provides various search alternatives which enhances the maximization of the user experience in relation to finding the most suitable answer to their query from Google search.

To eliminate low quality content from its data base

Google is constantly upgrading its data base in relation to the information filled by bloggers, links etc. over various subjects and eliminates low quality content by using of its proficient algorithms. Google also rewards various sites for offering useful and high quality information for various subjects which reinforces the culture of good quality content from such sites hence with time it eliminates low quality content.

The corporate structure of the company

The company has a matrix corporate flat structure that works towards its growth and competitiveness. The employees are grouped into various categories for efficiency. The flat organizational structure implies that the employees in the company can communicate directly to the top management without necessarily going through the middle level managers in the company.

Google has a diverse range of stakeholders because of its wide range of services (Toth and Vigo, 2014). The stake holders of the company come from different groups ranging from users, employees, governments, communities, investors, advertisers and other customers.

Users

These are people who use the general Google services and do not necessarily pay the company. Such users include: the regular users of chrome and Google search engine for various concerns and queries.

The employees

They are usually interested in the company due to its proper compensation and good rewarding experience. Many employees are usually interested to work with Google because of the company’s good reputation.

They have a direct impact on the financial performance of the company through their online advertising campaigns for various products. The advertising agencies are usually interested in Google because of its efficient search results which is usually beneficial for target consumers.

The investors

They are usually interested in the profits made by the company hence making appropriate investments.

Governments

They affect the company through various regulations. The government being a stake holder is interested to ensure that Google comply with the set regulations.

The community

Are usually interested in the direct or indirect benefits they get from Google. The students benefit from the academic research aided by Google search and they are just one of the few stake holders in the community.

 

Back Ground

The UK based charitable organization was established on 4th February in 2002(Rampling et al., 2016). The organization is a merger for two different companies which are Imperial Cancer Research Fund and the Cancer Research Campaign. The organization has entirely obtained maximum support from the public through donation of funds to facilitate research.

The organization conducts research on various types of cancer and offers advice to the medical practitioners on how to go about with various types of cancers. This is after cancer began claiming the lives of many people in UK.

The organization is meant for charity for people with cancer and is entirely funded by the public. It generates its financial income from municipal fund raising, aids, gifts etc. It mainly conducts research on cancer and supports the medication for cancer patients especially which the chemotherapy. The health policies formulated in relation to cancer is highly influenced by the organization.

The vision of the organization is to conquer cancer throughout the world. The organization is educating people throughout the world on how to fight cancer through various programs such as organizing for global day for cancer and enlightening the people on new research findings on various types of cancer.

The organization purposes to create an awareness among the people in relation to cancer because being a life style disease, it can be avoided by all means. The organization is determined to conduct a thorough research on various types of cancer so as to provide efficient diagnosis procedure to facilitate efficient treatment for cancer patients.

To prevent cancer

The main objective of the organization is to fight cancer through research so as to provide efficient prevention strategies and medication for various types of cancers.

The organization has over 4250 researchers in over five hundred branches in the UK. Each of the branch has its own specific cancer that researches on hence all the branches are contributing cohesively towards the eradication of different types of cancer in various parts of the world. The organization operates within the formulated rules and regulations especially by adhering on research ethics.

The main stake holders for the charity organization are the: members, users, donors and the beneficiaries. They support the organization through various donations financially.

The interrelationship of the functions of the organizations to their structure and objectives.

The role of marketing

According to Lewandowski, Sünkler and Kerkmann (2017) is the leading search engine in the world. Its popularity is increasing daily through the processing of delivering efficient services to the potential users across the world. The company’s objective is to stay ahead of its competitors through various upgrades of its systems. Its efficient marketing strategies has made Google to be very prominent.

Cancer Research Uk

Its main objective is to fight against cancer being a charitable organization. The organization plays a major role in creating awareness to the general public for precautionary measures. Through this people obtain a thorough knowledge about cancer and spread it to others within the society.

 The financial role

Google

The company is making great investments in innovative products (Yin, Bateman and Moore, 2016). This is to increase its popularity through the access to the products by the potential consumers.

Cancer Research UK

The organization spends most of its funds on research projects. The main reason is to gain more understanding in relation to various kinds of cancers and formulate appropriate strategies to fight against them in the society.

GOOGLE

The company has over 16800 employees in over forty countries across the world. The company has more than 70 offices and hires many brilliant people for various roles in the company. All the employees of the company are affiliated to the Human Resource Department of the company.

Cancer Research UK

It is a charitable organization with very many volunteers. Employees work willingly without pressure from any one.

Operations of the Organizations

GOOGLE

Has updated its platform to enhance the efficiency of operations by the users at any given time.

Cancer Research Uk

The research indicates that most of the low income earners are the one who are more prone to the risk of contracting cancer (Straathof et al., 2018). The organizations aims to reduce the deaths of such people as a result of cancer by setting efficient diagnosis centers. Through provision of awareness people are able to know how cancer starts and progresses so that they be able to recognize the possible signs and seek adequate medication (Ruktanonchai et al., 2018)

From the organizational structure as seen above, there are three types of company levels which are: operational, executive and administrative.

The administration comprises of the chairman, the CEO and the Vice president.

The executive level comprises of several managers who are the: project managers, information technology managers, marketing managers, sales managers and the Hardware system managers.

The administrators plan for various activities within the company. After planning they enhance the execution of the plan and finally accomplish the plan in the operational level.

The research groups play a crucial role in conducting research and sending the results to the top management.

Marketing

Google aims to reach a lot of people throughout the world through its marketing strategies and with the help of technology (Zamir, Korn and Fikes, 2016). By conducting a thorough market research, Cancer Research UK aims to provide the remedy for various types of cancer to reduce the death toils experienced because of cancer.

Financing

Google is usually ready to invest in new ideas which enhances the generation and sharing of knowledge among various individuals in the society. The Cancer Research UK receives financial aid from various well-wishers which facilitates the fight against cancer.

Operations

Google focus its operations to the growth of the enterprise by creating more innovations while Cancer Research UK engages in voluntary work through the provision of free service and adequate information to those who have been affected by cancer.

The Human Resource Management

Google has employees from different countries who are committed in the provision of efficient services within the company for the general success of the company. Employees at Cancer Research UK work voluntarily at their own free will.

Pestel Analyis To Determine The Macroenvironment Factors That Have An Impact On Google With Positive And Negative Impacts

The pestel analysis for the company is very important in ascertaining the most important external factors that have an influence to the normal operations of the organization. The external factors may be threats or opportunities to the business depending on the circumstance at hand. The PESTLE analysis is important because it enables the investors to understand importance of Google and its position in a given competitive external business environment.

The macro environmental factors that may have an impact on Google are outlined below:

Political factors

In most cases it involves the government regulations on costs used by subscribers through subsidies. Other political factors that may have May an impact on the operations of Google are: the stability in political climate in most of the major markets, availability of state sponsored online companies and globalization. All these factors enhances creativity and innovation to the company so as to remain competitive in the market.

Most of the political factors in the Google’s Macro environment are opportunities. The demand for online advertising increases as a result of globalization. The stability in the political climate reduces the obstacles to the expansion of the firm. The only threat to the company is the state sponsored online company’s especially Chinese firms which are controlled by the government.

Economic Factors

The following economic factors are the most significant for Google:

Economic stability in major markets

This create various opportunities for exploration by Google in the competitive business environment as a result of a stable economy.

The rapid growth of developing countries.

Technological advancement in the developing countries has resulted to increased use of Google search by many people hence the achievement of sustainable competitive edge.

Social cultural factors

They affect how the users respond to Google products. The following social factors are very crucial in Google’s external environment:

Increased use of the social media

An increase in the use of social media among the people has resulted to the general use of Google.

Increased Research in various fields

Increased research in different fields in the current world has resulted to an increased application of Google in finding the answers to the problems.

Increased diversity in the society.

An increase in diversity in the society has resulted to the need to improve the search platform to cater for all the individuals search needs when using Google.

Technological factors

External technological factors have a major impact on the performance of the firm which include:

Growth of internet access in developing countries

Technology growth has enhanced an access to Google in the society.

Legal factor

Regulations in relation to the online privacy have been formulated which prevents fraudulent activities online.

Political factor

The government financial support enhances the conducive operation of the organization

Economic factor

The financial stability of the organization has increased the efficiency of the organization in its research about cancer.

Social factor

An increased desire among the people to obtain knowledge about cancer has enhanced the efficiency of the organization.

Technological factor

Improved technology has enhanced the research by the organization hence efficient research.

Legal factors

The organization ensures that it operates within the stipulated laws formulated by the legal authorities.

Strengths

Each search engine for Google processes almost 80% of total world’s queries enabling enhancing its high usage which in return results to increased revenues. It

Weaknesses

Its vulnerable to fluctuating prices for the adverts

Opportunities

Technological advancement in developing countries has resulted increased usage of Google search platform among the people making it first priority for research.

Threats

Increased diversity has increased the need for diverse research to include most words in the search engine to achieve sustainable competitive advantage over the other online research plat forms.

Strengths

The organization receives financial support which aids its research

Weaknesses

Research may take years for a given type of cancer

Opportunities

Presence of dedicated employees who work voluntarily for the success of the organization.

Threats

Increased ignorance on people even after been educated on how to avoid cancer by practicing a healthy life style.

Conclusion

The success of the business relies heavily on the business environment which is usually influenced by very many factors. Google Inc. and Cancer Research UK are different with different goals and objectives in a given business environment. Google is the searching platform that is used by many people across the world to find answers for various questions. Cancer Research UK has the main objective for making the entire world cancer free. The organization has succeeded in identification and diagnosis of various cancer issues. The organization has achieved a great success due to financial aid from the public and commitment of its employees who work voluntarily to ensure a better tomorrow for the current generation through the eradication of cancer from the community.

References

Bush, E., 2018. Google It! A History of Google by Anna Crowley Redding. Bulletin of the Center for Children’s Books, 72(1), pp.36-37.

Lewandowski, D., Sünkler, S. and Kerkmann, F., 2017. Are Ads on Google Search Engine Results Pages Labeled Clearly Enough? Pp. 43-56

Pan, B., 2015. The power of search engine ranking for tourist destinations. Tourism Management, 47, pp.79-87.

Rampling, R., Peoples, S., Mulholland, P.J., James, A., Al-Salihi, O., Twelves, C.J., McBain, C., Jefferies, S., Jackson, A., Stewart, W. and Lindner, J., 2016. A cancer research UK first time in human phase I trial of IMA950 (novel multi peptide therapeutic vaccine) in patients with newly diagnosed glioblastoma. Clinical cancer research, pp.clincanres-0506.

Straathof, K., Flutter, B., Wallace, R., Thomas, S., Cheung, G., Collura, A., Gileadi, T., Barton, J., Wright, G., Inglott, S. and Edwards, D., 2018. Abstract CT145: A Cancer Research UK phase I trial of anti-GD2 chimeric antigen receptor (CAR) transduced T-cells (1RG-CART) in patients with relapsed or refractory neuroblastoma.

Ruktanonchai, N.W., Ruktanonchai, C.W., Floyd, J.R. and Tatem, A.J., 2018. Using Google Location History data to quantify fine-scale human mobility. International journal of health geographics, 17(1), p.28.

Toth, P. and Vigo, D. eds., 2014. Vehicle routing: problems, methods, and applications. Society for Industrial and Applied Mathematics.

Yin, R.K., Bateman, P.G. and Moore, G.B., 2016. Case studies and organizational innovation: Strengthening the connection. Knowledge.pp 23-24

Zamir, O.E., Korn, J.L. and Fikes, A., Google Inc, 2016. Systems and methods for modifying search results based on a user’s history. U.S. Patent 9,256,685.

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