, peoples enjoy their continuous education for improve their get better job to improve their living standard, OUHK affect by this factor due to proportion of students.

Legal – it will restrict the OUHK operation, development, administrative apply, strategy…etc, because organization need to follow legal in order to avoid problems or if Hong Kong legislation only eight work hours for a day, therefore, employees have more freedom time to spend on their education, so the demand of course will increase.

Global environment – The analysis can be done with the help OUHK make a checklist that evaluates every criteria of a segment. In this manner, the status of the global environment shall be defined. In general, every segment needs to be worked on systematically to recognize changes. Then, the factors and its impacts can be interpreted right. After the segmentation, the analysis consists of four further steps:, Environmental Scanning, Environmental Monitoring, Environmental Forecasting and Environmental Assessment
Conclusion, general environment is very important for every organization , the management should pay attention to the environment and good problems solving when facing change.

2. Mission Statement:

A written declaration of an organization's core purpose and focus that normally remains unchanged over time. Properly crafted mission statements (1) serve as filters to separate what is important from what is not, (2) clearly state which markets will be served and how, and (3) communicate a sense of intended direction to the entire organization.
Also a mission is different from a vision in that the former is the cause and the latter is the effect; a mission is something to be accomplished whereas a vision is something to be pursued for that accomplishment.
Also, mission station should contain below elements.

1. Key market: Who is your target client or customer (generalize if needed)? 2. Contribution: What product or service do you provide to that client? 3. Distinction: What makes your product or service unique, so that the client would choose you?
Therefore , to identify the good mission statement in Hong Kong, below have two companies example.
Ocean Park provides all guests with memorable experiences that combine entertainment and education, while inspiring life long learning and conservation advocacy. Our aim is to maintain a healthy financial status, while striving to deliver the highest standards of safety, animal care, products and guest service.

Fuji Xerox announced in 1992, Fuji Xerox (Hong Kong) Limited has adopted a similar vision across both its Hong Kong and Macau offices. In actualizing our "Good company" commitment, we do our utmost to help stakeholders create and transform knowledge and achieve corporate sustainability.

Our mission applies to all local employees and is to establish ourselves as customers' most admired and trusted-partner in knowledge and document management.

Both of the mission statement in above is useful and able to create competitive advantage, because it contain fundamental purpose, strategic distinctiveness, stakeholder promise, public image and standard and behaviours.

Part B

Question 1

1. There are many strategic factors (internal and external factor ) facing Google , such as below points.

Competition - Google faced competition in every aspect of its business, particularly from companies that sought to connect people with information on the web and provide them with relevant advertising. Google faced significant direct and indirect competition such as Social networks( Facebook,Yelp, or Twitter), other form of advertising, Mobile application and other Traditional search engines (Yahoo and Microsoft Corporation) ….etc

Legal and Regulatory Issues - Google increased regulatory scrutiny that may have bad impacted thebusiness. This was an increased risk with continued growth and corporate expansion. There may be regulatory issues related to potential monopolistic power as the industry faced both growth with expansion and consolidation.
Also, Many laws currently in place had been enacted prior to the Internet age and thus could not have taken into consideration the business practices and implications of the Internet and computer technology. Liability issues

Global environment issues - Countries had different accounting practices, and the credit risk was generally greater for international transactions. Furthermore, exchange rate risk, potential negative tax consequences, foreign exchange controls, and cultural barriers related to customers, employees, and other stakeholders were more prevalent with international dealings. Privacy laws and government censorship often varied among countries.

Cash flow issues – Google invest a lots of money on the R&D, I will increase the risk of the cash flow, also, total 97% revenue on advertisement , it is too liable of the advestising.

Internet security issue- as a security breach would be potentially harmful to Google. Because websites to obtain user records and credit card information. Identity theft was becoming a major problem for the general population.

Growth and Sustainability issues – every industry have a product/ service life cycle, as the threat of competitors such as Yahoo, Facebook, MS …etc, the revenue of the advertising will affect by the change and the growing size of the firm. This could put pressure on operating margins and profits in the future, thus lowering the free cash flow available to investors.
Google’s management recognized that future profit margins may be tightened further by lower profit margins on revenues received from Google Network members.

Information Technology issues - interruption or failure of the information technology and communications systems the company used could hurt its ability to effectively provide products and services,damaging the reputation Google worked to maintain, as well as harming its operating income.
Its IT system was exposed to impairment from numerous sources, such as natural disasters,infrastructure failures, and computer hackers. Although management had contingency plans for many of these situations, such plans could not cover every possibility.

External Environment factors

Remote (Remote concerns for Google are new laws and regulations, increasing intellectual property claims, and access to more information.) (Weak position in China- strict gov’t regulations and cultural differences)

Industry (Industry concerns for Google are competitive threats from Yahoo and Microsoft and new unknown competitors that may be international. Agreements with advertisers could potentially become competitive as well, as a result, reducing operating margin)

Operating (Operating issues are the current ad base, design of the ads, and shrinking advertising budgets of customers. The quality of service provided by the Google organization and retaining qualified help is also an operating issue.)

Strategic controls can be largely affected by environmental factors (negative consequences of a significant power outage). Google systems are vulnerable to any electrical service disruptions resulting in service being impacted.

New technologies that do not compliment Google's current operating systems

2, Yes, As every industry have a product/ service life cycle, Google must develop a differentiation strategy to sustain their industry leader position and create competitive advantage in order to against their competitors (Yahoo, Facebook, MS…etc) , Google is Worldwide business, to keep the top status Google can develop other functions such as Google glasses, Google map or other function which was not in market yet, also they can merger more company to differentiate more service and increase their market share.

On the other hand, Google can develop new methods to improve faster loading speed or support more software, also the management of Google can empower team leader to manage their department cost in order save the total and management to create some idea for other revenue, not too liable for advertising and integrate organization culture in order to increase efficiency and effectiveness.

Finally, Management of the business environment refers to efforts to modify the environment, including the industry structure and regulatory environment, to make it more favourable to the firm given its positioning, resources and capabilities. For example, mergers and acquisitions are often motivated by intentions such as increasing concentration, reducing the number of competitors, and overcoming the entry barriers of an industry. Marketing communication and CRM are tools for influencing and managing customers. Besides competitors and customers, suppliers and distributors are also important parties. Mergers and acquisitions strategies and cooperative) are often applied to these parties to take advantage of and shape the industry environment, therefore Google should take above strategy in order to gain the competitive advantage.