...Cherry Chinese name: Zhu Yuanyuan Google and Government of China A Case Study in Cross-Culture Negotiations 1. Who are the stakeholders in this case? * The owner, the shareholders and the employees of Google * The internet users * The biggest rival of engine market Baidu and other enterprises * The China government 2. What are the important issues for each set of stakeholders? * For Google itself: Google employees will be unable to work in China; This was also reflected in the stock and other areas. After the incident, the Google shares fell, the company earnings will directly affect to the global strategy. * For the internet users: Google quit from China made such adverse impact, and it’s harmful to China's international image, in the search engine industry, there has no competition, users can only use Baidu. * For Baidu: We all know Baidu is China's largest search engine company, after Google's withdrawal, No competition will make Baidu's growth rate reduced. So it has good and bad effects to Baidu's development. On one hand, Baidu can enhance its own competitiveness, the market share and the stock go up rapidly. but on the other hand, Baidu's ills on the lack of creativity are manifested. * The influence of the government: Google quit from China, the most influential image is China's investment environment. Originally foreign invest in China have been very troublesome, if even Google---such a well-known high-tech companies...
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...companies. The price of doing business in a global market is being subjected to the laws and regulations of the country in which the company operates. Google is one such company that makes available an internet search engine worldwide. While the service has been mainly operated from the United States, Google has provided its service since 2000, in a version that is available in the Chinese language to the people of China. The Chinese government blocked Google’s Chinese version of its service, which made the greatest part of their services inaccessible to the people of China. In an effort to provide the service to all people worldwide, Google made the decision to locate an office in China that would introduce their Google.cn to the Chinese people. While Americans take for granted their freedom of speech, the Chinese people have always been restricted to censored information provided by the state run media. The government is particularly adverse to any medium that undermines the state’s power or goes against the national unity. They also restrict or ban any content that is sexual in nature. The restrictions on the content that could be accessed on the internet with Google was something that was imperative to consider before the decision to directly initiate service from China. Even with the restrictions imposed by the government, Google decided to open a Chinese based operation. They believed that they could eventually wear down the resistance of the government with the wishes of...
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...in question. In some industries, international marketing mistakes can often be rooted in the lack of understanding of different cultures such as the aspects buying behavior and product preference. Take the retail industry for example, since the purchasing behavior of customers varies by region, foreign retailers might usually make marketing mistakes due to insufficient knowledge of a given region’s preferences. Tesco, one of the biggest supermarket brands in Europe, failed in the U.S due to their insufficient understanding of American consumers’ shopping behavior with regards to groceries. Tesco had found success selling ready meals in European markets and applied that logic to the American market. The ready meals plan was a strategic failure since American consumers do not buy them...
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...“Google-ing” China: An ethical analysis of Google’s censorship activities in the People’s Republic by Leonard T. Musielak Introduction The spread of the internet to all corners of the world has led to tremendous business opportunities for many American businesses. With these opportunities may also come many ethical dilemmas. When operating abroad, businesses are required to abide by the laws of the host country. For US companies operating in China and other countries with totalitarian regimes, this requirement may include actions that are viewed as unethical or illegal in the United States. These “expatriate” corporations must often choose to ignore the basic rights guaranteed to American citizens, and disregard their own corporate missions, in order to respect the foreign society’s mores and meet the government demands. While cooperating assures legality, the question remains is their compliance ethical? Case Background/Research Findings “The Great Firewall of China” With an email stating “Beyond the Great Wall, Joining the World,” China signed onto the internet in 1987. (Liange & Lu, 2010, p. 104) Quickly, internet usage in the Communist country began to grow. The Chinese Communist Party (“CCP”), which governs China, exercises almost total control over all forms of communication within its domain. If the CCP wished to continue to maintain its communication stranglehold, they realized that a way to police the internet needed to be developed...
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...Google in China Google was founded by two Stanford University graduate students in 1998. These students had a vision of creating a search engine on the web, which will organize the world’s information and make it universally accessible. Google became very popular between internet users, since it provided search results in order of calculated relevance rather than in order of advertising payments and did not allowed pop-up ads. Yahoo! became partners with Google on 2000, which helped the company become the world’s leading search engine. Also, search was offered in different languages such as Chinese, Japanese, and Korean. Its first foreign office was opened in Tokyo and by 2009 Google offered search options in 110 languages and had offices in dozens of countries. By August 2004, Google raised $1.6 billion on its initial public offering and on 2008 revenues hit $21.8 billion primarily from two advertising products AdWords and AdSense. AdWords bid in auctions for rights to keywords on specific geographical regions. On the other hand, AdSense delivered relevant keyword ads to a network of third-party publishers. In addition, Google offered a variety of other services such as Gmail, Picasa, Goggle Calendar, Blogger, Google Docs, Google Images, YouTube, Google News, Google Finance, Goggle Scholar, Goggle Maps, and Google Earth. Google originally served the Chinese market through it Chinese-language version, but it has to use Chinese Internet service providers. These providers filtered...
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...Analyst’s Name: ¶ Levi Mohorich Date: ¶ 2/23/14 Case Study Name: ¶ Google, Inc., in China I. The Pre-Analysis: A. Perspective: 1. Author’s Perspective. Describe the perspective of the author(s) of the case study and possible biases of the author(s): ¶ The case was wrote by Kirsten E. Martin, the Assistant Professor of Business Administration at George Washington University, School of Business. She has her Ph.D. from Darden Graduate School of Business, University of Virginia. Her main research interests are business ethics, privacy, technology and stakeholder theory. It might be possible that she is biased towards China for their privacy restrictions and ethical values. Based on her previous research work, she probably values ethical behavior highly and technology innovations. 2. Analyst’s Perspective. Describe your perspective as the analyst: ¶ My perspective is that of a college student majoring in Marketing and Advertising Management. I am a strong believer in ethics and moral behavior. I have worked for an entertainment company for 8 years and my boss taught me to always do the right thing. I don’t know much about China and the details of their privacy laws or their government regulations. I do know that they block social media sites such as Facebook and YouTube but that's about it. I am an avid Google user though, I probably use Google almost every single day, or at least every time I’m on a computer. I am...
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...regulatory environment in China and its implications for the chinese media. In light of the restrictions imposed by the Chinese government of internet access, how do you think the media industry is affected? On google agreeing to ensure its search content, Reporters without borders commented, “Google’s statement about respecting online privacy are the height of hypocrisy in view of its strategy in China.” However, Google’s Director of Research was of the view, “What’s important to users is access to information, we are giving them that, and we think that’s the most important.” Do you think Google was right in taking this step? Justify your answer. PPPPPPPPPPP Internet censorship Increasingly, Chinese and Tibetan citizens both inside and outside areas of Chinese Government control are seeking information through the internet and other forms of online media. The speed and bredth of information access which these mediums allow is a huge threat to the Chinese Government as they attempt to maintain propagandist views of 'sensitive issues' such as human rights, the Tinananmen Square massacre and Tibet. As such, the Chinese Government goes to great lengths to control the internet and to limit the amount of information its citizens are able to uncover. On 13 January 2010, Google announced that it would consider pulling out of China after it emerged that hackers had been attempting to access the Gmail accounts of human rights activists. Google instead decided to drop...
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...Inside the Google and China Negotiations MGMT583N-Negotiation Research Paper Cathy Zhang Google have experienced two series of negotiations with the Chinese Government from 2006 to 2010. The first round negotiation settled successfully when Google first entered China in 2006. Google established a local domain (google.cn) to better serve the mainland China Internet users when it failed to acquire a stake in the Chinese top search engine company Baidu. However, in January 2010, David Drummond, Google’s Senior Vice President posted “A new approach to China” on their official blog, threating to pull out of China due to a series of cyber-attacks and excessive censorship on search results.This negotiation concluded in July 2010 when Google had redirected google.cn queries to Google.com.hk, where uncensored search delivered via servers in Hong Kong. This research paper is aimed at discussing the two rounds of negotiations from both Google’s and Chinese Government’s perspectives. Google’s Perspective From a Silicon Valley start-up to one of the world’s Internet titans, Google would never be satisfied limiting its business in the U.S. market. In 2006, China has 111 million Internet users, the second highest Internet population right after the United States. At this point, Google’s strategy to enter China must be profit-driven. From the second quarter of 2006 to the fourth quarter of 2009, Google’s market share in China has increased from 16 percent to 36 percent. Although...
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...Background Summary Founded on September 4, 1998 Google quickly revolutionized the search engine and the Internet alike. Within two years of starting operations Google had become the largest single search engine in the world and began to dominate the market. As the World Wide Web (web) grew in popularity and became more and more a part of everyone’s daily life, Google too grew in popularity “because it could provide simple, fast, and relevant search results” (Deresky, 2011). The differentiating factor was Google’s “PageRank technology which displays results…by looking for keywords inside web pages, but also gauging the importance of a search result based on the number and popularity of other sites that linked to the page” (Deresky, 2011). The use of Google has always been free to the user, the two revenue-generating avenues that have made Google one of the most profitable companies of the last decade is advertising and selling its technology. Google’s advertising branch is called AdWords and allows those wishing to advertise to “create ads and choose keywords, which are words or phrases related to the business. When people search on Google using keywords, ads appear next to or above search results” (Google.com). With the rapid success experienced in the U.S., Google quickly grew their business into the global arena by offering search results in hundreds of languages and being available on hundreds of different domains. This expansion helped to significantly increase...
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...For Google in 2005, from a business perspective, what are the arguments for and against entering China? The decision of whether to censor data in exchange for access to a multi-billion dollar market or to maintain a level of international integrity was a dilemma Google faced with their opportunity to enter the Chinese market in 2005. Two years after their inception in 1998, Google had enjoyed positive growth leading to them owning 25% of market share in the Internet search market; once search results became censored in 2004, Google experienced the complexities of working with a dictatorship when posed with the opportunity to enter a communist market, China. In 2005, Google’s Board of Directors met to discuss the pros and cons, and the costs and benefits, of entering the Chinese market, knowing that they would be required to limit the information they made available to Chinese users. If Google chose to enter into agreement with the Communist Party, they would be able to tap into an enormous market opportunity. Google would thereby be able to establish a dominant presence within one of the world’s most rapidly growing countries, getting potential access to over 1.3 billion people and 103 million Internet users. Furthermore, China has been able to break barriers in every market, quickly demanding the attention of foreign investors: “As a result of these [Mao’s successors] reforms, China’s GDP grew tenfold over three decades” (Ibid., 471). Worsfold’s Google in China case...
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...Google in China’s World Lauri Mak Ottawa University October 19, 2012 Abstract This paper will discuss Google, one of the largest internet search engines decision to enter the China internet market and the deviation against their very own corporate ethics policies. It will identify the key stakeholders involved and will look at the primary non-marketing issues and analysis each issue. Introduction In 1996 Larry Page and Sergey Brin began developing a search engine called BackRub while enrolled at Stanford University. In 1998 the company was renamed Google Incorporated and launched their search engine from a garage in Santa Margarita California. First held as a private company, they went public in August of 2004. Google grew extremely quickly by taking their single language website and adding different products including but not limited to the development of various forms of advertising and web applications from a variety of different tasks as found on the company website http://Google.com. Google.com quickly grew to be the most popular search engine in the world. “Their technology used an algorithm to find possible Web pages with search criteria provided by the user. Google’s PageRanktm technology measures the importance of different Web pages by solving an equation with more than 500 million variables and 2 billion terms.” (Martin, 2011) Google’s decision to enter the Chinese market was based on greed and increased market share rather than their company’s highly publicized...
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...The team of Google executives assigned to negotiate with Chinese government officials began to arrive at San Francisco International Airport two hours before their scheduled departure. The seasoned team had been briefed on Chinese culture throughout the past two weeks by a special consultant retained for the negotiations. They had also been provided with an executive summary of press coverage on China and China’s most recent policy announcements regarding the Internet. The flight across the Pacific would give the executives valuable time to prepare for the negotiations concerning the acquisition of a Chinese domain name for Google and to reflect on just how far the company had come. By the summer of 2005, Google had matured from a cutting-edge Silicon Valley start-up to emerge as one of the world’s Internet titans. In only eight years the brainchild of two Stanford University graduate students had transformed an industry and was generating impressive earnings from advertising and the licensing of its search engine technology. Google’s publicly traded stock had skyrocketed since it began trading a year before (Exhibit 1). The company was admired for its audacious goals (nothing short of organizing and providing access to “the world’s information”, its corporate principles (famously and succinctly encapsulated in three words: “Don’t be evil”, and its healthy balance sheet. By combining a Microsoft-like aggressiveness, an Apple-esque zest for innovation...
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...expand in Asian marketing. When E-bay decided to expand in the Asian market, they did not take everything into consideration. More research should have been done in order for E-bay to know how to gain the attention of the Asian marketers. An example of that would be the fact that even though E-bay’s CEO Meg Whitman had spent time in China, she was not prepared to cater to their needs. The Chinese executives had more experience in dealing with the specific needs of Chinese consumers shopping online. Another problem that E-bay didn’t expect was Internet accessibility and the inability of local networks to connect to their site outside of Asian countries. E-bay may have been alright had they just did more research prior to jumping into the market. Because E-bay was having problems with the Internet accessibilities, Chinese students opted to use local companies instead. E-bay is not the only brand image. There are more brands out there, such as Google. When you are competing with others, you want to try and beat their price just enough that you won’t shoot yourself in the foot. E-bay did not have the better deal. Because China is said to be a fast growing and frustratingly tough to crack market, E-bay chose to enter into a joint venture with them. Even though E-bay is a billion dollar global powerhouse in Internet commerce, they have continued to struggle in Asia. South Korea is considered the strongest Asian market. It was stated by Lee Hyun Chang, director...
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...Google: The Next 20 Billion Dollars Question Google: The Next 20 Billion Dollars Question 1 What do you think are the factors that make Google so successful? The first reason Google is so successful is its core business, the search engine. Google really perfected this tool (they were not the first, just the best) early on and gained first mover advantages. People found google easy to use and as a free search engine, really changed their lives around it. The article mentions Google being added to the English dictionary. The ability to use Google to find information has changed our society in many ways. The advantages and specialization for strictly information has moved from a select few to common knowledge. Google did not sit back and enjoy their success, but instead continued to reinvent themselves and the product mix they offered. The next major breakthrough for Google was the Android platform for mobile phones. Again, this was not a true invention, but Google found a way to bring a current product to customers, in a unique way, that offered value to a lot of people. I think this point is very important because this was nothing like the search engine that made Google successful in the first place. As Google looks for new product offerings for its customers, they are also looking at new places to find customers. The purchases of companies like YouTube, DoubleClick, and AdMob, have added strength and diversity to their product offerings. Google has made a concerted...
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...never before, from web-search to connecting us. The cyber industry is conquered by different industries or individuals, under numerous domain names. Search engines, social medias, blogs, e-commerce sites and news sites are one of the networks we can find on the cyber industry. Google search engine and Facebook social-network are the global core leaders of the cyber industry. Facebook with more than 642.5 million users , and Google with more than 620million visitors daily. Like any other business as big as they are, they are facing external as well as internal issues, from managing their stakeholders to the geographical segmentation matters. The globalisatin business strategy sometime has a great impact to the coperate business, which sometimes the busnesses have no control over. Only the internal factors and issues are easy for a company to deal with. Case Study 1 Introduction: Google was found in 1998 as a research project by Larry Page and Sergey Brin, Ph.D. students in coincidences of developing a singular integrated universal digital library; the Stanford Digital Library Project (SDLP). Its first headquarters are in Mountain View California. Google has built up a strong brand name or domain and it is a leader in the cyber industry, particularly in terms of its excellent web service and its very rapid growth. Google’s popularity...
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