Pepsi and Google Leadership Case Study

In: Business and Management

Submitted By tekgeek
Words 1149
Pages 5
1. Culture is an essential element of organizing in the P-O-L-C framework. Do you think Google has a strong culture? What would it take to make changes in that culture, for better or for worse?

Undoubtedly Google has one of strongest cultures in today’s corporate
World. The strong work culture has paid off for Google as it is ranked
consistently as the best place to work.

If Google were to remain in the best position in the future, It has to
change continuously and evolve accordingly to face the competitors.
Google’s cultural innovations might be imitated in other companies as
well. It is easy to have a good corporate life style when the company
the company is doing very well on the economic front. When company’s
resources become more constrained with the maturing of its industry
and its business model, these kind of investments will be harder to
make. When Google slows down financially it will be difficult to retain
great employees.

2. Do you think Google’s unique culture will help or hurt Google in the long run?

Google’s unique culture might not help Google as it is helping today. I think so because the corporate life style, more benefits to employees are very much imitable by other companies. Any company that is doing very good financially can adopt these measures. There comes a point in future where the core competencies matter. In the current trend Google is losing its employees Facebook. It might be difficult to retain great minds with this unique culture.

3. What are the factors responsible for the specific culture that exists in Google?

The factors responsible for the specific culture that exists in Google are

a. The Founder values and principles which was committed for end user satisfaction…...

Similar Documents

Google Case Study

...1.) How does the changing environment for business affect Google’s ability to communicate in this situation? The changing environment for business affects Google’s ability to communicate because everything is available on the internet now. Google said themselves that they wish to “provide the greatest access to information to the greatest number of people.” Anything that Google does or says in any situation is available for anyone to see. The very product that they are providing can also help or hinder them. If people in the United States and Europe did not have access to Google’s business records online, then they would never know about Google censoring in China. If they did not know, then groups such as Reporters Without Borders would not be able to use them as a launching group for their issues. 2.) Where is the company most vulnerable, from a communications standpoint? 3.) What are the key problems Google faces in this situation? I think that the main problem Google faces in this situation is the Chinese government. I think another problem Google faces in this situation is being able to stay true to who they are and what they stand for. Google has said many times that their main goal is to provide the most information to the most people, so for them to agree to do business in a country that wants them to control what search results appear when something is searched seems extremely out of character for them; and even beyond that, it is extremely difficult......

Words: 268 - Pages: 2

Pepsi and Google Leadership Case Study

... difficult to follow this approach of decision making. There may be a need of centralized decision making. 5. Do you see any challenges Google may face in the future because of its emphasis on having a risk-taking culture? I see that Google may face many challenges because of risk taking culture because of its emphasis on risk taking culture. Risk taking may not always yield the right results. When this approach is over used it might hurt the revenues very badly. Google should not take risks without sufficiently prepared for its consequences. Risk taking might prove advantageous when there are few competitors in the same field. PART 2 1. How might a leader like Nooyi influence PepsiCo’s use of P-O-L-C tools beyond her obvious role in the leadership dimension? Beyond her obvious role in the leadership dimension, Nooyi has a very positive influence on PepsiCo’s use of P-O-L-C tools. She is very much liked and respected by everyone. She listens to people around her .With her diverse background she has an appreciation for diversity which adds value to the company. She assumes that people have good intentions which helps her to avoid misunderstandings and show empathy toward them. 2. Do you think Indra Nooyi’s vision of “performance with purpose” has been effective? Why or why not? I feel that Nooyi’s vision of “performance with purpose” has totally been effective. In the current trend where people are very......

Words: 1149 - Pages: 5

Pepsi Co Case Study

...Pepsi Co With the assumptions given in the case, we estimated the WACC to be 12.23%. The cost of equity represented in the WACC was calculated using the geometric mean return on T-bonds and the long-term government bond rate (4.5%) as the appropriate risk free rate. We chose this over the arithmetic mean return using T-bills under the assumption that the geometric mean is more appropriate to use in estimating the expected return over longer time horizons, especially because as we go towards longer time horizon returns become more serially correlated. The difference in our estimated WACC from the 11% estimated could be attributed to the choice between arithmetic or geometric risk premiums and the short term/long-term risk free rates. (See exhibit 1) Since PepsiCo is comprised of three different business segment, we felt that it was in our best interest to calculate the cost of capital for each of the segments in order to achieve the appropriate WACC. We calculated the new WACCs via pure play method and used comparable companies for references (See Exhibit 2 for divisional segments). In order to use the pure play method, we averaged the betas, debt-equity ratios, and tax rates for all the related companies in each segment. We unlevered the betas and re-levered it to PepsiCo’s specifications. We arrived with the betas of .85, .83, and 1.19 for restaurants, snack foods, and soft drinks respectively. In the end we estimated 12.17%, 13.15%, and 15.74% as our new WACCs for the...

Words: 455 - Pages: 2

Pepsi and Coke Case Study

...5) How can Pepsi and Coke confront the issues of water use in the manufacture of their products? How can they defuse further boycotts or demonstrations against their products? How effective are activist groups like the one that launched the campaign in California? Should Coke address the group directly or just let the furor subside? Pepsi and Coke should have responded faster to the concerns of the general public. The companies formed committees within India and the United States to work on legal and public relations issues. They commissioned their own laboratories to conduct tests and waited until the results came through before commenting in detail. Their approaches backfired. Their reluctance to give details fanned consumer suspicion. If the companies acted faster to the situation when it first came to light, the could have spared a lot of grief. Pepsi and Coke can defuse further boycotts by speaking directly to the cause of the boycott/demonstration or by allowing demonstrators to investigate their product themselves. The activists groups have proven to be very effective in their efforts. Fear campaigns (like the ones assembled in California) can do a great deal of damage to the brand. They are even more effective when the people targeted are not in the country being referred to as in this case (America/India). They are unable to use their own judgement to dismiss the campaign. Moreover, Coke should address the group directly in order to sort out any misunderstandings......

Words: 255 - Pages: 2

Pepsi Case Study

...Stephan Orgiazzi 1 PepsiCo - The Company Pepsi (formerly known as Pepsi-Cola) is a cola carbonated soft drink that is produced and manufactured by PepsiCo. Created and developed in 1893 by Caleb Bradham, it was named Pepsi-Cola because of the digestive enzyme pepsin and kola nuts used in the recipe. Bradham sought to create a fountain drink that was delicious and would aid in digestion and boost energy. As the cola developed in popularity, he created the Pepsi-Cola Company in 1902 and registered a patent for his recipe in 1903. During over a century, the company product line expanded with the creation of alternative cola recipes such as Diet Pepsi and the purchase of popular soda companies like Mountain Dew. In 1965, the Pepsi-Cola Company merged with snack company Frito-Lay, Inc. to become PepsiCo, Inc. Interesting fact: PepsiCo was the first company to stamp expiration dates, starting in March 1994. (1), (2) Vision of the company The mission of the PepsiCo focuses on products and performance primarily, with a few values thrown in for good measure. The mission statement of the PepsiCo Company is: "Our mission is to be the world's premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity." (3...

Words: 1853 - Pages: 8

Google Case Study

...GOOGLE CASE STUDY Summary: Google was founded in 1995 by Larry Page and Sergey Brin and it was the first popular search engine in the world. They created this search engine so that users can find any website or document on the web based on keyword or exact searches. Google provides free services for their users. Other than the search engine, they can also search books on Google Book Search, news on Google News, videos on Google Video (YouTube) and maps on Google Map. Google is presently the market leader. With the help of competitive analysis and environmental analysis; in this case study we are going to answer the following questions. 1. Review Google’s corporate webpage and annual report. How would you describe Google’s strategy? 2. Prepare a competitor analysis. How would you define Google’s industry? Who are Google’s competitors? 3. Prepare an environmental analysis. What are the major trends impacting Google’s industry? What are the growth prospects for Google’s core business? 4. Do you think Google’s industry is a competitive market, in the technical sense? Does Google have a sustainable competitive advantage in internet search? 5. Would you recommend investing in Google? ------------------------------------------------- Introduction Google Inc. defines itself as a global technology leader which focuses on the ways people connect with information’ Google is a search engine which offers variety of services including the ability to search...

Words: 1994 - Pages: 8

Coke and Pepsi Case Study

...TQ1 The beverage industry has always been economically successful, especially Coke and Pepsi. Coke started as a “potion for mental and physical disorders,” sold by a pharmacist named John Pemberton. The Coke business evolved quickly and reached franchises by 1910. The concentrate business and the bottling business, though closely related have very different economic dynamics. The profitability of concentrate producers was much more successful than bottler’s. Even though the profitability of concentrate producers is higher than bottler’s they are still inter-reliant; they share cost in things such as marketing and production. There are many reasons why concentrate was financially successful; using Porter’s five forces we can noticeably see how each force plays an intrical role in profitability. Bottlers and concentrate businesses deal with the same buyers and suppliers. There were many suppliers that could provide raw material to concentrate business owners; therefore suppliers could not ask a premium and their power was low. Bottling businesses, much like suppliers were dependent on concentrate businesses. In reference to the five forces model, concentrate producers supplied bottlers with raw material necessary to make soft drinks. Concentrate businesses took management roles in product development and even negotiated with bottlers. Therefore, it is evident that concentrate business had control in the industry. In addition, there was a high volume of suppliers so that...

Words: 688 - Pages: 3

Google Case Study

...Introduction From its humble beginnings in a Stanford computer science lab to the Internet behemoth the company is today, Google is no longer just a search engine. Google now boasts a full suite of web services and tools, from a cloud email service to a web browser to a social media network. Google’s founders built the company around 10 core principles. The on that stands out the most number 6: “You can make money without doing evil” (Thompson, Peteraf, Gamble, & Strickland). Since its IPO in 2004, Google has been a stock market success, consistently performing above the S&P 500 Index, even during the financial crash in 2008. Overall, the company’s financials are solid, with consistent growth in revenues, net income, assets, and stockholders’ equity. However, Google may have grown too rapidly, and it will be difficult for the company to maintain its high stock price and revenues growth while abiding by principle number 6. It follows logically that straying from this principle will result in Google also straying from principle No. 1: “focusing on the user experience instead of the company’s bottom line” (Thompson, Peteraf, Gamble, & Strickland). Primary Issue The primary issue facing Google was that the company was not keeping up with its core principles, specifically, number. 1: “Focus on the user and all else will follow”, number 2: “It’s best to do one thing really, really well” and number 6: “You can make money without doing evil” (Thompson, Peteraf...

Words: 1242 - Pages: 5

Google Case Study

... process very seriously. Hiring is extremely competitive and getting to work at Google is not unlike applying to a college. Candidates may be asked to write essays about how they will perform their future jobs. Recently, they targeted potential new employees using billboards featuring brain teasers directing potential candidates to a Web site where they were subjected to more brain teasers. Each candidate may be interviewed by as many as eight people on several occasions. Through this scrutiny, they are trying to select “Googley” employees who will share the company’s values, perform at high levels, and be liked by others within the company. Will this culture survive in the long run? It may be too early to tell, given that the company was only founded in 1998. The founders emphasized that their initial public offering (IPO) would not change their culture and they would not introduce more rules or change the way things are done in Google to please Wall Street. But can a public corporation really act like a start-up? Can a global giant facing scrutiny on issues including privacy, copyright, and censorship maintain its culture rooted in its days in a Palo Alto garage? Larry Page is quoted as saying, “We have a mantra: don’t be evil, which is to do the best things we know how for our users, for our customers, for everyone. So I think if we were known for that, it would be a wonderful thing.” Case written by Berrin Erdogan and Talya Bauer to accompany Bauer, T., & Erdogan,......

Words: 1746 - Pages: 7

Google Case Study

...Marketing Management Case Study 1 Marketing Excellence >>Nike 1. Pros:“Nike +”Nike with apple consists of a pair of specially designed Nike+ shoes and a Nike+ ipad sport Kit. As a person runs, ipad tells the distance pace and calories burned via voice feedback that adjusts music volume as it plays. Nike allows customers to design their own shoes from a catalogue of pre defined designs.Customers can choose their own colours and mascots to create shoes which define their personality. Cons:High costs incurred in advertisementwhich ultimately adds to the price of the Products. Risk: Being one of the major players in the World Market When ever Nike launches a new product it has to make sure it addresses to the concerns of the Global market, which is difficult to achieve For ex: When Nike endorsed Tiger woods in 2009 it was an extra edge for Nike over it’s competitors but when Tiger woods was accused to be engaged in a sex scandal in 2011 it not only harnessed the image of Tiger woods as a major golfer but also of the image of Nike’s which has it’s presence in all over International Markets 2. -North America-44% Europe-24% China -11% South Asian market-18% Here there is an opportunity for Adidas to gain more market share by capitalizing on these developing Markets. -Growth in greater China and other emerging markets in Asia region is an opportunity for Adidas - Focus on it’s product development Focus on new innovations To regain and increase...

Words: 414 - Pages: 2

Google Case Study

...CASE STUDY: GOOGLE Google is a very successful information technology/web search company with more than 21,000 employees working in 77 offices located in 43 countries. It was founded in 1998 by Larry Page and Sergey Brin. According to the Google website, Google has grown by leaps and bounds since then. From offering search in a single language the company now offer dozens of products and services— including various forms of advertising and web applications for all kinds of tasks—in scores of languages. In 2010, Google’s revenue exceeded $29 billion. Probably one of the more interesting statistics associated with Google is that it receives well over one million job applications each year and hires only about .05 percent of them. This tells us two very important things about Google: lots of people want to work there and Google is very particular about who it hires. Google has made the Fortune list of 100 Best Companies to Work For every year since 2007. Let’s take a look at how the leadership practices at Google match up with The Engagement Formula. THE ENGAGEMENT FORMULA AT GOOGLE Step One: Create a Full‐Engagement Culture that Defines the Organization and Drives Performance A full‐engagement culture has the following four elements: Minimal Distractions—So Employees Can Focus on Performing Their Jobs Employees’ physiological and safety needs are very well satisfied at Google. According to the Google web site, “We provide individually...

Words: 5572 - Pages: 23

Google Case Study

...Google: New-Product Innovation at the Speed of Light 1. Based on the information in this chapter, identify major similarities and differences between the new-product development process at Google versus that found at most other companies. Google follows only five of the eight steps of the new product development process, which are: idea generation, idea screening, concept development and testing, and commercialization. The new product development process at Google is characterized by being fast, fluent, and without limits. Google encourages their employees to think outside the box and come up with new innovative ideas (idea generation and idea screening step). Then, once they have an idea proposed they send it to testing and start developing their product right away. They are not into having 2-year production and design plans (concept development and testing, and product development step). After this, they try to put a product into use no more than 6 months after development has started (commercialization). In the case of Twitter, they also come up with new ideas and some of them may be put to market without taking too much time developing the product. Similar to Google, Twitter keeps their innovations within the company. Nike is very different to Google. They do follow the eight steps in the new product development and take longer than Google to develop their products. Nike takes longer developing their products because they analyze and study what innovations...

Words: 569 - Pages: 3

Pepsi Crisis Case Study

... reassuring face to PepsiCo’s constituencies. ANALYSIS AND COMMENTS  This is the first time a major regulatory authority has given such a public reaasurance (FDA).  PepsiCo worked closely with the FDA to ensure that their products were safe.  FDA’s involvement gave greatly enhanced credibility. Rebecca Madeira said that agency was the company’s crisis counsellor.  HIV/AIDS hoax was very popular in USA.  They reassured their bottlers and distributors by including them in their communication chain.  PepsiCo took a situation that could have proved devastating to their corporate image and product line and instead emerged from the crisis “stronger and more united than ever,” said Craig Weatherup.  In 1993 Pepsi-Cola profits surpass $1 billion  Pepsi shows tendency for crisis due to use of celebrities. THANK YOU REFERENCES   Colin Doeg, 1995. Crisis Management in the Food and Drinks Industry: A Practical Approach, Chapman&Hall, UK.  Kathleen Fearn-Banks, 2011. Crisis Communications: A Casebook Approach, Routlegde, NY.  Norman R. Augustine,Anurag Sharma,Idalene F. Kesner,N. Craig Smith,Robert J. Thomas,John Quelch,Greg Brenneman,Linda Hill 2000. Harvard Business Review on Crisis Management, Harvard Business School Press, USA.  Marcy Magiera, 2009. “The Pepsi Crisis: What Went Right.” Advertising Age 19 July 1993: 14-15.  Regina Collins,2009. Corporate Communication Case Study, PepsiCo’s Communication Strategy During......

Words: 1820 - Pages: 8

Google Case Study

...Case 5: Google’s Country Experiences: France, Germany, Japan 1. How does a search engine work and make money? What is the exportability of a search engine’s technology and business model? Google, the world’s largest search engine provides simple, fast and relevant search results by using PageRank technology that displays results by detecting the keywords inside web pages and determining the importance of a search result based on the number and popularity of other sites that linked to the page. Google Search provides at least 22 special features beyond the original word-search capability. The special features include synonyms, weather forecasts, time zones, stock quotes, maps, earthquake data, movie show times, airports, home listings, and sports scores. There are special features for numbers, including ranges, prices, temperatures, money/unit conversions, calculations, and package tracking, patents, area codes and language translation of displayed pages. Google earns its revenue through paid advertising which are listed on the Google search page, the listed advertisement and links get charged by Google every time someone clicks those displayed links and advertisement. Google also runs ads on websites that participate in Google's AdSense program. The advertisers pay Google for each click, Google keeps some of the money, and passes the rest of the money to the websites that ran the ads. Google also places ads on other site such that they have run such as Gmail and...

Words: 755 - Pages: 4

Google Case Study

... merely wanted to create an awareness of how important the spectrum is. Verizon has pledged to offer its network for software devices, software and applications not provided by the company. What this means is: * Any device that can work in the frequency will work with the provider. No more locked devices in that frequency. * Any application can take advantage of the available bandwidth in the open frequency, provided the device is capable of using that frequency. * Any application can be used in the frequency, does not need to be provided by any particular provider. * This open band will facilitate the migration to 4G – meaning higher bandwidth for everybody. * Companies will see a flood of network usage, potentially charging higher fees for better quality service, and an option to put their finger in lot more pies than is possible at the moment. Google got what it wanted without spending a dime! Google has been a long time provider of mobile applications and services. Their mobile operating system, called Android will be able to use the open spectrum and there are new applications for Android in the works. Android is an open source platform for mobile devices. By staying out of the auction, Google has shown that wireless is not the way to go. TCO A applies to this case in that Google has struggled to apply this core competency to offline media, i.e. magazines, newspapers, and now TV. These types of media lack both the scaling of activity and the......

Words: 616 - Pages: 3