Google Corporate Entrepreneurship
1. Do you think Google will be able to maintain its entrepreneurial culture in spite of its recent growth and increased size? Why or why not? The book refers to entrepreneurship as identification, evaluation, and exploitation of opportunities. Entrepreneurship is defined by businessdictionary. com as the capacity and willingness to undertake conception, organization, and management of a productive venture with all attendant risks, while seeking profit as a reward.
Entrepreneurial spirit is characterized by innovation and risk-taking, and an essential component of a nation’s ability to succeed in an ever changing and more competitive global marketplace. The entrepreneurial culture of Google remains important in the form of corporate entrepreneurship as opposed to individual entrepreneurship. Google as a corporation pursues opportunities in the attempt to thrive in a competitive industry, give back and provide helpful services to consumers.
Corporate entrepreneurship is the process in which an individual or group of individuals in an existing corporation create a new organization or instigate renewal or innovation within that corporation. Even when corporate entrepreneurship results in new companies, the new companies often continue to work closely with the parent company. I believe that Google will be able to maintain its entrepreneurial culture in spite of its recent growth and increased size because of the company’s commitment to expand the organization and its span of influence.
If managers at Google influence employees to “buy in” to the identification, evaluation, and exploitation process relative to innovative and functional opportunities to develop and grow the Google brand, the culture of corporate entrepreneurship will continue. Of course there will be employees who will want to pursue individual entrepreneurship opportunities of their own, but without the resources and capital that Google has acquired they will not be a direct threat of competition to the multi-billion dollar corporation.
If the employee or group of employees recognizes the opportunity to create a new organization or instigate renewal or innovation within the Google corporation there would be less risk involved and brand leverage opportunity. 2. In your opinion, what were the key factors in determining the success of Google’s entrepreneurial founders?
The key factors in determining the success of Google’s entrepreneurial founders were successfully applying and implementing stages of the entrepreneurship process, their networks of relationships, their educational backgrounds, their capital bases, and the public’s acceptance of the new search engine. Larry Page and Sergey Brin recognized the opportunity to bring a new service into an existing industry. They understood that the search process could be improved, and they believed that they had the resources necessary to improve the process.
Page and Brin evaluated the opportunity by likely going through a process that helped them understand whether their idea was practical and had the ability to gain profit. After determining that the idea was indeed worthwhile, Page and Brin exploited the opportunity. Their Stanford educational background not only gave them the understanding of how to pursue the opportunity, but the network and support system of scholars and investors who had the means to finance it.
The acceptance of the concept from one of their Stanford professors led to family and friends’ acceptance and later angel investors and venture capitalists who helped them gather the funds needed for success. They went on to gain acceptance from society which ultimately led to the first level of success for the corporation. 3. As you look into the future, what do you think represents a bigger threat to Google: established companies like Microsoft or smaller, entrepreneurial companies? Explain.
Microsoft, Yahoo, or Ask could present a big threat to Google through higher quality results or better branding. In order to have one of the major competitors win back users and search engine domination, a more compelling interface (which in my opinion Google lacks) and a lot of support from media and influencers would be necessary. A smaller, entrepreneurial company would need better technology, a more compelling interface, a grasp for what the Internet population wants and the media’s attention (similar to the media’s love for iPhone).
The smaller company would need to find venture capitalists that are willing to spend close to billions of dollars to take a shot at what Google has already established and to improve it. Another situation is that a smaller, entrepreneurial company has innovations and understanding to ultimately improve what Google has accomplished but no real capital. Microsoft, Yahoo, or Ask could acquire them and give them the capital needed in an attempt to work together and not present new competition in the already competitive industry.