Google in China Case Study

1. INTRODUCTION: Google in China[pic 1]

Google launch in China and how it made its presence felt over there as well as the key issues faced by the Google such as gaining the market share, although Google did a fair amount of research before entering China but still was not able to beat the local competitor Baidu which is the biggest search engine in China and accounts for about 60% of the market share. In 2006, Google has made deal with the Chinese government and launched Google.cn a version of its search engine run by the company from within China. Launching Google.cn required Google to operate as an official Internet Service Provider (ISP) in China to self-censor, removing content that is considered illegal from search results. In terms of financial point of view, China represented for Google a dynamic and fast-growing market. The motto of “Don’t Be Evil” has proven that this company successfully set itself apart from their competitors and known as by millions of users to protect and store their personal information. The choice they have made to accept self-censorship and the discussion and debate generated by this choice has forced Google to re-examine itself as a company and forced the international community to reconsider the implications of censorship.

1. [pic 2]Why it is important for Google to establish Objectives of the Risk Management Program when they decided to enter China’s market?

Objective of the Risk Management Program is to identify and anticipate the pre-loss and post-loss. Every organisation need to have a Risk Management Program as the other reason to implement Risk Management Program is to minimise the financial impact and to smoothen the operation of an organisation. Each organisation couldn’t bear when the percentage of facing risk is higher than avoiding risk owing to the risk that will cause problem to other factors and thus affect the company performance.

Google objectives when entering the market into china is that to make the world’s information accessible to everyone, everywhere, all the time. The main concern about the risk in China there is two fundamental which is commitment to satisfy the interest users and policy conviction that expanding access information to anyone. Lastly, in such situation risk that google will keep play safe that will going to be a responsive to the legal requirement condition or the other hand government rules.

Another important thing is about the government rules. China’s government can easily make changes to the policy condition if there is no something positive results contribution the company itself. But Google Company could not satisfied the China user as because the web browser was no longer high quality. Chinese users found that Google.com was down over 10% of the time Google News was never available and Google Images was available only 50% of the time

In terms of local conditions, it was important for Google to determine to what extent self-censoring would affect the company’s search results. For users of Google.com in China, searches for censored subject matter, ranging from political subjects like democracy and Tibet to religious subjects like Falun Gon and Dalai Lam to social subjects like pornograph, would generate the same list of links as would be generated for a user based in the United States. However, if the user in China tried to open any censored links, either the user’s browser would shut down or the user would be re-directed to a non-censored site.

1. [pic 3]Relative to the case study, list out the option of risk identification techniques and tools. Discuss in detail on the most suitable risk identification techniques and tools for Google in establishing internal and external risk profiling

Risk identification techniques is essential to takes into account the dynamism of the industry of focal company operates. There are four option techniques in identifying risk, there are orientation, analysis of documents, interviews and inspection.

The first technique is orientation. This technique assess the physical make-up of an organization, looking into its mission, vision objectives and functional department by studying the annual reports, financial statement and other documents. It is vital to set a mission, vision and objectives in an organisation as it will act as a guidelines for all the company’s performance such as decision making. Everyone in the organisation should work hard to make sure the vision, mission and objectives will success. Shareholders, top management and employees that act as spine of the company. They need to helps their workers within the organization about the decision making and in completing the task in order to fulfil the company target. There are slightly different meaning of mission and vision. Vision is more in offering a direction and perspective of corporate values. It also provides a direction for the company in the next 5 to 10 years and noting a commitment to integrity, transparency and openness.

The second techniques is analysis of documents. This is technique where the identification process is by examine the documents such as catalogue, audit reports, agreement with suppliers, copies of contracts, customers, safety policies, financial statement, annual reports, inventory and valuation reports. In the case study, Google should take a step where they make a clear agreement with the China’s government about the deal of having Google as one of the search engine in China. Although they know the percentage for them to be legalise as the search engine in China will come in vain, Google should at least try to penetrate first the China’s market and perhaps they can make a new deal then.

Next, the technique is interview. It is a method to extract vital information that are impossible to get quantitatively or from records. It is impossible for Google to run this technique owing to the culture of China. In addition, Chinese people are hardly to speak in English so it will become harder for Google to interview the Chinese as there communication block between them. Unless, if Google appoint a group of translator but it will cost an arm and a leg for Google to recruit translators to run for their interview questions. The Chinese also do not really favour with the white people and this interview will surely fail if Google directly interview those people.

Last technique is inspection. It is defined as careful examination or scrutiny. Inspection done onsite unable risk manager to gather more information in identifying risk as it will helps to reveal more data and information that are not documented. With a few information about Google in China, it is advisedly to not continue doing inspection there as it will show more flaws instead of the good things in Google. Besides, their competitor like Baidu, may take an advantage from this situation to provoke their people to disbelieve Google as Baidu is a China-based organisation.