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  • Google Case Study

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    Sarge Shan
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    Google faced many challenges when expanding its business into China due to the country's strict control over information flow. The Chinese government censors sensitive topics and Google had to censor search results based on government instructions to operate in China. This predicament surprised Google's managers as they were not fully prepared for China's censorship practices, which ultimately led Google to shut down its Chinese site and operations. Stakeholders like employees and shareholders were negatively impacted by the closure decision.

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    Summary and Q & A of the Case Study

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    Google faced many challenges when expanding its business into China due to the country's strict control over information flow. The Chinese government censors sensitive topics and Google had to censor search results based on government instructions to operate in China. This predicament surprised Google's managers as they were not fully prepared for China's censorship practices, which ultimately led Google to shut down its Chinese site and operations. Stakeholders like employees and shareholders were negatively impacted by the closure decision.

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    1K views2 pages

    Google Case Study

    Uploaded by

    Sarge Shan
    Google faced many challenges when expanding its business into China due to the country's strict control over information flow. The Chinese government censors sensitive topics and Google had to censor search results based on government instructions to operate in China. This predicament surprised Google's managers as they were not fully prepared for China's censorship practices, which ultimately led Google to shut down its Chinese site and operations. Stakeholders like employees and shareholders were negatively impacted by the closure decision.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    Opening Case: Google’s Steep Learning Curve in China

    The internet technology is globally connecting the people around the


    world. Due to the advances in technology, the world seems smaller as it
    brings people closer together despite being apart from one another. The use
    of the internet has also significantly benefited the business and the
    economy as they can expand their market. Border crossing businesses may
    find it difficult to enter a new market. For example, the Google Inc. which is
    a US based company expand its business venture in China.

    Google faced a lot of problems while entering the market considering


    that the country of China is so strict and very sensitive country. The
    government itself controls everything that goes in and out information
    about its country and its people. The Chinese government censors a lot of
    content especially when it talks about sensitive topics included Tiananmen
    Square, Tibet, the Dalai Lama, Taiwan independence, human rights and the
    Falun Gong spiritual movement… Google Inc. must deal with it to survive. In
    order to operate, Google made a Chinese website www.google.cn would be
    censored by the company itself on the basis of the instructions of the
    government.
    Opening Case Exercises

    1. Can Google afford not to do business in China?

    Yes, about the fact that China has been hacking and stealing
    documents, the company cannot afford to stop doing business in China
    because the country is a big global business center. Given its wide land area,
    high population, rapidly developing economy, and strategic ports, it lends itself
    easily to substantial international trade. Potential of business growth is very
    high when you operate in China.

    2. Which stakeholders would be affected by Google’s managers’ possible


    decision to shut down its China operations? How would they be affected?
    What trade-offs would Google be making?

    Employees are the stakeholders most likely to be impacted by Google's


    decision to close down in China. Shareholders as well as contractors Employees
    are likely to be cast away. Shareholders' projected returns on investment fall as
    a result of decreased business. Due to the closure, the contractors will have
    limited activity with Google. Employees employed on China operations, mostly
    those stationed in China, will be fired. The trade-off is that Google is giving up
    control of the world's largest economy in areas such as searching and a large
    number of workers. It will, however, keep its integrity and secure the privacy of
    its users.

    3. Should Google’s managers be surprised by the China predicament?

    Google's managers must be taken aback by China's plight because the


    censorship took them off track. The managers were not prepared expertly or
    they would not have decide to spread to China in the first place. Furthermore,
    they have been hacked by China and have been forced to close down their site
    in China which affects the company negatively.

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