Logistics and Operations Management of Google Inc
Any human activity that aims at organization and productivity consists of the operations. Management activity includes the control of operations and the application of appropriate methods of planning, organizing, and networking. Logistics and operations management of Google Inc. is the activity of the corporation associated with the deliberate transformations of resources into products or services. The transformations involve utilization of the specialized methods of solving production problems.
Improvement of the Operations of Google Inc.
The operations of Google Inc. belong to the main business processes. The operating activity is primarily determined by a specific sector of the economy. The basis for the operating activity of Google Inc. is the industrial-commercial and trading operations that are complemented by their ongoing investing and financing ventures. The elements of operations include strategy, personnel, material resources, and information exploitation.
The effectiveness of operating activity in Google Inc. may be determined by the following groups of qualitative and quantitative indicators, consisting of the level of production and sales, assortment plan, utilization of capacity and assets, the use of labor resources, costs of production, and financial condition. The negative deviation in the indicators within a certain period is an alert to readdress the operations and their elements.
Google Inc. operates in the information industry with a large number of competitors. Therefore, in order to possess effective operations, Google Inc. should constantly improve its tactics as the tools of meeting corporate goals. The improvement is possible through a balanced operational strategy that synthesizes production, marketing, and research departments. The approach results in the decisions regarding the development of the manufacturing process and infrastructure required to support it. The objectives and strategic direction of operational activities should meet the requirements of the strategic objectives and guidelines. On the other hand, they should adequately disclose the specific subject of the operating strategy of Google Inc.
Improvement of the corporate operations should be directed at the management of human resources and input material through the following ways:
Increased funding for research and development;
Revaluation and refurbishment of production facilities;
Achievement of flexibility in labor by additional training of the employees to perform several different operations (Metters, King-Metters, Pullman & Walton 2008).
The aforementioned activities can be performed through a balanced operational strategy. In order to make a successful economic activity, the corporation should draw detailed plans for future activities to be ahead of its competitors. The long-term prospects and priorities state the basis of a definite plan of action. Google generates its own strategy of operations. Given the multifaceted feature of the corporation, the need for a strategic list of related strategies should be noted. Different types of strategies are developed by the corporation for a certain period of time, reflecting the specific operation and development of the company and the positioning and role in the environment (Johnson, Scholes & Whittington, 2008). The strategic set usually includes commodity, manufacturing, marketing, organizational and other strategies. Current operations and defined weaknesses of the company play an important role in choosing a strategic set.
Improvements in operations are included in the development process that aims at selecting suitable technologies, drawing up interim graphics process, and determining the inventory, as well as ways to accommodate the process (Krause, Handfield & Tyler 2007). Decisions related to infrastructure refer to planning and managing, the methods of quality assurance and quality control, the structure of payment, and the operational functions of the organization. The objective, strategic guidance, and operational strategies should meet the company’s mission and vision and account for long-term goals. The operating strategy requires the adoption of decisions related to production capacity, vertical integration, production processes, product quality, exploitation of personnel, relationships with suppliers and other partners, distribution of the finished product, and production management.
Composition of the staff and the nature of relationships in the workplace as the elements of Google Inc. operations should be improved. The complex of personnel decisions includes assessment of human resource capacity, succession potential of managers and employees, professional skills of production staff, the level of their culture and competence, etc. The composition and structure of the human resource should correspond to the strategic objective of operations. The organization should effectively exploit human capital and talent (Stevenson 2011).
Another element of operations in the internal environment of Google Inc. is its informational resources. The problem of creating an effective structure in the market of informational services or reorganization of the existing structure is complex and multifaceted. The solution to a problem cannot be achieved by individual measures only. It requires a whole range of methods implemented within a single approach. The low formalization of the business processes does not enable the employees to clearly distinguish the functions of units and departments, identify the main areas of responsibility, describe the relationship between departments, formalize the flow of information within the corporation, and identify the main point of control (Jeston & Nelis 2014). Basic communication within the system is advisable to design, implement, and subsequently, integrate into the company’s business processes.
Analysis of Reasons for Improvement
The need to evaluate the effectiveness of the company is determined by the regulation of efficiency development and the harmony ensuring the security of interests of its owners, staff, and state. Analysis of the causes underlying the improvements of transactions in business processes motivates the study of the drivers of progressive development in Google. Then, the management needs to stimulate a favorable impact on key elements of operations in order to achieve common efficiency.
The improving operations of the organization are caused by the fact that the favorable measures may optimize the organization of management and business processes through better planning, accounting, and monitoring key performance indicators of the company (Berwick 2008). In addition, the factors that need improvement include the management of production resources and inventory. Also, Google Inc. should aim at enhancing the effectiveness of innovative processes and improving the quality of manufactured products.
Improving the use of human resources in Google Inc. is caused by the need to hire the optimal number of employees in the various departments to meet current norms and organizational needs. Evaluation of practices is an essential part of HR management. The need for improving staff efficiency in the corporation is due to the fact that the company expands its business scope and becomes a partner for many international companies in different countries. Moreover, Google Inc. should consider controlling problems of skilled labor shortage in order to generate quality innovative products and information.
Large volumes of activity of Google Inc. in different areas of information support are performed by the macro and microenvironment. International activities of the corporation and its representation in various countries complicated the quality control and operational functions of corporate management.
Moreover, it should be noted that the corporation is able to succeed in modern economic conditions through the satisfaction of the consumers. Therefore, the corporation should continually develop and improve its business operations and introduce the modern concept of quality management into practice. Quality management methods that allow setting the level of product quality and operations can be determined using Plan-Do-Check-Act, TCQ, Kaizen concept of continuous improvement, Six Sigma and others (Padhy & Sahu 2011). The methods diagnose the existing problems in quality control and improve operations.
The deficit of the skilled employees in some labor markets where Google appears is conditioned mainly by insufficient training, vocational education, and necessity to adapt the personnel to the peculiarities of Google business conduct. Experts engaged in the development of information technology are available all over the world, but the low level of generated innovations could significantly reduce the competitiveness of the offered vacancies. The discrepancy between the corporate values and personal goals of employees also lowers the quality of human resources in the corporation.
In the study of the information database of quality control, peculiarities of communication systems of information flow and the modeling of decision-making under the management of information technology are frequently analyzed (Batini et al. 2009). Other approaches investigate the flow of information in the quality management system. However, the issue of communication between the officials and departments of corporations regarding product quality, gaps and losses for the purposes of adoption of administrative decisions were insufficiently detailed.
The main directions and the model of information traffic to ensure the quality management system are studied. In addition, the problems with the assessment of quality and control affect the attempt to determine the flow of information. However, the formation mechanism of decision making on quality management with the development of appropriate information support stays relevant and actual for the improvement of the provision of logistics operations of Google Inc. with appropriate data.
The operating strategy of Google Inc. requires diversifying its components according to permanently emerged changes and challenges of the environment, national peculiarities of different countries, and flexible adaptation of the acquisition business units to the main conceptual background. In order to reduce the competition in the modern global market, it is important for Google to quickly use any opportunities to do business in any part of the world and to respond adequately to the changes occurring both in the domestic and foreign markets. The situation requires a clear definition of the corporate mission, vision, and understanding of competition, planning, and networking. Determination of the competitive positions requires a thorough evaluation of the strengths and weaknesses of the company, forecasts of the likely political, economic, and social changes among existing and potential customers, as well as analyze the impact of new technologies on business practices.
In order to solve the problems, Google Inc. managers should use methods and techniques of strategic planning. Strategic planning is usually included in the competence of senior managers, who perform their duties directly in the company and in the domestic and foreign subsidiaries. Therefore, the company should attract planning specialists, who provide technical support for the top managers in development strategies. It seems important to ensure the improvement of the mentioned issues regarding human, informational, and strategic components of the organization’s operations as they are active and advantageous factors of the best practice.
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Approaches to Improvement Management
Google Inc. resorts to the changes that improve its internal environment and approaches to face external challenges. The common business system is used to apply certain methodologies, tools, vision, or technologies to manage the changes in advance of successful improvements. The practices may include lean manufacturing to eliminate resource waste, appreciative inquiry to involve the employees to increase common and individual sufficiency, business planning and networking, implementation of Six Sigma concept to reduce the variation of the operational outputs, and adherence to the ISO standards. The broad approaches serve to solve a number of shortcomings as due to common and selective approaches to the identified issue or concern.
Business planning and networking represent universal toolset for Google Inc. as the multinational corporation in the global information market. Planning is one of the central notions of the economic mechanism of management. The aspect begins management practices. The improvement also belongs to the objects of planning. Therefore, the technique was chosen as one of the most flexible methods of introduction of advanced elements of the operations in the corporation.
Google Inc. is experienced to involve additional facilitators to promote the activity of the corporation. The networking of the multinational corporation should be integrated into the business strategy of the company or at least be included in the corporate approaches of improvements. HRM practice may use networking for the employees as the method of their self-development in outside communication (Sorrells 2008). The factor allows boosted logistics flows and regular information sharing.
Each improvement appears as a particular project. The corporation should resort to the simple return rates, the method of calculating the payback period of the project, net present (current) value, and internal rate of return, etc. (Martland & Adams 2011). When making the final decision about the advisability of investing, the factors of the social significance of the project, the degree of compliance with the development strategy of the company, the market potential, investment risks, and environmental security should be also taken into account. It is a comprehensive assessment of various investment risks and reliable methods of quantifying evaluation that is of particular relevance. Therefore, focus on the sensitivity analysis of various parameters of the project should reduce the risks. The company is expected to minimize the negative effects during the implementation of any improvement project in Google Inc.
Significant volumes of business activities and collaboration of numerous business units require the establishment of the techniques of management engineering by the board of the corporation. The technique includes the design of operations, measurement, and analysis of their efficiency, and provision of performance with appropriate resources in an improved manner (Sage & Rouse 2009). All operations, including logistics, will be rationally performed taking into account their sufficiency and quality of outcomes. The detailed procedures include exploitation of computer models, time study, data control and manipulation, improvement of working methods, websites’ optimization, networking, etc.
Appropriateness of management engineering implementation in the practice of Google Inc. is conditioned by the necessity to organize all communications and resource flows and to ease management of the huge complicated corporation. Although the technique emphasizes the improvement of the internal organizational system of Google Inc., its implementation connects with risks of failure, potential technological incompatibility, and the employees’ resistance to changes. Failure risks are possible at particular stages of implementation due to human or technical factors. Technological incompatibility risk emerges in the case of the introduction of new required facilities that may be poorly consistent or fully inconsistent with the existing capacity. The resistance of the employees’ to changes is caused by the situation of divergence of vision of the governance and the employees refused to introduce certain changes due to a range of reasons. The risks occur if the organization has not been prepared yet to implement necessary changes, especially in the short term. Therefore, Google Inc. may search the way to implement the change along with the prior reduction of risks.
To sum up, improvements are important changes in Google Inc. to develop the business and increase its own feasibility and sustainability in the world economy. The global activity of the corporation lacks the appropriate strategy of the operating activity. The company faced problems in terms of low control over the quality, poor HR management in particular areas, and scarce toolset of the managing improvement. The issues invoked the necessity to generate appropriate methods of planning, networking, and project evaluation. The approaches facilitate managing improvement in order to locate it in the environment of the corporation.