Chinas 2006 Launch of Chinese Language Search Engine and Googles Dutch Auction

Chinese language search engine launched in china in 2006 (pg. 37) Company was private until 2004, Page and Brin decided to conduct a Dutch auction Dutch auction was designed to “democratize IPO share allocation and afford companies and early investors the best price”( pg. 40) Company 5,680 employees were scattered throughout the world (pg. 41) 2005 positive cash flow of 3. 45 billion (pg. 41) Revenue of $6. 14 billion (pg. 41) Google motto “don’t be evil” (pg. 42) “With a population of 1. 6 billion people, China had become an attractive market for many U.

S. -based multinationals”

Chinese internet controlled through both governmental and censorship (self-Censorship) (pg. 47) Chinese government was able to monitor all foreign internet traffic by routers (URLs) (pg. 47) In 2002, google. com was inaccessible for 2 weeks, it was slow and temperamental for all Chinese users (pg. 53) Google was losing market share to Baidu, yahoo, an Microsoft (pg. 53) Step 3: Write the problem statement. Tom Maclean, the director of International Business for Google Inc. was facing whether to continue google. cn in China or just leave it as google.

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com, even though google.

Would be a slower search engine in china and may not give Google Inc. any profit. Maclean has to address this problem within 24 hours or Google Inc. may lose profits from China. Step 4: State an objective for the manager involved. Short-term objectives: 1. To- Rebuild reputation that was damaged 2. To- maintain both search engines Long-term objectives: 1. To- Google should continue with their mission to organize the world’s information and make it universally accessible and useful 2. To – create better methods to make google.

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cn filter the Chinese information

Step 5: Identify and rank order critical issues related to the problem. Here lies the heart of the case; if you miss a critical issue, you miss the opportunity to solve the case to the satisfaction of involved stakeholders. Identify least to most critical. Specify which issue should be addressed first. 1. The damage caused by Google Inc. 2. finding methods in filtering google. cn 3. Google. cn whether it should continue in China, since Google was losing market share to others such as yahoo, Microsoft, and Baidu Step 6: Consider relevant information and underlying assumptions related to the problem.

Fact- Chinese government censors search results about “harmful Material” Fact- China is a great place to obtain investments Assumption- Google. cn would do good Step 7: List possible solutions to the problem. 1. First solution. Google should get rid of Google. cn in china and just let it be google. com Advantages Advantage- don’t have to worry about the censorship and regulations Advantage- all places would have the same search engine Disadvantages Disadvantage- slower search engine Disadvantage- Chinese wouldn’t use it at a search engine Possible Outcomes Best: Google.

com would be a good search engine and the Chinese will use it Most Likely: Chinese will not use google. com as there search engine, causing Google to lose money Least Likely: Google. com would be the Chinese search engine 2. Second solution Google will continue on with google. cn in China Advantages Advantage- it would make Google Inc. profit Advantage- Google will rebuild reputation that was damaged Disadvantages Disadvantage- Chinese users would be aware of the filtering but not the exact nature of filtering Disadvantage- everything goes through the Chinese government Possible Outcomes

Best: Google. cn will be the best search engine and Google Inc. will rebuild the damaged caused Most Likely: Google. cn will be good and make Google Inc. profit Least Likely: Chinese government won’t get involved in google. cn Step 8: Select the best solution. What should the manager do and why? Support with evidence. Google Inc. should move forward with google. cn and persuade china to lower their regulations and expectations. Step 9: Decide how to implement the solution. Create a plan of action—actions required, time line, resources, personnel, impact on the organization, measurement of results.

Tom Maclean should implement the solution in the meeting he is going to have, let them know that google. cn will continue to work in China but it will be more organized and need the Chinese government to lower their expectations. Step 10: Explain how to communicate the solution. How to communicate the message and to whom. Consider the needs of your target audience and the needs of stakeholders. Think about timing as well. He should communicate the message through a press conference, within the next day of his decision.

Updated: Apr 29, 2023
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Chinas 2006 Launch of Chinese Language Search Engine and Googles Dutch Auction. (2018, Aug 31). Retrieved from

Chinas 2006 Launch of Chinese Language Search Engine and Googles Dutch Auction essay
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