Reference no: EM131524034

1. A corporate vision can be described narrowly or broadly. Google’s website describes its mission/vision as organizing the world’s information and making it universally accessible and useful. What does this mission statement tell you about what Google believes its core competence is and what market needs it is targeting? How useful do you find this mission in setting Google’s strategy? (Hint: Discuss the advantages and disadvantages of a broad versus narrow vision statement for a corporation.) If you were the CEO of Google, what might your vision for its future be? Explain the rationale for your answer.

2. In the context of M&A, synergy represents the incremental cash flows generated by combining two businesses. Identify the potential synergies you believe could be realized in Google’s acquisition of Nest that could be achieved by leveraging other Google products and services. Be specific. Identify synergies Google is not likely to realize by operating the firm as a wholly owned largely autonomous subsidiary. Speculate as to why Google has chosen to operate Nest in this manner.

3. Describe Google’s investment strategy? What are the factors driving this strategy? How might shareholders eventually react to this strategy? How might this investment strategy hurt the firm long term?

4. Describe what you believe to be Google’s business strategy? Would you describe their strategy as cost leadership, differentiation, focus, or a hybrid strategy? Explain your answer. To what extent do you believe it is driven by changes in the firm’s external environment? To what extent have factors internal to the firm driven Google’s business strategy?

5. What are the potential threats to Google’s current vision and business strategy?