A Business Analysis of the Google Company

For my company I selected Google because this corporation is a well-known business throughout the world that continues to be innovated with new products, and Google has been an enterprise in the Fortune 500 that generates huge revenue yearly. The primary service that Google offers is being the top search engine offered online. Google offers billion of web pages within seconds of a search. Google is an innovated company recently by creating laptops and cell phones and offering an app store. Google has their headquarters in Mountain View, California at the "Googleplex” and has more than 70 offices in more than 40 countries.

This company operates on a fiscal year ending on December 31st. Google's initial public offering was on August 19, 2004 and offered 19,605,052 shares at a price of $85 per share. Google is represented on the stock market by the symbol of "GOOG". The recent high trading price as of March 11, 2015 was $5589.14 a share and had a low of $550.68. From their annual reports recent net income was 12,920 and their recent total assets was $110,920. Google is an amazing company that is used daily all over the world and is going to do great in the future.

Google is now working on ways they can innovate and change the way we store information in the cloud. The cloud is a recently "evolved computing terminology based on the utility and consumption of computing resources. It involved deploying groups of remote servers and software networks that allow centralized data storage and online access to computer service or resources" (Goldman, 2014). In this article it discusses how Google is going to launch cloud storage called "Google Cloud Storage Nearline". This new way to use the cloud will change the way businesses store all their information.

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Google Cloud Storage Nearline is a low cost storage service for cold data. On March 10th, 2014 they launched this cloud storage service that will change how various companies use storage online. Google is reaching out to companies from minor startup business to corporations as large as enterprises to join this new way of the cloud. There objective is to create a cheap way to use the cloud that anyone can use. Google is selling the data to be accessed as little as $0.01 per gigabyte. This new way of the cloud will allow businesses to store all the data needed for their customers. Businesses keep countless files of backups, log files and high gigabyte photos and with this new Google storage, it will be more convenient for any size business.

Cold storage is not a new concept and has been around for a while. Amazon offers a similar type of cold cloud storage called "Glacier" and it is a slow program and can take hours before retrieving the data that a business is in search for. Google is trying to innovate this storage by allowing the information to be available within three seconds.

Online storage has always been expensive since it is a large process of holding all the files. If a large email service is run through the online storage the customers can expect to be able to search through all of their messages immediately and quickly. When business held messages in offline storage it would take more than an hour for the information to be retrieved. A feature with the cold storage that Google aims to change is too cheaper than online and faster than offline. The director of product management for this cloud product told the writers of the article that, “ he believes that the gap between the cost online and offline storage has to decrease."

Google now will use Nearline to be the storage holder that businesses will turn to. Business can keep their log files around as long as possible now. Google is going to blur the line between the normal online storage and cold storage so businesses will no longer delete their data or move their storage from offline storage. This can be beneficial to the company because they can keep track of records from years ago to year to come. Nearline will be a product that is economical easy to never throw away any data online.

Google has to offer the cheap price of only $0.01 per gigabyte because they must compete with Amazon Glacier. Usually with storage in the cloud companies build two different systems and the most difficult factor that Google will face is that actually moving the data between the normal and cold system because it is a costly and time-consuming process. Google expects numerous businesses to become involved and store plenty of photos, video and documents on Nearline. Google wants the market to expand and partner with other storage companies.

They are planning to partner with Vertias/Symantec, NetApp, Geminare and Iron Mountain. Parenting with these companies can help Google to acquire more customers and the name out there. Google innovation of the cloud storage to the new product of Google Nealine will change the way companies store information. With the amount of data that is offered for a cheap price now any size company or corporation can keep track of as much information as they desire to store.

History of Google

Larry Page and Sergei Brin founded Google in 1998. While attending Stanford University Page and Brin wanted to develop a search engine that connected links between web pages in order to have a smooth search for information needed. The created the first part of the search engine in their dorm and had encouragement from David Filo, who started Yahoo (Our History in Depth - Company - Google). The two in were in search of investors to back them up in their idea so their company can grow. The founder of Sun Microsystems invested $100,000 into their company after seeing a demo of their product. They raised over a million dollars from investors who had faith in their search engine.

With this money that they invested it greatly helped the company and made it to be the company it is today. Without help from theses investors Google would not be the Fortune 500 Company they are today. Page and Brin established Google, Inc on September 7th, 1998 in an garage in California. In their garage they were starting up the businesses and hired their first employee. This man as Craig Silverstein and he later became the director of technology. They served over 10,000 queries a day and gained a good reputation as a trustworthy source (Google It). A year later they were serving 500,000 queries a day and moved out of their garage into their headquarters in Mountain View, California. The company received good publicity and news about this company spread through online and offline media. Daily the company worked on how effective the company was as well as the speed and reliability. Google started to get more popular with more people finding out about the company.

In 2004, Google launched the program and application of Google Earth. This is an program that sees the earth from a satellite image. Google provides an interactive glove allowing any part of the world to be searched and found. You can search any country or city and be taken to it. You can zoom in to the program all the way to street level and can see pictures from your own hometown and street. Google partnered with NASA a year later to be involved in the launch of Google Mars and Google moon while is a application that is built on pictures of the space.

The next innovated product Google launched was Google Video. This product changed the way people searched the Internet for videos. There were thousands of videos to search for, from homemade videos to TV shows. In 2006 the Oxford English dictionary added the word Google as a verb because it became such a popular thing to do "to Google” anything. Google became worried that their brand name might be lost as so they copyrighted and patent protected the name. This protected other companies to legally use the Google brand in their company.

Recently Google has been working on their chrome laptops and on cell phones in a innovated way. They created an app store that provides thousands of apps that is in competition of Apple. The app market is called Google Play allowing consumers to purchase books, movies, TV show, and games. With the installation of Google Fiber, ultra-high speed Internet is offered to customers in select places. Google continues to produce new products and program daily. They started out in a college dorm room and now changing technology in various ways.

Corporate Social Responsibility

Google's corporate social responsibility is to be firmly committed to have active philanthropy and to address the global challenges of climate change, education, and poverty alleviation (Corporate Social Responsibility - Company - Google). They hope by leveraging their own strength and resources in country, they will raise awareness of the importance of corporate philanthropy. They want society to participate and contribute in the development of social responsibility.

In the bible scripture of 1 Peter 4:10 it says, "Each of you should use whatever gift you have received to serve others, faithful stewards of God's grace in its various forms" (NIV). Google is not a Christian company, however, this verse can relate to their corporate social responsibility. It is important for businesses to have the heart to serve others first. Making money will come second and flow naturally when you put the needs of other customers. If Google's main purpose was any other motive then to reach out to other people will see right through the company and it would go nowhere. Google has a good idea of serving others of various aspects and this will help them continue to grow and represent God. Google have started an organization called "Google China Social Innovation Cup for College Students."

In this organization they had made it is a nationwide competition that aims to empower China's youth to become agents of social changes (Corporate Social Responsibility - Company – Google). With project ideas of hoping to create future leaders that know the importance of community welfare and the spirit of self-empowerment. Social issues addressed included education, poverty alleviation, disability aid, healthcare, women and children, arts and culture, and community development. With Google mentorships and funding they hope to have a positive change in China.

In Romans 8:5 it says, "Those who live according to the flesh have their minds set on what the flesh desires; but those who live in accordance with the Spirit have their minds set on what the Spirit desires" (NIV). Each day it is important to be an example of God's light and love. When helping in China it shows the real motives on why Google wants to help others. Glorifying money means nothing but when you do good deeds for greater than yourself and focus on what is important on life God's spirit is pleased.

The second organization that Google contributes in is they support earthquake relief efforts. When an earthquake of 8.0 magnitudes struck western China it took the life of tens of thousands. Google and its employees raised over 18 million and donated over 7 million of free advertisements to promote the earthquake relief (Corporate Social Responsibility - Company - Google). Google as well, does well by providing Google Grants. It is a program to support information in promoting the causes of animal rights, abandoned children and HIV education.

In Joshua 1:19 it declares, "Have I not commanded you? Be strong and courageous. Do not be terrified; do not be discouraged, for the LORD you God will be with you wherever you go" (NIV) This is a reminded that in the times of earthquakes or in hard times of abandoned children that God is always there. God is working his ways through Google in order to help the people in other countries. Google is strong and courageous in their business, selling, and producing honest products and with serving these people who are in need makes Google more socially conscious.

Google is hoping by leveraging their own strength and resources in the country is an amazing outlook the company has. They will raise awareness of the importance of corporate philanthropy and change the world in technology and in social aspects. Ephesians 6:12 says, "For our struggle is not against flesh and blood, but against the rulers, against the authorities, against the powers of this dark world and against the spiritual forces of evil in the heavenly realms" (NIV). Google has a good outlook on how they are going to help others and change the world, however, they must remember who the real enemy is and can't turn against their staff or customers. They must start within the business and treat everyone with the same heart of Jesus Christ. Companies prosper when they have the mindset of Christ and glorify Him in everything.

Financial Statement Analysis

The current ratio of Google is the current assets and current liabilities and it is 4.5817 to 1. The debt ratio is the total liabilities over the total assets while is yearly of .21286 to 1. The debt-to-equity ratio is the total liabilities over the total equity, which is .27042 to 1. The profit margin is the net income over the net sales to a .21596 and the price-earning ratio is 13.695 to 1. The basic earnings per share are 18.98. The dividends yield is .00477. Google has been doing good in their finances and might need a area of improvement in the amount of sales and are successful in the stock market.

Google provides their own audit committee to oversee all of Google's accounting and financial reports, including disclosures and internal controls (Audit Committee Charter - Investor Relations - Google). The Audit committee is made up of three independent member of the board of directors. The purpose of the Audits is to oversee Google's relationship with its independent auditors. Another purpose is to provide oversight regarding significant financial matters, including Google's tax planning, treasury policies, currency exposures, dividends and share issuance and repurchases. The company generates $30 billion a year in revenue (Manyika, 2011). Capital structure matters a lot in Google who the quick change in today society then Google must keep their capital high in order to make changes or create a new product in a fast amount of time and be flexible.

Google is a fascinating company and not only creates new technology and changes the way we use the internet everyday but they are social conscious helping people around the world with good deeds. I have learned the history of Google and how they started in a dorm

room looking for investors to seek a search engine that one day became the most frequently used search engine on the Internet. The current stock of Google has been increasing and each share is around $500 dollars, which is expensive, but this is a company I would invest in because I know Google will be around in the future and continuing producing the future of technology. The company follows their corporate social responsibility and Google is a company I would love to work for.

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