Lesson 1.

Opening Case:
Google’s Steep Learning
Curve in China
Group4 – BSA 2C

Meraña, Monica Anne

Reblando, Sherlyn
Romana, Gerlea
Tolentino, Jimmailah
Velante, Zyriel Anne
  
In the year 2006, Google, the world's most popular Internet search
engine, began selling services in China. While Google soon became the most
popular search engine in China, it began to lose market share after a few years.

The government in China has heavily restricted Internet content, and

I.
visitors visiting the Google site have experienced lengthy delays. Baidu, a
Chinese search engine company, has become China's top internet search
company by 2005. To compete with Baidu, Google plans to launch

CASE
www.google.cn, a Chinese website that will censor websites that the Chinese
government does not approve of search outcomes.

SUMMARY
Google revealed in 2010 that it could no longer restrict its Chinese service
search results. Google said the move was prompted by a cyber-attack aimed at
gathering information on Chinese human rights activists.
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consectetur adipiscing elit. Morbi
Google claims that officials in the United States made the decision to
et rutrum felis, eget tristique tortor.
Maecenas lobortis mattis turpis ut assess its business operations in China without the knowledge or input of
hendrerit. Fusce placerat ipsum at Chinese employees. The Chinese government's initial reaction to Google's
dictum lobortis. Etiam porta nunc declaration was that it was "gathering further information." In the meantime,
sit amet pellentesque feugiat. Nunc Google provided mainlanders with uncensored search results simplified Chinese
gravida sapien eu tempor lacinia. engine. Google's experiences in China and other international markets have
been instructive, forced the corporation to reconsider how it conducts business
in nations with varied cultures laws.
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 Google service in China has a great opportunity for the Google because it gives an access to
the Chinese Market and to serve Chinese people with the use of Google website. Despite the
fact that Google can give the proper and great services to the China, there are still a few issues
with the agreement between Google and China. The following are the specific issues:

II. China’s Censorship Law

CASE
PROBLEM Google Inc. ‘s Bad Publicity

3
 Google Inc. founded by Larry Page and Sergey Brin is the world's largest
01 multinational technology corporation, well recognized for its fast and
simple search engine service as well as its devotion to innovation.

This case is based on a 2006 agreement between Google Inc. and the

III. 02 Chinese government to provide Chinese individuals with access to the

Chinese version of Google.com (Google.cn).

CASE As a long-term strategy, Google is looking at huge business possibilities in

FACTS 03 China. China has turned into an engaging market for many US and
multinational corporations because of its population size and market
potential.

Uncensored Internet information was not welcomed by Chinese

04
authorities, who promptly established guidelines restricting citizens' access
to content considered inappropriate or harmful, and observed internet use
of its residents.

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 05
Google needs and had agreed to allow the Chinese government to impede
access to some websites in order to foster a presence in China.

Google takes great pride in standing out from the crowd; it aims for the
greatest level of ethical corporate conduct possible. Their reputation is
06 their most valuable asset ("Don't do evil" mantra); their stated aim is to
"organize the world's information and make it widely accessible and
useful."

III.
CASE
Google agreed not to restrict search results on its Chinese Service in 2010
07 which followed by a cyber-attack it believes was aimed at acquiring
information on Chinese human rights advocates.

FACTS
08 The Chinese government’s first response to Google’s announcement was
simply that it was seeking more information.

Google's experiences in China and other foreign markets have provoked

09 the company to reconsider how it conducts business in nations with widely
varying legal systems.
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 IV. ALTERNATIVE COURSES OF ACTION
As previously stated, Google representatives
explained that in order to comply with China's In terms of the company's negative publicity,
censorship laws, the company had agreed to remove dealing with it is not an easy task. It takes a lot of
any websites that the Chinese government did not effort and a variety of online reputation
approve of from the search results it would display. management strategies. Negative publicity can
Accepting the policies being implemented by the severely harm a company's reputation if it is not
Chinese government over its people, as well as handled quickly. Because human rights are the
international human rights intervention on people's voice, they may have a private discussion
censoring information from its citizens who have a with a government representative to ensure that no
right to know, is not good idea and can seriously one's reputation is harmed. As a result, Google may
harm their reputation and cause negative publicity. end up upholding the vast majority's concerns and
The simple and straightforward answer would be to finding a solution that will satisfy everyone,
work with human rights representatives to figure out particularly the people, in order to rebuild the
how they can serve both the people and the company's good image.
government.

Moreover, when they detected a highly

sophisticated and targeted attack on their corporate
Also, establishing an international standard for how infrastructure originating in China, resulting in the
far and how often information can be censored theft of Google intellectual property, they should
would be a problem solver. Because, as we can see, have avoided it because, as the world's leading
there seem to be lacking international guidelines search engine, Google should have put in place a
dictating how far the government can go to protect high security engagement to ensure that all of their
its people. information was protected.
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 C
V. EVALUATION OF ALTERNATIVES AND SOLUTION TO THE PROBLEM

Google could not even manage not to do business in China, If Google decided to close its
because China is a corporate sector that must be considered today, So, Google's move to China may China operation, Google's
with China having the world's second-largest economy. Indeed, have given it access to a very hardworking employees would
many technology-specific companies, such as Start Up, are large market, allowing them to lose their jobs, and Chinese users
expanding, which is why Google needs to take place in China to be grow quickly or lower their cost of would lose their chance to use
an important actor in assisting these start-ups. However, unlike in production, but it's a big market Google in an uncensored version
other economies where the government promotes transparency in with a lot of concerns, such as that would allow them to exercise
business, rules and regulations in China are not as transparent. very strict political laws, which their freedom of speech. The
Strict laws and patents protect domestic and foreign businesses in may make it difficult to set up managers' efforts on the project
Global markets, whereas the legal system in China is loosely Google in Chinese version. would be wasted because their
defined, giving rise to various legal loopholes. Many political and strategy would be thrown into
legal considerations must be considered when doing business in question..
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China.
  
Before deciding to enter the Chinese market, Google should have
examined various considerations, such as whether it was worth boosting
profits to work in a country where the government has a strained

VI.
relationship with Google's media or the general public. All of the poor public
relations it would have gained if it did not comply with Chinese government
laws should have been acknowledged.

RECOMMEN And the request to censor demonstrates that the government has
something to hide. By aligning with human rights, Google choose a side to

DATION
support, more so because it is their moral obligation. If they form an alliance
with human rights, the company end up upholding the concerns of the vast
majority. Why even bother with maintaining the government's laws and
Lorem ipsum dolor sit amet, having nobody use your products if you can form an alliance with human
consectetur adipiscing elit. Morbi
rights and find a solution that will satisfy everyone, especially the people?
et rutrum felis, eget tristique tortor.
Maecenas lobortis mattis turpis ut
Also, having a presence could mean having a physical location in that
hendrerit. Fusce placerat ipsum at country. It would be a great thing to own a building and have a citizen of that
dictum lobortis. Etiam porta nunc country manage its operation. So, that person can make excellent
sit amet pellentesque feugiat. Nunc recommendations because he has firsthand involvement with the
gravida sapien eu tempor lacinia. environment.

8
  
The question of whether Google ought to operate in China under

VII. government oversight or eliminate filtering from Google.cn is a complicated

one that consolidates several troublesome aspects. The topic of Google
revolves around respecting Chinese authorities, human rights, and the

CONCLUSIO argument over freedom of speech. To resolve this problem, various factors
should be thought of, including profit maximization, respect for Chinese
authorities, and/or making a decision that is most consistent with the

NLorem ipsum dolor sit amet,

consectetur adipiscing elit. Morbi
company's principles and beliefs. In this scenario, there may not be a perfect
solution to the problem, but there may be one that is superior to the others.

et rutrum felis, eget tristique tortor.

Maecenas lobortis mattis turpis ut
hendrerit. Fusce placerat ipsum at
dictum lobortis. Etiam porta nunc
sit amet pellentesque feugiat. Nunc
gravida sapien eu tempor lacinia.

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 Can Google afford not to conduct business in China?
01 Since China is an untapped market, various businesses are attempting to access it.
Subsequently, losing the valuable chance to operate in China could bring about a
significant loss of earnings, as well as the advantage of being the most popular search
engine available in the country, which has one of the world's largest marketplaces and is
rapidly increasing. However, since Google is a notable global brand, it can manage and
even be more proficient even if it does not do business in China. Google is a company

GUIDE
that, regardless of whether it does not join the Chinese market, will benefit enormously

02 from everyone else who has access to them because they are the most popular search
engine in practically every country. So, even if they lose China, they can in any case keep
their title because they can venture into different countries and save their reputation for

QUESTION safeguarding their users' information and providing them with the important facts they
require without having to censor it.

S Which stakeholders would be affected by Google’s

possible decision to shut down its China operations?
The stakeholders likely to be affected by Google’s plan to shut down in
China operation is the Google itself, its employees, executives and

02 shareholders as it desperately wants access to the Chinese market. In

addition, Chinese consumer was the most obvious in this case. They are
China's hundreds of millions of Internet users, who Google considers to be
the most significant stakeholders. This includes the countless millions of
potential Internet users who will obtain access in the coming years, as well
as those who currently have access.
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 How would these people be affected?
03 The most affected stakeholder when Google shuts down its China operations would be its
employees, because once the operations has shut down, many of their employees are
expected to lose their jobs or worse scenarios employees would be force to resign. While,
Shareholder’s investment expected returns is an investment decline due to shutting down
their operation causes to reduce their businesses. Also shareholder will suffer huge losses
of money they already invested in the Google operations in China. Furthermore, Chinese

GUIDE
consumers would also suffer losses. If Google stopped operating on China, the
02 Consumers in China will lose out on having a globally connected search engine.

QUESTION
S What trade-offs would Google be sacrificing?
The trade-offs that Google would be get by sacrificing the opportunity to
serve the one of the largest and growing economy of China are the

04
restoration of Google's brand name and reputation. Even though Google
has sacrificed a large number of users in China, they can still gain more
users outside of China by providing quality and secure services to users
rather than staying in China and making more profit.

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THANK
YOU