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Nadler Tushman
Resources and environment are two the inputs in the Nadler Tushman congruence model. The company's strategy should reflect, among other factors, its external environment and its internal resources. The environment for Google is generally positive. Google operates in an environment characterized by a rapid pace of technological change. Thus, there is considerable emphasis on innovation as a means of maintaining competitive advantage. Over the years, Google has added a number of different methods to drive traffic, including expansion of its content offerings and the introduction of Android and Chrome, as a means of leveraging innovation to achieve its desired outputs.
The environment is also highly competitive, because Google operates in the advertising industry. The company must compete not only against other online advertisers, but Google must also compete against conventional media. While it uses its data superiority to outcompete traditional media there is little doubt that winning advertiser dollars is going to require Google to deliver superior value to advertisers, who have many competitive options with respect to where to put their advertising spending.
Another facet of the environment is that Google's business should fluctuate with the business cycle. The company was...
First up are the financial resources. Google is tremendously wealthy. Its balance sheet shows $58.7 billion in cash (MSN Moneycentral, 2014). If Google needs to innovate, it can afford to increase R&D spending. If Google needs to ride out a recession, or engage in predatory pricing, it can do those things as well. That kind of financial strength is a tremendous resource that allows Google the flexibility to adopt any strategy that it wants.
Another key resource for Google is its people. Google has become an employer of choice, something that not only improves its innovative capabilities, but will also allow it to hire the advertising sales people with the best contacts. Google offers the most attractive packages, both to engineers and to marketers. As such, Google's human resources capabilities are one of the reasons it continues to excel against some very strong competitors -- it has better people.
The Google brand is becoming a major resource as well for the company. Google's rapid emergence comes…
References
Nadler, D., Tushman, M. & Hatvany, N. (1980). A model for diagnosing organizational behavior: Apply a congruence perspective. Organizational Dynamics. Retrieved December 2, 2014 from http://cumc.columbia.edu/dept/pi/ppf/Congruence-Model.pdf
MSN Moneycentral, (2014) Google Inc. Retrieved December 2, 2014 from http://www.msn.com/en-us/money/stockdetails/financials/fi-GOOG?ocid=qbeb
Nadler Tushman Outputs In the Nadler-Tushman congruence model, there are three different levels of outputs. The first level is the financial, and on that measure Google has done very well. The company has increased its revenue and earnings substantially since its inception, such that it now earns $59.8 billion with net earnings of $12.9 billion. The Google balance sheet is freakish, with $58.7 billion in cash and equivalents. So the company
Nadler Tushman Inputs Google has a young organizational history, but that is part of what shapes its culture. The Google website was launched in 1999, just 15 years ago. Since that point, the company has done nothing but grow rapidly, and the result has been impressive. Google has come to dominant Internet traffic, and advertising, to the point where traditional advertising media often struggle. Further, Google has become a leading innovator.
This would give accurate financial position of the business entity at the end of the financial year. Skype Limited would also measure performance of the group by evaluating on how the objectives of the groups meet the needs and preferences of the market. This would give the ideal position of the business entity within the market segments (Gomes, 2010). Individual Level What are some of the key individual functions? One of the
MSFT Skype The Nadler Tushman Congruence Model is an organizational diagnostic tool that can help to provide insight into the underlying reasons why a company is or is not enjoying success. For Skype, this model is ideal for understanding the transactional aspects of the company, most particularly how Skype can be made to be profitable. It is important for Microsoft, if it is to keep the core Skype business going, that
The result of this is a company that consistent meets its objectives for cost reduction, growth and profits. Works Cited Faletta, Salvatore. (2005). Organizational Diagnostics Models: A Review & Synthesis. Leadersphere.com. Retrieved October 30, 2008 at http://www.leadersphere.com/img/Orgmodels.pdf Nadler, David; Tushman, Michael & Nadler, Mark B. (1997) Competing by Design: The Power of Organizational Architecture. pp. 28-39 Retrieved October 30, 2008 at http://books.google.com/books?id=pemtYXc1Y1gC&pg=PA28&lpg=PA28&dq=nadler+tushman+congruence+model&source=web&ots=QI3cHfWVfu&sig=LO7-ujjwO6zj0ebfkBwQxDkBcBM&hl=en&sa=X&oi=book_result&resnum=2&ct=result Cawsey, Tupper F. & Deszca, Gene. (2007). Toolkit for Organizational Change.
Skype MSFT In 2010, Microsoft purchased Skype for $8.5 billion, and at the time many observers were unsure of what value Skype had for the software giant (Bright, 2011). According to some, Skype's core VoIP business is subject to commoditization (Ricknas, 2008). Another issue that Microsoft must address is Skype's business model. Prior to the purchase, Skype had filed for an IPO and the filing documents reveal some major financial issues