Mini Case: Google
Christina Santino
FIN 516:Advanced Managerial Finance
July 21, 2013
What is the name of the company? What is the industry sector?
Google Inc. is a multi-billion dollar company in the informational technology (IT) industry.
Google Inc. is one of the leading computer search engines in the world and is continuing to grow as the front runner in their industry.
What are the operating risks of the company?
Within business, there will always be operational risks to consider. "Operating risk is the basic or fundamental potential for failure that is associated with the ongoing function of any type of business entity" (Tatum, 2003, para. 1). The operating risks for Google Inc. include: internal fraud,
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Google Inc. 's actual beta is 1.15 (Yahoo Inc., 2013, Stock Price History).
What would Beta of this company be if it had no Long Term Debt in its capital structure? (Apply Hamada Formula.)
bL = bU[1+(1-T)(wd/ws)]
Google Inc. 's information as stated above is: beta = 1.15 wd = 9.77 rd = 100-9.77 = 90.23 bL = 1.15[1+(1-0.40)(9.77%/90.23%) = 1.22 bL = 1.22
What is the company 's current Marginal Tax Rate?
The current Marginal Tax Rate for Google Inc. is 35%. This
The safety aspect for risk management will evaluate the potential for human loss of life and or injury. The potential for major incident or accident, such as fire, explosion, or spill, including environmental damage. The necessity for security within the company is a highly need aspect of safety that can lead to risk. The revenues aspect for risk management will evaluate the loss of customer base, recovering of capital loss and recognizing uncoverable capital loss, and loss of opportunity in marketing of the product. The necessity for revenue risk management is key. The costs aspect for risk management will evaluate the costs that were incurred due to preventable problems. Also, costs due to increased warehouse space, vendor changes, and discount changes. A significant risk in cost for this company is the cost of legal defense. The legal aspect for risk management will evaluate regulatory compliance failures and actions that could result
impact of the identified risks to the organization based on key business drivers (loss of life, loss of
At the end all the risk are finance related, because the liability’s cost money and this will have an effect in the company’s earnings, so what is important is not only to try to avoid such events but also to be prepare in case they happen and have a plan, is like the saying “Hope for the best but be prepare for the worst”.
Select a major industrial or commercial company based in the United States and listed on one of the major stock exchanges in the United States. Each student should select a different company. Avoid selecting an insurance company or a bank, because the financial ratios for these financial businesses are different. Write a seven-to-eight-page double-spaced paper answering and demonstrating with calculations and financial data the following questions.
3. What is the financial risk of the company (the LT debt to total capitalization ratio)?
Risk in relation to functions- HR management, economic operations, OHS, supply chain, local governance and compliance issues.
Due to the increased competition from Yahoo and Microsoft, it has posed a great threat to Google Company. Entry of such like companies in the market has been relatively easy and even offering similar services to the consumers is no longer a problem as unlike a while back, technology has greatly improved. With an improvement in technology, creating sites that help people access information from the internet has been quite cheap and all it calls for is the creativity of a company. Google, however, has been able to remain at the top of the chart. They have been able to come up with a user-friendly search engine for their clients, one that is easy to understand as well as easy to use. Also, Google has been able to cut on cost as they are able to create web pages using UNIX web servers which are relatively cheap. This makes it possible for them to minimize the cost of input and hence maximizing their profit margins. This makes it possible for them to hire qualified personnel, offer quality services, advertise their products, and even offer promotions, helping them overcome the competition in the market structure.
Google is a multinational corporation that serves thousands of consumers worldwide. Through Internet related products such as Internet searches, maps, emails, mobile apps, and other online contents for users Google became the company it is today. Every employee of Google is different in his or her own way; making it a well-diversified organization similar to the global audience they serve. Google’s mission statement is to organize information from all around the world and make it universally accessible at a quick and orderly fashion. This means creating a search engine smart
Google is a company that was conceptualized in a dorm room by two Stanford University college students in 1996 (Arnold, 2005, p. 1) and has morphed into one of the greatest technological powerhouses in operation today. What began as merely a means to analyze and categorize Web sites according to their relevance has developed into a vast library of widely utilized resources, including email servicing, calendaring, instant messaging and photo editing, just to reference a few. Recent statistics collected by SearchEngineWatch.com reflects that of the 10 billion searches performed within the United States during the month of February, 2008, an impressive 5.9 billion of them were executed by Google (Burns, 2008). Rated as Fortune Magazine’s
* Operational Risk: It includes all the major and minor processes taking place in the company. It included: trained Human Resources, strong IT Infrastructure, management and repair of equipments. The risk involved has low
Google is the most successful information technology and web search company in the world. It was founded in 1998 by two Stanford Ph.D. students, Larry Page and Sergey Brin. The company name, Google, is a play on the word “googol” which is a mathematical term for the number 1 followed by 100 zeros. Larry Page and Sergey Brin chose this name to reflect the large amount of information on the web. The two created this search engine so that people can find anything on the web all in one place. The company’s mission is “to organize the world’s information and make it universally accessible and useful.” Now, the company is far more than a search engine website, it has grown to be a substantial collection of products and services that are
In 1998, Stanford University graduates Larry Page and Sergey Brin combined their ingenuity and built a search engine called “BackRub” that evolved into what is now known as Google. Google, with over 150 domains, now functions as a search engine that offers many different products and services including web applications, advertising, sports scores, stock quotes, headlines, addresses, videos, etc. Google’s focus is “to provide useful and relevant information to the millions of people around the world as they rely on us (Google) to provide the answers they are seeking.”
Since 1998, Google has been the premier search engine when it comes to desktop home computing. Google allows users to search the internet for any key phrase they can imagine, providing ranked results based on a combination of popularity and relevance. After 18 years, Google is still utterly dominating its nearest rivals. With 3.5 billion searches performed per day worldwide (on average) and a typical 75% (or more) yearly market share, it doesn 't look like the California tech titan will be disappearing any time soon.
Google is one of the most successful corporations that have ever been established. Through innovation, persistence, growth,
Professionally, Google is known as a company based in California that is labeled as an internet company which is multi-national. It provides online searching, as well as cloud computing, software, and advertising. The company actually didn 't start off as a company, but rather as a research project back in 1996. The project was being conducted by Sergey Brin and Larry Page who at the time were studying at Standford University as PhD students. At the time, in internet-land, the search engines that existed operated where they ranked the results by counting the number of times keywords results were on a page. The two students came with a better idea (called PageRank at the time), that looked at relationship between websites. It would rank websites by determining it 's relevance, which was based on the importance of pages, and the number of pages, and how it linked back to the main website. After the idea 's creation, the two founders made the project into a business, and changed the name to "Google", which is a neat miss-spelling of the word "googol" which had significance because it stands for the number one followed by one hundred zeros, and it related to their goal because they wanted to create a search engine that offered a large quantity of information.