Case Study Analysis 1 Google in China

Case Study Analysis 2 Google in China

AMERICAN INTERNATIONAL UNIVERSITY BANGLADESH AIUB

Assignment # 2

GLOBAL TRADE

F
Submitted To:

Farzana Choudhury Lecturer Department of Marketing School of Business

Submitted By:

Group Number # 2 Section: F Country: TURKEY

1. Name Arif, Nur Mohammad

ID: 08-10952-2

---------- Submission Date: June 15 , 2011.

Case Study Analysis 3 Google in China

1. What philosophical principle did Googles managers adopt when deciding that the benefits of operating in China outweighed the costs? Answer: In this case study its clearly understandable that in the question of outweighing the cost china Googles managers adopted the Utilitarian Philosophy. Utilitarian recognizes that actions have multiple consequences, some of which are good in social sense and some of which are harmful. As a philosophy for business ethics, it focuses attention on the need to weigh carefully all the social benefits and costs of a business action and pursue only those actions where the benefits outweigh the costs1 For Google China was an attractive as well as potential country to do business. China is one of the largest countries in the earth along with have a huge population which makes it a profitable market for Google. So Google took decision to run business in China with the censorship by Chinese government. In addition some Human Right activists quickly protested, arguing that Google had abandoned its principle to make greater profit, but Google managers thought that its better to give Chinese users limited information than to give nothing. Google argued that it was the only search engine in China that let users knows about the censorship. Apparently Googles managers decision was based on Utilitarian

approach. But we can match this cases situation with some other approaches, like Straw Men (Google made an ethical decision by taking an in appropriate guideline of government that putting censor in the search engine), The Freidman Doctrine (taking the chance of increasing the profit by staying with the rules & regulations of Chinese Government), & Cultural relativism (adopting the ethics of Chinese government to run business in China) etc.

Page- 138, International Business, Charles W. L. Hill (7th Edition)

Case Study Analysis 4 Google in China

2. If all foreign search engine companies declined to invest directly in China due to concerns over censorship, what do you think the results would be? Who would benefit most from this action? Who would lose most? Answer: As per statistics of recent time, Baidu the local Chinese search engine company is the market leader in search engine segment, with having almost 75% market share, while Google has 23%, and others occupying the remaining.2 So, if all foreign search engine companies declined invest directly in China due to concerns over censorship, then it will not make any major difference. The foreign companies will not change the desicion of China in this matter and they will be left with the profit and market share loss they had. On the other hand this type of protest may not change the Chinese governments decision, for so many years Chinese Government authorities has been convinced and forced Chinese people to stay like this. The main beneficiary part will be the local search engines and Chinese government. Because Local search engines market share will increase more. No tension of information licking for the Government authorities. Local investors will inspire to invest on search engine business etc. Chinese government which possibly will have an easier control on local companies than foreign ones. The victim will be the economy of China. The free market concept is always beneficiary for any countrys economy. Also, the local company may start syndicate, and then the general users will not get any extra

http://chinamarketpro.com/2011/06/10/market-share-of-major-search-engines-inchina.html

Case Study Analysis 5 Google in China

advantages. Without foreign company the competition will be lower so new innovation and creativity will not come out.