Strengths And Weaknesses Of Google Inc

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• Strengths: Google Inc has diversified its operations significantly by entering into different segments, as well as by acquiring other firms, (GOOGLE, 2016). The well-diversified operations of Google can be considered as the strength of Google. The management team of Google comprises of highly experienced professionals such as Sundar Pichai with over 20 years of experience, and this can be the strength of Google. The strong cash flows from operations mainly from prepaid advertising revenues strengthens the financial position of Google, and this can be used for further expansion. Thus, this can be the strength of Google. • Weaknesses: A large number of subsidiaries of Google helps it in diversifying as well as in generating revenues, but…show more content…
This indicates that the revenues have increased significantly during the last 3 years for Google Inc. The Net Income of Google Inc for 2015, 2014 and 2013 were $16.34 billion, $14.13 billion, and $12.73 billion respectively, (Google, 2016). This indicates that the Net Income has increased by more than 10% for the last 3 years. The Gross margin has been over 60% for the last year, and the Net profit margin has been over 20%. These profit margins are impressive, and it is improving every year. The Return on Equity has been almost 14% for the year 2015, and the Return on Assets has been 11.8%, whereas Return on Investment has been over 13% during the year 2015. Similar kinds of returns have been earned during the previous two years, i.e., 2014 and 2013, (Google, 2016). The stock prices have also increased significantly to $725. 3. The impact of managerial and financial decisions and other events on stock prices. 3.1 Impact of managerial and financial decisions on Facebook: After the launch of Facebook 's IPO, there were certain reports of lower expected revenues of Facebook, due to which the stock fell from $38 to $20. Similarly, the financial performance of Facebook improved significantly during the last 3 years, and the stock price has also managed to increase from $20 to $120 during the last three years. Facebook has

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