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Google and the Government of China A Case Study in Cross Cultural Negotiations

Solution Id Length Case Author Case Publisher
2568 1448 Words (6 Pages) Christopher Grogan, Jeanne Brett Kellogg School of Management : KEL242
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Google has emerged as one of the world’s internet titans, providing unlimited access to information to people across the globe. With the advent of information in different nations, Google’s plans to expand internationally came into action. When Google intended to expand its roots outside the U.S. market and into the Chinese market, it faced several ethical dilemmas. This case study explains the cross-cultural negotiations that occurred between the two parties; Google and the Chinese market and puts forward their perspective individually regarding Google acquiring the Chinese market. There are different dilemmas uncovered in this case which are related to Google losing its integrity, reducing its market share, and facing criticism for going against its values such as “Don’t be evil”. As a result of these issues, both the parties put forward their alternate solutions and came to a middle ground where both realized how important it is to understand and comprehend each other’s cultural values.

Following questions are answered in this case study solution:

  1. Provide a complete analysis of the ethical dilemmas facing Google over time, including the deal with the Government of China, and the actions they have taken in the face of these challenges. Also, include your personal assessment of the situation and the advice you would give to the board of directors moving forward.

Case Study Questions Answers

1. Provide a complete analysis of the ethical dilemmas facing Google over time, including the deal with the Government of China, and the actions they have taken in the face of these challenges. Also, include your personal assessment of the situation and the advice you would give to the board of directors moving forward.

Google’s Deal with the Government of China

As the world’s internet titan, Google’s next step involved acquiring the Chinese market. Google had already expanded its roots outside the US. The market resulted in generating 40% of its total revenue and more than half of its traffic in 2005. Next, Google made considerable steps in establishing a new Chinese research and development centre. For this, it also appointed Dr. Kai-fu Lee who was the world’s renowned computer scientist and had great expertise in the technological sector. However, this acquisition faced criticism from the Chinese government as it had different values compared to Google. To put forward its case, Google sends its negotiation team to China for negotiations to happen from both sides. Several considerations were catered to during these negotiations. These included China’s culture, recent policy regulations, censorship rules, etc. However, soon it was speculated that in expanding its roots to the Chinese market, Google is abandoning its ideals in the process. 

Analysis of the Dilemmas faced and actions were taken by Google

When a company tries to expand to another geographical area, it is bound to face some challenges as a result of differences in cultures. The same happened when Google intended to expand its roots outside the US and acquire the Chinese market. Both the parties were so true to their cultural values and norms, that it became difficult for Google to expand in the Chinese market, away from the US Market. This is one of the reasons why cross-cultural teams should be trained to be unified to work together in harmony. The company acquired a stake in the Chinese search engine company called Baidu. However, the Chinese law stopped Google from holding more than a minority stake. As a result, Google made plans to build its presence in the Chinese market and hired Dr. Kai-fu Lee who belonged to Microsoft previously.

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