Comparison of Google and Apple corporate culture

Abstract
This paper defines the concept of ‘cultures’ of organization and compare the cultures between two renown Organization, analyzes it with various tools like services, employment, stocks, and environ mental issues and studies some of its economic consequences. In turn, culture is defined as the stock of knowledge shared by the members of the organization. The acquisition of this knowledge is an investment. The paper is divided into four sections. First, it studies the corporate culture of Google. Second, the corporate culture of Apple. Third, the paper presents a formal discussion of the concept of culture and some examples to guide the formal discussion. Finally, this paper provides a conclusion.

Introduction
Nowadays, each company is trying to be different from another. They are trying to be different in their corporate culture. Corporate culture is a set of behaviors, which develops the organization in adapting to the external environment and internal integration, which have showed their effectiveness and is shared by most members of the organization.(“Corporate Culture by Asiyanabi,” n.d.). If to say in other words, corporate culture is a system of principles, practices and values that enable all companies to move in one direction as a unified whole. The components of any corporate culture

Adopted system of leadership, styles of conflict resolution, current system of communication, position of the individual in the organization, adopted symbols: slogans, organizational taboos, rituals. Corporate culture is based on the fundamental values shared by members of a company. In different companies these value are different because it depends on whose interests are lying the basis of the company. These values influence corporate leadership style, behaviors, communication, activities.(Crémer, 1993) Review of Selected Literature

Corporate culture is the total sum of the values, customs, traditions, and meanings that make a company unique. Corporate culture is often called “the character of an organization”, since it embodies the vision of the company’s founders. The values of a corporate culture influence the ethical standards within a corporation, as well as managerial behavior. Corporate culture has become increasingly important to firms in the past 20 years. Despite its intangible nature, its role is meaningful, affecting employees and organizational operations. And while culture is not the only factor guaranteeing success, positive cultures offer significant competitive advantages over rivals.(Dandykina EM, 2011). Understanding of the employee his/her place in the company, type of joint activities, Standards of Conduct, control type, communication culture, communications system, business etiquette, tradition of work ethic, interpretation of the authority and responsibility are the characteristics of a culture.

Google’s culture is an American multinational corporation specializing in Internet-related services and products. These include online advertising technologies, search, cloud computing, and software. Most of its profits are derived from AdWords. Google was founded by Larry Page and Sergey Brin while they were Ph.D. students at Stanford University. Together they own about 14 percent of its shares but control 56 of the stockholder voting power through super voting stock. They incorporated Google as a privately held company on September 4, 1998. An initial public offering followed on August 19, 2004. Its mission statement from the outset was “to organize the world’s information and make it universally accessible and useful”, [10] and its unofficial slogan was “Don’t be evil”. In 2006 Google moved to headquarters in Mountain View, California, nicknamed the Googolplex.(“Google,” 2014) There were concerns that Google’s IPO would lead to changes in company culture.

Reasons ranged from shareholder pressure for employee benefit reductions to the fact that many company executives would become instant paper millionaires. As a reply to this concern, co-founders Sergey Brin and Larry Page promised in a report to potential investors that the IPO would not change the company’s culture. In 2005, articles in The New York Times and other sources began suggesting that Google had lost its anti-corporate, no evil philosophy. In an effort to maintain the company’s unique culture, Google designated a Chief Culture Officer, who also serves as the Director of Human Resources.

The purpose of the Chief Culture Officer is to develop and maintain the culture and work on ways to keep true to the core values that the company was founded on: a flat organization with a collaborative environment. Google has also faced allegations of sexism and ageism from former employees. The stock performed well after the IPO, with shares hitting $700 for the first time on October 31, 2007, primarily because of strong sales and earnings in the online advertising market. The surge in stock price was fueled mainly by individual investors, as opposed to large institutional investors and mutual funds. The company is listed on the NASDAQ stock exchange under the ticker symbol GOOG and on the Frankfurt Stock Exchange under the ticker symbol GGQ1. Google’s Employees

As of 2013, Google had 47,756 employees (in the fourth quarter, including the Motorola subsidiary), among them more than 10,000 software developers based in more than 40 off After the company’s IPO in 2004, founders Sergey Brin and Larry Page and CEO Eric Schmidt requested that their base salary be cut to $1. Subsequent offers by the company to increase their salaries were turned down, primarily because their main compensation continues to come from owning stock in Google. Before 2004, Schmidt made $250,000 per year, and Page and Brin each received an annual salary of $150,000. Google’s Philanthropy

In 2004, Google formed the not-for-profit philanthropic Google.org, with a start-up fund of $1 billion. The mission of the organization is to create awareness about climate change, global public health, and global poverty. One of its first projects was to develop a viable plug-in hybrid electric vehicle that can attain 100 miles per gallon. Google hired Larry Brilliant as the program’s executive director in 2004, and the current director is Megan Smith. In 2008 Google announced its “project 10100” which accepted ideas for how to help the community and then allowed Google users to vote on their favorites. After two years of silence, during which many wondered what had happened to the program, Google revealed the winners of the project, giving a total of ten million dollars to various ideas ranging from non-profit organizations that promote education to a website that intends to make all legal documents public and online. In 2011, Google donated 1 million Euros to International Mathematical Olympiad to support the next five annual International Mathematical Olympiads (2011–2015). On July 2012, Google launched a “Legalize Love” campaign in support of gay rights. Google’s Tax avoidance

Google uses various tax avoidance strategies. Out of the five largest American technology companies it pays the lowest taxes to the countries of origin of its revenues. The company accomplishes this partly by licensing technology through subsidiaries in Ireland, Bermuda, the Bahamas, and the Netherlands. This has reportedly sparked a French investigation into Google’s transfer pricing practices. Following criticism of the amount of corporate taxes that Google paid in the United Kingdom, Chairman Eric Schmidt said, “it is called capitalism. We are proudly capitalistic.” During the same December 2012 interview Schmidt “confirmed that the company had no intention of paying more to the UK exchequer Google’s Environment Awareness

Since 2007, Google has aimed for carbon neutrality in regard to its operations. Google disclosed in September 2011 that it “continuously uses enough electricity to power 200,000 homes”, almost 260 million watts or about a quarter of the output of a nuclear power plant. Total carbon emissions for 2010 were just under 1.5 million metric tons, most due to fossil fuels that provide electricity for the data centers. Google said that 25 percent of its energy was supplied by renewable fuels in 2010. An average search uses only 0.3 watt-hours of electricity, so all global searches are only 12.5 million watts or 5% of the total electricity consumption by Google. In June 2013, the Washington Post reported that Google had donated US$50,000 to the Competitive Enterprise Institute, a libertarian think tank that calls human carbon emissions a positive factor in the environment and argues that global warming is not a concern. Google’s Lobbying

In 2013, Google ranked 5th in lobbying spending, up from 213th in 2003. (“Inside Google’s Culture of Success and Employee Happiness,” n.d.) Inside Google’s Culture of Success and Employee Happiness

It’s pretty well documented that Google has a unique culture. It’s not the typical corporate culture. In fact, just by looking at pictures inside the Googleplex, you can see that it looks more like an adult playground, not a place for work. But Google’s success can be attributed to this culture. Google has people whose sole job is to keep employees happy and maintain productivity. It may sound too controlling to some, but it’s how this world-changing organization operates. How Google Hires

Each year, Google gets over 2.5 million applicants. That’s equal to 6,849 per day and about 5 per minute – and Google reviews each one. Don Dodge, a current Google employee shows how thorough Google is with each applicant. What’s not important is the logistics of each hire, but why they hire this way and what we can learn from it. Because it’s the people that make Google what they are today.(“Inside Google’s Culture of Success and Employee Happiness,” n.d.) First, let’s look at the perks of being a Google employee: Free breakfast, lunch, and dinner.

The organic food is chef-prepared, Free health and dental, Free haircuts, Free dry cleaning, Subsidized massages, Gyms and swimming pools, Hybrid car subsidies, Nap pods, Video games, foosball, ping pong, On-site physicians, Death Benefits, Obviously, all these perks come at a cost for Google. This culture has paid off for Google, as they consistently rank among the best places to work. They have lost hundreds of employees to Facebook and many others who have started VC firms or their own startups. It’s one of the consequences of hiring smart, talented, and ambitious people. No matter how good the culture is, many of them receive enticing offers from other places or wish to start their own ventures. A Culture Built on Qualitative and Quantitative Data

Human resources, or People Operations, are a science at Google. They’re always testing to find ways to optimize their people, both in terms of happiness and performance. In fact, almost everything Google does is based off data. So it should come as no surprise that Google uses all sorts of data to gauge employees and improve their productivity. Paid Time Off for New Mothers: Google found that women were leaving the company at twice the rate of everyone else. In particular, this occurred with new mothers. Google’s maternity leave plan was 12 weeks paid time off. Laszlo Bock changed the plan so new mothers could get 5 months paid time off with full pay and benefits. They were allowed to split this time up however they want (i.e. taking a few days off before expecting).

A warm greeting for new employees: A warm greeting for a new employee turns out to have a big impact. According to Bock, a manager greeting a new employee with ‘Hi nice to meet you, you’re on my team, we’re gonna be working together’ and doing “a few other things” leads to a 15% increase in productivity over the following nine months. Diner Booths vs. Conference Rooms: Laszlo and his team have found that diner booths work better than conference rooms for facilitating creativity. David Radcliffe, the man in charge of creating the perfect work environment.(“Google,” 2014) APPLE:

Apple Inc. (formerly Apple Computer, Inc.) is an American multinational corporation that designs and sells consumer electronics, computer software, and personal computers. Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. Former: Steve Jobs. (Chairman, 1976-1985, 2011; CEO, 1997–2011), Current : Cook. Products are IPhone, IPod, IPad, and MacBook. Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012. As of July 2011, Apple has 364 retail stores in thirteen countries as well as the online Apple Store and iTunes Store. It is the largest publicly-traded corporation in the world by market capitalization, with an estimated value of US$626 billion as of September 2012. Apples ruthless corporate culture is just one piece of a mystery that virtually every business executive in the world would love to understand.(“Comparing Apple And Google is Apples to Oranges — Mobile Culture — Medium,” n.d.-a) APPLE’s culture

The culture of Apple was based on an ideal that self-motivated individuals will work harder if they do not have a boss micromanaging every action. The organizational structure of Apple was almost non-existent and focused on placing decision making in the hands of the people in the field. To Apples’ legion of admirers, the company is like a tech version of heaven factory, a confusing but delightful place that produces wonderful items they must have. But Apple also is a brutal and unforgiving place, where accountability is strictly enforced, decisions are swift, and communication is articulated clearly from the top. At Apple, there is never any confusion as to who is responsible for what. The directly responsible individual (DRI) maintains direct control and accountability for a given product or service. Simplicity is key to Apples organizational structure.

The org chart is deceptively straightforward with none of the dotted-line or matrixes responsibilities popular elsewhere in the corporate world. One of Apples greatest strengths is its ability to focus on just a few things at a time. Jobs inner circle includes (from left) Jonathan Ive, Phil Schiller, Eddy Cue, and Scott Forstall, photographed on the Apple campus in 2010. A job generally kicks things off personally. Each session is as well crafted as the public product debuts for which the CEO is so famous. Specialization is the norm at Apple, and as a result, Apple employees are not exposed to functions outside their area of expertise. Apple Inc. case study Personality refers to the relatively stable pattern of behaviors and consistent internal states that explain a person as behavioral tendencies. Perception is “the process of acquiring, interpreting, selecting, and organizing sensory information. The adoption by companies led to a lot of benefits the personnel, company and society generally.

Specifically personnel have the opportunity to work from its home a fact that allows dealing with other facilities too as well as it influence individuals behavior at work. (Raviraj Jadeja, 17:30:27 UTC) This is not a corporate culture dominated by bean counters, risk-avoiding lawyers, or design committees whose negotiated com-promises inevitably lead to boring products and mediocrity. It’s a culture that’s comfortable with using the words “pas­sion” and “excel­lence” in every­day conversation. These values fuel the creative juices and passion ate collaborations that deliver award-winning products and ser-vices year after year. (“Comparing Apple And Google is Apples to Oranges — Mobile Culture — Medium,” n.d.-b) How Apple works: Inside the world’s biggest startup

Apple insiders say the notion of scarce resources has less to do with money than it does with finding enough people to perform critical tasks. Once Apple moves, though, it spends whatever it takes. It contracted the London Symphony Orchestra to record trailer soundtracks for its latest iMovie software. Years ago it sent a camera crew to Hawaii to film a wedding for a demo video; then, to get a different take, it staged fake nuptials in a San Francisco church, with Apple employees playing both guests and the betrothed. Learning to work at Apple takes time. To echo its own famous ad campaign, Apple thinks differently about business. Often as not it simply ignores traditional notions of business opportunities. An executive who has worked at Apple and Microsoft describes the differences this way: “Microsoft MSFT -0.76% tries to find pockets of unrealized revenue and then figures out what to make. Apple is just the opposite: (Raviraj Jadeja, 17:30:27 UTC)(“How Apple works,” n.d.-a) Google vs Apple

Julian Robertson, of Tiger Management LLC (once one of the world’s largest hedge-fund firms), said Google Inc. (GOOG) has established a better leadership culture than Apple (AAPL) Inc. to ensure long-term success. Steve Jobs, the deceased co-founder of Apple, “was a maverick person and really couldn’t establish a great, long-term entity,” Robertson said today in an interview on “Bloomberg Surveillance” with Tom Keene, Sara Eisen and Scarlet Fu. “I think that the Google people have a better way of getting things done.”(Baumgaertel, 2013) Apple, once the biggest Smartphone maker, has lost about 40 percent of its market value from the 2012 peak amid concern that the pace of innovation is slowing at the maker of iPhones and iPads since the death of its co-founder.

Google’s Android software, which it provides for free to handset makers, now commands more than 70 percent of the Smartphone market while the iPhone has less than 20 percent. Chief Executive Officer Tim Cook reorganized Apple last year to encourage collaboration among units so that Macs, iPhones and iPads work better together. Robertson said while he has a “tremendous amount of respect” for Jobs’ intellect, “he was just a very mercurial guy.”(“How Apple works,” n.d.-b) Google’s Challenge

Apple is undergoing slowing revenue growth and narrowing margins amid accelerating mobile competition led by Samsung Electronics Co. and other users of Google’s Android operating system. Apple is working to release new products that can build on the successes of the iPod music player, the iPhone handset and the iPad tablet, which revolutionized their respective industries. Google, under CEO Larry Page, has demonstrated an ability to expand swiftly into new businesses, mainly mobile advertising. Android is free to manufacturing partners, and Google makes money from ads shown to users of the devices. Google has gained 25 percent since Sept. 19, when Apple’s market value peaked. It is up 80 percent since Oct. 5, 2011, the day Jobs died, compared with a 12 percent return by Apple.

Robertson started New York-based Tiger Management in 1980, and by mid-1998 assets had soared to about $22 billion on the back of annual returns averaging 32 percent. Losses and investor withdrawals over the following 18 months reduced Tiger’s assets to about $6 billion and in 2000; Robertson announced he would close the firm to outside investors. Since then he has transformed it into a business financing startup hedge-fund managers and runs a charitable foundation.(Baumgaertel, 2013) Government Probe

Robertson said the U.S. government’s probe of insider trading on Wall Street won’t have a big impact on the industry because hedge funds generally are very careful to adhere to the rules.

The U.S. Securities and Exchange Commission last week accused Steven A. Cohen, the billionaire founder of SAC Capital Advisors LP, of failure to supervise two employees facing criminal charges of insider trading. If the administrative proceeding against Cohen is successful, the SEC could force him out of business without proving that Cohen himself engaged in insider trading.(Raviraj Jadeja, 17:30:27 UTC)(Baumgaertel, 2013) Summary and Conclusions

Finally, it can be said that the corporate culture is not a permanent phenomenon. It is constantly involves, develops under the influence of different factors like: market situation and competition. It is always important to make a corporate culture very effective, applicable in solving every day corporate problems, for example hiring the best people. It is very difficult to find some common approaches to formulation and implementation of corporate culture in the company, as all companies are completely different both in size and in its objectives.

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