Nadler Tushman Outputs
In the Nadler-Tushman congruence model, there are three different levels of outputs. The first level is the financial, and on that measure Google has done very well. The company has increased its revenue and earnings substantially since its inception, such that it now earns $59.8 billion with net earnings of $12.9 billion. The Google balance sheet is freakish, with $58.7 billion in cash and equivalents. So the company literally has more money than it knows what to do with. This situation is actually not great for shareholders, as they get a fairly low return on capital. The stock is trading over $500. The book value of the equity is $87.3 billion and the company's market cap is $346.7 billion, which indicates that the shareholders are generally getting good value for their investment in Google. The earnings are so high that even at this valuation, Google is trading only at 17.42 forward P/E (MSN Moneycentral, 2014).
Google is also known as a desirable employer, in an annual survey by Fortune Magazine (2014). This highlights how well that Google performs not just on the employee side in terms of inputs but in terms of outputs...
Nadler Tushman Resources and environment are two the inputs in the Nadler Tushman congruence model. The company's strategy should reflect, among other factors, its external environment and its internal resources. The environment for Google is generally positive. Google operates in an environment characterized by a rapid pace of technological change. Thus, there is considerable emphasis on innovation as a means of maintaining competitive advantage. Over the years, Google has added a
Nadler Tushman Inputs Google has a young organizational history, but that is part of what shapes its culture. The Google website was launched in 1999, just 15 years ago. Since that point, the company has done nothing but grow rapidly, and the result has been impressive. Google has come to dominant Internet traffic, and advertising, to the point where traditional advertising media often struggle. Further, Google has become a leading innovator.
This would give accurate financial position of the business entity at the end of the financial year. Skype Limited would also measure performance of the group by evaluating on how the objectives of the groups meet the needs and preferences of the market. This would give the ideal position of the business entity within the market segments (Gomes, 2010). Individual Level What are some of the key individual functions? One of the
MSFT Skype The Nadler Tushman Congruence Model is an organizational diagnostic tool that can help to provide insight into the underlying reasons why a company is or is not enjoying success. For Skype, this model is ideal for understanding the transactional aspects of the company, most particularly how Skype can be made to be profitable. It is important for Microsoft, if it is to keep the core Skype business going, that
The result of this is a company that consistent meets its objectives for cost reduction, growth and profits. Works Cited Faletta, Salvatore. (2005). Organizational Diagnostics Models: A Review & Synthesis. Leadersphere.com. Retrieved October 30, 2008 at http://www.leadersphere.com/img/Orgmodels.pdf Nadler, David; Tushman, Michael & Nadler, Mark B. (1997) Competing by Design: The Power of Organizational Architecture. pp. 28-39 Retrieved October 30, 2008 at http://books.google.com/books?id=pemtYXc1Y1gC&pg=PA28&lpg=PA28&dq=nadler+tushman+congruence+model&source=web&ots=QI3cHfWVfu&sig=LO7-ujjwO6zj0ebfkBwQxDkBcBM&hl=en&sa=X&oi=book_result&resnum=2&ct=result Cawsey, Tupper F. & Deszca, Gene. (2007). Toolkit for Organizational Change.
Skype MSFT In 2010, Microsoft purchased Skype for $8.5 billion, and at the time many observers were unsure of what value Skype had for the software giant (Bright, 2011). According to some, Skype's core VoIP business is subject to commoditization (Ricknas, 2008). Another issue that Microsoft must address is Skype's business model. Prior to the purchase, Skype had filed for an IPO and the filing documents reveal some major financial issues
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