Question: Based on the case study, what are the Google's risk management objectives that are probably going to be set up in order to enter the
Based on the case study, what are the Google's risk management objectives that are probably going to be set up in order to enter the China market?
UNIKL EEB30403 JANUARY 2020 challenges we've faced-it's entirely legal and will mean- Google's immense resources. In January 2010, when ingfully increase access to information for people in China. We very much hope that the Chinese government Google first warned of its potential departure from China, respects our decision, though we are well aware that it Chinese young people "placed wreaths at the company could at any time block access to our services. headquarters in Beijing as a sign of mourning." Moreover, the New York Times described Google's This move appeared to have angered Chinese officials. decision as "a powerful rejection of Beijing's censorship The Chinese government-controlled news agency reported but also a risky ploy in which Google, a global technology that one official said, "Google has violated its written powerhouse, will essentially turn its back on the world's promise it made when entering the Chinese market by largest Internet market." Some saw Google's decision as stopping filtering its searching service and blaming China the mark of a deteriorating business climate in China for in insinuation for alleged hacker attacks." The New York foreign companies. In early July 2010, China's government Times reported that Google had traced the cyber attacks renewed a license the company needed to continue using to two Chinese universities. its Chinese Web address, despite tensions over censor- The Wall Street Journal acknowledged that Google ship requirements and Google's decision to redirect traffic has become "the most high-profile Western company to its Hong Kong site. This tenuous compromise appeared in recent years to draw a line under the kind of compro- to temporarily ease tensions. mises it is prepared to make." Human-rights activists Google's initial decision and the broader debate over applauded Google's decision. official government censorship has sparked a global Others, however, were skeptical about whether Google debate for international managers. Ed Black, CEO of the had acted for altruistic reasons. Bloomberg Business- Computer & Communications Industry Association, was Week quoted a businessman in China who asserted that quoted in Bloomberg BusinessWeek as saying, "A lot of Google China's management has been "in turmoil" since businesses around the world are now realizing they have Kai-Fu Lee left in 2009. "By leaving now and citing the to think through and figure out how to respond to these hacking problems, Google can end its agony and repair its kinds of [government] controls-not just in China but in image," according to Bloomberg BusinessWeek. Closing other parts of the world." the Google China search engine had a limited impact on Fortunately, international managers have resources to Google's bottom line. assist them in making decisions in this area. One such Somewhat coincidentally, Google's overall license to resource is the Global Network Initiative. According to the operate in China was to be reviewed in early July. Fearing Global Network Initiative website, "All over the world- the revocation of that license and the implication for from the Americas to Europe to the Middle East to Africa Google's ability to operate in the country, Google subse- and Asia-companies in the Information & Communica- quently amended the initial response by creating a new tions Technology (ICT) sector face increasing government Google.cn page that asked users to remember its new pressure to comply with domestic laws and policies in Web address, Google.com.hk, rather than being automati- ways that may conflict with the internationally recognized cally redirected to the new site. human rights of freedom of expression and privacy. In Implications of the Decision response, a multi-stakeholder group of companies, civil society organizations (including human rights and press Google's decision "ends a nearly four-year bet that freedom groups), investors, and academics spent two Google's search engine in China, even if censored, would years negotiating and creating a collaborative approach help bring more information to Chinese citizens and to protect and advance freedom of expression and pri- loosen the government's controls on the Web," according vacy in the ICT sector, and have formed an Initiative to to the New York Times. Many Chinese students and take this work forward." professionals are concerned that they will lose access to Representatives from Google, Microsoft, and Yahoo sit on the Global Network Initiative's board of directors. (See www.globalnetworkinitiative.org for more information on this Initiative.) It is important for international managers to think through these complex, political, legal and technological issues so that they are prepared for potential challenges, such as those faced by Google in China