Our second place power point presentation. While you’ll miss out on key elements from our verbal presentation and are lacking the case itself - refer to the written report as well to clear up some gaps.

1. Googleand China 2011 Case CompetitionAlpha Kappa Psi Mike Shannon Nick Currier Kasey Gandham Mike Shannon Nick Currier Kasey Gandham

2. Our Negotiation Statement Remain in China Operating censored Full uncensored operations in Hong Kong & Mecau Terms: Google will not release user information Google will state reason of censorship China will engage in a five year contract with Google

3. Priorities for both parties Google Maintaining core principles “Do no evil” Obligation to shareholders Capture Chinese market share Protecting user’s rights

4. Priorities for both parties China Avoid threat to one party system Maintaining Chinese global identity Compete economically on global scale Retaining young talent

5. Options for both parties

6. Ethical Dilemmas Google “Don’t be evil” World’s information universally accessible and useful Effective, quick, unbiased results Lost market share to Baidu

7. Google’s case to China Achieve technological parity with western countries Reverse brain drain effect Services in higher education

8. Google’s case to China “Googlization”: Google as a way of life

9. Google’s case to China Sinification to develop and maintain a non-western Chinese image

10. Google’s case to China Quantitative study on advertising effectiveness 1 ad click$1 spent  $2 revenue For each ad click there are 5 “natural” search clicksEach click is only 70% as profitable an ad click$2($5 x 70%) = $7 revenue $2 (ad click) + $7 (natural click) - $1 (initial investment) = $8 profit

11. For $1 spent on Google advertisement Ad Click + Search Click - Initial Investment = Profit Chinese online advertising expenditures will increase from $1 billion to $5 billion by 2012. Our market share 25% of $5 billion is $1.23 billion which we project will be spent on advertising through Google. Natural search clicks are 70% as profitable. (25% x 5 billion) x 70%=8.75 billion Pro Forma Income Statement of Economic Output in China

12. Google’s case to stakeholders Emerging economy – provide the world with information Enhance globalization Maximize shareholder value Baidu’s rapid development Uphold principles

13. Respect for Cultural Background 19th century trade wars Opium war Unequal treaties Local Champions

14. Google’s strategic plans Terms of Agreement: 1.Google will not release user information 2. Google will state reason of censorship 3. Google will engage in a five year contract with China

15. Special Administrative Regions

16. Google’s Case in 5 Years Help China become a global power Communication is key to globalization Censorship is not efficient Google’s presence in the universities

17. Sources Works Cited Beebe, A., Hew, C., Yuequ, F., & Dailun, S. (2006). Going Global. Somers : IBM Consulting Services. How Multinational Internet Companies . (2006, August). Retrieved January 29, 2011, from Human Rights: hrw.org/reports/2006/china0806/5.htm John A. Quelch, K. E. (2010). Google in China (A). Harvard Business School , 2. Kennedy, L. (2011, February 4). Google in China. (K. Gandham, M. Shannon, & N. Currier, Interviewers) Ng, E. (2010, February 11). China's Ad Spending Hits $120 Bil. . Retrieved February 1, 2011, from Adweek.com: http://www.adweek.com/aw/content_display/news/media/e3i4c8c39f58df428b9cd3132e23a00b97d Sands, L. (2008). 2008 Olympic's Impact on China. Retrieved February 2011, from Chinese Business Review: http://www.chinabusinessreview.com/public/0807/sands.html Yanhong Li, R. (2005). Baidu Annaul Report . Beijing: Baudi.com, Inc. . Varian, Hal. “Online Ad Auctions,” American Economic Review, May 2006. Jansen, Bernard and Amanda Spink. “Investigating customer click through behaviour with integrated sponsored and nonsponsored results,” International Journal of Internet Marketing and Advertising, 2006.