denoir 0 Posted August 6, 2004 Found this article interesting: Google faces possible Ferrari factor [bBC] Quote[/b] ]Google, the world's most popular internet search engine, is cruising towards a lesser-known, but very possible business problem - the "all your staff suddenly drive a Ferrari" factor. As the Californian company prepares to float on New York's Nasdaq market, in an initial public offering that will value the firm at as much as $36.3bn (Å19.7bn), hundreds of the company's 2,292 staff will suddenly find they are, at least on paper, millionaires. Some 30 million shares have been assigned to the company's workers - something that has already got the company into a little potential trouble with regulators. But the bigger question for Google is whether the new found super-wealth of all its employees with generous stock options will affect their work ethic. Will they all continue to work diligently, or will they instead rush out and buy Ferraris and other sports cars to spend more time racing around the north Californian hills? Google, which is famed for having a down to earth and even quirky working environment (staff are encouraged to play hockey or musical instruments in their lunch breaks), appears at first hand not to have too much to worry about. But then, extreme and overnight wealth can do strange things to people. Much like a lottery jackpot winner who always said it would never change his or her life, only to start spending like a madman when the six numbers come in. Staff exodus? "Sudden wealth is a huge management challenge and big distraction," says Thomas Taulli, a lecturer at the University of Southern California's Marshall School of Business. "Even people who are hard workers and dedicated employees will suddenly spend all hours of their life looking at the stock ticker, seeing where the stock price is." Karen Goodfriend, a US financial adviser who specialises in assisting "suddenly wealthy" individuals, says the Google staff should brace themselves for deep and unpredictable psychological changes. In addition to those employees who may see their work rate lessen, Google could also see some staff decide to quit. Both those that want to swap for a life of leisure, and those that want to set up their own companies and potential future rivals. Ambitious plans Google itself has already admitted that this might be a problem."If any members of our senior management team leave the company, our ability to successfully operate our business could be impaired," it said. "We also may have to incur significant costs in identifying, hiring, training and retaining replacements for departing employees." Still, with the float intending to raise $3.3bn, Google will certainly be able to afford the training fees. Another possible issue for the company is whether its planned expansion into possibly everything from email accounts to picture editing services, and music and video downloads will cause it to over-extend itself and drop its eye from its key business - being an internet search engine. Still way ahead Google's search engine rivals also have determined plans to try and catch up. Microsoft, for example, recently introduced a news service to rival Google's, and Yahoo has ditched Google technology for its own newly-developed software. Yet Michael Vassallo, research analyst at Brewin Dolphin in the UK, says Google is currently so far ahead of its competitors, it can afford for a few of the planned new products to fail. "Google is by far the easiest search engine to use and can make some of its competitors appear rather old fashioned," he says. "It doesn't need the money from the flotation, but it has some new ideas to check out and the cash will be good for research purposes. "Who knows whether it will be any good at its planned new developments, and whether some of its staff will want to go off and do something less commercial instead? "But whatever happens, I can't see anyone coming close to Google, everyone uses it and it is so far ahead." Even with a future car park full of Ferraris, Google currently looks unstoppable. Share this post Link to post Share on other sites
bn880 5 Posted August 6, 2004 Well what can I say, Google is the Ferrari of the Internet. (or is that a bycicle?) Share this post Link to post Share on other sites
DracoPaladore 0 Posted August 6, 2004 Where does Google get this money anyway? They're a search engine. Share this post Link to post Share on other sites
EiZei 0 Posted August 6, 2004 Where does Google get this money anyway? They're a search engine. Are you blind or dont you see the adverts? Share this post Link to post Share on other sites
DracoPaladore 0 Posted August 6, 2004 Nope, no ads. Not even in news section Share this post Link to post Share on other sites
EiZei 0 Posted August 6, 2004 Nope, no ads. Not even in news section Ever bothered to search for phrases like radeon 9800? Share this post Link to post Share on other sites
denoir 0 Posted August 6, 2004 Ads on the right side. Share this post Link to post Share on other sites
DracoPaladore 0 Posted August 6, 2004 Hey, never noticed those before. Guess I never look in that direction anyways. Share this post Link to post Share on other sites
denoir 0 Posted August 6, 2004 That's not however how they got the shitload of money now. They are getting it because they're selling off IIRC 30% of the company as shares. Share this post Link to post Share on other sites
SpeedyDonkey 0 Posted August 6, 2004 Yes, but the ads have generated a nice income as well. Btw, you guys should be using firefox (screenshot)Â Share this post Link to post Share on other sites
DracoPaladore 0 Posted August 6, 2004 Opera's fine for me. Keeps things in one, nice, efficent box and dosn't whore up my bar. Share this post Link to post Share on other sites
SpeedyDonkey 0 Posted August 6, 2004 You have "tabs" in Firefox as well  Opera - The built in ads = Firefox Share this post Link to post Share on other sites
Milkman 1 Posted August 6, 2004 So they make a shitload of money on text adverts that barely anyone notices? Gotta love capitalism! Share this post Link to post Share on other sites
Tovarish 0 Posted August 7, 2004 You hardly notice the adverts on gmail as well, and that with a free gig of storage . Share this post Link to post Share on other sites
ralphwiggum 6 Posted August 7, 2004 IIRC, google is financially secure, even right now. they were making money before IPO was planned. I'm betting that just like MS there will be some exodus of company employees. Share this post Link to post Share on other sites