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Running head: SIX SIGMA STRATEGY

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Six Sigma Strategies

Student’s Name
Instructor’s Name
Institution of Affiliation
Date

SIX SIGMA STRATEGY

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Six Sigma Strategies

Google is among the most common companies globally with various applications in the
world that are in use day in day out by millions and millions of people. Google search aids much
in accessing public documents that have been offered by web servers (Dulhanty, 2017). It also
helps ease the burden that comes with obtaining resources while at one’s comfort. Despite its
worldwide services and the huge numbers that it serves each minute, Google experiences a fair
share of challenges. This is contrary to the expectations of many who may conclude that with a
wide market to cover, the company will always thrive as people hardly stop using their famous
application; Google Search.
In fact, the company restructured in 2015 to take up the name Alphabet Inc. in order to be
more “cleaner and accountable” (Dulhanty, 2017). One of the biggest challenges that the new
Alphabet CEO, Sundar Pichai, will be dealing with is losses. The company in the third quarter of
last year recorded a loss of $1.53 billion compared to the gain of $1.38 billion. Furthermore, it
landed at earnings per share of $10.12 and could not attain its stipulated target of $12. 42.
Although Alphabet in January this year became the fourth US Company to reach the trillion
market value, much should be done to address the profitability of the company.
Alphabet will need to put in place measures to ensure they remain top in the list of the
most successful companies in the world. They should ensure they cut down their losses or even
perhaps find means to do away with any loss. Since any business’s success is heavily dependent
on customer satisfaction, among other factors, Alphabet will need to concentrate much on how
they deal with their customers to ensure the eradication of the losses. Additionally, management
also plays a big role. As opposed to the leadership before Pichai, who often pulled back the
curtains on the specifics of its books, Pichai will need to be more transparent to the public. A

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more transparent Alphabet will be good news to investors as statistics are a major determinant of
their decisions.
Metrics of Success
As the main challenge facing the Alphabet that this paper seeks to address is the presence
of losses, the process of profit-making will need to be improved. Therefore, the main quantitative
assessment methods to be used are the business financial ratios and specifically the profitability
ratios. There are numerous profitability ratios that are commonly used by businesses to monitor
their financial well-being and performance (Reddy, 2013). These financial metrics are used by
analysts and investors to gauge the ability of a company’s profit in relation to its revenue, equity
and operating costs over a certain time period. However, in this case, scenario, we will only use
but some of the profitability ratios as a measure of success in our project.
We will majorly concentrate on the margin ratios, specifically gross profit margin, net
profit margin and the operating profit margin. Gross profit margins reveal what a business is
earning taking into account the costs from the production of goods and services. This is, in fact,
the most appropriate ratio in this case, since we are looking forward to minimizing loses and
maximize Alphabet’s gain. A higher gross profit margin, which is the aim, will mean that there
are efficiency and effectiveness in the provision of services and that...