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Google Restructuring Under Alphabet

Google splits up under the Alphabet umbrella. The document discusses Google restructuring by forming a new parent company called Alphabet and splitting Google into separate subsidiaries, each with their own CEO focused solely on their mission. It evaluates the success of this strategy, noting the benefits of increased focus but also burdens of some failed research projects. Alternative strategies are suggested, such as enhancing Google Cloud through acquisitions, but with caution about excessive investment in lagging industries.

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158 views3 pages

Google Restructuring Under Alphabet

Google splits up under the Alphabet umbrella. The document discusses Google restructuring by forming a new parent company called Alphabet and splitting Google into separate subsidiaries, each with their own CEO focused solely on their mission. It evaluates the success of this strategy, noting the benefits of increased focus but also burdens of some failed research projects. Alternative strategies are suggested, such as enhancing Google Cloud through acquisitions, but with caution about excessive investment in lagging industries.

Uploaded by

孙ZY
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Google splits up under the Alphabet umbrella

QUESTIONS

1. Identify restructuring strategy(ies) that have been implemented in

Google

2. Identify reengineering strategy(ies) that have been implemented in

Google

3. Based on more recent information about the company (own

research required) comment on success/failure of these efforts.

4. Suggest restructuring/reengineering strategies for Google.

ANSWERS:

1. Starburst (spin-off, spin-out).Restructuring is the corporate

management term for the act of reorganizing the legal, ownership,

operational, or other structures of a company for the purpose of making it

more profitable, or better organized for its present needs. So in this case

is (Page broke up Google into its constituent parts, making each one its

own company, with all of them owned by a new umbrella corporation

called Alphabet. Page sits atop the structure as CEO of Alphabet, with

Google cofounder Sergei Brin as president and long-time Google exec

Eric Schmidt as chairman.).


2. Rationlization. Re-engineering focusing on the analysis and design of

workflows and business processes within an organization. So in this case

is(Each of Alphabet’s companies has its own goals and a CEO focused

solely on those goals.)and (reorganization would free the employees to

concentrate more productively and happily on their own mission without

having to be concerned about Google overall.).

3. Splitting the company into different subsidiaries can make Google

more focused, and promote the company's other bets to become more

ambitious, while also taking corresponding financial responsibility.

Google can rely on advertising profits to reap the wealth of money, while

counting on one of the bets to eventually develop into the next billion-

dollar business. But Alphabet's innovative R&D department has become a

burden for the company. In the past, Alphabet has shut down several

failed R&D businesses, such as satellite Internet plans and robotics

(Alphabet has sold many acquired robotics companies, including Boston

Dynamics, which is well known on the Internet). But according to

Google's financial situation, I think the decision is correct.

4. In 2019, Alphabet's cybersecurity subsidiary Chronicle joined Google's

cloud computing business.

In the emerging cloud computing market, Google is far behind leading

companies such as Amazon and Microsoft, and its market share is only a

fraction of theirs. Google is also enhancing the product line and


competitiveness of the cloud computing business through various

acquisition transactions. But I think it is unreasonable for excessive

investment to lag far behind other people's industries, so I am skeptical of

this.

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