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    05 Case Study - Google's Structure

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    Nur Sukma Alam
    Google restructured into a conglomerate called Alphabet in 2015 to allow for greater independence among its diverse business units like Google, Calico, and CapitalG. This new structure separates Google's core search and advertising businesses from its riskier long-term "moonshot" projects. While it provides more autonomy, coordination challenges may arise from having many semi-independent units under the same corporate umbrella. The Alphabet structure could work for other large companies with varied business lines but may not suit organizations with tightly interdependent divisions.

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    05 Case Study - Google's Structure

    Uploaded by

    Nur Sukma Alam
    21 views1 page
    Google restructured into a conglomerate called Alphabet in 2015 to allow for greater independence among its diverse business units like Google, Calico, and CapitalG. This new structure separates Google's core search and advertising businesses from its riskier long-term "moonshot" projects. While it provides more autonomy, coordination challenges may arise from having many semi-independent units under the same corporate umbrella. The Alphabet structure could work for other large companies with varied business lines but may not suit organizations with tightly interdependent divisions.

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    Google restructured into a conglomerate called Alphabet in 2015 to allow for greater independence among its diverse business units like Google, Calico, and CapitalG. This new structure separates Google's core search and advertising businesses from its riskier long-term "moonshot" projects. While it provides more autonomy, coordination challenges may arise from having many semi-independent units under the same corporate umbrella. The Alphabet structure could work for other large companies with varied business lines but may not suit organizations with tightly interdependent divisions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    21 views1 page

    05 Case Study - Google's Structure

    Uploaded by

    Nur Sukma Alam
    Google restructured into a conglomerate called Alphabet in 2015 to allow for greater independence among its diverse business units like Google, Calico, and CapitalG. This new structure separates Google's core search and advertising businesses from its riskier long-term "moonshot" projects. While it provides more autonomy, coordination challenges may arise from having many semi-independent units under the same corporate umbrella. The Alphabet structure could work for other large companies with varied business lines but may not suit organizations with tightly interdependent divisions.

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    © All Rights Reserved
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    CASE V: ORGANIZATION DESIGN

    In 2015, Google's CEO, Larry Page, announced a major reconfiguration of Google's organizational
    structure. The company formed a conglomerate called Alphabet, a new holding company composed
    of independent operating units, including Google (https://bizfluent.com).

    Read the story here:

    http://www.businessinsider.com/google-new-operating-structure-2015-8/?IR=T

    and

    https://www.cio.com/article/2970543/business-alignment/understanding-google-s-alphabet-
    structure-think-alpha-bet.html

    Address these following questions:

    1. Discuss the reasons why Google restructures their organization?


    2. What structural implications – good and bad – does this approach have? (Think in terms of the
    six organization design elements).
    3. Do you think this arrangement would work for other types of organizations? Why or why not?
    What types of organizations might it also work for?

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