Course Learning Assessment: Reorganizing Google (Essay Sample)
The assignment was about reading a case study about Google and answering questions. These questions included: The effect of the event that happened in 2015 on Google’s stock prices, Analyzing the effect of Google’s decision to restructure itself under a new holding after 2015, Evaluate whether the expansion of Google Inc. into non-core businesses was a good move, and Describing how the restructuring made the company’s competitiveness stronger.
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Course Learning Assessment: Reorganizing Google
Introduction
This case study looks at how Google, a multinational technological firm, reorganized itself by splitting off its profitable search segment from its peripheral businesses. Web search, OS systems, cloud services, computer hardware, user information, application software, etc. were among Google's primary offerings when the company was launched in 1998. Over time, the company diversified its holdings by bringing technological advancements to previously unrelated industries; this strategy helped establish the company's name as a leader in the industry, and the corporation also gained a great deal of accomplishment. The corporation's non-core activities include autonomous vehicles, research in social science, life, elevated Internet access, robot development, and investing divisions. Expansion into these non-core sectors allowed the company to serve more clients based on their interests. Although the corporation focused on innovation and extended its commercial activities in new locations, investors grew apprehensive regarding their holdings (Visnji, 2019). Due to the corporation's involvement in numerous activities, tracking its many functions and the precise operation of each service or product administratively has become impossible. Google reorganized itself to become Alphabet Inc. in 2015, creating a holding company to manage its non-core commercial activities (SHARMA, 2020). Each organization has a dependable manager and supervisor who ensures the smooth running of the business throughout the years.
Effect of 2015 Event on Google Stock Price
On 10th August 2015, Google released news of a corporate reorganization whereby the company's commercial activities are split off into departments for simpler management. Before the restructuring, Google was in charge of all these activities, which made it exceedingly complex and impossible to keep track of each company individually. Keeping track of several businesses in today's highly competitive market may be challenging without the right background, tools, and knowledge. The reconstruction by Google, thus, had a great effect on its revenues and profitability.
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