Find an example of a company that has recently gone through

Find an example of a company that has recently gone through a major change (in 2015). What type of change was it? Why did the organization make the change, and what does it hope to achieve from it?

Solution

Google has recently gone through a major change in 2015. Google has announced a major restructuring of its business, in which the firm and its sister companies will become part of a larger parent group.The new holding company, called Alphabet, will be led by Google\'s current Chief Executive Larry Page. Google turned its company structure upside down with announcement of Alphabet. It rebrand itself as Alphabet – a new holding company whose largest wholly owned subsidiary will be Google. Google reshuffled its corporate structure earlier this week, naming Sundar Pichai its new CEO for its search and advertising business, which will be housed under a new company named Alphabet. Pichai became CEO of Google effective immediately Monday, promoted from senior vice president of Android, Chrome and Apps.

The recent corporate restructuring means that executives of other units shall report to Page directly and can inquire for further investment, as opposed to navigating the bureaucracy of Google’s central business. Thus, Alphabet should help free up Page so he can become more free to dedicate his time to developing smaller emerging business lines, such as Nest. In turn, this could help the tech giant be managed more effectively.

Page will become Alphabet’s CEO. Brin will be its president, and Eric Schmidt will be the executive chairman of Alphabet. Ruth Porat will be its CFO, and David C Drummond will be the chief legal officer and secretary. The company’s chief business officer, Omid Kordistani, will step down and become an adviser to Alphabet and Google, according to the company’s SEC filing.Page, Brin, Schmidt and Drummond will leave Google, whereas Porat will keep her CFO role there and Pichai will take over as CEO.

Google has come under pressure as its founders have used the enormous success of its search engine to fuel riskier bets on autonomous cars, smart household devices, internet-delivering balloons and cutting-edge medical research. The major restructuring will ostensibly give investors greater insight into how the money is being spent.It’ll give people a truer picture of the nature and specifics of Google’s core operation. The reshuffle may also provide the company a bit of insulation from regulatory issues, particularly in the EU. Google itself is still a massive beast, which will have to tread carefully around regulators, but it will be easier to present firms such as Nest, Calico and Fiber as separate entities if they are only united by a common owner. And, if the worst happens for Google, it would be easier to hive off the subsidiaries entirely. By separating each business in the new structure, Google has the ability to advertise many more high-ranking executive openings.