Institute of Management, Nirma University.

MBA FB&E (2020-2022)

Term: - 3

Organizational Change Management

Topic: Alphabet Inc., Recognizing Google

Individual Assignment

Submitted to: Prof. Srirupa Banerjee

Name: - Yugen Hirpara

Roll No: - 204161

Date of Submission: 02/04/2021

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Case Summary –
The case talks about the restructuring of the giant company, Google Inc. separated by highly
profitable from its business. Back in 1998 Google was found which was involved in giving
core services like software applications, hardware products, consumer content, cloud
computing, OS and web-based search. As the time passes Alphabet Inc. was acquiring many
companies which were not related to its core business. By implementing latest technologies
company had maintained its position in the market and achieved a tremendous success.
Alphabet Inc. were involved in non-core businesses such as developing robots, high speed
internet, life science research, social science research and self-driving cars.
Involving in all these non-core businesses helped the company to acquire many customers.
As the company was focusing on the new innovation in every business activities, they
achieved tremendous success which encouraged the investors to invest more. In order to
overcome these issues Alphabet Inc. acquired the Google in the year 2015. Alphabet Inc. was
looking in the non-core businesses of the Google which was operated separately.

Change Management Needed-:

If the Company implements change in its internal as well as external processes than it known
as Change management. Investors of Google was worried about the diversification of Google
as the Google was only involved in Search Engine. There was a need of change for tackling
the different situation from management side. If the management do this change they were
worried about the investors because they may withdraw their shares from the company. From
the search engine business heavy revenue was generated though they were in the
diversification of the new business, this may create the question for the investors. There was
the absence of proper communication as the company was too big and due to this there was a
delay in passing the information. In order to sort out this problem company decided to
implement the change in management.

Change Management Process -:

Investors may find question if the change in the company was made instantly. Current
management of the organization was also restricting the change. Employees of current
management were not accepting the need of change and thus there was a loss of the company.
Communication plays a main role in the process of change. This was a very difficult task for
the Google to pass the accurate information on time as the organization was too big. Thus it
was very important to set the operation for the change. To overcome these issues Google
became the subordinate of the Alphabet Inc. Today Alphabet Inc. is the parent company of
the Google. All the operations were managed by the Alphabet Inc. though the investment and
revenue was as it is. Reporting of the Google was done to Alphabet In. by the senior
management of the company. This change helped the company to make its decision fast and
to transfer the communication on time. Proper chain of command was seen by the change in
management and this was the best decision of the company.

Outcome of Restructuring Decision -:

On August 10, 2015 decision of restructuring was announced by the Google. They announced
that they are separating their business activities into Alphabet Inc. in order to manage them
easily. Before the reorganizing Google was handling its business and that was a complex

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process. So it was very difficult for the Google to keep eye on each activity. In this perfect
competition market it is very difficult to handle all the operation as they were in the multiple
businesses. Thus the proper mentoring is very important, so they became the subsidiary of the
Alphabet Inc.

Stock Price of Google (Before Reorganization)

Year Price (in $)

2014 530.66
2013 1120.71
2012 707.38

Stock Price of Google (After Reorganization)

Year Stock Price(in $)
2015 777.01
2016 792.45
2017 1053.40
2018 1044.96
2019 1339.39

As soon as the Google announced about the restructuring, the stock price of the Google was
at the peak. Investors had encouraged the decision of the Google about the restructuring.
Previously they were involved in the business of Advertisement, the revenue generated by
this business activity remain same. Moreover by involving in the other business they created
extra revenue which later increased the stock price of it.

Personal Opinion -:
According to me decision taken by the Google about the restructuring of the company under
the Alphabent Inc. was a good decision. There was sudden change in the performance of the
company as they announced the decision of restructuring in 2015. The decision of
restructuring made the core as well as non-core businesses of the Google more transparent
and financially strong. This decision helped Google to gain trust of their investors which
made the company financially strong.

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