When managing a business, it is inevitable to make some changes with the business and organizational structure, management style and sometimes the entire system may need some remodeling or perhaps a total reconstruction. This way, organizations are able to adjust themselves to new developments and trends as well as to make managing the business in a more convenient manner while cutting the risks of loss in all angles.
Recently, an announcement was made by Google wherein it will have a new owner which is a holding company called Alphabet. It is run by Google founders Larry Page and Sergey Brin. Strangely, Alphabet also owns a few other things that were created under the tech giant’s multiple ventures including those that were acquired from different organizations, but now belong to the Google brand name.
If Alphabet is a holding company, this only means that it will own involved companies’ outstanding stock including Google’s. Think of Google as an independent hotel that have joined an international chain of hotels, with Alphabet being the head executive of the organizations. The former has its own corporate structure as well as its own logo and the same goes for the latter which do not seem to make a difference. But, here is a tricky part, it is actually a management system that have been used and proven effective by businesses over the past decades.
It is a systematic approach where separating organizations with different or conflicting functions makes it easier to manage each branch/department as well as it opens new windows of opportunities. Obviously, new opportunities mean expansion of market reach, increase in sales, profit, etc. Therefore making it a practical step for Google or should I say Alphabet.
Moreover, this news has caused quite a lot of confusion to the internet culture due to some misinterpretation from several news and blogs. Perhaps Google/Alphabet should exert some effort in order to clear things up as well as to further explain about these changes in more details. There are a tech giant that we look up to when in search for answers. All we can ask are some clarifications regarding the changes and how it would affect our businesses.