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Case Study Of Alphabet Inc.

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Alphabet Inc. is an American multinational company created in 2015. It is the parent company of Google and several other companies that are owned by Google (Inc, 2015). The company is based in California and is headed by Google’s co-founders, Larry Page and Sergey Brin, with Larry Page serving as the CEO and Sergey Brin as the president (Inc, 2015).The process of reorganising Google into Alphabet was completed on October 2, 2015 (Inc, 2015). The biggest and most noticeable change came with the announcement that Sundar Pichai would be the new CEO of Google (Inc, 2015). Alphabet is nothing more than an umbrella company for all Google’s subsidiaries (Inc, 2015). There are seven individual companies underneath Alphabet, each with its own CEO and leadership. Alphabet Inc is a collection of Companies (Reuters, 2016). The Company’s collection include Calico, Google’s healthand Longevity effort; Nest its connected home business; Fiber, its gigabit arm; and its investment divisions such as Google Ventures and Google Capital, and Incubator projects, such as Google X (Reuters, 2016). These will be managed seperately in Alphabet. Google Inc will retain search, ads, Google Maps, apps, Youtube, Android and cloud infrastructure. Alphabet’s portfolio will include industries like Internet, Computer Software, Telecommunications equipment, Health care and Biotechnology (Reuters, 2016). …show more content…

From an accounting perspective, Google had become a bit of a nightmare. There were several different departments with dozens of different products. However they were all labeled under the heading of Google (Reuters, 2016). This new conglomerate structure adds clarity, focus, and organisation to the company (Reuters, 2016). It allows Google to focus on what it does best and at the same time not limiting other ventures like drones, self driving cars, anti-aging research, and smart home products (Reuters,

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