MGT 498 Strategic Management Research Journal pt
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MGT/498: STRATEGIC MANAGEMENT
JOURNAL 4
1
Alphabet Inc.: Integration and Globalization
Gilbert Tyler
University of Phoenix
MGT./498: Strategic Management
Dr. John Hawes
November 13, 2023
MGT/498: STRATEGIC MANAGEMENT JOURNAL 4
2
Alphabet Inc.: Integration and Globalization
Google has expanded to become a multi-billion-dollar organization through horizontal integration and diversification. Its exponential growth quickly created issues within its cross-
functional organizational structure. A new organizational structure needed to be developed to continue Google’s pursuit of long-term growth while concurrently increasing transparency and management centered on the core business. The birth of Alphabet Inc. and the beginning of implementing improved integration and globalization strategies would positively impact the organization’s strategic plan. Alphabet’s Inc.: Short-Term and Long-Term Goals
In October 2015, Google restructured itself as Alphabet Inc., a new holding organization under which Google’s noncore businesses were transformed into individual units and detached from the organization’s core business (Qumer, Purkayastha, & Schrijvers, n.d.). The action was set in place to help improve their integration and globalization strategies to support its long-term goals of organizing the world’s information and making it universally available and useful. In the short term, Ruth Porat, CFO of Alphabet Inc., emphasized that the company seeks long-term over short-term benefits. Porat states, “If we’re not constantly pushing the frontier, we are not creating value for the long term” ( PYMNTS , 2016). For this reason, Alphabet Inc. has not focused on setting short-term goals since the organization’s rapid growth and dominance are all hedged on them, betting on the long-term, clearly seen in their success over the last two and a half decades of existence. In the long-term frontier, Alphabet Inc. is pursuing diversifying its sources of new revenue streams by extending and initiating new products and services. Maintaining global technology supremacy, Alphabet Inc. recognizes that staying ahead of its competition, embracing
MGT/498: STRATEGIC MANAGEMENT JOURNAL 4
3
innovation, and moving into new marketplaces are the only ways to remain a technological mogul. As such, it intends to develop itself as a leader in developing technologies like artificial intelligence (A.I.), self-driving vehicles, and healthcare, aligning them with its vision of using advanced technology to improve the quality of life for humankind (Qumer, Purkayastha, & Schrijvers, n.d.). In the long term, Alphabet Inc. aims to become more organizationally responsible by focusing intensely on sustainability processes and procedures. Reducing its environmental impact and carbon emissions will place it at the forefront of pushing environmental and ethical consciousness within the technology industry. Alphabet’s Inc.: Mergers and Acquisitions
Noteworthy M & A’s
Sound Life Sciences Alphabet Inc. acquired it in October of 2022; it is a health technology start-up company that developed an application that monitored breathing. The application monitors breathing using sonar technology, which identifies movement and will benefit patients suffering from sleep apnea, asthma, and congestive heart failure. How Alphabet Inc. will use this new acquisition is still uncertain. Still, Alphabet Inc.’s subsidiary Verily Life Sciences operates comparable devices for patient care and has a joint venture with digital health company ResMed, which also focuses on sleep apnea.
Mandiant
Purchased for $5.4 billion, Mandiant is a cybersecurity organization representing Alphabet Inc.’s second-largest acquisition. Mandiant joined
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