Organizational Structure

Google's organizational structure:

[Click the image for larger resolution]


This is the top part of Google's organizational chart. Only this part is available since Google employs more than 19,000 people.

The structure appears to be rather tall. Responsibility and authority are concentrated at the top with the CEO, CFO, CIO and other senior managers. Orders are delegated, passed down the hierarchy and separated between the different departments.

Googe is operating in many different countries. It also has more layers and more divisions in each layer to allow more effective communication among the company as a whole and provide more narrow span of control over the company.

By looking at the chart, one can clearly see how order are passed down along the chain of command. Google appears to have a rather decentralized structure in a sense that orders are divided between multiple departments operating in a lot of different countries.

Current Event #1 - GM (10.09.09)

GM, China Venture Sign $607 Million Export Agreement 

1. Here is the article I will be commenting on:

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a4nKwqDnEoQE

2. Summary: The article is about General Motors Co.’s Chinese joint venture (Shanghai General Motors Co., which is equally owned by GM and the Shanghai Automotive Industry Corporation, SAIC) Shanghai GM just signed a $607 million contract to buy automobiles and equipment from its parents. This deal is driven by China's 4 trillion yuan stimulus plan to help automobiles sales in the country.

3. 1.5 External Environment - 1.7 Growth and Evolution - 1.9 Globalization

4. The article talks about an important contract between two subsidiaries of General Motors, a large multinational company, which ties-in with the globalization unit. It says Shanghai GM, owned by both GM and the SAIC, is interested in buying automobiles, machinery and equipment form its parent, in a $607 million (USD) contract that will most likely benefit the company as whole, and help boost automobile sales in China, GM's second largest market. During the past 2 years, the automobile industry in China has grown tremendously, driven by the nation’s surging vehicle demand and the government's stimulus plan worth 4 million yuan ($586 billion). The government's actions represent a big opportunity for GM, which has seen its north american sales decrease dramatically since the start of the recession. GM is greatly influenced by external sources (the government and the chinese population's need for more cars) and the company trades with its venture according to those sources. The fact of having expended the company into multiple different markets globally now allows GM to maintain a certain level of profit coming from a fruitful market, like China, despite suffering huge losses in certain regions of the world, especially America. The article also makes a good point in describing the advantages of a joint venture. Since Shanghai GM is not totally owned by GM, it still allows trade between GM and  the SAIC. However, power struggles are often to consider when dealing with joint ventures, which is crucial in such an important deal.