Topics: Yahoo!, Google, Management Pages: 9 (3147 words) Published: April 29, 2013
Executive Summary

This report was about the main issues that Yahoo had to face during the past few years. Yahoo was founded in 1994 by two young college students, Jerry Yang and David Filo. For many years, yahoo was doing very good in the technology market, however, for the past few years, even though the company has not been failing financially, the position of Yahoo on the market is not very good. Yahoo has recently hired Marissa Mayer as the new CEO of yahoo. Thus, this report dealt with the current situation in which Yahoo is actually in, the cultural and political aspect of the company. For example, how innovative the company was and what measures could be taken to enhance Yahoo’s situation. Furthermore, this report talked about the different concepts of culture excellence approaches that could be related to yahoo. Among Peters & Waterman eight attributes, six attributes could be related to Yahoo and they are Closeness to customer, autonomy and entrepreneurship, productivity through people, hands on value driven, stick to the knitting, simultaneous loose-tight properties. This report also looked at Kanter’s post entrepreneurial model and organisational learning. Since human capital is very essential for a company, this report also analysed the HR practices that could improve the motivation of employees. Finally, this report talked about the possible reasons why employees of Yahoo might resist to the changes that the New CEO Marissa Mayer might bring about.

1.0 Introduction

Yahoo was founded in 1994 by two PhD students in Stanford, namely Jerry Yang and David Filo (O’Bannon 2001, 95). They first named the site “David and Jerry’s guide to the World Wide web” but later they decided to go with “Yahoo”. Early in Yahoo’s setting up, its founders brought in professional management, in order to develop a business plan and arranged for various types of financing. Jerry and David, who were the founders, did not occupy top management positions, but they rather called themselves the “Chief Yahoos” and thus, allow outsiders to take executive posts (Mascarenhas et al. 2002, 317). However, with the presence of Google, which is the number one search engine (Caufield 2005, 555), the position of Yahoo in the market has been affected. Even though Yahoo has not been failing financially through the past few years, the reputation of the company however is not at its best. This report will be about the factors that affected Yahoo’s ability to quickly adapt to changes in the tech market, for example, innovation, the political conflicts, innovation and also about the frequent changes which occurred in the management of the company. The report will also take into consideration the different concepts of cultural excellence approaches that could be relevant to Yahoo. Furthermore, for a company which has more than 12, 000 employees in 25 different countries (Yahoo! News Center 2012) it is important to know how to deal with the workforce of the company, how to attract, retain, promote and also develop the kind of talents that are essential for the company. However, whenever there are changes that occur in a company, there are some negative issues that arise, for example, employees might not be very keen to adapt to new changes. In the case of Yahoo, who recently hired Marissa Mayer as Yahoo’s third CEO this year, some employees might not feel very enthusiastic to welcome a new CEO who will bring her own changes to the company’s culture and politics since she is the fifth CEO of Yahoo since co-founder Jerry Yang stepped down in 2009 (Shalvey 2012, 1).

2.0 Cultural and Political Context in Yahoo
According to O’hEocha (2000, 321), most of the time, it is the role of top management to establish the culture of their company. Human factors such as the personalities of top and middle management maintain the good communication in the company which in turn determines the level of participation and also motivation of lower levels in the...
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