Strategic Report & Organizational Design

STRATEGIC REPORT &
ORGANIZATIONAL
DESIGN

Table of Contents
Executive summary..........................................................................................................................3
INTRODUCTION...........................................................................................................................4
Relationships between strategy, organizational performance and stakeholder expectations......4
External factors that impact on strategic management in global context....................................6
Formulating new strategy to face the challenges and meet organizational objective..................9
How business strategy encourage and support innovation and change.....................................11
Describing an implementation plan for the strategy.................................................................12
7. Recommendations and conclusion.........................................................................................14
TASK 2..........................................................................................................................................14
Organizational structure and its effectiveness in meeting objectives of business.....................14
Restructure is needed to enable new strategy implementation..................................................16
Proposed structural changes and their benefits..........................................................................17
Evaluation of restructure plan determining possible problems and negative consequences &
measures to overcome................................................................................................................19
CONCLUSION..............................................................................................................................21
REFERENCES..............................................................................................................................22

Executive summary
Organizational design or structure had to change according to stakeholder expectations
because it helps to get longer term success at global level. The current report is based on Yahoo
organization, they deal with many challenges that affect growth. But with the help of taking
appropriate actions and fulfil expectations of all stakeholder organization is able to sustain for
long time within market place. It has been explained that company adopt different methods or
approaches to overcome challenges.

INTRODUCTION
Strategic reports is essential part of business annual report, it is where person set out what
business does, what they look to gain or achieve and how well company will progress. This
makes the appropriate strategic report fundamental to investors comprehension of why they will
own shares in firm. Along with this, organization design is the procedure of aligning structure of
companies with their objectives (De Gooyert and et.al., 2017). After considering the strategic
report company will have to make changes in their design and plans according to expectation of
stakeholders in order to improve operational effectiveness and efficiency.
The present report is based on Yahoo company, it is an American web services provider
founded in 1994 by Jerry Yang. It is one of the pioneers of early internet period in the 1990s,
they provide web portal and search engine services to its consumers. This study explains the
relationship between organizational performance, stakeholder expectations and strategy, with
strategic management theories. Define the external factors impact on strategic management, new
strategy to overcome challenges and meet objective of company. It justifies how business
strategy will encourage, strategy evaluation and implementation plan for strategy that need to
develop. Furthermore, it clarified the recommendations for improvement based on environmental
analysis of organization and also explain the measures to overcome challenges as well as
improve innovation, coordination and collaboration.
Relationships between strategy, organizational performance and stakeholder expectations
The success of business is possible when they consider the expectations of its consumers,
workers, suppliers and government, these are the stakeholders of organization who are equally
accountable for achieving common objectives and goals. Without focusing on expectation of
target consumers, companies will not be able to gain greater success and it does not allow
making marketing strategy (Strand and Freeman, 2015). Along with this, employees are the
another stakeholder of multinational company like Yahoo. The involvement of workers in
decision taking procedure is very important for firms because it helps to retain talented
applicants with business for longer who are able to contribute in competitive environment
through hard work. For example, in order to retain skilled staff within company, Yahoo has to
implement some new strategies by considering the needs and expectations of their candidates
which help to achieve this aim effectively. Organizational performance and strategy
implementation procedure is highly dependent on stakeholder expectations and requirement

which firm had to consider before taking any action in its business operations or make changes in
existing products as well as services.
With the help of using strategic management theories it is easy to explain above
expectations and relationships in context of company.
Edward Freeman's stakeholders theory says that for companies to be successful it had
to create value for suppliers, communities, clients, staff, financiers, banks and stakeholder with
money (Madueño and et.al., 2016). According to this theory, companies will create value for all
stakeholders, focus on their expectations towards business and make essential changes
accordingly which is quite beneficial for Yahoo as it help to become failure within marketplace.
The concept originally detailed stakeholder model of business ethics and organizational
management that addresses norms and morals in managing the firm.
With the help of this theory, organization is able to take appropriate action and identify
models that helps to manage business by focusing on stakeholder expectations towards them.
Without analysing the needs and requirement of all stakeholders Yahoo cannot be able to grow
within international market (Kim, Kim and Qian, 2018). For example, organization decide to
centring on becoming media giant, they make plan regarding this, but they get fail because
organization neglected its consumers trends as they are unable to focus on demand as well as
preferences of people that affect its position as main player in online marketing market. By
implementing the principles of Edward Freeman' stakeholder theory, organization will be able to
operate their business effectively and retain stakeholders with them for longer period along with
focusing on their needs which they had to fulfil.
Mendelow's stakeholder matrix is the another method that define the connections
between stakeholder, performance of business and its strategy, it also helps to define the
expectations of different stakeholders. It can be used to analyse the attitudes of stakeholders and
its relationship with business through four boxes.
Keep satisfied-
 Board of director and investors have
high power to make decision in
context of business. Company keep
satisfied the needs and fulfil
expectation of these stakeholders.
Manage closely-
 Suppliers of services or products are
the second key stakeholder of Yahoo,
who have the high power and high
interest in growth of business because it
increases the demand of things supplied

by suppliers.
Monitor-
 Customers and workers are the third
stakeholders of organization that work
closely with business.
 They have low power to change
organization structure and low interest
in its growth, they expect to fulfil their
needs.
Keep informed-
 Government is the main stakeholders of
firm, their expectation is very high.
They have the low power to change
organizational performance, but have
high interest in increasing profit that
allow company to contribute in GDP.
The main reason behind selecting the above strategic management theory related to
stakeholder is that it support with appropriate methods and techniques which uses by
organization in order to manage the relationship between stakeholder expectations, business
strategy and organizational performance. Edward freeman stakeholder theory guide how to stop
thinking of term ethics by business, companies always try to develop strategy and take action
after analysing the expectations of stakeholders.
Comparison chart
Particulars Yahoo Google Facebook
Yearly turnover $5.17 billion 136.22 billion US
dollar
40.6 billion US dollar
Number of users 227.8 million 500 million 2.45 billion monthly
active users
Number of employees 8600 100000 employees 35587
Available in Tamil, Hindi,
Kannada, Telugu,
Malayalam, Bengali,
Marathi and Gujarati.
Multilingual Multilingual
External factors that impact on strategic management in global context
In order to identify the external factor, it is suggest to use PESTLE analysis which helps
to determine different external factor which creates direct impact upon the business. Therefore,
this are as mention below:
Political factor-