This report discusses the relationship between strategy, organizational performance, and stakeholder expectations. It explores the external factors impacting strategic management and provides recommendations for formulating new strategies to meet organizational objectives. The report focuses on Yahoo as a case study.
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STRATEGIC REPORT & ORGANIZATIONAL DESIGN
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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 whichhelptoachievethisaimeffectively.Organizationalperformanceandstrategy implementation procedure is highly dependent on stakeholder expectations and requirement
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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 theorysays 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,focusontheirexpectationstowardsbusinessandmakeessentialchanges accordingly which is quite beneficial for Yahoo as it help to become failure within marketplace. Theconceptoriginallydetailedstakeholdermodelofbusinessethicsandorganizational 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'sstakeholdermatrixistheanothermethodthatdefinetheconnections 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 highpowertomakedecisionin context of business. Company keep satisfiedtheneedsandfulfil expectation of these stakeholders. Manage closely- Suppliers of services or products are the second key stakeholder of Yahoo, whohavethehighpowerandhigh interest in growth of business because it increases the demand of things supplied
by suppliers. Monitor- ď‚·Customers and workers are the third stakeholders of organization that work closely with business. ď‚·Theyhavelowpowertochange organization structure and low interest in its growth, they expect to fulfil their needs. Keep informed- ď‚·Government is the main stakeholders of firm,theirexpectationisveryhigh. They have the low power to change organizationalperformance,buthave high interest in increasing profit that allow company to contribute in GDP. The main reason behind selecting the above strategic management theory related to stakeholderisthatitsupportwithappropriatemethodsandtechniqueswhichusesby 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 ParticularsYahooGoogleFacebook Yearly turnover$5.17 billion136.22billionUS dollar 40.6 billion US dollar Number of users227.8 million500 million2.45billionmonthly active users Number of employees8600100000 employees35587 Available inTamil,Hindi, Kannada,Telugu, Malayalam,Bengali, Marathi and Gujarati. MultilingualMultilingual 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-
Government stability or instability, changes in taxation policies and regulations are the political factor that impact on strategic management of business at international level (Moghimi and Ghaffari, 2016). The laws that nation enforces, specially with regard to Yahoo and other business such as contract law, as they order what company is and is not permitted to do. Some nations, for example have certain situations and prohibit alcohol that will be fulfilled, while some authority system have inefficient amount of red tape that demotivate and discourage business, create barriers as operating firm. Economic factor- It consists with all those pertain to economy of nation that Yahoo such as change in foreign exchange rate, inflation rate, interest rate and GDP. These elements impact on strategic management procedure of company at global level (Sriram and et.al., 2019). Increasing rate of employment within nation where Yahoo operate their business make negative impact on their current employment planning or procedure, after the government order they have to make changes accordingly which is quite expensive and time-consuming activity. High level of unemployment in country mean there are the greater supply of best jobs than demand, people are willing to work for Yahoo for longer wages which lower the costs of business internationally. Social factor- It encompasses to beliefs, culture, values and attitudes that majority of population hold as society.Socialfactorsimpacton strategicmanagementof business as theyget changed according to trends (Ahmed and et.al., 2018). Changes in preferences of consumers make negative impact on company as it decrease its profitability and productivity when they do not analyse current market trends. Without considering the facts and customers trends company is not been able to succeed within market place effectively. People follow the trend which get changed time to time, it impacts on production and marketing activities of business which is difficult to manage or restructured. Technological factor- Advancement of technologies bring many benefits for companies as it help to managed business at international level (Khadhraoui and et.al., 2017). It makes positive impact on Yahoo strategic management activities. They can take advantage of technology advancement and manage to gain attention of number of viewers that increase its consumers base and profit
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margin. The improvement of technology will improve the ability of company to reach at target market. Environmental factor- These elements related to technology industry guide and shape CSR related initiatives. Pressure upon business to make contribution to corporate social responsibilities affect the principles of company, in which they have to make changes (Eniola and Entebang, 2015). Environmental factors affect positively because Yahoo is already included in different CSR related functions as well as activities that protect environment through protection policies. Legal factor- Government policies and legal regulations govern strategic management and operations of technology based companies in context of operating at international level (Pulaj and Pulaj, 2015). Yahoo is American multinational technology based company, different legal framework implemented in various nations become source of challenges for them as it cause disruption in firm operations. Consumer and worker protection laws is the main area of legal concern for organization as any issue arising in this area lead to litigation and loss of trust among consumers. On the other side, to identify internal actor, it is recommended to the firm to use SWOT analysis which helps the business to determine company's strength, weaknesses, opportunities and threats. Therefore, these are as mention below: Strength:Yahoo has the maximum number of users and it is consider one of the most revenue generated digital tool with the help of advertisement. As it has a large main subscriber base and this is the reason which makes it one of the powerful marketing company among all. It has range of product portfolio which includes yahoo messenger, yahoo mail, yahoo personals etc. Yahoo has around 8000 employees at global level and also used by 350million users as well (Leiber, Stensaker and Harvey, 2018). Thus, it shows that company have a brand image at international level and also well known as one of the most popular websites and search engines. Weaknesses:Due to tough competition in market, Yahoo market share is decline and it is so because of having Google's strong presence in search engine market. Moreover, financial health of the company is not so promising for the investors and the advertisement from business are not having a good online presence. From 2015, Yahoo is struggling financially and due to its weak financial position, its market share are also decline that creates negative impact upon business.
Opportunities:As most of the people becoming digitalized and that is why, the market devoid of internet especially in emerging economies can be further tapped by Yahoo. Further, another opportunity is such that it may acquire more partnership with different companies in order to widen the market of some integrated products (GĂĽrel and Tat, 2017). As a result, this may leads to acquire good market at global level. Threats:The biggest threat which the company faces is such that misuse of the site that creates negative impact. Further, there are many newly emerging search engines which are working as an advertisement market that further stealing market share and as a result, Yahoo faces threats. Moreover, restriction applied by the government related to content is also consider as a threat for he business and this affect the overall business in just opposite way. Formulating new strategy to face the challenges and meet organizational objective With the help of internal and external models such that Pestle and SWOT, it is analysed that Yahoo faces different issue such that the company did not have good Research and development department and as a result, it did not take risk in order to make its company more profitable. On the other side, it is also clear that company neglect the consumer trends and as a result, there is a need to improve the overall experience that helps to manage the massive number of viewers as well (Varma and Chavan, 2015). Therefore, it reflect that there is a need to implement new strategy that helps to cope up with different situation and helps Yahoo to come back in market and these are as mention: Technology advancement:In this modern era, every company adopt new and advance technology and that is why, the same should be applied by the firm as well. Such that by comply with advance features, Yahoo may develop a mobile application and advertising backed by the rapid deployment. It is so because it take an advantage of a high growing mobile advertisement spendings and assist to analyse the mobile device through an internet. This also creates an opportunity in order to engage in best partnership as well. In addition to this, this strategy also helps to increase synergies between search and also display advertising on mobile and tablets as well . Therefore, it increase the level of competition especially from Google and Facebook. On the other side, it is critically evaluated that this strategy needs large research and development that could not be turned into profit. Further, it may affect the business as well. It is stated bySarif and et.al., (2018)that taking risk in business will help to generate more revenue
and that is why, it is suggested to the business to add more features in its search engine so that it will help to attract customers. Differentiation strategy:It is the best strategy that helps a business to seek to be unique in the industry along with the dimensions. This strategy mainly selects one and more attributes and it is uniquely meet the needs of the customers. In the same, by using differentiation strategy under Porter generic strategy will help Yahoo to present its image in unique way. Further, while using this method, Yahoo will present its services in such a creative way that helps to attract wide range of customers (Obomate, 2016). As company faces an issue related to neglecting the customer trends and that is why, by presenting itself in the unique way, will help the business to deal with many changes. For example, its competitor such that gmail, rediffmail provide many advance features which yahoo did not offer and that is why, most of the customer shift towards another search engines. For instance, it may provide innovative advertisement to the customers so that it draw attention of many customers and also raise the brand image at international level. Customer relationship Model:In order to attract wide range of users, it is suggested to use CRM model that basically helps to predict and forecasting the behavioural aspects of the customers for the future perspective. Moreover, this process also includes the identification of marketing campaigning that target specific customers so that it will help the business to determine new trend and implement the same as well (Domański and Cyplik, 2019). Moreover, it is critically analysed that the model collect the data andby providing unique products or services to the customers will help the business to attract wide range of users towards it. Moreover, this method also helps to increase the profit and brand exposure which helps to develop personal relationship with customers. Below chart shows year when Company faced declination and turnover amount-
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How business strategy encourage and support innovation and change For all business types whether, existing failed or budding, innovation is the key to success. It is necessary that the concept or new ideas that they are bringing and implementing in the company are in compliance with the changing trends and business environment in which the industryisoperatingv(Leiber,StensakerandHarvey,2018.Additionally,thechange management is equally important because when the company or organization would be able top adapt themselves to the changing environment quickly, they will be able to target the customers in a better manner and develop better strategies. Staff Motivation and training:The staff is the main key i.e. the asset in implementing and incorporation change and innovation in the business. They should be adequately trained and the skills of the staff should be multiskilled I.e. they must know and understand the business trends and objectives. When the employees are kept motivated and satisfied they will be able to connect with the company. This will lead to brainstorming of large quantities of innovative ideas, and they will be able to incorporate change in the company also easily. In Yahoo as well, the strategies that have been developed are extremely innovative and the change can be incorporated in the company with these changes that have been developed(Varma and Chavan, 2015). The employees of the company, if they are adequately skilled, motivated and satisfied, then they will be able to adept to changes quickly and this will lead to the innovation and change in the
company since the development of Apps, giving attention to the customer feedback etc. will help them in making the company flexible to their needs and thus succeed. Rewards and Incentives: When the employees are rewarded appropriately, their would be more innovative ideas in the company. They would compete with each other to generate ideas as quickly as possible and therefore the company would be able to encourage innovation in the market. The differentiation strategy would help in meeting the innovation criteria by developing new products and new app would address the change implementation additionally, CRM would ensure that adequate benefits are drawn from the implementation of such strategies in the company (Siswosuharjo and Listiyoko 2019).In Yahoo as well, the innovation and change can be facilitated by the implementation of these strategies and therefore they will be able to meet the requirement of the company with the changing environment. Describing an implementation plan for the strategy As all the strategies helps a business to proceed towards success and that is why,the strategy implementation plan is used, such that: ď‚·Evaluate and communicate the plan:It is the first stage in which the manager of the company should make sure that they align with strategies and make sure that these three develop strategy for Yahoo should be communicate with the stakeholders so that they all understand the use of new strategy. Moreover, in this stage, Yahoo should also align with the budget to the annual goals and objectives so that company did not face any challenges (Grainger-Brown and Malekpour, 2019). As the firm follows hierarchical organization structure which helps to divide all the roles and responsibilities to all the member in equal manner.For instance, if the firm introduce new mobile application to its customer, for that it has to set budget and communicate the same to other stakeholders so that they may also present their views to achieve the defined goals and overcome challenges. ď‚·Development of implementation structure:In this stage, company should establish the link and also coordinate mechanism between different departments so that delegation of authority should be easily managed. All the task among managers are equally distributed, for the currentsituation, Yahoo should also evaluate the current staffing structure and determine its manpower. So that it will help the business for re-shuffling of people and helps to implement the strategy in better manner (Siswosuharjo and Listiyoko 2019). Further, training is also provided to the staff in order to make them aware that Yahoo
implement new strategy to determine new customer trend and also improve the user experience as well. ď‚·Development of implementation support policies and program:In this stage, different programs are implemented such that KPI are set in order to track and monitor system. This indicators are further communicate to all the members of company so that it will assist to implement the strategy in well manner. In this stage, a feedback system is also implemented so that it will help to gather feedback and generate results, data which will be used to evaluate the strategy later on (Adamczak and et.al., 2019). In the same, this is further communicate to all the stakeholders. ď‚·Budget and allocation of resources:this stage of implementation plan will help Yahoo to allocate the resource to different department and it is depend upon the results of financial assessment. Moreover, to implement the strategy in better way, Yahoo may also maintain a system of check and balances to monitor whether the department are operating within all budgetary limits or it may beyond the allocation as well. ď‚·Discharge off function and activities:Last stage in which all the functions including roles and responsibilities are divided and company provide continuous training and development session that helps to let all the members aware with new change and concept. In this, manager should evaluate the performance at every stage in order to determine the performance gaps and then take corrective actions (Leiber, Stensaker and Harvey,2018). Further, this will help a business to meet the changing trend and offer best services to their customers in order to grab market share. Overall, it is clearly analysed that in ever stage of strategy implementation, all the stakeholders should be involved so that it will generate better options and also meet their expectations as well. Further, it is also concluded that by complying all the stages of strategic implementation plan, company will generate the best options that will be easily helps to grab better future options. Moreover, leading and controlling the performance of all activities at different level will also assist Yahoo to creates better market share in the business. That is why, introducing own mobile applications, develop customer relationship model and providing unique features will helps a business to attain the defined aim and objectives in well manner.
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7. Recommendations and conclusion Recommendations:After analysing the internal and external factor it is analysed that Yahoo market share is continuously declining and that is why, it is suggested to the firm that it may use Horizontal integration in which it may acquire to other general social networking sites because the ratio of spending time on social sites is quite low. This strategy also helps the business to increase the market share in number of users and creates premises for search advertising penetration. On the other side, another strategy that is recommended to Yahoo is market penetration which target niche flickr users with personalized search engines and this further should be shown in display advertising campaign. So that, it will improve the display revenue and also increase the search market share for overall digital advertisement spending market in order to become stabilized in market. Conclusion:By summing up above report it has been concluded that by Yahoo faces different issues such that it neglect the customer trend and also there is a need to improve the customer experience. Therefore, report also concluded that by using stakeholder matrix analysis, the business will easily communicate it to others so that it will not creates any miscommunication. Further, with the use of Pestle analysis, report also concluded that there are different external factor that creates direct impact upon business and that is why, for growing its business at further level, there is a need to evaluate all macro factors. Moreover, it has been further concluded that in order to identify internal factor, SWOT analysis and by analysing both factors, report suggest threestrategiesthathelpsabusinesstocomebackinmarketi.e.useoftechnological advancement, use differentiation strategy and implement customer relationship model that helps toattractwiderangeofcustomers.Lastly,reportconcludedthatbyusingstrategy implementation plan, company will easily use the strate TASK 2 Organizational structure and its effectiveness in meeting objectives of business Yahoo is facing several challenges that make negative impact on its productivity and business reputation within marketplace. Some mistakes required high amount of compensation that is not suitable for growth of company (Koh and et.al., 2015). It creates difficult situation for company in which they have to deal with many major problems. Organization set their business objectives that is very essential for further progress in technology sector. They want to satisfy the
requirement of consumers, grab the opportunities available at international level that helps to sustain for longer period. Current organization structure define the abilities of Yahoo and its effectiveness in achieving the above organizational objectives effectively. Company is made up of individuals who relate with each other, to complete given set of objectives as well as goal. Organization structure is the way in which achievement and efficient goal of business will be facilitated such as improving services and gaining market opportunities. Yahoo uses hybrid organizational structure that combines functional, product and geographical structures (Boyd and et.al., 2017). Company is now part of oath, a Verizon organization, at top- level chief executive provide direction and vision for business which has to be followed by every one with collection of C level executives reporting to them. Under those C level business executives, Vps run more particular function for organization, handling marketing activities, sales, platforms,product developmentand internaltechnologyeffectively.Executivevice
president, operations and service engineering demonstrates division of function while Americas, executive vice president and senior vice president region show division of geography. For a company of their size with more than 13,800 workers division by function makes work easier to achieveorganizationobjectivesanddemarcateaccountabilityforexpenseandstrategic management. Yahoo missed the opportunity that can saved its business for getting down they had deal to buy Google, but the CEO of company refused to go through with offer. When they accept the deal they can earn undesirable profit that helps to increase its profitability rather than before. In order to gain more advantages, Co- founder and chief of Yahoo company take their decision with the help of communicating with Chief financial officer and General counsel. CEO give their direction to workers working under its job role in organization. According to the structure, the accountabilities is equally divided into group of people based on their abilities that help to achieve and meet organizational objectives in systematic manner. Effectiveness of Hybrid organizational structure follow by Yahoo- Hybrid structure is effective than the other ones, through this structure the owner of company divided job role along with their responsibilities effectively. With the help of this model organization become more flexible they can make changes in existing planning. It allows business more flexibility in distributing or dividing work as well as assigning job roles. It is especially beneficial for Yahoo, where there are many workers to manage day to day operations. In context of meeting organizational objectives, hybrid organizational structure work effectively, it allows for staff to work on various project and in several sectors that help to obtain positive results. According to this structure, company creates unified team of employees with common goal and various experience which is beneficial for organization. It permits each staff members is able to perform work in field they are best suited to, reporting to different persons when necessary and moving from project to project. Restructure is needed to enable new strategy implementation Restructuring is the kind of corporate activity taken that includes significantly modifying debt, structure of organization and operations as way of achieving objectives and improving the performance of overall business within marketplace. In simple words, restructure of modify the system and organization means to change way it is managed or organized, typically in order to make it work better than before. The purpose of restructure organizational existing structure is to
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align Yahoo to better achieve their strategy. Critical growth and success factors are essential to define, because when they are met, it will assure success for new structure and by strategy implication. There are many reason behind restructuring the current system in company that drive towards achievement of growth as well as business objectives. Restructure organization system support new strategy implementation, with the help restructureorganizationalstructuremanagementisabletoimplementtheirnewstrategy effectively. With the help of making strategy successful changes is required that helps to provide positive outcomes. Corporate restructuring driven by need for modification in organizational structure of Yahoo, it drives by necessity to make its resources and financial adjustments. In order to gain success and achieve positive results through implementation of new strategy, restructure is required it allows strengthening brand image and improve the performance of business within desirable time period. The main reason behind restructure is to enhance the business performance and receive the better results by implementing the new strategy. Yahoo implements new strategy mentioned above in order to improve their operational and functional activities much better than before. It refers to the execution of strategies and plans, to accomplish long or short term goals of company. The success is possible when restructure action taken by CEO of firm and other people whoareequallyresponsibleinprofitandloss.Restructuringisrequiredtosupport implementation of new strategy, it includes redesigning management and operations reporting structures to correct and address operational problems that led to firm distressed position. Proposed structural changes and their benefits The current organization structure that Yahoo follow that is hybrid, it lends company to so called market distribution, which is when they reinsert themselves into market or improve performance. In order to achieve the objectives and goals they had to make some changes in their current organizational structure, designed the new one which is effective and better than the previous one. They can now follow hierarchical organizational structure and restructure each and every think accordingly it helps to define roles different roles to every one working under company since for so long (El Talla and et.al., 2018). In this structure, every department in firm except on, is subordinates to single other entity work effectively. In Yahoo, the hierarchy commonly consist of group of power at high with low levels of power beneath them. With the help of making changes in structure company is able to gain their desired results, it allows to
improve the performance and do not make mistakes that happen in last few years. Changes organized the performance of company as it help to streamline operations, operate in multiple market locations and improve decision-making procedure, that help to increase sales as well as consumers services. Structural changes are those modifications made to company structure that stem from external and internal factors affect how business is run. It provides many benefits of Yahoo as they can improve current operational efficiencies, promote upward mobility, improve workers training, ease strategic planning and refine decision making process effectively (Ahmady Mehrpour and Nikooravesh,2016). In other words, changes in existing structure is quite beneficial in context of business as it helps to improve the company and its workers performance. It give opportunity to workers to get the best training programs that enhance it working level much better than before. This procedure informs people which leader and manager is take specific decision or where they will to send essential information for approval. The changes created flexibility to add new entity or applicants so as not to burden one manager in firm. With the help of structural changes Yahoo is able to focus on consumers services and sales, they can conduct depth research in order to collect information about its target market and identify their expectations towards them. By making changes they are able to spend more time centring on clients services more than correcting functional or operational problems. It allows to improve it and help firm answer clients inquiries regarding services and products offer by Yahoo.
Evaluation of restructure plan determining possible problems and negative consequences & measures to overcome Restructuring plan created by CEO and other Board members of Yahoo, refer to the action of reorganizing business structure, operations or finances for aim of making it more efficient, more profitable and forward operating. To reduce costs, make better use of talent, focus on key services or products, incorporate new technology, improve competitive advantages, spin off subsidiary organization, merge with another company and decrease debt are the main reason behind restructure and planning regarding this. Whilemakingrestructureplanmanagementaddresssomepossiblenegative consequences and problems that impact on procedure negatively. Workers is the main part of successful business they contribute in achieving set of objectives which is beneficial for business growth. By having different perspective and belief, some workers resist to make any changes in
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existing structure they do not want to change their working environment because it directly impacts on performance and way they do work. Resistance to change is the negative consequence that company identify when they implement restructure plan in workplace (Burnes, 2015). It is particularly the tricky one, greater required changes come up with greater resistance. It is true when company revised plan or structure require that they reorganize function or adjust workers accountabilities. It undermines the successful and effective restructuring procedure as workers contribute half heartedly to business efforts. It demotivate them and decrease their efficiencies for performing in order to achieve common goals. Aligning team members is the another issues that addressed while restructure plan, it affects success of restructuring organization. TScreenshot from 2019-12-23 11-20-56eam or group of people are important for accomplishing overachieving objectives or goals, poor communication between management and its group proven to be downfall of even greatest plan or strategies. Without effective communication, the restructuring plan is not implemented effectively, it does not allow bettering decision by considering all possible aspects. Measure to overcome issues and negative consequences- In order to make workers ready to except the changes and contribute in implementing restructuring plan, Yahoo had to do a lot of efforts they had to take support of manager and leader because they are closer than senior management to its employees (Umble and Umble, 2014). They can help to provide the information about importance of restructure plan and its requirement within organization. Leader motivate all the people working at workplace describe the benefits of procedure which give career growth opportunity to all of them which they can take to get continuous progress in professional life. Manager develops logical strategy road map and clear overview to demonstrate value of changes to its team, it helps to reduce resistance to change. When the description and motive of restructure plan is clear company is on top of this process, its team member also welcome change without any resistance. To overcome the second challenge or issue, that is poor communication which affect on implementing restructure plan. Management of Yahoo take better action, they have to make creative and collaboration environment where people can be able to communicate with each other. The barrier between communicating to senior will be removed, that enhance motivational level of existing employees. Organization allow people to come up with their issues, they can
make discussion to its senior without taking permission. It helps to build strong and effective communication relationships between all departments that support in making restructuring plan better. CONCLUSION From above analysis it has been concluded that Yahoo is facing several challenges due to their inappropriate decision which affect consumer base and performance of business. To make their business more successful and gain competitive advantages, organization take evidence based actions after focusing on finding obtain through external and internal environment analysis. Furthermore, to achieve business objectives company make change in their current organizational structure, they can adopt the hierarchical structure which provide so many benefits to them as it help to improve performance much better than last decades. The managementofcompanytakethebestmeasuretoovercomechallenges,theycreate collaboration environment and motivate people to except the changes after implementing restructure plan.
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