Strategic Report: Organizational Design, Performance & Yahoo Analysis

This strategic report analyzes the organizational design of Yahoo, focusing on the relationships between strategy, organizational performance, and stakeholder expectations. It examines external factors impacting strategic management in a global context, utilizing PESTLE and SWOT analyses to identify challenges and opportunities. The report explores formulating new strategies to meet organizational objectives, supporting innovation and change, and includes an implementation plan. Furthermore, it assesses Yahoo's organizational structure, proposes restructuring to enable new strategy implementation, and evaluates potential problems and consequences. The report concludes with recommendations for improvement, emphasizing innovation, coordination, and collaboration. Desklib provides access to similar solved assignments and past papers for students.

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-

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. Social factors impact on strategic management of business as they get 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

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 350 million 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 (Gürel 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 by Sarif 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 and by 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-

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
industry is operatingv (Leiber, Stensaker and Harvey, 2018. Additionally, the change
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:
 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.
 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 current situation, 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