The corporate issues faced by Yahoo
Garlinghouse pointed out a mass of overlapping services. He believes the company requires to focus the vision, restore liability and put up for sale non-core businesses and cut fifteen percent to 20 percent of yahoo`s worker and remaining will be a company where general managers are delegated authority to actually run the business units.
'Mission' means the long-term objectives of the organisation as related to the strategic leader's vision of the nature and scope of the businesses that he feels would be appropriate and desirable (Thompson, 1993, p. 45). It explains the wide purpose of what the organisation is and how it will step forward. Organisations that successfully and constantly encourage a common mission know their definite objectives and are clear about their challenges ahead.
Strategy is the direction and scope of an organisation over the long term: which achieves advantage in a changing environment through its configuration of resources and competences with the aim of fulfilling stakeholder expectations. (Johnson and Scholes, 2005:9).
Strategy is to be expected for the long-term direction of an organisation. Yahoo would need a long time for a strategic change and he have to define where he is and where he wants to be that requires a long term decision.
Strategic decisions are also associated with where an organization should focus. For example an organisation can focus on one area, or can it have too many areas? The issue of focusing on activities is basic to strategy because it concerns the way in which those accountable for controlling the organisation visualize the organisation s limits. This possibly will comprise central decisions about product variety or geographical coverage. Yahoo`s is not concentrated on area of activity it has too many areas where he is not concentrating effectively.
Strategic decisions are also defines the how to get advantage for the Organisation to survive in competitions. For example, Yahoo was left behind because of competition and growth of Google. Yahoo has to add some value in his services to get advantage from his competitors.
The strategic fit along the business environment this may perhaps require major resource changes for an organisation in the future. Suppose, decisions to expand geographically might have important implications in requisites of the need to construct and support a new customer base. It helps to get the correct positioning for the organisation, for example in terms of the degree to which products or services meet clearly identified market needs. This may acquire the structure of a small business trying to discover a specific niche in a market, or a big multinational corporation searching to procure up businesses that have already establish successful market. In case of yahoo, Yahoo wants to conquer various markets instead of one particular market.
On the other hand, making opportunities through establishing an organisation s resources and competences is also a strategic decision. This is known as the resource-based view of strategy, which is associated with utilization of the strategic capability of organisation, through the resources & competences, to provide competitive advantage and making new opportunities. For example, a large MNC may emphasise on its strategies on the business with strong brand. A small business, on the other hand, focuses on market to suit its capabilities. Yahoo in this domain considers brand more likely as internet.
Along with environmental forces and strategic capability, the values and expectations of those who have influence in the organisation (the stakeholders of the organisation.) in yahoo the senior Managers have pursued growth in many ways. The stakeholders have their impact on strategy from internet user to top management respectively.
(B) To what extent do they differ from strategic issues facing your own organisation?
There is no one ideal strategic planning model for each organization. Each organization ends up budding its own nature and model of strategic planning, often by selecting a model and modifying it as they go along in developing their own planning process.
I have business of footwear and it is not a big multination Company but still it has a clear and concise vision mission of being market leader with in next five years. Now I will compare my business with Yahoo on the basis of following Strategic Issues.
Scope of organization`s activities
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