Yahoo organizational change

Running Head: YAHOO INC. ORGANIZATIONAL CHANGE PROPOSAL Yahoo Inc. Organizational Change Proposal Students Name: Instructor: Institutional Affiliation: Date: YAHOO INC. ORGANIZATIONAL CHANGE PROPOSAL 2 Introduction Organizational change is an important issue which is inevitable by every organization. It involves the process of changing organizations processes, technologies, strategies, cultures and procedures as well as the impact of such changes within the organization. Organizational change occurs as a response to the ever changing environment and requires sufficient management capabilities for it to be successful. For this paper, I choose Yahoo.com which is a web search company that is associated with a directory of World websites and a build-in search engine which is structured in a hierarchy of topic classes. The reasons am interested with yahoo is because the company has been facing ups and downs in business due to poor management which has led to poor financial performance outwitted by high competition within the industry. Yahoo, Inc. (YHOO) was incorporated in the year 1994 by David Filo and David Young both engineer students from Stanford University. It initially started as an online directory which was a simple guide for internet users to look for relevant information and websites on the web. The company is well known for internet services like search engines, Yahoo mail, directory services and web portal among other many internet services. It went public in the year 1996 with its headquarters located in Sunnyvale, CA. After the company was founded, it was named Jerry’s Guide to the World Wide Web then it was later changed to Yahoo! With exclamation point which has been its trademark for many years. After a sequence of strategic acquisitions and mergers, Today, Yahoo has developed into a large multinational of advertising and technology focused businesses making the two founders part of the influential billionaires club. Yahoo reported a total of $7.5 billion net income and about $62 billion in terms of assets in 2014. In the same period, the company served about 2.37% of the global digital advertising market and 11% of the United States online market. YAHOO INC. ORGANIZATIONAL CHANGE PROPOSAL 3 There is no reservation that Yahoo has advanced greatly from its first initial public offer in the days of dotcom bubble 1990. The company holds over 150 billion website visitors every month. During the past decades, the capitalization of Yahoo has grown to $30 billion from $840million. It works under business models that focus on acquisition of the already existing companies with infrastructure and customers establishes in the place of initiating a new brand from start. The culture of the company expects employees to work for long hours and as a reward they are offered a variety of perks in terms of compensations and benefits (Burnes & Jackson, 2011). There is a mentality of work hard and play hard promoting a teamwork environment that offers Foosball, video games and company parties for celebrating milestones and achievements. The company holds events at Yahoo and includes quarterly company meetings, invitation of influential speakers, seminars, Halloween party, summer picnics and end of year parties. However, Yahoo is well thought-out as outdated and old fashioned in the internet industry with the current evolutions of social media mobile applications like Twitter, Chaton, Facebook, WhatsApp and cloud computing. These technological inventions have greatly affected yahoo through poaching their talented software experts by offering them better incentive packages and salaries that are more appealing ad attractive. Moreover, most of Yahoo employees have given the impression of being bored with the current stagnation in growth consequently seeking for greener pastures with the company’s competitors. Well, in that situation, some of the best Yahoo talents have slipped away like Greg Cohn who was the senior director entrusted with new initiatives.