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Yahoo - Strategic Management Analysis

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EXECUTIVE SUMMARY

Yahoo! Inc., over its journey of almost 17 years has become the world’s largest online network integrated services provider with users exceeding 500 million in numbers worldwide (Yahoo FAQ, 2012). It has a presence in more than twenty markets and regions across the globe and is best known for its search engine and host of other services like finance, e-mail, advertising and social media.

Yahoo! Inc. was started as a personal website directory by two doctorate candidates at Stanford University named David Filo and Jerry Yang. Filo and Yang realized the potential of generating revenue from their web directory by allowing companies to advertise their products on their online directory. Soon, Yahoo was notable enough …show more content…

Also in June 2012, the company also hired the former director at Google, Michael Barrett, as its Chief Revenue Officer. In April 2012, the company announced a cut of about 14 % of its workforce. This was expected to save the company around $ 375 million annually and is scheduled to be completed by end of this year (Liedtke, 2012).

MANDATE

The mandate of a company sheds light on why it exists, what it hopes to achieve in reference to the expectations of the stakeholders. Yahoo changed it mission statement from just “focusing on being a search portal” to “want to connect people to their passion, communities and world’s knowledge” (Baker, 2007). Yahoo’s mission Statement refers to the fact that the company envisages to achieve two major objectives; first one is to provide personal digital experience to their customers so that they remain happy doing things they like especially in the web and secondly to provide a unique way to the advertiser to connect to the consumers and help to build their business (Yahoo FAQ, 2012). In simple terms, as Yahoo enables people to connect with their passion in various fields i.e. sports, music etc., it will in turn provide Yahoo with an excellent opportunity to generate advertising revenue from music and sports companies etc.

The core values of the company provide a sense of direction that the

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