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Case Study: Trouble At Yahoo !

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Management in Action Case Study Major Problems at Yahoo! Trouble at Yahoo! Marissa Mayer joined Yahoo! in 2012 as the new CEO after leaving google. She was brought in to fix the sinking ship and turn around Yahoo!’s failing business model. But things haven’t gone as planned. For instance, she immediately put in place a new business strategy that meant the acquiring of businesses. Yahoo! acquired Tumblr, a blogging company for $1.1 billion. However, this did not help Yahoo!, instead it meant they were spending more money than the companies actual value. This lead to investors calling for Yahoo! to save money by the sale of Yahoo!’s minor business, and the firing/laying off employees. In doing so it created low morale and unhappy employees. The …show more content…

Yahoo! Has multiple options as a company to continue operating. The first option would be to continue operating as normal and not change a thing. The second option would be to fire current CEO Marissa Mayer and bring in a new CEO. This would come along with a new business strategy that would put more focus on the future of the company specifically on its core company. The last option would be to keep Marissa Mayer as CEO but make a change in the current business strategy. If Yahoo! Goes with the first option to not change anything and continue operations as normal, employees will remain unsatisfied and look for career opportunities elsewhere. Yahoo! Will also continue to roll out low quality products and make failed business acquisitions. This would not be a smart idea as the company will continue to fail. Investors will also be very unhappy with the direction of Yahoo!’s future. Ultimately Yahoo! Will lose customers due to lack of high quality products that consumers can find elsewhere from competing companies. Eventually Yahoo! would continue downsizing and losing employees and consumers to their competitors and eventually fail completely as a …show more content…

can also go with a third option. The third option would be to keep Ms. Mayer as CEO; however, they would need to change the current business strategy. Yahoo! would need to sell smaller companies in order to save money. They also should not focus on acquiring new companies until they have fixed the core company. They would also need to put more time and resources into its mobile platform and produce higher quality products. Yahoo! could keep its current employee perks because they aren’t spending money on failed business acquisitions. Although investors may not be happy with Yahoo!’s spending on employee perks it would ensure that employees are happy along with bringing in new talented employees who are not in fear of losing their jobs or the company ultimately

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