INFS2631 Innovation and Technology | Mcinseys Analysis for Yahoo

Questions:

1.7s mckinsey's analysis for yahoo's Mission Statement, What's yahoo inc! Work strategy. How they use Mckinsey's 7's in their mission statement.

2.Pestle analysis , economic, social, technology and political for yahoo! Inc

3.Swot analysis : strength weaknesses , opportunities , threats. For yahoo

Answers:

7s Mcinsey’s Analysis for Yahoo

Figure 1: McInsey’s Analysis

Source: (Dodgson, 2018)

The implementation of the following framework has been completed by the management of Yahoo in 7 steps;

Strategy- The strategic plan of maintain and formulating a competitive advantage over the competition of the business
Structure- The way the organization has been arranged and who reports to whom in different matters
Skills- The skills of the employees who are working for the company
Systems- The daily activities and the pro

cess that the members of Yahoo engages themselves
Style- The Yahoo company has adapted the Transformational Leadership style
Staff- The company provides training to each and every staff to help them engage in different activities
Shared Values- The values of the company are based on corporate culture and mechanism

PESTLE Analysis

PESTEL Analysis is one of the strategic tools that help to determine the macro environment of the Company. The PESTEL analysis stands for Political, Economic, Social, Technological, Environmental and Legal factors that impacts the external environment of Yahoo Inc. The PESTLE Analysis of the following organization is as follows;

Political Analysis- The political factors play a key role in the determination of the factors that can have an adverse effect on the mentioned software company (Brown & Duguid, 2017). The main rules and policies of the government in which Yahoo accesses itself determine the following factors. The fact that Yahoo has been a single platform and everyone has the ability to access it makes it bound to some specific legal cyber rules. There are several cyber rules of the regions where the company operates. Globalization has played a key role for Yahoo in the recent times. The inerpolitical factors thus present an active political threat to the survival and sustainability of the organization (Dodgson, 2018).

Economic Analysis- The economic factors also lays key role in the operations of Yahoo Inc. According to, Shaikh & Karjaluoto (2015) the economic factors include the exchange rates of the country where the company operates and the technological reforms of the country that have a direct role in the economic factors of the business. Yahoo has presence both in developed as well as underdeveloped countries. The developed states with high level of human development index and a sound economy will be much prone to internet than the underdeveloped ones. The company will have a much high level of operating revenue in the developed countries.

Social Analysis- The social factors that needs to be considered are as follows;

The amount of interest that people will show in the Yahoo platforms of the countries where the company operates
The development of Yahoo platforms like Yahoo websites, social media portals is important to the social development of the business in the countries where it operates
Social and ethical issues as formulated by the management of Yahoo Inc.

Technological Analysis- The technological factors that need to be considered are vast in nature. The technological attributes like innovation plays a key role in the development of Yahoo Inc. Apart from this the implementation of different web technologies in different products of the company (Shaikh & Karjaluoto, 2015).

Legal Analysis- The legal factors that needs to be considered are as follows;

Legal policies and guidelines of the country where Yahoo operates
Ethical competition in the market following the different rules and policies of the government
Consumer protection and e-commerce
Data protection of the customers is also of key importance

Environmental Analysis- The environmental factors that needs to be considered are as follows;

Pollution from internet information providers company
Laws regulating the environmental aspects of the country
Use of Renewable Energy
Yahoo can support environmental campaigns undertaken in the operating countries

SWOT Analysis

STRENGTH	OPPORTUNITIES
Maximum number of users Large mail subscriber base Large number of products Strong web portal	Directory is structured Huge potential in combining services with other social media platforms Development of Yahoo mobile application for smart phones
WEAKNESSESS	THREATS
Market share less than 10% Google has largest market share Financial health is not good Services are unknown due to lack of proper promotion	Large number of competitors Search engine service is declining Advertising has been low Yahoo is not a web portal choice for most of the internet users

Strengths- The presence of large number of users and a huge mail subscriber base is one of the biggest strengths of Yahoo. Apart from that the presence of a large number of product line including that of yahoo answers, yahoo mail and yahoo directory enhances the strength of the company (Brown & Duguid, 2017).

Weaknesses- The declining market share which now stands at less than 10% and the increasing strength of Google in the web business is a serious weakness of yahoo (Shaikh & Karjaluoto, 2015). The absence of sound financial health and unknown services and products makes the position of the following company weaker in the competitive market of the modern days.

Opportunities- The presence of a structured directory and the opportunity to combine the services of the company with the other directories is a huge advantage for the company (Dodgson, 2018). The development of the mobile application of the following web portal can also enhance the scope of the business organization in the technological market of the modern decade.

Threats- The study of Du & Bstieler (2016) has revealed the alarming rise of Google web users combined with the absence of promotional policies of yahoo is the largest threat for the company to its survival in the market.

References

Brown, J. S., & Duguid, P. (2017). The Social Life of Information: Updated, with a New Preface. Harvard Business Review Press.

Dodgson, M. (2018). Technological collaboration in industry: strategy, policy and internationalization in innovation. Routledge.

Du, S., Yalcinkaya, G., & Bstieler, L. (2016). Sustainability, social media driven open innovation, and new product development performance. Journal of Product Innovation Management, 33, 55-71.

Grbovic, M., Radosavljevic, V., Djuric, N., Bhamidipati, N., Savla, J., Bhagwan, V., & Sharp, D. (2015, August). E-commerce in your inbox: Product recommendations at scale. In Proceedings of the 21th ACM SIGKDD International Conference on Knowledge Discovery and Data Mining (pp. 1809-1818). ACM.

Grimpe, C., Sofka, W., Bhargava, M., & Chatterjee, R. (2017). R&D, marketing innovation, and new product performance: a mixed methods study. Journal of Product Innovation Management, 34(3), 360-383.

Shaikh, A. A., & Karjaluoto, H. (2015). Making the most of information technology & systems usage: A literature review, framework and future research agenda. Computers in Human Behavior, 49, 541-566.

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