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Yahoo Company’s Operating Model and Value-Adding Roles Research Paper

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Updated: Jul 3rd, 2020

Introduction

Yahoo Incorporation should use appropriate strategies to become a leading player in its industry. The design options (Product and Geographic) recommended in Module 2 can support Yahoo’s business objectives. The firm should also use the best Six Sigma Drivers to improve the competitiveness of its products (Carlson, 2015). The managers should also focus on the best leadership practices. The power of research and development (R&D) will ensure the firm competes successfully in the global market. The company should also use the four governance levers to formulate a powerful business strategy. This essay offers the best value-adding roles that can make Yahoo successful.

Yahoo’s Operating Model: Design Rights

It is agreeable that Yahoo Incorporation uses a powerful model to achieve its goals. The firm supports a hybrid operating model. The company has different departments and units. However, such units embrace common approaches to achieve the best outcomes. Most of the systems in every unit are also common. Similar talents are expected in every unit. Yahoo uses the best corporate practices to add value. Yahoo’s corporate functions have been effective in promoting the best practices (Kesler & Kates, 2010). This operating model is currently supporting the company’s goals.

Yahoo Inc. operates different units and departments. Every department has a qualified manager. Such managers ensure every activity is completed successfully. However, the “power of corporate oversight of knowledge, capital, and talent makes it easier for the company to achieve its goals” (Carlson, 2015, p. 92). The firm has a CEO whose role is to promote the best practices. This operating model creates a simple matrix. This simple hierarchy makes it easier for Yahoo to achieve its objectives. The firm has established “different departments such as Finance, Product Development, Advertising, and Marketing in order to achieve the targeted outcomes” (Carlson, 2015, p. 52). Every department has a leader who makes the best decisions. The leader also promotes best practices. The duty of the Chief Executive Officer (CEO) is to ensure every function produces the best outcomes.

Application of the Four Governance Levers

Yahoo Incorporation uses the four governance levers to support its business strategy. Diagnostic systems are used to track the performance of different departments. This strategy makes it easier for Yahoo to achieve its goals. Different managers at the firm use this lever to channel the right resources. This practice supports the firm’s goals. Yahoo has also been using different belief systems to empower its employees. The system seeks “to empower different managers, salespeople, and clerical personnel” (Carlson, 2015, p. 72). Every employee is encouraged to focus on the best goals. The practice also “produces the best employee-relationships in the organization” (Abdullah & Mehmood, 2013, p. 1609).

The company also uses boundary systems to promote the right behaviors. Such behaviors improve the level of responsibility. Every employee avoids unnecessary behaviors thus resulting in innovation. Interactive levers or networks are critical towards producing the best teams. Yahoo has established formal systems to produce the best products (Carlson, 2015). The managers also monitor every decision-making process to support the firm’s strategy. Yahoo manages its resources using these four levers. This practice has made it easier for Yahoo to produce a powerful business strategy.

Recommendations for Function Support

Yahoo Incorporation should identify the best value-adding roles to become centralized. The first important “value-adding role is called the operating core (OC)” (Abdullah & Mehmood, 2013, p. 1611). Yahoo should promote the best business practices and products that will satisfy the expectations of every customer. Function support (FS) should empower different marketers. Such marketers support the needs of every targeted customer. Proper support is essential because it ensures every activity is executed in a professional manner (Kesler & Kates, 2010). This practice will ensure the firm acquires new competitive advantages.

The concept of techno-structure is critical for Yahoo Incorporation. The managers at Yahoo should create new functions and strategies to produce quality products. Every programmer should produce quality services and products depending on the needs of the targeted customers. A proper managerial structure will ensure every function focuses on the best outcomes. These recommendations “will ensure every firm becomes center-led” (Abdullah & Mehmood, 2013, p. 1612). The approach will ensure the company produces quality products that can compete in the market. The firm should also combine these strategies with the above governance levers. The main goal is to ensure Yahoo Incorporation becomes a leading competitor in its industry.

Conclusion

Yahoo Incorporation has a powerful operating model. This hybrid model ensures every department is aware of the targeted organizational goals. The firm should create a balance between the operating model and the four governance levers. This practice will ensure every employee is aware of the targeted business strategy. Yahoo should embrace new practices and value-adding roles to support its business strategy (Kesler & Kates, 2010). The use of modern R&D practices and technologies will result in competitive products. Yahoo Incorporation should be aware of the increasing level of competition in the industry. This practice is necessary because companies such as Google are producing quality products. These practices will eventually make Yahoo successful.

Reference List

Abdullah, H., & Mehmood, K. (2013). Corporate Parent Value Addiction and Challenges. Middle-East Journal of Scientific Research, 15(11), 1606-1617.

Carlson, N. (2015). Marissa Mayer and the Fight to Save Yahoo. New York, NY: Twelve Press.

Kesler, G., & Kates, A. (2010). Leading Organization Design: How to Make Organization Design Decisions to Drive the Results You Want. New York, NY: Jossey-Bass.

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