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Yahoo Incorporation’ Design Options Research Paper

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Updated: Jul 2nd, 2020

Introduction

The Six Design Drivers (SDDs) identified in Milestone 1 can support Yahoo’s business goals. The firm should “use powerful strategies such as effective managerial practice, coordination, specialization, accountability, and motivation” (Carlson, 2015, p. 73). These practices will support their present and future goals. The firm has several capabilities that make it a leading industrial player (Palepu, Srinivasan, Lane, & Cornell, 2011). For instance, Yahoo is a leading global brand with many customers on every continent. The firm also improves its services and products in order to emerge successfully. The decision to hire competent programmers will support the company’s future performance. This essay describes the best high-level design options that will ensure the firm achieves its potentials.

Analysis of the Four Design Options

Many companies have achieved their potentials because of the concept of departmentalization. Yahoo Incorporation should consider the four design options of departmentalization in order to succeed. The first design option is a function. Many firms use various activities depending on the targeted organizational functions. Employees with similar skills are usually brought together in order to work as teams. The second design option is the product. This strategy ensures every product is characterized by specific activities. Such activities will result in better performance (Kesler & Kates, 2010). Every product will have a unique line of management.

The other design option focuses on the customer’s needs. Many organizations group their functions or activities based on the targeted customers. For example, a company might have different employees serving specific customers. Every department will focus on specific consumers who share similar problems. The concept of geographic departmentalization will ensure every activity is completed depending on the targeted territories (Kesler & Kates, 2010). This design will ensure the firm serves more customers in different geographic locations.

Two High-Level Design Options: Benefits and Risks of Each

The nature of an organization determines the best design options that can produce the best outcomes. Yahoo Incorporation should begin by focusing on product departmentalization. This design option is appropriate because Yahoo has a wide range of products. The company will ensure its workers focus on different products. Every product will be monitored by a single manager. The manager will hire the right specialists and programmers in order to improve the product. The senior manager should “ensure his or her product is successful” (Kesler & Kates, 2010, p. 56). This approach will ensure the firm achieves its potentials. However, most of Yahoo’s products are inseparable. This fact means that they have similar customers. Any attempt to group them into different departments can affect the company’s performance.

The second one is geographic departmentalization. Yahoo Incorporation can benefit the most from this strategy. To begin with, Yahoo has many customers in every part of the world. The firm’s organizational structure should focus on the needs of different clients in every geographical location. The approach will make the firm more innovative and competitive. The firm will also analyze the competitiveness of different firms in every geographical location (Carlson, 2015). However, the strategy can make the firm less competitive in regions dominated by firms such as Google. The firm will also be unable to focus on the socio-cultural needs of its customers.

Organizational Archetype and How it Affects Structure Decisions

Yahoo Incorporation’s organizational archetype dictates its structure decisions. To begin with, Yahoo is a multinational firm because it serves many continents. The firm also “offers several products but in the same industry” (Palepu et al., 2011, p. 12). The organization offers internet-based applications such as “adverts, emails, search engines, messenger, and news” (Palepu et al., 2011, p. 17). Such products have similar customers. This fact means that the firm cannot segment its customers. Yahoo has not widened its presence in different continents such as Africa. This fact explains why the above geographical departmentalization might not produce the best outcomes. The firm’s products are also designed by the same programmers. Such products have also similar customers. This fact explains why the firm cannot use all these four design options. This situation also affects Yahoo’s structure decisions. That being the case, a new grouping option will be relevant for Yahoo Incorporation.

Best Grouping Option for Yahoo

A powerful strategy is required in order to make Yahoo successful. To begin with, the targeted Design Drivers will ensure the firm achieves its goals. Managers should identify the best organizational functions in order to produce competitive products. The above two high-level design options will make it easier for Yahoo Incorporation to emerge successfully. The firm will ensure every manager focuses on a specific product. The Six Design Drivers will also work effectively for every product. The firm should “also segment different markets depending on factors such as competition, attractiveness, and consumer expectations” (Carlson, 2015, p. 87). A powerful motivational strategy will ensure every employee focuses on the company’s goals. This strategy will ensure the firm produces quality products.

Conclusion

Yahoo Incorporation should begin by using the above two high-level design options. The firm should also use the best Design Drivers in order to emerge successfully. New research and development (R&D) practices will result in superior products. Some practices such as effective management and accountability will make Yahoo Inc. successful. The use of modern technologies will ensure Yahoo increases its competitiveness. Every worker should be motivated in order to achieve the best outcomes.

Reference List

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.

Palepu, K., Srinivasan, S., Lane, D., & Cornell, I. (2011). Strategy and Governance at Yahoo! Incorporation. Harvard Business School, 1(1), 1-33.

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