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Yahoo: Organizational Development and Change Research Paper

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Updated: Jan 21st, 2020


Yahoo is a cosmopolitan American brand that has its head offices in both Sunnyvale and California, in the US. Yahoo has recognition in its products and services that include Yahoo Groups, video distribution, fantasy sports, advertising, Yahoo Mail, Yahoo Answers just to mention, but a few.

In 1994 January, David Filo and Jerry Yang came up with a website by the name “Jerry and David’s Guide to the World Wide Web”, which acted as an information bank of the other websites. Its formation was in a chain of command, rather than a searchable record of pages.

It later changed its name to Yahoo, in April the same year. Yahoo.com field arose in 18 January 1995. Just like many web directories and search engines, Yahoo expanded to become a web portal. Yahoo also got many high-profile achievements. Its stock cost rose remarkably rapidly throughout the dotcom bubble (Cardoso, & Sheth, 2006, pp. 3-15).

On January 3, 2000, its stock shut at the highest peak of $118.75 per share. Nonetheless, subsequent to the dotcom bubble rupture, it dropped to the lowest point of $8.11. Contemporarily, approximately 700 million people use Yahoo websites each month. The Company declares that it draws over half of a billion customers each month in above thirty different languages.

Consulting firm

Following Thompsons meeting some firms, he engaged Boston Consulting Group in assisting Yahoo on development of schemes and assisting decide the finest course for the progress of the company.

Boston Consulting Group, Inc. offers administration-consulting services (Fain, & Pedersen, 2006, pp. 12-13). Thompson, who aggressively took up the reins of supremacy at the company, led a fantastic deal of the thrust for rapid change.


Yahoo started making use of Google for search outcomes in 2000. In the course of just four years, Yahoo came up with its search expertise. In the year 2007, this company came up with a mail service that is similar to Gmail of the Google. In January 2009, Carol Bartz reinstated cofounder Jerry Yang (Rose, 2006, pp. 797-799).

On Fortune 500 record, Yahoo ranking advanced in 2010, rising to 343rd position when judged against 345th in year 2009. This owed to its revenue and profits increase. The company’s chairperson Roy Bostock detached Carol Bartz from her rank and Tim Morse took up the role of the Interim CEO of Yahoo Company in 2011.

Following Scott Thompson becoming the CEO of Yahoo Company in 2012, many tales unfolded concerning massive redundancies. On April 2012, the company made known a reduction of two thousand posts or approximately 14% of its 14,100 workforce.

This slash, as anticipated, will bank about $375 million yearly, once layoffs are through by the closure of 2012. Yahoo announced through the press on 13 May 2012 that Thompson no longer was with Yahoo, and would immediately on an interim ground be replaced by Ross Levinsohn, lately allotted head of Yahoo’s fresh Media group (Thomas, & Sheth, 2011, pp. 1285-1288).

Products and services

Yahoo controls the web portal that offers content like entertainment, sports information, and the latest news (Cardoso, & Sheth, 2006, pp. 16-23). Yahoo Company as well offers its customers admittance to services like Yahoo Maps, Yahoo Mail, Yahoo Finance, Yahoo Messenger and Yahoo Groups. Other products and services include the following:

Yahoo associates with several content suppliers in products like Yahoo Sports, Yahoo Music, Yahoo Finance, Yahoo Movies, Yahoo Answers, Yahoo Games and Yahoo News to offer news and media content. Yahoo in addition offers a personalization service called My Yahoo, which allows users to join their preferred Yahoo aspects, knowledge along with content to a given page.

On 31 March 2008, Yahoo opened Shine, a site styled for women hunting for online counsel and knowledge. Yahoo Mobile provides services for immediate messages, emails, and mobile blogs in addition to information explores, vigilance, and services.

Services provided for camera mobile phones encompass ring tones, snaps and entertainment (Cardoso, & Sheth, 2006, pp. 24-33). These are just but a few of products and services of Yahoo.

Benefits program

Disburse at Yahoo is spirited in the area. Benefits are a powerful part of the pack and rely on the work position (Thomas, & Sheth, 2011, pp. 1289-1291). Some of the benefits may comprise the following:

  • Employee Stock Purchase Plan: via ESPP plan, workers may invest through payroll subtractions. Workers pay just 85% of market price for stock.
  • Health Care: the company presents coverage of health care for staff and their entitled dependents.
  • Medical Insurance: that has numerous plans.
  • Income Protection: offers fundamental life insurance/AD&D to every employee at no cost. Purchase of extra voluntary life insurance is at faction rates. Additionally, Yahoo pays for short-term disability (STD) and long-term disability (LTD) coverage (Thomas, & Sheth, 2011, pp. 1292-1293).


A great deal of change in Yahoo aims at the company’s vast products organization, in addition to other fields, where the company falls behind. Amid the targeted are communal marketing and affairs, weaker area attempts, trivial businesses, and study.

Changes are prone to prompt executive turnover. By now, as reported, Labs head at Yahoo Prabhavar Raghavan is parting for Google. This, as believed, is because of the possibility of considerable job slash in his research sector. The most spectacular progress by Thompson was to cut staff.

Even if Yahoo has encountered layoffs before, none of them is as striking as the one anticipated in a bid to reduce costs (Cardoso, & Sheth, 2006, pp. 25-29).

Yahoo had 14,100 workers during its previous released statement, higher with more than 4% from the preceding year. Nevertheless, sources said that Yahoo also has a vast dependence on software outworkers who work on merchandise and whose fee masks in its capital outflows.

All units need to demonstrate either a vivid path to adept development in revenue or substantive savings. Moves like this are probable to encourage the Wall Street enhance its stock and possibly temporarily allay Daniel Loeb, its aggressive activist shareholder (Cardoso, & Sheth, 2006, pp. 30-31).

The activist shareholder has been pressing for transformation on Yahoo’s panel that will be going on now, given that its members together with Jerry Yang, the co-founder, will be leaving. Even as Yahoo has officially disengaged with confidential justice players, there could be extra situations for a meaner and tilter Yahoo, predominantly considering its enormous viewers.

Thompson, without doubt, pointed out gigantic alteration in his initial dialogue call with the Wall Street, albeit he refused to give exact information. Thompson stated that Yahoo could not just defend current income sources, but could do much more.

He also stated that they would consider fresh revenue sources and business models. Yahoo’s leadership interlocks in a course to generate noteworthy strategic modification, but making of ultimate decisions is yet for now.

OD interventions

In an attempt to boost its effectiveness and viability, Yahoo will utilize interventions as it applies different change causes. The interventions are meant to progress performance, behaviors, and productivity in the course of a sequence of structured teams and individual activities that center on what workers do, and their way of doing it.

If Yahoo invests in its workers, workers will devote their talents and time back into their company. Over and above providing feedback, monitoring goals and strengthening constructive worker activities, Yahoo ought to also labor toward building up the expertise of their workers and boosting their sense of comfort (Cummings, & Worley, 2009, pp. 150-155).

Investments like these can include providing employee benefits, educational opportunities and offering the tools and support required to carry out work proficiently.

While making developmental changes in Yahoo, the duties of decision-making ought to change from a duty assigned to managers only, to one that every employee shares.

In successful companies, managers appreciate that decision-making ought to take place where the foundations of information are. However, this does not happen at all time toward the peak of the sequence of authority (Cummings, & Worley, 2009, pp. 159-164).


Yahoo is among the winning companies. They have upheld the lead owing to a high excellence end-to-end client experience. This owes to their persistent investment of new services, in addition to widespread alliances and partnerships with leading companies.

Yahoo’s strong focus on the customer’s requirements and high excellence online understanding has been influential in creating a reputation for superiority.

Additionally, their guerrilla marketing and innovative promotional techniques have shaped a distinct product identity that appeals to its intended market and differentiates the brand. Because of all these aspects, Yahoo has created a strong brand having a large user base and high degrees of customer dependability.

Reference List

Cardoso, J., & Sheth, A. P. (2006). Semantic Web Services, Processes, and Applications. Semantic Web and Beyond Computing for Human Experience, 3, 3-33.

Cummings, T. G., & Worley C. G. (2009). Organization Development & Change (9th ed.). Australia; OH: Southwestern Educational Publishing.

Fain, D. C., & Pedersen, J. O. (2006). Sponsored Search: A Brief History. Bulletin of the American Society for Information Science and Technology, 32, 12–13.

Rose, D. E. (2006). Reconciling Information-Seeking Behavior With Search User Interfaces for the Web. Journal of the American Society for Information Science And Technology, 57(16), 797–799.

Thomas, C., & Sheth, A. P. (2011). Web Wisdom: An Essay on How Web 2.0 and Semantic Web can Foster A Global Knowledge Society. Computers in Human Behavior, 27(4), 1285-1293.

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