Introduction:
This case is a presentation of Strategic Management. In particular, it focuses on Meg Whitman, and her leadership of eBay, Inc. through a period of record growth.
Who:
Meg Whitman, the current President and CEO of eBay, Inc., was raised on Long Island as the youngest of three children. She earned a B.A. in economics from Princeton in 1977, and her MBA from Harvard Business School two years later. Before she was chosen for her role at eBay, she worked in a variety of positions, including three years at Procter & Gamble, eight years at Bain & Co. where she quickly became a partner, and positions in both strategic planning and marketing for Walt Disney. She then moved to the Stride Rite Corporation, FTD, and Hasbro, before being offered the position at eBay, Inc.
What:
When Whitman agreed to accept the position as President and CEO of eBay, she realized that she could not come to eBay with a heavy hand, but must first make an effort to truly understand and integrate herself into both the internal and external culture. She was highly impressed by founder Pierre Omidyar, as well as the other senior managers. In fact, one requirement of her acceptance was that Omidyar continue with a majority of his current duties. Whitman’s set several short-term priorities during her first few weeks at eBay, Inc.: “to develop a strategy for the level of investment the company should make in system capacity, to define and develop eBay’s marketing strategy, to streamline and strengthen the organization, and to prepare the company for its IPO.” For the long term, Whitman focused on the overall growth and development of the company. She planned to add several experienced managers to the company, a dedicated marketing executive, and a skilled legal council to deal with any problems that might arise in the future.
Why:
The largest change at eBay, Inc. was the shift into a business unit-based organization from its traditional