Yahoo Case Study

As we know that in an every organization environment plays a very important role in the growth of an organizations. There are mainly two types of environments; they are Specific environment and General environment, both exist in every organizations Specific environment refers to the external forces that affect the organization ability to secure the resources; for example suppliers, consumer, competitors, and bankers directly affect the organization process. General environments like rescission and natural calamities shape the specific environment and affect the ability of all the organization in a particular environment to obtain resources (source: organizational theory, design, and change by Gareth R. jones and Mary Mathew).
Yahoo was operating in Dynamic environment because in 1994 Yahoo started with their human powered search engine, as it grew they started to identify some problems which later solved by recruiting the human volunteers. In 1994 hundreds of thousands of users started visiting there website and it was then became primary search portal for the users. Yahoo realized that there is huge potential in their search engine portal model by which they can make huge money; initially they approached some companies to advertise on their web portal by providing advertising space on their web site which in return generated huge revenue. As their company grown and the number of user visits increased they wanted to invest their money in the IT infrastructure to support their portal’s growth. In 1996 by public offering yahoo generated its sequoia capital by its experience of new startups as an entrepreneurs, without any business background Yahoo hired the experienced executives, CEO’s and COO’s to control the developing business model.
The first step taken by Yahoo was to strengthen its core competences in marketing and advertising to increase their revenue and fund to further growth of the organization. They also focused on recruiting the market expertise to