Business environment is the surrounding within which a business operates. It can be classified into internal and external environment. Internal environment comprise of management, money, material, machinery and man. On the other hand, external environments are those factors beyond the control of the business like social cultural factors and political factors. In the case of yahoo, it is managed by a board of directors headed by Tim Koogle. A significant percentage of its capital is financed through equity and, therefore, pays dividend. Externally, yahoo is faced by competition from companies like Google and AltaVista.
Yahoo operates globally and thus providing five primary services known as properties. First, it provides navigation services that make it easy for users to find thing online. Secondly, it provides community service that facilitates convenient connection. Thirdly, it provides personalized services that enable consumers customize to suit their personal needs. The fourth service is the provision of electronic commerce service that facilitate shopping and e-business. Lastly, is the provision of international services connecting all countries in the world and thus making the world global.
2. Explain why Yahoo!'s competitors are engaging in merger and acquisition activities. Do their moves make sense?
Yahoo competitors are merging and others are being acquired to increase their competitive advantage. Yahoo is a big market player, and an entrepreneur requires large capital to compete with it. Small firms are merging or are being acquired by medium firms enabling them raise the necessary capital. This move is making sense because these companies merge their expertise and resource to keep up the pace set by yahoo.
3. with recent events depicted in the case, should Yahoo and Koogle adjusts their strategy? If so, how?
In early this year, yahoo announced Thompson as the new chief executive officer. The previous one Jerry was a reservist and resisted the changing environment. Another main event is the invention of business partnership with Yahoo. Based on these events, yahoo and Koogle should change their strategy. For instance, yahoo is still guided by the initial business plan drafted during formation of the company. This should be changed or improved to accommodate the present business environment.