VIDEO CASE Yahoo! Started by two Stanford electrical engineering Ph.D. candidates ‘as a way simply to keep track of their personal interests on the ‘Web, Yahoo!, Inc, has since become one of the most recognized brands associated with the Internet. In 1994, the company’s, founders, David Filo and Jerry Yang, realized that their personal lists of Web sites were becoming too cumbersome and decided to develop a customized database to simplity such information. ‘They also realized that such a system would benefit greatly the many thousands of people and organizations that were beginning to use the Internet. As a result, Filo and Yang developed cus- tomized software to help users locate, identiy, and edit material stored on the Internet, and Yahoo! emerged. Then, in 1995, Marc Andreessen (cofounder of Netscape Communications) invited Filo and Yang to move their files to Netscape's larger computers. ‘As Yahoo! evolved from a hobby to a business, Filo and Yang made several wise management planning and control function decisions. First, because of the highly competitive na- ture of the industry, Yahoo!'s three-part corporate strategy em- phasizes the need for continuous product innovation. Second, the founders selected an organization design that reflects the rapidly changing Internet environment. Finally, the firm's cultural values stress continuous improvement, customer satisfaction, and produ integrity. Filo and Yang's understanding of the im= portance of the planning and controlling managerial functions. has greatly contributed to Yahoo!'s success. AAs the first online navigational guide to the Web, Yahoo!, Inc., has become a global internet communications, commerce, land media company serving more than 150 million people worldwide, Its currently the industry leader in terms of trattic, advertising, household, and business user reach. Also, to en- hance its Web presence, the company has diversified by offer- ing a variety of online business services, including audio and Video streaming, store hosting and management, and Web site tools and services. Headquartered in Santa Clara, California, the company's global Web network includes 23 properties out- the United States, with offices in Europe, Latin America, Canada, and the Pacific Rim. Questions 1. Explain how Yahoo! emphasizes product innovation in its corporate strategy. 2. Discuss how Yahoo!'s organization design accurately reflects and addresses the rapidly changing Internet envi- ronment, 3. Yahoo! is successful because of the teamwork competency ofits managers. Define teamwork competency and what is, needed to achieve it. To learn more about Yahoo!, visit the company’s home page at ‘http:wnew.yahoo.com.