External and Internal Environment

External and Internal Environment

Introduction

The company which we have chosen for this paper is Yahoo Inc. Yahoo is a digital media company which is involved in delivering personalized digital content and experiences, across a wide variety of devices. The company has enhanced its reach through several distribution agreements which enhances the appeal for advertisers. However, continued intense competition adversely impacts Yahoo's ability to sustain market share and revenue growth. Yahoo is an American based internet company which is headquartered in California. Yahoo Company was founded by David Filo and Jerry yang in 1994. In 2012, Marissa Mayer who was the former Google Executive was named as CEO of Yahoo. The company has increased its presence across several platforms through all screen focus. The company distributes its content across several screens including mobile, tablets, PCs and TVs. Additionally, through tie ups with several leading players like AT&T, Comcast, Facebook, Starbucks and Twitter, the company has also built strong strategic distribution.

Discussion

Two segments of the General environment

The two segments which affect the company include the internal and external environment. The internal environment is considered to have a direct impact on business and company has some control over its factors. It can also change and modify factors which include physical abilities, personnel and functional means of the organization such as marketing. Human resource management is also considered as an important aspect of internal environment and Yahoo also focuses on this aspect (David, 2003). The company also promotes a culture where employee's suggestions are accepted and meetings are held among employees. The organizational structure is considered as a system composed of subsystems which are based on continuous interaction acts as an internal variable of the organization. Yahoo also promotes a culture where employees share meanings, organizational structure, processes of decision making and control systems interact and produce standards behavior. Yahoo also involves the communication system, which mediates the exchange with members of similar behavior patterns which share symbolic logic through a sense of belonging based on the organizational culture.

Yahoo is considered as a new chapter of the internet. Yahoo has announced a large scale changes in its organizational structure (Worley, Vick, 2005). It has focused on restricting its management functions. Evidence also suggests that Yahoo may be divided into two parts which include a structure, according to the company's new CEO Carol Bartz, Yahoo will cope better with difficulties and rapidly collapse capitalization. Yahoo also discussed the changes as company does not have accurate information about future changes. Carol Bartz's plan is still to be only its development and implementation of ideas a few sources in the company.

The external factors are also considered as an important aspect for any corporation and it includes the micro environments which include suppliers, customers, marketing intermediaries, financiers and public. Whereas the macro environment is composed of political, economical, social and technological factors affecting the company.

Five Forces of competition

The porter's five forces are based on the components known as threat of new entrants, threat of substitute products, ...