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Assignment 4 Yahoo!

American Public University System

Shanean Keller

Class, BUSN601

Date, 1/28/17

Examine the countries where your company does business according to where they rank on the Hofstede cultural dimensions. Think of some examples of how a U.S. manager would need to modify his or her behavior when communicating with associates from one or more of these foreign countries.

The managers in the United States should have a better understanding of China. China is actually known to not be one of the country, which indulgence and they are actually way more reserved than the US. China is very collective in a way, they do indeed respect their people and their superiors. The USA has a very laid back and replaced setting for example at a workplace in China, you would greet your boss in a very formal way and in the USA, we greet our bosses by their first name or sometimes even their last name. Another good example would be my workplace. At Macy’s everyone is really laid back and we call our boss, “Little Lady” my boss would rather be called little lady then her first name.

Now let’s talk about Australia. Australia is actually known to be quite westernized, tone of the main differences that a manager within the USA would need to understand would be, that long terms goals are applies and not short term goals.

2. Does your company operate in any countries that are considered very politically or economically risky?

Australia is currently known as a country that is at an “Economic risk” because of the fact that, they are ranked at number 12 amongst all other countries. They are also ranked the 12th because of their GDP. A really good about Australia would be the fact that, they do indeed have many good strengths. Australia holds a lot of natural resources such as a good business environment or infrastructures for example. (Organization for Economic Co-operation, 2005)

Australia does have their goods and their bad’s as well. One of the main weaknesses that I would say is certainly a disadvantage would be the dependency that they have with China. Sometimes Australia can appear to be rather unstable at times. China on the other had is quite a sustainable country which is why some countries look at China as a good example. China is looked at as one of the main countries that is very stable economic wise. China has been ranked as one of the 2nd countries so 2versus 12 says quite a lot.

3. Does your company primarily operate in civil law or common law countries? What are some of the implications of this?

The CIA states that the main book which regards all the legal systems Australia’s actually uses one of the main law systems which is actually a law system that is very, very common. If we look at China we will clearly see that they follow the civil law however, this law has been greatly influenced by the European low systems. (Organization for Economic Co-operation, 2005)

4. Has your company purchased any insurance from the U.S. Overseas Private Investment Corporation (OPIC)?

It appears that they have not purchased any information from the USA. I have not been able to find much information on this at all. (Yahoo.net, 2017)

5. What are some key intellectual property protections, if any, that your company possesses? When do these protections (e.g., patents) expire? How does your company intend to recoup lost revenues due to any patent or other intellectual property protection expirations?

Yahoo! has actually sold 3,000 or more of their very own patents, because they needed to keep their company going. Yahoo! made a wise decision to sell some of their patents. In my honest opinion I am viewing Yahoo! selling their patents because they see them as their stock. (Yahoo.net, 2017)

6. Find the Corruption Perceptions Index (CPI) score for two countries where your selected company does business, one country with a relatively high score and one country with a relatively low score. Search for news stories about corporate financial scandals in these two countries. Prepare a short summary of news stories about financial scandals in these countries. Briefly describe what you perceive are the risks of corruption, such as paying bribes, that your selected company might face in these countries.

It appears that Australia is currently ranked at a 13 CPI score and China is ranked at a whopping 83. Let’s talk about one of Australia’s scandals known as the bank bill swat rate. The bank bill swap rate is known as the manipulated benchmark rate which allows someone to higher, or increase the profits that they make. Back in 2012 there was a huge investigation that went on, this investigation was set by the Australian security commission. (Business/banking-and-finance, 2016) The bank known as ANZ which is a group of people who were convicted and accused of this crime. The group bribed their way put of their crimes that they committed.

As we can see that the main down falls of this country would be their ethics and also their morals of corruption. The story doesn’t end well here because the group of people involved in this scandal were able to change people’s minds and get away with it eventually. (Business/banking-and-finance, 2016) Such scandals in China is handled quite differently. Let’s face it China does have corruption however; the situations are treated seriously. An investigation will not be called off so easily nor can people bribe their way out of it. (The China Legal Development, 2009)

7. Determine your company’s mode of entry into foreign markets. This should be based upon a serious analysis of your company’s risk-return tradeoff. In your opinion, has your company taken the right approach?

Yahoo! has quite in interesting mode which consist of many entries into foreign markets. Yahoo! also has a joint venture in the foreign markets as well. (Yahoo.net, 2017)

8. Does your company have an exit strategy? Recall that exit strategies are to be determined before entry into the foreign market, rather than after entry.

After doing further research it appears that my company Yahoo! does indeed have an exit strategy. As mentioned above Yahoo does have a joint venture, therefore they can minimize the risk of having a firm or more, from another country to give out and their resources. (Angel, K. Inside Yahoo! 2002) This gives Yahoo a really good advantage of knowing what market they are working with and they are able to be sure that they’re making smart decisions for their company. (Yahoo.net, 2017)

9. Critically and objectively evaluate how ethical your company’s global operations are and determine if they are good corporate citizens (i.e., do they have a well thought-out corporate social responsibility program for the long term?).

Yahoo! has quite a lot of good information on their website and I was able to find their page that consist of a lot of information on their code of ethics. (Yahoo.net, 2017) Yahoo! has a lot of good information on this particular page such as, human rights, political activities, child protection, etc. (Angel, K. Inside Yahoo! 2002)

10. What is the corporate mission statement of your target company, assuming it has one? How well do the company’s actions adhere to its stated mission?

Yahoo! appears to have many mission statements which in my opinion is a very good thing. Some people say that Yahoo may have too many mission statements and this is why they have struggled a lot in the past and in the present. (Yahoo! web analytics, 2009)

11. With respect to its strategy formulation, would you categorize your company as a shareholder model or a stakeholder orientation? Why?

Yahoo is known as a company that is a stakeholder corporation. (Yahoo! web analytics, 2009) Yahoo! is known for doing enterprises which basically allows them to get other companies and partners to join the company.

12. Is the company a stateless corporation? If not, is the company on its way to becoming a stateless corporation?

Yahoo! is indeed a stateless corporation and their headquarters are located in so many different nations around the world. Because their headquarters are in many nations this gives them a lot of business advantages. (Yahoo! web analytics, 2009)

13. What type of organizational structure is the company currently using?

It appears that Yahoo! does indeed use what is known as the hierarchical structure. The hierarchical structure is quite interesting because it allows a company to strictly depend upon the CFO and the CEO as well as the companies head directors. (Yahoo! web analytics, 2009) The structure also gives Yahoo! the ability to meet their consumers needs, and this allows them to take action and make faster decisions. (Angel, K. Inside Yahoo! 2002)

14. Do you think the company may benefit from a hybrid or matrix structure? Why or why not?

From what I understand Yahoo! has been using the matrix structure for quite some time now. The structure did in fact help Yahoo! to a point however a lot of issues appeared to arise. The structure actually had created some kind of confusion, between a lot of the bosses and higher ups in the company. Yahoo! has been struggling with a lot of different things throughout the years. Perhaps Yahoo! should start using different structures to help their company. (Angel, K. Inside Yahoo! 2002)

Shanean

References:

Organization for Economic Co-operation and, D. (2005). Australia. Paris: OECD.

Pope, A. (2011). One Law for All?. : Aboriginal Studies Press. Retrieved from http://www.ebrary.com

http://www.afr.com/business/banking-and-finance/financial-services/one-of-the-biggest-scandals-in-australian-banking-history-20160212-gmss1a

Li, L. (2009). The China Legal Development Yearbook. : BRILL. Retrieved from http://www.ebrary.com

Angel, K. (2002). Inside Yahoo! : Reinvention and the Road Ahead. New York: John Wiley & Sons, Inc. [US].

https://investor.yahoo.net/faq.cfm

http://finance.yahoo.com/quote/INTC?ltr=1