Project Management Assignment: Case Analysis of Failure of Yahoo
Task: The Case study topic for Project Management is “The decline of Yahoo” or “Failure of yahoo” or “The Rise and Fall of Yahoo”… The writer needs to frame the case study as a project report on project management assignment.
Part 1: Explore the rationale/reasons behind the modern organisation developing a Project Management Strategy (PMS). Consider why it is important for any contemporary organisation to have a PMS and outline the typical contents of this strategy.
Part 2: Using your own examples taken from well documented project failure case study of your own choice, critically examine what the PMS should address in relation to your case study organisation and how the strategy should align with the overall business strategy and the advantages and disadvantages for both the business and the project management team.
1. Project Management Assignment Part One: Case study overview
Project management is the process of leading a group of the team in an organization to achieve a particular goal and achieve success for the organization. An organization needs to form a project management team before working on a project. Sometimes the clients ask the organization why they need a project management team. Because of project management, the cost of the project can increase. So the client proposes why to waste money on the project management team.During the 2000s, Yahoo Company accumulated the wrong choices and this will create a major issue in front of them and bear the loss. Yahoo faces failure due to not accepting the correctchance at anaccurateperiod and the occurring opportunities were at the entrance that is waiting for approval. The chances were gone wrong due to the poor vision and strategy of an organization.
The case study is based on Yahoo which is established in 1944 by Jerry Yang and David Filo and this was the pioneer of the early internet era in the 1990s. An organization has grown-up up vastly to become the full-featured Web gateway along with the host facilities that cover the most consumer requirements with search engine Yahoo. In 1998, yahoo is the most famous platform and site over the internet (Alghail, et. al., 2017). The TheStanfordCollege of graduation wasinitial new equipmentand they were prepared to sell it to yahoo. They were interested to work with the major website and provide the amazing rate of 1 million dollars for imaginative tech. though, the owner David Filo declined to buy the thought and persuaded them to get up out on their possess, and announced them to the originalinvestors.
1.3 Relation of Research/Contemporary issues to problem
In early 2002 before the dot com bubble rupture yahoo was the most visited and viewed search engine but due to many wrong choices that are taken by the management yahoo lost its value. Yahoo was launched at the correct time and should have had 20 years of growth and development but having fortune at your side does not make you successful all the time. There is some poor decision that is made by yahoo which is responsible for the fall of it. These reasons can be explained in the following points:
- A missed chance with Google and search: In the early 2000s Google wanted to buy yahoo with a price of approximately 1 billion dollars, which was further negotiated to be 3 billion dollars. By the time the management of yahoo considered the offer that is proposed by Google, ithas already become more worth than yahoo so it considers it is not worth buying yahoo. At that time we will manage the work and if the management acted quickly they would have sold yahoo for more of a price than it is worth.
- Mismanagement of Flickr: yahoo buy flick and had plans to make that into a photo-sharing social network but due to the mismanagement was the idea was also dropped. It is being taken then maybe Flickr would become famous like Instagram. Yahoo missed another opportunity their which cost them a lot of money (Andersen and Grude, 2018).
- Not pursuing Facebook: Yahoo also attempted to buy Facebook, but their offer is constantly rejected by the current CEO of Facebook Mark Zuckerberg. Some reports indicate that yahoo could have bought Facebook at the price of 1.1 billion dollars but the board of directors that are present in the negotiation never agreed to that price because they consider it worth buying. Now the worth of Facebook is approximately 280 billion dollars. Because of a lot of mismanagement, yahoo lost another golden opportunity to buy a company that becomes a social media giant in the future
- Failure to merge with Microsoft: after the initial rejection to Microsoft to merge into yahoo. Yahoo the very next year agreed to give Microsoft the big SE to develop into a good search engine mainly because yahoo does not have a programmer at the level of Microsoft and Facebook.
By forming a good project management team the organization can keep in check the budget, scope, and time of completion of the project. If an organization is doing a project they never will be capable to finishthe project in the allotted period because they lack a professional project management team. The project management team keeps the client informed about the progress that is made in the project and keeps in mind the wishes of the client that the client needs in the project. This feedback from the client helps the project management team to get a good idea of what the client expects of them from the project. There are also many other reasons why a project management team is important for an organization. Some of them are discussed below:
Scope: project administration is significant for the organization because it ensures that the product that is delivered will be delivered right and against business opportunities. The clients expect some things from the project that is done by the organization. A project management team gives the client regular updates about the project and receives some feedback from the client on the things that the client wants to include in the project. This makes the project like the client wants it to be (Biesenthal, et. al., 2018). Theproject supervision team helps an organization to complete the project according to the clients’ wishes. A good project management team ensures that the right thing is delivered to the client and the thing that is delivered is of the correct value. Being a project management team member sometimes things might not go in the way that the organization has hoped for so the team needs to analyze the situation and realign the strategic plan and try to the best decision which satisfies both, the client and also in the favor of the organization.
Time: the project management team brings leadership and direction to the project. Without a proper project management team, every member that is working on the project is on their their own and there is no coordination between the teammates of the project. This creates a sense of confusion and fuss in the teammates' minds. We were examined that there is a lack of coordination is the key result of the delay of the project and also the mismanagement of the budget. If there is no coordination between the teammates there will be a lot of mistakes. Some mistakes can be resolved but sometimes some mistakes cannot be solved. This creates a lot of budgetissues. Due to lack of coordination the project delays which furtherdecreases the market reputation of the organization which is bad for the future projects of the organization. Without a leader the project team is like a ship without a rudder, working but without a target, moving without inspiration (Carvalho and Rabechini, 2017). Adding good leadership to the team has its benefits, it gives the team vision, motivation removesthe roadblock of problems that the team is facing, and it also inspires the team to work harder than ever before. With a leader now the team is accountable and responsible for the project that it has been given, the team leader will report the progress that is made on the project to the respective authorities. The team leader is responsible for the assignment of the work to different teammates; this will increase the coordination between the teammates. The increase in the coordination between the teammates increases their performance efficiency and decreases the chance of mistakes that happens in the work.
Clear focus and objective: project management team helps the members of the team to progress the project in a strategic way likes the organization wants them to take. In the team where the project management is left to the team members which not qualified for that, there are many problems, like most of the members of the team does not know brief of the project and does not know from where do they start their work, teammates do not know what they are supposed to do in the project and do not know the role of them in the project and members of the team are left non-supervised which creates a lot of problems in the project and creates a lot of coordination problems. But by appointing a proper project manager the organization can prevent all these things (Dociu, 2018).
1.4 Rationale & Supporting Documentation
The project manager is trained for these type of situations that happens in the organization. These issues can be solved by the project manager. Firstly, the whole team is briefly informed about the project by the leader of the project management team. That makes all the team members understand what thing they are working on, this gives the team members a vision and goal to consider. Then each team member is appointed their part in the project, small chunks of work are divided among the team associate according to skills of team members. By appointing work to everybody present in the team it becomes clear for the team members that how much work they need to get done for the project. The project management team also supervises the work that is done by the team members time and time again and gives them valuable feedback and also helping any team member who is having difficulty doing his/her works (Einhorn, et. al., 2019).Without proper planning, the budget allocation and project deadlines can get over-ambitious. This is a very bad situation for the organization because lack of planning will result in the late delivered project and a project which is over budget. A good and competent project manager, firstly the whole project and make the planning the budget and deadlines.
The main concern for the organization is to maintain its service quality. Every organization wants to deliver only quality products to its clients. Delivering quality products increases the reputation of the organization in the industry where delivering bad quality products declines the reputation of the organization. To main quality over several products at once is a tedious task for the company because the company has other much more important things to do other than checking the quality of each product that is being delivered. Almost every project is under pressure when they are being prepared, the project management team are under the constant pressure of deadlines, budgets and so many other things that it becomes much harder to maintain the quality of the product that is produced (Hans and Mnkandla, 2017). A dedicated project management team for the quality check will further ensure that the quality of the product is up to the mark and there has not been any compromise to the quality of the product.
Every project involves a certain risk. Certain things that happen during a project cause the organizations financially. A project management team ensures proper risk management for the organization during the project and ensures the organization from its financial loss that can happen during the risk. We were always ready to face the risk and always has a secondary plan if things did not go the way they are supposed to go.
As per the above-described project, it has been concluded that the project management team negotiates for a better deadline and budget that Is required for the project. Good project management will decide on the planning which is in the favor of the team and ask for a deadline that is reasonable according to the project. This reduces the risk of getting over budget and also gives a permanent deadline. Risk can include a certain situation where the team is stuck on the project due to lack of financial support from the company or because of the large size and ambitious deadline the team is not able to deliver the project on time. To avoid this type of situation a separately dedicated project management team is required.
2. Part Two: Proposed Project Management Strategy (PMS)
In this part, the position of planned changes to an actual plan is developed. There is a trade case thatiscompleted for the observance and analyzing the innovativerange and lodge that, time, and price that are familiar. This will help us in reduces the risk which has been involved and needs to keep the project under control and management.
1.3.1 Time plan
It is important for Yahoo founders are to grab the opportunities at the right time and make a contract with large companies to develop their goodwill and reputation in the large marketplace. The opportunity to unlock the value in expanding projects is not easy and simple for the firm. If yahoo grabs the chance to develop its growth and success at a higher level so this will assist in increasing the business place at the high stage where all the people use their sites and explore it (Ika and Donnelly, 2017). But due to not accepting the agreement with other companies so they had not to get the opportunities to develop their business more profitable and increasing the income level. We were analyzed certain things that the management of yahoo did that cost them the future of the company. Along with this, there are many uses of the project administration team in a project. Without the existence of a project management team, nothing will hold together the client and the organization and it will completely fall apart even in the smallest of problems because there will be no coordination between the organization and the client. A great project management team means a lot for the project and it contributes a lot to the development of the project (Banihashemi, et. al., 2017).
The main intend of the case study is to understand the view of owners and founders regarding why they do not grab the chance to develop their business more successfully in the large marketplace.
1.3.3 Project management strategy (PMS)
Costs and resources
As per my view, Yahoo optimizes accurate resources and costs which assist in better their facilities, and due to the lack of coordination and collaboration among directors of an organization they had face issues in achieving desired goals.Yahoo is an American web service contributor company and its headquarter is located in Sunnyvale, California, and regulated by Verizon Media that isacquiringthe company in 2017 for $4.48 billion. Yahoo provides the web portal, search engine, and connected facilities which include Yahoo Mail, Yahoo finance, fantasy sports, and advertising platform (UlMusawir, et. al., 2017). The main objective of this company is to improve their services and facilities provided through websites and different sites.
We need to manage the risks which arise while developing the project. There are challenges faced by Yahoo due to these the company does not gain success and face failure. One of the reasons for failure is not buying Facebook which is the most popular site for people. Dismissing Google two times was not the major chance for yahoo. In July 2006, yahoo was positioning and offers to gain Facebook. Before the admired household name, Facebook was the college-oriented communal website along with 7 million members (Jena and Satpathy, 2017). The initial proposal by yahoo was for 1.1 billion dollars that wereestablished their corporation. On the other hand, the contract has gone towards the conclusion with mark Zuckerberg on foot away when Terry Semel scratches the tender to $800 million. In this, yahoo had anobviouspossibility to buying the world's most famous site. Also, Zuckerberg was never considering the selling of an organization at one point.
2.3 Proposed justification for Business case
As per the case study, the failure of yahoo teaches them not to reject the required and developing agreement as this will lower their value in the market and create a negative influence on their business operations and its activities effectively. The report concluded the rationale of the issue and problems which had faced by Yahoo and through this; they can suffer from a major loss. Also, the company is conducted the proposed changes that are designed and developed to enhance the opportunity of whole success and partial success of sub-projects which is still add value. We were focused on examining and analyzing the situations so they can make changes as per their requirements and after evaluating the needs of people.
2.4 Proposed Methodology for successful implementation
There are three possible executions to consider for the project management solution to Yahoo such as traditional, structured, and agile.
Traditional approach i.e. waterfall
We were focused on the traditional approachwhich is value-based and emphasis on inclusion of values in research of the political phenomenon.This approach believes that this learningof political science should not base on information and facts and understands the values.The waterfall would have an ideal method and start of the project begins in the same way but it discovers and explores inappropriate survey results in a better manner (Kivilä, et. al., 2017). It would stopthe project in their direction and tracks. Waterfalldoes not enable the feedback and response that loops to identify the solutions.
Agile approach i.e. Scrum
It is a process that generally promoted a well-organized project management procedure and this will motivate commonexamination and edition, a leadership beliefthatencourages teamwork, responsibility, and self-governance. It is situate of practices proposed to permit for quickrelease of premium services or facilities. Yahooneeds to focus on making a contract with large companies so that they can increase their profitability and income to attract a large number of customers to their services (Kock, et. al., 2020). Agile project management is an iterative method to maintain and manage the software formulation projects which concentrate on continuousreleases and incorporating customers’ response and feedback.
Structured approach i.e. Prince2
We were concentrated ona structured approach or method which is a procedure-oriented approach in a better manner; the main aim is to break the large complex project intoa series of smaller and manage the project in a better way. Yahoo can adopt this approach which helps them in focusing on facts, solutions, and issues (Silvius, et. al., 2017). Itassists in reduces and minimizing the trendto play the political viewsand compulsion for assistance and support. It also encourages and promotesconstancywhile comparing the options all over the organization.
PRINCE2 is the project management approach thatis adopted all over the world and this can be used by organizations and people from wide-ranging sectors. This is the flexible method that instructs and guides through the requirements for maintaining the project's success (Martens and Carvalho, 2017). It is that approach that provides advantages and benefits to the directors and managers of the company through controlling the use of resources and capability to maintain the business. PRINCE2 develops and establishes the best practices in the project administration. In addition to this, a firm can use this approach which helps in providing the structure and governance to begin, bring the change and management in an organization. Iteliminates the risks and issues with the support of managing the steps and stages. It is important as it carrying out the leadership and direction to the project management and it assists in providing the mission, vision, motivation, and inspiring the team members to perform their best work. ?
2.5 Detail of proposed final strategy
The audit committee and oversight are being consistedof staff members, directors, team leaders, senior managers,and higher management teams and perform their role in achieving desired goals. They are discussing the development of a strategy thatis best suitable for Yahoo's development and further growth progress. The company needs to formulate the strategies in which they should concentrate on employees' work and develop a great relationship with their customers (Nardi, et. al., 2019). We will also assess and evaluate the skills andknowledgeof managersthat are required to perform good functions and activities effectively. The outer body with accurate proficiency needed to participate and engaged to join the oversight committee. The senior leaders should develop and formulate strategiesthat help the company in enhancing their business growth.In the end, we will do the market research which helps in analyzing the business needs, technical requirements, functional requirements and this will assist us to understand what the market wants. In the Project management system, proper planning for the project has to be done by the project management team before executing the project. If there is no project management team hired by the organization that there will be a lot of problems in the planning of the project because there will be a lot of people that still do not know what the project is all about. To do the work together the team needs a leader or someone who is accountable for the entire project and the work that is done by the team and takes responsibility for the work that is done by the team.
Yahoo needs to develop a relationship with itsclients so that this will increase the goodwill and reputation. Yahoo is the most popularsite onthe internet. It was one of the initial search engines that provide data and information regarding many things. Yahoo gained and attained users in the early years of their launching and due to providing constant brilliant facilities and services (Sa?uga, et. al., 2020). The company is determined one of the biggest and most identified organizations with over 350 million users all over the world. Yahoo gives different services and facilities such as “Yahoo Messengers” “Yahoo Mail”Yahoo Sports” etcThere are some recommended and suggested strategies and tactics which are adopted by Yahoo that are discussed as under:
Improve customer services –It is required for afirm to focus and concentrate on improving customer services that help them in increasing goodwill in a large market area. This helps in strengthening the customer facilities' skills and abilities in gaining the attention of clients. Along with this, they need to collect and gather feedback from their customers and understand their views regarding what changes they required in their services and what actions the company requires to make alterations in a better manner (Papke-Shields and Boyer-Wright, 2017). Sucha strategy helps in improving and developing the customer'sfacilities more effectively.
Develop effective marketing strategies –Marketing efficiencyhelps in evaluating and measuring by how well an organization’s marketing strategies and tactics that enhancing their income at the time of reduces the costs of customer attainment. We need to focus on marketinglowers the costs of findings and analysis in increasing the value of such business operations and functions.Yahoo should develop appropriate marketing tactics in enhancing the company's activities. Thecompany requires focusing on maintaining the services and deliver best practices that increase their reputation (Rooshdi, et. al., 2018).
According to the described report, project management is essential as it makes sure that the proper expectation and predictions are developed around what can be deliveredproperly. Without effective project administration, the budget can be estimated and project delivering time plan and it can establishthat over-ambitious or lack of estimating insight from same projects.In this case study, Yahoo had face issues and challenges which arise due to not accepting the important contract which can change their growth level and they reject all the offers which get from the most popular companies in the world. It is required for yahoo is to maintain the marketing strategies and develop more changes and alterations in reaching potential goals.
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