Question number 1When Terry Semel became Chairman and CEO of Yahoo! he faced the daunting task of guiding Yahoo! through a new restructuring process. Was Semel correct in assuming that another restructuring was necessary or that Yahoo! everything went well without the restructuring? Yahoo! started as a small website in the mid-90s intended to track favorite sites visited by users and quickly became a widely used and very popular web browsing tool and media sensation. With the "initial business plan modeled after that of a traditional broadcast media company", it was inevitable that at some point in the future the structure of Yahoo! must be adjusted to better meet the needs of the company (Wheelen & Faim p. 13-3). The first restructuring of Yahoo! created a bureaucratic organization that was easily overwhelmed by “overlapping responsibilities,” which, predictably, “slowed down the decision-making process” (Wheelen & Hunger, pp. 13-6 ). Regardless of this setback in the company's structure, Yahoo! has maintained an extraordinary assortment of accomplished and capable senior executives. However, as Yahoo! Lacking a clear and decisive structure, the company lost some of its essential staff as well as many other employees throughout the company. Yahoo! began as a company focused on “communication, content, and commerce” and was renowned for its capabilities in these areas (Wheelen & Hunger 13-8). However, over the years, Yahoo! managed to lose both its direction and its identity, causing its leaders to find themselves overwhelmed by the many opportunities offered by the Internet industry. Semel arrived on stage with a clear idea of ​​what needed to be done to refocus Yahoo! about what would make the business profitable in ...... middle of paper ...... forms of online advertising and fees as well as "promotions, sponsorships, direct marketing and merchandising" (Wheelen & Hunger p. 13-3). During the dotcom boom, revenues from Yahoo! exceeded expectations due to increased advertising for dotcom companies. However, as dotcom companies went bankrupt, Yahoo! experienced a marked decline in revenue. Revenue from Yahoo! continued to decline as the company failed to adapt to the changing needs of the online advertising market. With the changing needs of its customers and the reluctance of Yahoo! to modify the company's economic model, Yahoo! was unable to further meet the needs of its customers, leading to a decrease in revenue. Works Cited Wheelen, Thomas L. and J. David Hunger. Strategic Management and Business Policy, 13th ed. Upper Saddle River, New Jersey: Pearson Education, Inc., 2012. Print.