Strategy As Simple Rules (Yahoo) Essay Example | Topics and Well Written Essays - 2000 words

Strategy As Simple Rules (Yahoo) - Essay Example Major local and multinational companies have been distinguished from each other, based on the strategies they use in their corporate operations and organization. In the case of Yahoo! as a case study, a lot can be said about the company’s identity in terms of its strategic management options and principles. Studies have actually showed that a lot of Yahoo!’s success since its establishment in 1994 can be attributed to the type of strategy that the company uses. In the option of Eisenhardt and Sull (2007), Yahoo! uses what is referred to as strategy as simple rules. The ideal behind this model of strategic management is to make good use of one’s opportunities on the market rather than pin one’s self to stringent book principles on strategies (Turner, 2002). In this essay therefore, four key areas or aspects of strategy as simple rules are outlined from the Yahoo! perspective. The first key point touches on zeroing in on key processes whiles the second key p oint is on simple rules for unpredictable markets. The third key point will elaborate the subject of what simple rules are not whiles the last key point delves into knowing when to change. The essay will be concluded with a summary and recommendation for Yahoo!’s implementation. ... What strategy as simple rules rather does for managers is that it helps them â€Å"pick a small number of strategically significant processes and craft a few simple rules to guide it† (Eisenhardt and Sull, 2007, p. 10). In effect, to zero in on key processes means to use processes as a means to get to the end, which has to do with the setting of rules. Even with this, the processes that will be picked must not be judged from its quantitative basis but on how quality and significant they are to achieving the corporate dream. Quite significantly, a number of companies including Yahoo! has zeroed in on key processes to ensure the creation of competitive advantage for themselves. At Yahoo! for instance, it is reported of how managers zeroed in on key processes by giving emphasis to branding and product innovation, where a four-point product innovation rule was set (Eisenhardt and Sull, 2007). Normally, the advantage with this approach have having fewer but highly significant proce sses to deal with is that it helps the company to keep focus of its strategic processes so as to ensure closer monitoring of these processes (Hammer and Champy, 2005). The realistic success that Yahoo! recorded when it introduced its four product innovation rules and gave much room for its developers to operate was that this product innovation that was not backed with many processes led to the creation of a new sport page, which had over 100,000 hits in only 48 hours (Eisenhardt and Sull, 2007). This is indeed a justification on the need to always find a means to zero in on key processes. Simple Rules for Unpredictable Markets Strategy as simple rules may have worked in several instances but its propagators insist that the need to constantly identify the best circumstances under which