Introduction
This essay is about Yahoo! – Microsoft talks about a possible merger. The above link is just one part of a series of articles on the merger between these two companies. This essay examines all the articles in the series and elaborates on the learning acquired during the course and tries to apply them to the article described above. The concepts of Business Law, Information systems, Ethics to name a few. The article is arranged along with the questions that have been given in the coursework.
Main Body
The Yahoo! – Microsoft talks for a merger were initially hostile with Yahoo refusing to consider Microsoft’s proposition of a merger. After the initial rounds of sparring, Microsoft was able to persuade Yahoo to consider a stake in it. This is a case of a company (Microsoft) trying to use its competitive advantage and financial strength to buy out a rival.
In advertising terms, Microsoft is perceived to be a behemoth and a company that stops at nothing to gain a competitive advantage. In contrast, Yahoo is perceived as a company that is nimble, flexible, and responsive to the latest trends.
In ethical terms, Microsoft has been accused of anti-trust practices in the past and has been slapped with litigation for the same. In this case, though Microsoft does not attract the anti-trust laws, it nonetheless has a role in society as a role model for other technology companies.
Microsoft is known for employing a racially diverse workforce and is known for its melting pot kind of culture. This has been a remarkable feature of Microsoft’s approach towards diversity. However, its treatment of contract employees has been questioned in the past.
Yahoo, too, has been known for its open organizational culture and its tolerance towards diversity. Thus as the series of articles about the possible merger show, there would be a fit in terms of the organizational culture. Plus, the relatively young workforce of each company would not have trouble adjusting to the merged company.
The case relates to financial learning’s from the course in terms of the pricing and other financial variables that make up the components of the financial statements. Also, the marketing strengths and weaknesses of each company were studied with the aid of the coursework that has been taught. The role of advertising in building brands was also applied when reading about the case.
The key problem being faced here pertains to the alternating hostility and talks between the two IT companies. The dilemma is overpricing of Yahoo and how much Microsoft is willing to pay for the merger.
The articles have been tracking the issue for several weeks now and presenting both sides of the story to the readers. The problem being faced is that of a merger of organizational cultures as described in Question 1 and other possible effects of a merger.
We would recommend a negotiated settlement between Yahoo and Microsoft that results in a merger or parting of ways based on financial value and data. Any settlement should be geared towards enhancing the shareholder value of the two companies and the solution should be something that maximizes the potential of the merged entity towards competition and the marketplace.
A possible parting of ways or the deal falling through should also take into account the relative merits of the case rather than the promoter’s prestige.
Conclusion
The reading of the article and the subsequent conclusions drawn have been achieved through the application of the concepts and ideas studied during the course. The recommendations of the case that have been listed bear the mark of the theories and their application.