Question

Required information Yahoo! CEO Marissa Mayer Is Under Pressure to Make Big Changes Apply the knowledge of Management presented in this chapter to the following case. Applying this knowledge should enable you to recommend realistic and effective solutions to the challenges facing Yahoo! and its CEO Marissa Mayer Read the case below and answer the questions on the right Marissa Mayer, former Vice President of Google Product Search, left the company in 2012 to become the CEO of Yahoo At that time, the stock sold for $15.74. It sold for $29.77 in January 2016, reaching a high of $52.28 in 2014. Interestingly, investors are not happy with this rate of growth. Some feel that the company's strategies are lacking and that new leadership is needed. Hedge fund investor Starboard Value LP demanded that the board fire Mayer 153 Mayer was hired to help turnaround the company's floundering business model. She immediately put in place strategies to grow via acquisitions. For example, Yahoo! paid $1.1 billion for Tumblr, a micro blogging platform and social networking website. This acquisition did not produce the expected growth in revenue. A letter from Canyon Capital Advisors to Yahoo!'s board of directors stated that Yahoo! "has spent more than $3 billion on acquisitions, which, based on the company's stock price, have been getting 'absolutely no (or negative) value' from Wall Street." 154 One of the poor decisions that has plagued Yahool's financial performance was its reluctance to transition its offerings to mobile devices. Another involved the companv's investment in Livetext. This app allows users to chat with friends bv