Case Study 5.1

1. What good reasons does yahoo have for blaming their failures on transgenerational impact?

2. why do you think yahoos financial performance lags behind other tech companies the same age in most financial categories, but not EBIT (earnings before interest and taxes)?

3. What are your thoughts on transgenerational response impact, and what other world events could cause this phenomena?

guidebo Case Study 5.1 Put this ommu- t, infor- on, and ve also gs that Did Transgenerational Response Cause Yahoo to Fail? in life, ng pro- values zation, A lot can go wrong in business. Sometimes, products fail spectacularly. Even the most successful organizations are vulnerable to market disruption or bad publicity or ethical scandals that send customers scattering. Organizations that survive such traumatic reversals often attempt a comeback. Typically, they start over from scratch with new strategic plans and a leadership overhaul. But what happens when it doesn't work, when the fresh start flops or the new CEO fails, and the firm continues to underperform? This type of scenario could be caused by a "transgenerational response, a potentially crippling long- term condition stemming from the trauma that occurred in the past."*09 prtuni- f how -plan The term transgenerational response syndrome is borrowed from a biological theory, but it can also apply to the business world. In biology, the syndrome occurs when a catastrophic environmental condition affects an organism. The catastrophe triggers a negative adaptive response. The adaptation is passed on to future generations, impacting their growth and health. For example, a grandparent's death (Generation 1) during childhood (Generation 2) can impact the birth of a child Generation including tow birth weight and pronu birth. This shows that trauma his way of beating Scouts and won rough unseen mecha through familles, impacting the physical and met This explain why waders, despite the best wellbeing of descendants for generations sept might not be able to turn around an One study examined the babes of mothers who organisering this experienced post-traumatic stress disorderung pregnancy as a result of the Wood Trade Center in order to try and overcome the types of embedded 2001. This illuminating clinical research demonstrated chological impediments, howeverders can try working that some of the elects of material PTSD were cu to the same year the would passed on to the table. For example, the band 1 deriyor low birth weight, increased response to stress and a These incidents are deany identifiable and result in su lasting increased risk for depression and other stress corporate afects and consequences that affect induced conditions the development of them. The initial review What About Organizations? of corporate Constanges from scandals 10 Business that survive chaos and seemingly rebuild only to be plagued by chronic performance problems may vary wel demonstrating transgenerational response 10 2. W cortegenwon events that occurred yours ago, too. When organization A corporate generation starts with a new CEO and no or she loves the organization. The aver struggles, it sometimes adapts by becoming ikaw After a tragic tour, comparison to outrow w of American CEO IS 90 years. When a execs to rescue them, nitially, they set out to get the CEO'such shortit could be a sign of under heads above water and become profitable gain tous performance An organization plagued by a traumati ro-orgs id cost-cutting measures. Once they have come that the hires and tires srl CEOs in a short up forar, companion can start focusing noong evine could be conting transgenerational but thriving. But if successive CEOs still can't mange sustainable sue it's possible at the trouble, in fact 2 chronic pro a transgenerational conseWhen leadership is ble 10 valute underperformance as a potential Croccorre understormance has to response, they have at that will enable them to room . Precis share solve more effectively. By tracing the problem Deduction in coating include origins-the initial traumatic they can potential Decreasing the price in the stock maro find a cure Yahome Going back to biology, human that for traumado not recognize the impact the truth. That in 2001, Mic Corporation templed to acquire Yahoo creates an environment where the the people de we The man was intended on a defense the problems when the recognitions or word . magan Google's expanding empire and more not deal with it at all. Thus the same in un do budy. Microsoft and Yahoo geringerecta o tramonto armato com not management about the valuation, and ability to meet things and it can Yan be underperforming since this critical them with the concorde management Component of the company for futur Sectical Corporate incident, a whopping CEOS en charge Yahoo. The transgenerational Conventional management wisdom process out to have doomed them all White Google has tematic problem solving through pre-planning, hang been coming the market and innovating with impres and will reaction to high-priority problem. But this migre who has remained trapped in a cycle of not be practical for companies suffering from trang underperformance erational response to post trauma In these station execs cannot simply solve the most immediate prob Since thical Corporate Incident in 2006, Yahoo's per Sams. Rather, they have to think long term and anticipate formance has been up and down. The long-term share how their immediate actions will affect the organization's price performance of the compared with Google Alpha Detine) and the NASDAQ whatects a mostly sugih performance by Yahoo. There is one outlier, though There are many variables that can cause an organic Yahoo's IT number has grown significantly since 2001 tion to experience a transgenerational response, such as showing that the organization can generale earnings from terrorism, war, financial crise and corporate response bility. These traumas become antrenched and drowon ention Chapter 5. STRATEGIC MANAGEMENT AND PLANNING g I t Discussion Questions 1. What good reasons does Yahoo have for blaming their failures on transgenerational impact? 2. Why do you think Yahoo's financial performance lags behind other tech companies the same age in most financial categories, but not EBIT (earnings before interest and taxes)? 3. What are your thoughts on transgenerational response impact, and what other world events could cause this phenomena? Source: Oliver, J. (2017). Is "transgenerational response" a hid- den cause of failed corporate turnarounds and chronic underper- formance? Strategy and Leadership, 45(3), 23-29. Retrieved from https://umw.idm.oclc.org/login?url=https://search.proquest.com/ docview/1908722411?accountid=12299