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Yahoo! in China

Should company values be compromised in order to expand?

David Bennett

on 16 April 2010

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Transcript of Yahoo! in China

Should company values be comprimized
in order to abide by foreign laws and regulations? Yahoo! The Company in China Organizational Structure: formally dictates how jobs and tasks
are divided and coordinated between
individuals and groups within the
company. Organization of Yahoo! Carol Bartz - CEO EVP Service
Engineering and
Operations EVP North America EVP Products and
Chief Technology
Officer EVP Human Resources EVP Customer Advocacy Chief of Staff EVP Chief Financial Officer EVP International EVP General Counsel and Secretary Rose Tsou Head Asia Head Emerging Markets Head Europe Country Heads Country Heads Country Heads ? Alibaba a privately owned Hangzhou-based family
of Internet-based businesses that includes
business-to-business international trade,
online retail and payment platforms and
data-centric cloud computing services. Alibaba Group acquired China Yahoo! in October 2005 as
part of its strategic partnership with Yahoo! Inc. China Yahoo!
is one of the leading Chinese-language portals offering search,
email and an enhanced focus on entertainment content.

China Yahoo! is wholly owned by Alibaba Group. Yahoo! holds a 40% stake in Alibaba, which manages
a web portal in China using the Yahoo! brand name.
Yahoo! in the USA does not have direct control over
the operations of Alibaba, which operates as a
completely independent company. Functional and Geographic
Structure Company History Founders: David Philo, Jerry Yang
Ph.D. candidates in Electrical Engineering
Stanford University
Started as a hobby, quickly became an obsession
Began in campus trailer
February 1994
Was simply a list of their favorite websites
-Separated into categories
-Further separated into sub-categories
“David and Jerry’s Guide to the World Wide Web”
-Yet Another Hierarchical Officious Oracle
-Liked the definition of a “yahoo” better
-Rude and unsophisticated
Formation -Wanted a single place to find useful and apparently others did too
-Received their one-millionth hit later that fall
-Teamed up with Sequoia Capital
-$2 Million
-Management Team
-Fully operational in April 1996
-46 employees
-Headquartered in Sunnyvale, California
-Annual Revenue = 5.6 Billion
-Divisions include:
-Integrated Consumer Experiences
-Applications (Communications and Community)
-Search (Microsoft)
-Media Products and Solutions
China does not allow the right to freedom of speech as we do here in America. Individuals voicing political dissent openly, or online can be arrested, imprisoned, and in some cases even tortured.
Yahoo!, an American owned company claims that it values Human rights very highly, however, in several occasions it has handed over information linking anonymous posts regarding political dissent to individuals in china. Evidence given by Yahoo! led to the conviction, imprisonment and in one case, torture of 4 different journalists.
Being an American owned company, does Yahoo! have the obligation
to hand over private information to the Chinese Government? If it is a Chinese Citizens information and it is provided to the Chinese Government.
If it is a US Citizens information and it is handed over to the Chinese Government.
Where do you draw the line?
-Criminal acts
-Displays of freedom of speech
Yahoo’s Options Cut ties with the Chinese branch completely to avoid US/China problems
Place a disclosure online informing users that it is obligated to comply with the Government in the form of providing information such as usernames, emails etc. involving investigations, even those regarding political dissent
Continue services in China as it has
Our Opinion Yahoo needs to cut ties with China completely. Can be done through a minimal restructuring of the company The money spent on Chinese assets can be focused on emerging markets Benefits They save the integrity of their company's name They will no longer be seen as violating human rights in China They could gain back the support of those who boycotted the company
thus leading to an increase in revenue Alibaba could continue to operate as usual, just not use the Yahoo! name The Problem A Chinese political prisoner and his wife sued Yahoo in federal court in 2007, accusing the company of abetting the commission of torture by helping Chinese authorities identify political dissidents who were later beaten and imprisoned The suit is believed to be the first of its kind against an Internet company for its activities in China. “Companies doing business in China are forced to comply with Chinese law,” said Jim Cullinan, a Yahoo spokesman. When government officials present the company with a lawful request for information about a Yahoo user, he said, “Yahoo China will not know whether the demand for information is for a legitimate criminal investigation or is going to be used to prosecute political dissidents.” Several American Internet companies, including Cisco Systems, Google, and Microsoft, have come under fire, with some politicians and human rights groups accusing them of helping the government monitor and censor the Internet in China. References http://money.cnn.com/2006/02/21/news/international/pluggedin_fortune/ http://www.usatoday.com/tech/news/2010-02-18-microsoft-yahoo_N.htm http://www.usatoday.com/tech/techinvestor/corporatenews/2008-06-26-yahoo-reorganize_N.htm http://gawker.com/5161062/carol-bartz-gets-new-yahoo-org-chart-half-right http://news.alibaba.com/specials/aboutalibaba/aligroup/index.html Restructuring?
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