Meg Whitman at Ebay Essay Example

a vocal minority) who upheld the existing ideals of free marketplace. Another example was the acquisition of Butterfield & Butterfield, which led to more high-end items being offered online and consequentially, increased profits. However, some members of the community found the addition unsuitable. Whitman grapples with this dilemma for each choice she makes, including the potential purchase of Kruse International. Examining eBay's development through strategic, political, and cultural perspectives illuminates the changes implemented under Whitman's leadership.

Prior to Whitman taking charge at eBay, the company had a flat organizational structure that was mainly led by engineers. This structure lacked a strong marketing function and was designed solely to cater to the current customer base. After assuming her position, Whitman swiftly implemented changes to the organization's structure, with a focus on marketing. She shifted the company to a more functional organization, but instead of creating a complicated hierarchical structure with multiple levels of reporting among senior staff, she established an organization comprising several executive positions that reported directly to her.

Whitman's involvement in decision-making processes allows for the retention of previous autonomy in individual divisions and fosters a communal spirit within the organization. The company is prioritizing marketing efforts in order to achieve strategic growth goals, and external hires have been favored over internal promotions, potentially causing dissatisfaction among current employees seeking advancement.

Moreover, eBay experienced a diversity of cultural and management styles following the hiring of many external executives. Despite this, Whitman successfully utilized internal staff to attain her objectives. Notably, she relied on the political clout of Pierre Omidyar, the esteemed founder of eBay who highly regarded input from all parties.

Whitman leveraged her awareness of

the successful attributes of valuing the customer to solidify her legitimacy. She involved Omidyar in all decisions and any corporate course adjustments, which was extremely effective. Whitman established an alliance and presented a unified front with Omidyar to eBay's shareholders and employees.

Whitman's leadership was strengthened by the alliance, putting her in a position of power within the organization. She was also known to be a collaborative leader who sought consensus before making decisions, such as when she removed firearms from the auction site. Her leadership style prioritized building coalitions and gaining influence instead of controlling her team.

Although many changes occurred in a short period, eBay's strong community culture was not destroyed and employees remained united thanks to effective leadership from Whitman. This leader built upon the existing corporate culture and expanded it to fit the growing organization and customer base. While some may view the shift from weekly employee meetings to quarterly as negative, Whitman's ability to create an understandable engineering language and her adoption of the "seats on the bus" analogy company-wide demonstrated her dedication to a previously unfamiliar business environment. In deciding whether or not to acquire Kruse, Whitman faced the challenge of preserving the community culture while promoting business growth through careful decision-making.

As she considered Kruse, it became clear that there were other options available to Whitman when she first took over eBay and in the present. One of these options could have been to concentrate on reinforcing the support for eBay's key group of users instead of placing excessive emphasis on expansion. When she made the decision to take the company public, Whitman established a commitment to both shareholders

and customers. Being a publicly traded company means that she was obligated to not disregard her responsibility to the shareholder, which includes the expectation of growth and success.

If she had avoided that decision, stronger attention could have been directed towards strengthening the community. However, there are other options available. When making significant choices for the company, Whitman could have asked for feedback (through either proxy voting or focus groups) from both employees and customers about whether or not acquiring another company is necessary. This method can be risky as it distributes decision-making power. Another possible approach was for Whitman to maintain eBay's core and specialized online trading business just the way it was.

The strategy employed by eBay in acquiring other companies involved maintaining their individuality and separation from the main eBay community. This means that despite eBay owning multiple auction companies online, they would remain distinct with unique cultures. However, this approach also comes with the risk of eBay inadvertently competing against itself in the online trading industry. It is evident that both advantages and disadvantages come with this choice.

Whitman has made decisions, changed the organization, and focused on growth to maintain favorable results for eBay. Despite the difficulty of retaining the original sense of trust and self-policing, Whitman is succeeding in keeping the eBay spirit alive. Acquisition of Kruse would be a strategic move for the company, aligning with their focus on acquiring high-priced goods for increased profit and fitting within the overall growth strategy.

Whitman's acquisition of an antique car auction site must take into account eBay's community and treat it as crucial for success, as with previous acquisitions. This acquisition

poses the risk of distancing the original consumer base who built eBay's success with "beanie-baby" sales, but online consumer interests have shifted since then. Adding more high-priced items to the platform won't necessarily deter a collector from offering a cheaper product, as the internet landscape has evolved.

When eBay considers possible acquisitions, it must take into account its responsibility to its shareholders. However, eBay can ensure ongoing prosperity by pursuing growth through wise acquisition choices like Kruse, supporting its community, and establishing strong brand recognition via effective marketing.