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Question 1 (a) What strategies and actions taken by Yahoo have upset its relationship with Alibaba? (b) What are the possible underlying reasons for Yahoo to pursue such strategies and actions? (c) Why does Alibaba regard these strategies and actions as “perplexing” or offensive?

1(a)
Strategies and Actions taken by Yahoo that upset its relationship with Alibaba | 1(b)Possible underlying reasons for pursuing such strategies and actions | 1(c)The reason why they are “perplexing” or offensive to Alibaba | 1. Reluctance of Carol Bartz (a new chief executive for Yahoo with the mission to address Yahoo’s sharp drop in share price) to reach out to Alibaba’s founder Jack Ma or Alibaba.com’s chief executive David Wei.
Bartz reprimanded Ma when he made a trip to the United States to meet with her. She dressed him down when he met her. | * Bartz was totally unsatisfied with Alibaba’s failure to run Yahoo China more successfully than Yahoo had. | * Bartz dressed Ma down in front of his management team by criticizing Alibaba’s way of managing the Yahoo portal. * Bartz was impolite and indifferent even though Ma specially made a trip to meet her. | 2. Yahoo set up a new Research Center in Beijing where Yahoo China was based | * Yahoo needs a new Research Center to develop products for Yahoo globally. * Bartz may want the new center to act as a surveillance to supervise Yahoo China secretly. * The new research center can maintain a close relationship between Yahoo and the China market, so that reliance on Yahoo China, which is controlled by Alibaba, will be reduced. * The low setting-up and operating cost (e.g. low wages and cheap rent) in China. | * Alibaba may deem this as an act of mistrust or a lack of confidence on its management over Yahoo China and the whole China market. * Alibaba think they should be in charge of

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