CMGI: Organizational and Market Innovation Harvard Case Solution & Analysis

CMGI: Organizational and Market Innovation Case Solution

1. What is CMGI? What type of business organization and how is it different from other investment vehicles?

CMGI was a unique organizational structure in the American Industry which provides diversifying solutions for its customers with the help of its variety of operating segments that are traded publicly on the stock exchanges. The funds of the company through its better performance achieved considerable success which resulted in the increase of capital for the shareholders of the company as well as for other expansions. By comparing its worth historically, it can be seen that the company has generated sufficient amount of returns for its shareholders to about 3500%, which is quite a significant amount. The company is different from other investment vehicles for the reason that it works just like a mutual fund which could significantly diversify the risk of the individual investors and simultaneously provide a better return for its overall portfolio. In addition to this, CMGI is involved in the acquisition process which could further increase its worth in the upcoming future.

 What is a serial entrepreneur; how would you describe Wetherell and what was he trying to do with CMGI?

 Generally, a serial entrepreneur is a person or entrepreneur that has ideas and ability to implement these ideas. The person starts new businesses incorporating his idea and helps the company to be able to run by others, since the serial entrepreneur leave the company and start to give practical form to his new idea. It’s like a mechanism, the entrepreneur just starts new businesses using his unique ideas provides startups and then leave the company to starts another business.

Wetherell has the characteristics of serial killer. He seeks companies that are young and has high growth potential and development opportunities. He uses his innovative ideas and tactical business skills to provide origination a stable growth and business. From the case, it is seemed that he is proactive and takes proactive decisions accumulating the business conditions and future aspects. With CMGI, he has adopted the policy of aggressive growth, business expansion, and innovative strategic changes. He has derived the business from its initial book publisher assistance to more sophisticated and innovative online platforms for advertising, marketing and online solution to publishers and customers seeking books. He is the one who identified the opportunity and transformed the CMG to CMGI.

3. Describe the CMGI business model- strengths and weaknesses and how the model involved.

By looking at the strength of the business model about the Yesmail Company, it can be seen that it could provide the competitive edge in the industry because of its high-speed transactions. In addition to this, it can be seen that with the help of its significant efforts, it has attained a position of market leader in the internet industry which could provide significant help to market the products of CMGI over the globe. As far as weaknesses are concerned, it can be seen that as Yesmail is a junior entity, there could be several issues that whether it will perform well in the future or not and due to the short period of its existence, it has not yet build its image in the market. All these issues could create problems for CMGI in future.

 Describe the regulatory and accounting issues with the CMGI structure and operation.

There were different regulatory and accounting issues that have been affecting the CMGI structure and operations. These issues are described as:

Regulatory issues

The structure that CMGI has used for its operations has imposed several regulatory implications, which needs to be adhered to. The investment company Act 1940, is too complicated and extensive. It regulates almost every aspect of the investment companies range from reporting requirement to operating and governance provisions......................

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