Taking into account the specifics of the situation in the sphere of the internet portals providing advertizing, entertainment and search engine services and the disparity between the internal culture and the external branding of the company, there is a critical need for quality initiative at Yahoo. This report will discuss the main reasons for which Yahoo requires culture changes and a training program, the main parts of the program and its benefits for Yahoo. A critical need for culture change within Yahoo Yahoo is recognized as one of the best-known web portals with millions of page views per day and thousands of employees. Created as a hobby of two PhD candidates in electrical engineering David Filo and Jerry Yang in the early 1990s, Yahoo rather quickly grew into a rich hierarchical search directory which gained popularity among wide audience of Internet users and became a rather profitable business for its owners. By the late 1990s, Yahoo has become a “megabrand” with its records of 50 million unique users and 3, 800 companies advertizing on the pages of the Yahoo portal (Jones, 2010, p. 453). There is evidence that the Yahoo stock price per share was astronomically high in 2000, reaching $237 per share (Jones, 2010, p. 453). However, in early 2000s the company faced its first big problems which caused the fall of the stock price and (up to $9 per share). One of the main reasons for these problems was the dot.com bust. Another reason was the dependence of Yahoo business model upon the advertizing and e-commerce revenues. Monster.com, MySpace and YouTube emerging in 2000s gained attention of users who previously used Yahoo for their advertizing purposes. As to the search engine dimension, the rapidly growing popularity of Google was the major threat for Yahoo. The analysis of the main reasons of popularity of its main competitors pushed Yahoo to adopting the customized search engine and advertizing strategy. This decision allowed Yahoo to continue its battle for the Internet audiences and advertizing revenues. In 2005 Yahoo and Google received equal amounts of all Internet advertizing revenues (18%) (Jones, 2010, p. 455). However, according to the 2006 data, Google received 25% of revenues as compared with 19% received by Yahoo. Therefore, the battle continues and there is a critical need for culture changes within Yahoo so that this company could create a competitive edge to attract more users and advertisers, increasing its revenues and value of the stock. The uncertainty of the corporate future of Yahoo had a negative impact upon the internal branding within the organization which resulted in decreased opportunities for retaining the most capable employees and the increased turnover. Currently, due to the rapidly changing environment and shifts with the company itself, there is a discrepancy between the internal organization and the external brand of Yahoo (Xavier & Nagarani, 2007, p. 60). Therefore, it is important to define the company’s core values, vision and to paying more attention to training and education of the personnel is critical for improving the current situation. The launch of the program Realization of the critical need for culture change within the organization is the first step towards implementation of the qualit