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Microsoft Corporation

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Morgan Green

on 2 June 2015

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Transcript of Microsoft Corporation

Microsoft's Critical Problem
Strategy Formulation
Strategy Implementation
Strategy Evaluation
Microsoft Corporation
By: Mandy Allen, Chelsea Bidwell, Shanna Davies, Morgan Green, Jacque Korn
Critical Problem
Microsoft's delayed application development for the mobile platform allowed competitors to offer a wider selection of technological features; additionally, the usability of the new Windows 8 and Windows 8.1 operating systems in the PC market has degraded the Windows brand value.
External Factor Evaluation (EFE)
Devices & Consumer Licensing (DCL)
Devices & Consumer Other (DCO)
Computer & Gaming Hardware (CGH)
Phone Hardware (PH)
Corporate EFE
Competitive Profile Matrix
Internal Factor evaluation (IFE)
Device & Consumer Licensing (DCL)
Device & Consumer Others (DCO)
Computer & Gaming Hardware (CGH)
Phone Hardware (PH)
Corporate IFE
Comprising: Windows, “Windows OEM” and licensing of the Windows operating system and related software; licensing of Microsoft Office, "Office Consumer"; and Windows Phone OS.
The road to the Quantitative strategic planning matrix (QSPM)
SWOT Matrix
Strategic Position and Action Evaluation (SPACE) Matrix
Boston Consulting Group (BCG)
Internal - External (IE) Matrix
Implementation Plan
Projected Income Statement (in millions)
Projected Balance Sheet
Proposal for Evaluation
Strategy Implementation and Evaluation
Comprising: Resale, including Windows Store, Xbox Live transactions, and Windows Phone Store; search advertising; display advertising; Office 365 Consumer; Studios, comprising first-party video games; Mojang; non-Microsoft products sold in our retail stores; and other.
Comprising: Xbox gaming consoles and accessories, video game royalties, and Xbox Live subscriptions; Surface devices and accessories; and Microsoft PC accessories
Comprising: Lumia phones and other non-Lumia phones, beginning with our acquisition of NDS
• No operation limitations
• Third party developers
• Increase safety stock
• Self-interest change strategy
• Develop contracts for third party contractors, total cost: $81,332,000
• Employee competition regulations
• 6 month timeline
• Press Releases
• 4 -6 month pre-competition advertising
• Market via social media & technology conventions
• University visits
• Partner with app building websites
• Pitch articles to technology websites
• Release app creator highlight stories of those who are in the contest
• Email advertisements, banner ads, TV ads, push notifications
• Windows Phone Store section for new apps
• Reward compensation total cost: $403,000
• Total project costs of: $100,000,000; finance through debt
• Plan for projected sales increase in phones of 15%,
• Crowd source to interns
• N/A

Activity One
• Update matrices
• Re-weight and re-rate all matrices
• Focus on Phone Hardware and Devices & Consumer Other segments

Activity Two
• Compare planned to actual progress towards meeting stated objectives
• Reevaluate key financial ratios

Activity Three
• Sell off Phone Hardware segment if the new strategy does not produce increased revenues
• Reference Contingency Plan

Contingency Plan
1. Rapid technology shift that threatens mobile devices

2. If app contest fails, < 10% increase in phone sales and <12% increase in app downloads/purchases

3. If app contest proves to be successful, by generating 15% increase in Windows Phone sales and a 25% increase in app downloads/purchases

Full transcript