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Strategic plan– Microsoft Corporation

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delmarshae walker

on 6 December 2012

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Transcript of Strategic plan– Microsoft Corporation

Microsoft Corporation
Strategic Plan History: Microsoft Incorporated was formed by Harvard dropout Bill Gates on April 4th, 1975.

In the spring of 1968 he began working on computers while at Lakeside Prep.

In the fall of 1973, Gates left for Harvard University. He enrolled as a pre-law student, but spent most of his time in the campus computer center, programming away. History Continued: By stretching the truth somewhat, Gates arranged for a meeting with the Altair manufacturers. He called them to let them know he had a program written for them. After the appointment was made, Gates and Allen stayed up for nights, feverishly writing the program he had promised.

Within a year, Gates had dropped out of Harvard and Microsoft was formed. The company went through some rough first years, but eventually was able to license MS-DOS to IBM. The IBM PC took the public by storm, and its success signaled the success of Microsoft. The Corporate Governance: Includes the board that has annual board elections and the CEO as well as directors for each department.

There are multiple committees, such as the key committee self-evaluations and the Independent Governance and Nominating Committee.

To keep structure Microsoft has standards of business conduct and the finance code of professional conduct.

Culture: According to Dr. Wei-Ying Ma, assistant managing director at Microsoft Research Asia: “All commercial transactions take place across globally interconnected networks, on which no one can escape software and data, in a process that moves from one island of information to the next. Anything that one might need is just a simple search away. One’s life, regardless of station, is driven by technology. Economic development, propelled by digitalization and computing, is advancing at the speed of light.” Vision: “create seamless experiences that combine the magic of software with the power of internet services across a world of devices.”

Values: Providing quality products while valuing integrity, honesty, constructive self criticism and mutual respect.

Mission Statement: “to help people and businesses throughout the world realize their full potential.” Visions, values, mission statement External Environment: 0pen system in which Microsoft is affected and affects its own economic, social, competitive, political and cultural climate.

Both positive and negative based on how the trends within those respective areas play out. Politics: Politics can have a positive effect on Microsoft’s business.

For example, on the political stage, recent changes in campaign convention have created a new market that Microsoft has taken the lead in providing products for. President Barack Obama’s successful 2008 bid for the presidency of the United States has opened the door for the use of the internet and social networking in electoral campaigns and Microsoft has already begun to seize on this opportunity. Legal:

Opportunity: In three of their most recent patent disputes against major competitor Google, Microsoft has come out on top.


Threat: Microsoft is a multinational company that does business with groups and people all over the world. With their reach in so many markets and countries, it is no wonder that they are and have been involved in so many different major legal cases. Some Technology Microsoft has retained their dominance in the world of operating systems on laptops and home computers.

Threat: The recent boom in consumer technology has created dozens of competitors for Microsoft in dozens of different markets. Demographics: Opportunity: Microsoft appeals to all people with its variety of programs. Most people who use computers today have at some point used a Microsoft product.


Threats: Their recent work has not endeared themselves to potential employees. Also younger consumers have less of a connection to Microsoft, thanks to the growth of competition from other firms in recent years. Management: Strengths: Steve Ballmer is the CEO of Microsoft, Bill Gates who is the founder of Microsoft acts as the chairman of Microsoft top management. Gates has been around since the beginning and Balmer was a long time employee of Microsoft before getting the top job. So while Microsoft has been and will continue to evolve over time, the basis for their initial success is still intact.

Weaknesses: Most of Microsoft’s upper management have been in the technology business for a very long time and thus have trouble developing new ways to make money. Marketing: Strengths: Microsoft is expanding its’ marketing brand by just recently acquiring Marketing Pilot whose products are largely targeted at marketing and advertising agencies.

Weaknesses: Microsoft advertising or the Windows phone or its new Microsoft Surface have not created as much buzz in the tech world as they anticipated. Their late arrival to the smartphone and tablet pc markets make them seem like copycats, even if they are not. Identifying the Strategic Issues:
SWOT THREATS: The growth of tablet PC’s and mobile phone usage have left Microsoft and its partners like Hewlett Packard and Intel as leaders of a decreasing market (Acohide, 2012).
WEAKNESS: A large amount of Microsoft's revenue comes from software made specifically for laptops and personal computers, NOT tablets and phones.







OPPORTUNITY: Microsoft must move towards tablet PC’s without alienating their current customers who still use normal PCs.

STRENGTH: Microsoft has a strong base in software development to start from and a loyal customer base. Should Microsoft reshape its structure? That would hardly be necessary. Overall structure is sound, minus a few tweaks. Its giant structure and diversified businesses are operating as intended. Competitors: · Hewlett-Packard Company

· Apple Incorporated

· International Business Machines Corporation

· Oracle Corporation.

· EMC Corporation

· Insight Enterprises Incorporation Key Strategies: #1: Unify all software that Microsoft produces.

#2: Windows 8. The strength for PC users to operate any device that is installed with Windows 8. Corporate Level Goal 1
Innovation/Vision "We built our company on innovation, providing products that were new and in demand. We accept the risks inherent in following our vision, and work to develop leading products that command the profit margins we strive for." The strategy that Microsoft corporation should pursue is one built upon market integration through a one size fits all approach. Microsoft knows that its main business of PC operating systems is a saturated market that they currently dominate with 70.2% of the market. Strategic Recommendation: The organization should use Qualitative Data for Strategic Decision Making because this strategy will help identify the cultural aspects of the organization, the politics, and properly examine the Board of Directors and discuss and governance issues. Cultural aspects In May 1989, Microsoft acquired a 26% strategic share of Dorling Kindersley Ltd. for $14,340,00. On Dec. 22, 1994, Co. sold 20% minority stake in Microsoft Network to TCI Technology Venture for $125,000. The company currently has 94,00 employees and is an equal opportunity business. Politics of strategy choice: Microsoft maintains its corporate offices in King County, WA.

Microsoft conducts its businesses through five reportable segments: Windows & Windows Live Division, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division. Board of Directors: Chairman- William Gates.
Chief Executive Officer- Steven Balllmer.
Executive Vice- Bradford Smith.
Chief Accounting Officer- Frank Brod
Chief People Officer- Lisa Brummel. Implementation: The strategy chosen was one that pushes Microsoft towards being a more autonomous organization when it comes to their sales of software and hardware.
The recent decline in PC sales has affected Microsoft’s bottom line.
The most important task for Microsoft in this strategy is to complete their move into the tablet PC market.
The second task Microsoft needs to work on is transitioning their software services into the tablet market. Evaluation and Control Financial Implement standard algorithm after completion of appropriate tasks across all financial managers. This should be done at the end of every week, preferably Friday. Responsibility includes ensuring its completion should be with the CFO. Customer: Conduct surveys assessing performance and potential enhancements. This should be done at the end of every month. The human resource manager should structure and distribute these surveys. Process: Managers may set quotas for new software applications designed for Windows 8 and the Surface tablet. The applications must be creative, innovative and exciting. Teams could be formed and receive a reward for the team with a successful application.

Employees: Managers will conduct weekly reviews within meetings with each team and see where they are in integrating Windows 8, the Surface tablet, and Microsoft as whole into the mobile device market. Craig Mundie, CRSO, would be responsible for measuring and assessing.
Group 5:

Seccionie Robinson
Denzel Moore
Jordan Powell
Tyler Burke
Delmarshae Walker The End
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