2 Executive Summary Microsoft is a worldwide technology company with revenue of 168 billion USD (Microsoft, 2021). being a technology company generates revenue by offering an array of cloud- based services and other services to people and businesses; licensing and supporting software produces, designing, manufacturing, and selling devices: as delivering relevant online advertising to global audiences. Expenses are related to compensation to employees, designing, manufacturing, marketing, and selling of products and services, datacenters costs that support the cloud-based services and income taxes.
3 Current State History of Microsoft Bill Gates and Paul G. Allen founded Microsoft in 1975 after converting a mainframe programming language into a programming language that was suitable for use on a personal computer (Zachary & Hall, 2020). Microsoft’s first important partnership was with International Business Machines Corporation (IBM) for whom it created MS-DOS, the operating system that ran every IBM computer (Zachary & Hall, 2020). Microsoft became a publicly owned corporation in 1986, and by 1993 Microsoft was producing the software that ran 90% of the world’s computers (Zachary & Hall, 2020). As of 2021, Microsoft continues to dominant the market, with their software powering almost 80% of all computers worldwide (Liu, 2021). Mission Statement “Our mission is to empower every person and every organization on the planet to achieve more” (Microsoft, n.d., para. 1). Microsoft’s mission is anchored around the idea of making everyone globally to “achieve more.” In a global and very connected economy, Microsoft mission’s fills in a need, more of a must-have, for young and old alike, whether it is to be more efficient in our personal lives or to simply do our jobs in our professional settings. Embedded in the mission is how their products “empower” people and organizations, a powerful and brilliant concept that resonates with all of us. Vision Statement “At Microsoft we are dedicated to advancing human and organizational achievement” (Microsoft, n.d., para. 1). Microsoft pursues its vision by aligning it to its mission statement, as well as adhering to its core values.
4 Core Values Microsoft has three corporate values which align to its mission and vision statements. First, respect: “we recognize that the thoughts, feelings, and backgrounds of others are as important as our own” (Microsoft, n.d., para. 2). Second, integrity: “we are honest, ethical and trustworthy” Microsoft, n.d., para. 3). Third, accountability: “we accept full responsibility for our decisions, actions, and results” (Microsoft, n.d., para. 4). Internal Assessment Finance and Accounting Microsoft repurchased shares with the approval of the Board of Directors. In both 2016 and 2019 up to $40 billion in shares were repurchased and as of June of 2021 8.7 billion remained of the $40 billion share repurchase program. The shares repurchased during the 2021 fiscal year and the fourth quarter of the fiscal year 2020 were under the share purchase program approved in 2019. Highlights from fiscal year 2021 compared with fiscal year 2020 included: Commercial cloud revenue increased 34% to $69.1 billion. Office Commercial products and cloud services revenue increased 13% driven by Office 365 Commercial growth of 22%. Office Consumer products and cloud services revenue increased 10% and Microsoft 365 Consumer subscribers increased to 51.9 million. LinkedIn revenue increased 27%. Dynamics products and cloud services revenue increased 25% driven by Dynamics 365 growth of 43%.
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5 Server products and cloud services revenue increased 27% driven by Azure growth of 50%. Windows original equipment manufacturer licensing (“Windows OEM”) revenue increased slightly. Windows Commercial products and cloud services revenue increased 14%. Xbox content and services revenue increased 23%. Search advertising revenue, excluding traffic acquisition costs, increased 13%. Surface revenue increased 5%. (Microsoft annual report 2021) Management: Planning, organizing, motivating, staffing, and controlling What is more impressive for those who are very aware of ethical behaviors and corporate responsibilities, is how Microsoft behaves and “lives,” what could also be called the “How” they do business. A big part of the company’s value is to treat customers and their own employees with respect and create an enabling and supportive environment for their workers. Respect, integrity, diversity, and accountability are a big part of the company’s aspiration. It does create a powerful recruitment and retention tool so they can attract the best talents. Motivating employees to keep innovating and having pride and ownership of the company’s products is core to Microsoft’s strategy. Who would not want to be valued, know that they work in a place where his and her ideas do matter? We spend at least 8 hours of our days dedicating to this organization. Moreover, Microsoft employees are well compensated. According to Glassdoor, an anonymous survey found that 91% of Microsoft employees said that they would recommend the company to a friend, an impressive 98% of them approve of their current CEO job performance.
6 Running a business with great products and staying true to its value is one thing, staying competitive over time is more impressive. A company that continues to stay ahead of the game over a period of several decades and shows no signs of slowing down shows a great deal of strategic insights, sophisticated management, and bold leadership. Continuing to innovate, adopt, adapt, and evolve is a necessary step to stay not only competitive globally but to remain number one. It can also be exhausting for employees. Exhausting because this will require internal adjustments, constant re-organization, and change, forcing employees to adapt and adopt. Balancing these two key ingredients of external forces and internal effects is one that Microsoft cannot afford to not get right. R&D Most of Microsoft products and services are internally developed which allows Microsoft to maintain competitive advantages that come from product differentiation and closer technical control. Microsoft’s main R&D facility is in Redmond, WA, however, has offices all over the world. In the following engineering groups, Microsoft focuses its R&D efforts on Cloud and Artificial Intelligence (AI), Experiences and Devices, AI and Research, LinkedIn, and Gaming. These groups focus on hardware, software, cloud infrastructure, content, and services. Microsoft’s R&D expenditure amounted to around 20.7 billion U.S. dollars in its 2021 fiscal year, a record high for the company. Microsoft ranks second among software and computer service companies worldwide in terms of R&D spend, behind only Google’s parent company Alphabet. (Liu, 2021). Per Microsoft’s 2021 annual report, 60,000 employees are employed in Microsoft’s R&D department. With billions invested into its R&D, Microsoft protects its intellectual property in a variety of ways by working actively in the U.S and internationally to
7 ensure the enforcement of copyright, trademark, trade secret, and other protections that apply to software and hardware products, services, business plans, and branding. Technology Technology is rapidly increasing with the growth in technological advancements. Microsoft, the most renowned technology company, was founded in 1975 by Bill Gates and Paul Allen. The American multinational company offers software and hardware products, cloud computing, operating systems, and apps and devices. With over 40 years of operation, Microsoft has made a significant contribution to the technology industry. However, with the increase in companies that offer technology solutions, competition arises, hence the need for the firm to frequently conduct an internal analysis to help improve and implement effective strategies, help them compete with their competitors, and achieve organizational goals (Chebolu & Nair 2021). First, Microsoft has continually remained a giant multinational company and is the global market leader in software technology. The firm is the largest developer of windows OS and cloud players. Secondly, the firm has a dominant market share with a vast market reach. The company is ranked second largest globally based on market value and is operational in over 190 countries globally. Finally, the firm is a reputable brand with loyal customers who trust the brand, enabling the firm to have consistent financial performance. However, the firm has also had its fair share of challenges, such as cybercrime theft. Microsoft products are vulnerable to cybercrime, especially their OS. As a result, organizations and individuals become unattracted to their products. Secondly, they lag in innovation by largely depending on software products rather than the hardware, weakening their business against their competitors, hence facing strong competition from huge firms such as Google (Eitzman, 2019). Finally, they have less penetration in the search engine segment. In summary, internal business
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8 analysis is an essential tool in strategic planning and is the first step to formulate strategies. Also, the internal assessment helps businesses examine their internal environment as part of strategy formulation, execution, and in identifying their strengths, weaknesses, opportunities, and threats (SWOT). Therefore, for Microsoft to remain a giant multinational company in software provision, the firm needs to upgrade its software, constantly update its browser, increase partnerships, address cyber theft issues, enhance its brand reputation by using practical marketing tools, and enhance growth through diversification. External Assessment Porter’s Five Forces: Rivalry Among Competing Firms One of the hardest things that business leaders must do is to manage external factors with a significant impact on their businesses by educating themselves and staying abreast of the fast- evolving changes, taking calculated risks and reacting to all the outcomes. External factors are larger than just a business even one industry, these are macro level issues such as political shifts, economic booms & busts, natural disasters, innovations and technological advances, competition at a global level and local, regional, and global policies and the legal mechanisms to enforce the policies. Microsoft is not immune to any of these external forces at home or abroad. For example, political and government positions on businesses are one of the most important external forces businesses must pay attention to. Systems and guidelines put in place by a government (s) are all they have for business to guide decisions and develop and implement their strategic business priorities. It is not like Microsoft can afford to not expand and compete at a global level. Decisions on where to expand becomes a series of strategic exercise, are the policies business friendly or not, how is the government regulating a particular industry, how are the tax policies,
9 how do they deal with corruption and is it a level playing field where policies encourage good competition. These policies can make or break a business. The best tool that Microsoft has is to be informed enough to predict outcomes and make decisions based on those predictors. This is even more complicated when things change once Microsoft has established itself in a new country, when government change a whole host of risk factors need to be interrogates, is the new administration going to change policies and if so, will it be harder or easier to operate. It is not like closing doors is an easy decision either. Foreign presence is complicated but operating here in the US is not easy either. Let’s take for example immigration policies. For Microsoft to stay competitive they must continuously attract and retain the best talents in their industry from a global pool of qualified applicants. When the US government immigration policies fluctuate between a friendly work visa for professionals to no visa at all, businesses who rely on a diverse workforce like Microsoft struggle. The reality is Microsoft needs to have a multi-pronged approach to stay ahead of the game and remain competitive, hire as many top candidates as they can from the US while bringing global talents to complement the local talents. That diverse employee pool brings in insights of their local global communities for Microsoft to design products that cater to global consumers. That diversification strategy is not just applicable to hiring work force, it also is necessary in expanding the global footprint. Microsoft cannot afford to rely solely on US policies because their headquarters are in the US, they also must expand their business overseas. They do so once again consider all the external factors overseas political stability, how well the infrastructure is, how safe it is to operate, and of course what the foreign trade policies are. Then Microsoft need to balance this with the cost of not doing businesses in growing economies like Brazil, China,
10 and Africa. As China, Brazil. India and Africa expand their economies with increasingly of their citizens moving to the middle class, it opens a huge market for Microsoft with consumers with more disposable income to purchase computers, laptops, and gaming consoles and all the software necessary to power the hardware. A good leader will have a diverse portfolio of approaches in their strategic roadmap. One of those important ingredients is community engagement. Businesses like Microsoft increasingly are seeing adoption of good and ethical practices and advocating for worthy causes not just the right to do but a smart thing to do for their businesses (Satya, 2020). Engaging communities by joining them to support a cause that is good for everyone is an effective way to do the right thing but also to garner support and nurture a friendly community with the hopes that these communities will be helpful in the future by helping to elect business friendly law makers in the future (Microsoft. n.d.). Analysis of external factors and forces therefore are important decision- making tools for businesses like Microsoft. Porter’s Five Forces: Potential Entry of New Competitors Potential Entry of New Competitors in Microsoft’s business space is constant and it is always growing – one ‘big’ idea can kick off any new competitor and take Microsoft’s market share. Microsoft offers a various number of technological solutions, services and products. This environment is built on innovation and bringing on new ways of doing things which puts pressure on Microsoft through lower pricing strategies, reducing costs and providing new value propositions to the customers. To stay competitive against potential entry of new competitors Microsoft needs to build capacity and stay relevant with R&D. The current niche marketspace new competitors are looking to breakthrough is with AI. Apple and Google are currently Microsoft’s largest competitors. New Entrants are less likely to enter a dynamic market where
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11 Microsoft continues to define the new standard of technology. This reduces high profit margins for new firms in return discouraging new entrants to the industry. Porter’s Five Forces: Potential Development of Substitute Products The potential development of substitute products exerts a weak force on Microsoft. The primary reason for this is the lack of availability of substitutes (Ferguson, 2017). The lack of availability of substitutes has several layers. First, Microsoft is so entrenched in the market that as of 2021 they control an estimated 87.65% of market share and their next largest competitor, macOS controls only 9.54% a staggering gap between first and second place (Clayton, 2021). Also, macOS was developed as a proprietary software designed only to power in-house created Apple products, meaning it is simply not applicable to the clientele currently served by Microsoft (Clayton, 2021). Therefore, the striking lack of current competition for a substitute product is a reason for the force being weak. Another and related reason, is that Microsoft has been on the cutting edge of technology in the development of their products and their research and development team is so far advanced in computing technology that the cost to entry in order to compete at all is not only high, but continues to increase by the day as Microsoft continues to refine their product and thereby shaping the direction of personal computer development (Ferguson, 2017). Therefore, the force is weak because of a lack of availability of substitutes, both in fact as can be seen by market share; and in theory, as the course of computer technological development has been key to the continued success of Microsoft as they advance technology before any potential rivals even appear. Porter’s Five Forces: Bargaining Power of Suppliers Employees are considered the most significant suppliers in numerous industries when it comes to supplier power because they have the most knowledge of physical devices as well as
12 technical knowledge (Lai et al., 2018). Great suppliers are also known for their versatility. High turnover in an industry or company reflects poorly on the firm since it demonstrates that the company's most valuable assets cannot stay, making it difficult for customers or purchasers to remain loyal. Microsoft puts a lot of money into its employees so that customers can have trouble-free software services, and the Developer Training and Certification Initiative helps to achieve this. Industrial suppliers are thought to have a lot of influence on operations. Porter’s Five Forces: Bargaining Power of Consumers Consumers quite often demand a lot. They want the best offers available, quality products at a low cost. This puts pressure on Microsoft's profit overall. The smaller and more powerful the customer base for the company the higher bargaining power the consumer has which gives them the ability to seek increasing discounts and offers. Microsoft can tackle this by building a larger base of customers. By having a larger customer base Microsoft will be able to reduce the bargaining power of the consumer and provide an opportunity to streamline the sales and production process. Microsoft is innovative and creates many new products. Being that customers are constantly looking for discounts on established products, Microsoft creating new products limits the bargaining power of the buyer. New products also reduce the rate of “defection” of existing customers to competing companies and/or products. PESTLE Analysis: Economic Forces Economic factors have a direct impact on businesses. Since the global recession, the world economy has been growing at a fast rate. Contractor et al. (2020) state that the economic environment of a country determines the profitability of the business that operates in that country. Examples of economic factors that affect Microsoft Corporation include the foreign exchange rate, inflation rate, interest rates, gross domestic product (GDP), and the current
13 commercial stage of the host country. The status of the financial situation of the state determines the potential for making a profit or a loss. The rate of gross domestic product growth of a country will determine the speed at which Microsoft Corporation will grow in the near future. If the GDP has a high growth rate, the implication is that the country will grow at a higher price. Akan & Tevfik (2020) explain that the interest rate determines the number of money people or businesses are willing to borrow and invest from a lending institution like banks. When there are higher interest rates, there will be more significant investments, which will mean more growth for Microsoft Corporation. The exchange rate of the country in which Microsoft is operating will impact profitability since Microsoft engages in international business. Currency stability in the host country also has an impact on global companies. When a country has an unstable currency, foreign investors are discouraged. Microsoft should also analyze the level of unemployment because when there is a high level of unemployment, it means there is an excellent supply of workers. Therefore, Microsoft is likely to get employees at a lower wage, maximizing profits. PESTLE Analysis: Social, Cultural, Demographic, and Natural Environment Forces Social, cultural, demographic, and natural environment forces of Microsoft show the type of social situations that affect Microsoft’s remote and/or macro-environment, mainly when considering customer’s behaviors and expectations. The following sociocultural external factors influence Microsoft when it comes to computer technology: stable attitudes about leisure (opportunity), increase in cultural diversity (opportunity and threat) and a stable demand for high quality customer service (opportunity). The attitudes about leisure offer opportunities for Microsoft to develop products that are satisfying to customers. Microsoft can increase the amount of money they invest in innovative computer game products. Increasing cultural diversity can be a potential threat for Microsoft when it comes to product-customer mismatch in
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14 remote or macro-environments. Customer satisfaction may decrease as the products give satisfaction to the masses or larger cultural groups. Microsoft does, however, have an opportunity to increase its goods and services and improve satisfaction in the macro-environments. The demand for high quality customer service gives the company opportunities to improve customer support activities. PESTLE Analysis: Political, Governmental, and Legal Forces Microsoft dominates the market for operating systems for personal computers. Not only is Microsoft a household name, they continue to be the go-to software for any new PC, with around 80% of the world’s computers currently run on a Microsoft system (Liu, 2021). It is due to this sustained dominance that Microsoft has encountered political and legal difficulties. In 1999, Microsoft was found to be in violation of the 1890 Sherman Antitrust Act, and at the conclusion of the legal case, was mandated to break up the corporation (Zachary & Hall, 2020). Ultimately, owing to the political savvy of the corporation through lobbying alongside continued court appeals, Microsoft was able to overturn the ruling, never actually breaking up the company (Zachary & Hall, 2020). Despite their political and legal success in American courts, Microsoft has continued to be found in violation of various anti-monopoly laws worldwide. Of historic importance was the 2004 European Union fine against Microsoft for monopolistic behavior, the largest corporate fine ever issued by the European Union. This historic fine was only overtaken in 2008 when the European Union again found Microsoft in continued violation of the anti- monopoly laws and issued them an even larger fine of 900 million Euros (Arthur, 2012). Ultimately, Microsoft has learned the political and legal intricacies of the European Union and not only negotiated their fine down to 860 million Euros, they have also not had any more fines of this magnitude lobbied against them (Arthur, 2012).
15 PESTLE Analysis: Technological Forces Microsoft is a technological company in a dynamic ever-changing market. As fast disrupting technology is, there are many factors that impact Microsoft; innovation is product offerings, supply chain disruptions, access to data, and rate of technology driven change. Microsoft must continue to invest in research and development from both a macro and micro level to stay innovative. The technology industry also creates issues for licensing products through various governments which can impact and limit Microsoft’s solutions and response to the need of technological advancements. Due to high cash reserves, Microsoft has opportunity to invest heavily in R&D. This has given capabilities in the artificial intelligence market to drive growing along with cloud computing and their already mature Window’s line of personal and business services. PESTLE Analysis: Competitive Forces Goals and SMART Analysis Goals 1.To revamp productivity as well as reinvent business processes. 2.To build a more solid artificial intelligence (AI) driven cloud platform. Objectives 1.To augment the organization's overall productivity by ensuring that all workers attain at least 85% of the 800 set out Microsoft productivity score. Notably, there is a need to deliver a new customer experience (CX) by providing the necessary tools and support, such as employee training, which will aid in how they interact within the entity and engage the customers in
16 various online platforms. Focusing on providing a new customer experience will translate to satisfactory services leading to high productivity and returns. 2.To attain a well-differentiated competitive edge, Microsoft will ensure that it releases the next version of Microsoft Office by 1st December 2022, an invention that will transform the nature of work in all organizations globally. In the modern business world, organizations are focusing on getting work done appropriately, an objective that will be made possible by releasing the new model on time. It is also prudent that Microsoft maintains its lead in providing more advanced software to attain a competitive edge. In this regard, the company can achieve this objective by reinventing its business processes. 3.To automate all Microsoft functions and fully adopt Azure Machine Learning by the end of August 2022 to build a more solid AI-driven cloud platform. The cloud-based service approach will help Microsoft integrate data analytics solutions with AI capabilities in all its operations. This model will enable the corporation to build its software efficiently and faster, increasing the overall throughput. This will augment its performance by creating a more efficient cloud platform that minimizes costs, offers a more robust security system of its critical data, and provides a mechanism of disaster recovery. SWOT Analysis Microsoft is a giant & industry leader. For the last 40 years, Microsoft has built a recognized brand associated with innovation and innovative services and products such as computers, software and cloud computing. In 2021, Microsoft ranks #3 as the World Most Admired Companies, #15 of the Fortune 500 companies and #16 as a global business superpower. It employs more than 150,000 employees worldwide, is well respected at home and abroad and consistently rated as the best employer by those who work and have worked there in
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17 the past. This SWOT analysis is an exercise to better understand Microsoft standing today and how they would fare in the future. Strength Its office products like Outlook and Teams are used in professional and personal settings across the globe. Through acquisitions of innovative new companies, Microsoft continues to evolve and strengthen their global dominance in the industry As personal computers and the use of smart phones increases, so did Microsoft’s products, Bing and Edge for instance making it easier for consumers to find the information they need at their fingertips More and more Microsoft physical stores are in major metropolitan cities lined up next to luxury and everyday products in Malls across the world Microsoft attracts the best of the best global talent making it one of the most diverse employers with more than 150,000 employees Microsoft founder Bill Gates and his ex-wife Melinda Gates have dedicated the majority of their wealth to do good through their charitable philanthropy The Bill & Melinda Gates Foundation, donating an average of 5 billion dollars a year Weakness Microsoft is very vulnerable to imitations making it confusing for consumers and hurting Microsoft brand
18 Global expansion is very good for business but also very hard for Microsoft to stay on top of all challenges at a global scale Some of Microsoft practices are questioned by local and global authorities including through an Anti-Trust Lawsuit. 30 years ago, the United States government sued Microsoft for monopolizing personal computer. As a software company Microsoft is in the business of selling Microsoft application, what the government challenged however was how Microsoft was making its Windows operating system as a prerequisite for buying and accessing Microsoft application. Opportunities Continue to push the boundaries and innovate to find newer products that will make consumers more productive and effective As globalization continues, Microsoft is best positioned to take full advantage of the billions of people who are entering the middle class and have disposable income. Market penetration, especially in emerging economies and markets, is a huge opportunity for Microsoft. Microsoft is innovative and attractive for global tech talents to design new products permitting Microsoft to stay ahead of ever-growing hacker’s threat. Threats Given the online nature of their business Microsoft will continue to be vulnerable to hacking. Cyber Security therefore is a big threat Emerging countries like China will be investing increasingly in supporting local companies who will one day be competitors to China
19 Microsoft’s Alternative Strategies SO Strategies Partner with select tech universities around the globe to hire top students; can offer to pay for education for employment contract. (S5, O3) Work with the Bill & Melinda Gates Foundation to donate tech that can support developing countries and support Microsoft’s globalization and inspire new talent. (S6, O2, 03) WO Strategies Open brick and mortar stores in growing middle class markets (W2, O2) Work with computer, tablet, and phone manufactures to pre-load Microsoft software on a trial bases (W3, O2) ST Strategies Acquire a subject matter expert (SME) company related to cyber security (S2, T1) Invest heavily in R&D and improving everyday productivity products making it difficult for new entrants to compete (S1, S3, T2) WT Strategies Work with global governments to expand product line within other countries and attract new talent (W2, W3, T2) Set up bug awards to award hackers for finding issues in software (W1, T1) SPACE Matrix
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20 Ethical Considerations 1. Revamping productivity as well as reinventing business processes. 2. Build a more solid artificial intelligence (AI) driven cloud platform The ethical dilemma of having an increased presence of an AI and automate all Microsoft functions is that this may lessen jobs in the technology field. Also, current staff may feel as though their jobs are no longer important to the company or unnecessary. While having Artificial Intelligence completing daily mundane tasks is a benefit for Microsoft it may be problematic due to staff not feeling as though they are needed within their field. While AI’s can help with small tasks such as answering customer complaints to a certain extent it may be argued that a computer cannot empathize with human customers and may lessen a customer's experience. Many people prefer to interact with a living person and not a computer. Though the Ai may respond in a similar fashion to their human counterpart with proper programming in some instances the AI
21 cannot put the necessary feeling into an interaction with dealing with the person on the other side of the computer or phone. In short, having a system that is mainly run by an AI can pose an issue due to staff not feeling needed, customers not wanting to deal with a computer and preferring to deal with a human and the errors that come with that form of interaction. Microsoft’s Strategic Plan Implementation Strategy 1:Partner with select tech universities around the globe to hire top students; can offer to pay for education for employment contract. Table 1 Schedule Overview: Major Milestones Milestone (Estimated Start Date: 7/1/2022)Estimated Completion Date/Estimated Duration Define roles and responsibilities for team members to strategically plan university selection and partnership process 9/1/2022 (~2 months) Boost morale and workplace culture by celebrating project milestone successes with internal teams 8/1/2022 (~1 month) Hire top students from partnered tech universities with the offer of ongoing learning and promotion opportunities 9/1/2022 & 9/1/2023 (~2 months and annual evaluation) Continue coaching on career development through ongoing mentoring skills 8/1/2022 & 12/1/2022 (~1 month and quarterly reviews) Email students for hiring campaigns with a goal of 90% attendance 10/1/2022 & 10/1/2023 (~3 months and annually) Continue social media posts with the goal of increasing reach by 1k followers a month and attaining 4M followers on Instagram 9/1/2022 & 10/1/2022 (~2 months and monthly) Our implementation plan for Strategy 1 is illustrated by Table 1. This table provides not only concrete action steps, but also and estimated start date, as well as projected end date and estimated duration. The action steps incorporate maneuvers to be taken by Management, Human
22 Resources, and Marketing. What follows is a detailed breakdown of how Management, Human Resources, and Marketing will be utilized in the implementation of Strategy 1. Management To successfully build relationships with select tech universities around the globe to help aid in recruiting top talent requires a focused strategy team with clearly defined roles and responsibilities. Microsoft management team will utilize a RACI chart (Responsible, Accountable, Consulted, and Informed). It is recommended that management implements the following actions (Martins, 2021): 1.Responsible. This person is directly in charge of the work. There should only ever be one Responsible role per task, so you know who to go to with questions or updates. If a task has more than one Responsible person, you can lose clarity and cause confusion. Instead, aim to add additional collaborators as some of the other RACI roles, which can have more than one person. 2.Accountable. The Accountable person is responsible for overseeing overall task completion, though they may not be the person actually doing the work. There are two ways to assign an Accountable role. Sometimes, the Accountable is the project manager (or even the Responsible, though in that case the person is taking on two different roles during the task workflow). In these cases, the Accountable is responsible for making sure all of the work gets done. In other cases, the Accountable is a senior leader or executive who is responsible for approving the work before it’s considered complete. Like the Responsible role, there should only ever be one Accountable.
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23 3.Consulted. This will be the person or people who should review and sign off on the work before it’s delivered. There may be multiple Consulted roles for each task, project milestone, or deliverable. 4.Informed. This is the person or group of people who are informed about the progress and completion of work. They probably are not involved in any other aspect of the deliverable. In efforts to promote healthy and inspiring workplace culture, management will celebrate successful project completions for tasks and milestones. Some of these celebrations may include team lunch, gifts and prizes, and paid time off. The overall goal for management is to recognize the hard work because “celebration breeds more success and adds to the satisfaction you experience when you take note of your accomplishments in the workplace” (Lucas, 2019). Human Resources Partnering with select tech universities around the globe to hire top students and offering to pay for education for employment contracts is consistent with the current policy that Microsoft already has. With the company having a growth culture they value learning over knowing— seeking out new ideas, embracing challenges, learning from failure, and improving over time (Empowering our employees: Microsoft CSR2022). Microsoft offers a range of learning and development opportunities and believes that training can be more than just formal instruction. Opportunities include: Personalized, integrated, and relevant views of all learning opportunities on Microsoft Learning and LinkedIn Learning. In-the-classroom learning and sharing with learner boards.
24 On-the-job “stretch” opportunities for advancement. Frequent promotion opportunities. Coaching on career development through ongoing manager connections. Customized manager training to enhance coaching and mentoring skills. (Empowering Our Employees: Microsoft CSR 2022) Marketing Microsoft has a dynamic marketing plan to target top talent from universities around the globe. As an annual strategy to start to engage final year students in tech universities, Microsoft’s hiring team will engage the marketing team with the number of new hires needed for the year in various skill codes. The Marketing team’s milestone will be to release email marketing material to engage students to attend hiring campaigns for Microsoft. The Marketing team’s goal will be to have 90% of the students engaged to attend the hiring campaigns conducted by Microsoft’s hiring team. This is to hire top talent before a competitor can engage the new graduates. The second milestone of the marketing team is to create an online social media presence and work on its positioning. Positioning is a process where a company tries to establish a good image of itself in the mind of the targeted audience selected while targeting the stage (Shastri, 2021) in this case will tech graduates. Microsoft currently as 3.6M followers on Instagram and continues to engage in marketing material for the public to grow brand interest and inspire future employees. Strategy 2:Invest heavily in R&D and improving everyday productivity products making it difficult for new entrants to compete. Table 2 Schedule Overview: Major Milestones
25 Milestone (Estimated Start Date: 7/1/2022)Estimated Completion Date/Estimated Duration Develop teams for new product development9/1/2022 (~2 months) Increase budget allowance for R&D for calendar year 20229/15/2022 (~1.5 months) Assess R&D policies to ensure they remain ethical 9/1/2022 & 9/1/2024 (~2 months with biannual review) Release hiring information on social media targeted to attract HR talent8/1/2022 (~1 month and as hires are needed) Post two R&D teasers on social media9/1/2022 & 11/1/2022 (~2 months and every 2 months) Release hiring information on social media targeted to attract R&D talent9/1/2022 (~2 months and as hires are needed) Our implementation plan for Strategy 2 is illustrated by Table 2. Strategy 2 is the perfect complement to strategy one as it capitalizes on the educational resources of our team. This table provides not only concrete action steps, but also and estimated start date, as well as projected end date and estimated duration. The action steps incorporate maneuvers to be taken by Management, Human Resources, and Marketing. What follows is a detailed breakdown of how Management, Human Resources, and Marketing will be utilized in the implementation of Strategy 2. Management Through R&D, management and leadership teams will prioritize selected internal teams and budget allocation-based calendar year 2022 focus on real world change. This strategy is crucial for the success for R&D because according to Microsoft Research (2021), “fundamental advancements in science and technology have a crucial role to play in addressing ongoing societal challenges such as climate change, healthcare equity and access, supply chain logistics, sustainability, security and privacy, and the digital divide. Microsoft Research is increasing focus on these areas and others to help accelerate transformational change and build trust in technology as it evolves” (Microsoft Research, 2021). Human Resources
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26 The human resources component of Strategy 2 is incredibly straight forward. First, there needs to be an evaluation to ensure that R&D policies remain ethical. Once this is complete, there needs to be a review biannually to ensure continued compliance. Also, hiring information should be distributed to social media in order to recruit both R&D as well as HR talent. This should be completed, with information released one month from implementation launched, and this process should be ongoing in accordance with staffing needs. Marketing To support’s Microsoft R&D investments the marketing team will create teasers of new products for the consumers. The mission statement for this project will focus on creating ‘hype’ for future products and keeping the R&D team engaged through the marketing team. This will be an ongoing milestone activity to keep the R&D team along with the consumers engaged with this single strategy. The marketing team will also support the R&D by posting social media clips of skills required to be a part of the team to engage future talent.
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