The Role of Business Strategy and Leadership in the Success of Microsoft: A Case Study of Satya Nadella

STRATEGIC
MANAGEMENT

INTRODUCTION
Use of specific business plan by the company's head, in order to achieve different
advantages and growth is concerned with the application of business strategy. A company wants
to develop a successful set of plan of action due to various reasons, one of the main reason is that
it helps checking out the working structure of the business and through this management can take
initiative in setting up of several guidance. It will work as an assistance to execute those
frameworks which are designed with the objective of earning competitive growth in the market.
They also contribute in identifying several trends in the market which could help a firm to
develop innovative techniques in the production of goods and services. This essay is related to
the case study which is elaborating the performance of Microsoft by using the strategy which are
constructed by Satya Nadella as the Chief Executive Officer of the company. This essay will be
executed using the third option which involves business case study and in this instance, this
essay will be based on the case study involving Satya Nadella and the way his leadership has
changed the business strategy of Microsoft. Nadella’s leadership and strategic decision making
will be highlighted in this essay along with recommendation to solve critical problems in
Microsoft decision making.
Main Body
Microsoft is the multinational company which is operating in information technology
industry. This company was constituted in the year 1975, and currently its headquarter is situated
in Redmond, Washington in United States. Company is offering different kind of product line
such as software’s for the computer system, electronic appliances, as well as computers.
Microsoft is famous for its window services and internet explorer and several web browsers. It
was started by Bill Gates and Paul Allen, and in the beginning they were only involved in
generation and selling of BASIC interpreters in relation to the Altair 8800. Both have completed
their studies from a well-known university i.e., Gates from Harvard University and Allen from
Washington State University, but he has some other plans and due to this he did not complete his
degree as he got the opportunity to work in a company. 1980 was the year when Microsoft took
its step to move further in the business of operating system, with this company explore new
possibilities which was helpful in expanding the management practices. Apart from this,
introduction of windows was successfully happened in the year 1985, which is currently used by

every person in the world. All these developments in the working of the company has come into
existence because of the numerous strategical actions which are made by the leaders of the
company.
Uses of business strategy in the functioning of the organisation will help the firm to
resolve various kind of issues. This will stimulate the capacity of management who are
responsible for taking decision and make them more efficient in their working. It will support in
finding various ways so that leaders can take right decision which will results in positive
outcomes for the respective company. There are different types of strategies which could be used
by companies, to get more growth against the competitors, as this can simplify the production
activity of the business organisation. With such practice of the company, it also helps in uplifting
the performance standards of the employees by motivating to work by opting best method and
present it in the creative among the higher authority of the company. By the optimum utilisation
business strategy business firm can generate profitability by issuing better experience to their
customer base. Talking about the Nadella and his contribution in the developing the business
strategy, he should focus on considering different elements which are revolved around the
environment in which Microsoft is operating. Being a leader it is his responsibility to identify the
factors which have the capability to convert the demand and expectations of the consumers in the
market. Nadella's main concentration is finding out the new technological changes in the
computer sector which are necessary to bring the ease of working and handling these systems by
the individuals.
Currently, Microsoft is following the method of broad differentiation, in which company
is trying to build such changes in their services which will support in facing the enormous
competition in the IT industry. With this strategy Nadella is encouraging the employees of the
company to work in the direction through which management can achieve the uniqueness in the
product and services. By this company is planning to eliminate the presence of substitutes for
their product in the market by any other establishment. It will also ensure the loyalty of the
customers who are connected with Microsoft and using its windows from the longer period of
time. Satya Nadella is contributing in the success of the computer which is a proof the how
effective he is performing the task which has been assigned to him as a leader of the company.
Furthermore, he is constantly working in operating the functions of the business by selecting the
diversified structure of the products. The main aim behind this action of the company is that they