Strategic Management: Overview, Recommendations, and Porter's Five Forces Model

Strategic management
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Table of Contents
Introduction......................................................................................................................................3
MAIN BODY...................................................................................................................................4
Recommendations:...........................................................................................................................8
Conclusion.......................................................................................................................................9
REFERNCE...................................................................................................................................10
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Introduction
Strategic management is a procedure that can be defined as attainment of some specific
objective and goal and performing different management functions such as planning, directing
monitoring, organising controlling and evaluating. The strategic management facilitates
identification of different opportunities that can impact a business organisation in attainment of a
high position (Viltard, 2017). Microsoft Corporation is an organization founded in the year 1975,
headquartered in Redmond in Washington. Present report provides an overview of strategic
management with the help of different management theories and models such as porter's generic
strategies and five forces model that helps in developing a detailed understanding of how
dynamic business environment is managed in effective manner. Later in the report, some
recommendations are made regarding how a business environment can be managed properly.
Overview:
Microsoft Corporation is one of the leading technology companies across the globe. It was
founded in the year 1975 by Bill Gates & Paul Allen. The organisation deals in different
functions such as manufacturing and development with the sales of different software’s private
computers and also some electronic gizmos. Because of the high performance and quality of
products and services Microsoft has been a leading brand in the industry as compared to other
competitors (Lasserre, 2017).
Philosophy:
Soft as a brand is based on a philosophy and main aim is to achieve their short-term and
long-term objectives (Linton and Kask, 2017). In case of the vision of Microsoft they are
focusing on making of the business to get potential advantage and provide worth of the products
by increase value. The customer has trust on the brand due to which they take decisions easily
and prefers the brand over others without taking into consideration the different among the prices
until they are price sensitive for a particular range of products.
Present business scenario:
Microsoft is offering their customers all the high quality products and is one of the leading
brands of this industry. They have earnings of 110 dollar billion according to reports of the year
2018. Apart from this Microsoft has been a leading Global brand and they are making effective
usage of technology by enhancing of the overall capabilities. The reliable product and the high
performance have facilitated Microsoft in achieving high sales and growth (Hanson, 2016). The
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management of the organisation has been taking into consideration the development of the
workforce with the help of which they can easily incorporate innovation and creative approach
for developing better products and services for the customers. The company has set example
before others in context of adoption of emerging technology in their various social media
platforms such as LinkedIn, windows pro etc. In addition to this the focus of Microsoft is on the
improvement of the entire distribution system so that they can ensure the availability of their
products in each and every market. Also they are planning to tap the market of games so that
they can improve the market share as well as their profitability (Varelas and Georgopoulos,
2017).
Every organisation has to incorporate strategic management with the aim of taking
competitive advantage in the external market and for improving their overall effectiveness.
Every organisation has to formulate some of the Strategies and execute them so that there
can be a proper analysis made of various threats that are part of external environment and then
use such strategies to minimise the negative impact of these threats (Mucheru, 2018). Strategic
model such as porter's five models is discussed that can be a suitable approach for Microsoft for
analysing the major five forces that are part of the external environment and can impact the
overall functioning of entire industry (Ansoff, 2018).
MAIN BODY
Porters five force model:
Porter's five Force model is one of the most crucial model which was founded in the
year 1980 by Michael Porter and is used by many business organizations and industries for
achievement of specific objective in defined time period (Munyaka, 2016) .There are basically
five-forces of porter are forces from the industry that has direct impact on the organisation such
as Microsoft and the forces in context of Microsoft are discussed below:
1) Bargaining power of suppliers:
This is the aspect of porter's five forces model that explains the overall power with
suppliers of organization. In case of Microsoft it is related with the power of suppliers and is how
long term associations are build up by Microsoft with their suppliers (Safari, Farhang and
Rajabzadehyazdi, 2016). The overall programming conditions of Business and equipment
conditions lower down the bargaining power of suppliers. Microsoft is having associations with
their suppliers who ensure them better quality raw materials by offering them competitive prices
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