Strategic Management: Microsoft's Business Scenario and Porter's Five Forces Model

Strategic Management
Assessment

Table of Contents
Introduction......................................................................................................................................3
Company overview..........................................................................................................................3
Philosophy of Microsoft.........................................................................................................3
Current Business Scenario of Microsoft.................................................................................4
TASK...............................................................................................................................................4
Porter's Five Forces Model.....................................................................................................4
Effectiveness as well as limitations of Porter's Five Forces Model.......................................6
Recommendation....................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Introduction
Strategic management refers to the process which assists an organization in order to
accomplish their goals and targets in an effective manner with the assistance of factors such as
planning, analysis, monitoring, assessing as well as evaluating. It has been identified that
strategic management usually aid in examining various opportunities which will help a business
entity in order to grab strong market position. Microsoft Corporation is the organisation chosen
in the current project. It is an organization established in year 1975 whereas the headquartered is
located in Redmond, Washington. In this report, various types of models and theories are going
to be discussed such as Porter's Generic as well as Porter's Five Forces Model which will help in
understanding that how efficiently Microsoft implement strategic management among the
changing business situation. At last, recommendation will also be provided to the management
team of Microsoft with the help of which they can smoothly run their business functions at
global level.
Main Body
Company overview
In the present project, Microsoft Corporation is chosen as the base company which is
considered as one of the biggest organization perform its functionality within information
technology sector . Microsoft Corporation is an American multinational technology industry
which was established in year 1975 by Bill Gates & Paul Allen. This is an organization
specialised in different sub sections such as development, manufacturing, sales of different
software, personal and private computer system, electronic gizmos and many more. It has been
identified that because of the high quality and reliable goods and services offered by Microsoft
Corporation to their customers, it is now one of the most trusted brands among the technological
sector.
Philosophy of Microsoft
It has-been said that the philosophy of Microsoft is to attain their each and every short term
goals within specified time period. In addition to this, if talking about the vision of the
organization their focus is to grab potential candidates with the help of which they can produce
high quality products offered by them to their targeted customers. Along with this, Microsoft
agenda is that they must authorise each and every employee working within the organization so

they can take all the decisions by their own. This leads them to offer best services to their
customers and help them in retaining their potential users for a longer period of time frame.
Current Business Scenario of Microsoft
It has been identified that Microsoft is currently providing ample number of high quality
services to their customers. Microsoft Corporation is one of the biggest leading organisation
within electronic sector in which ample number of different small as well as large level of
companies deal but are not capable of developing the position at marketplace. It has been
examined that at present Microsoft crossed $100 Billion by creating revenue in the year 2018 of
$110 Billion. As a result, company is having strong presence at international marketplace and
use advanced technology for improving competitive advantages. Furthermore, by creating
innovative products Microsoft grab attention of large number of customers towards them.
It can easily be understood with an instance of Microsoft in which performance of the
company is usually showed on various social media platforms such as LinkedIn, Windows Pro
and Surface. Another element is also there which is " Commercial cloud", which is used to
outline & it has been classified as well as developed by Microsoft majorly enclosed with various
things such as Azure, Office 365, numerous ones, Dynamics 365 and many more. In addition to
this, it has also been identified that the higher authorities of Microsoft emphasises on the process
so that they can enhance the implementation of distributed computing (Microsoft Annual Report
2018, 2019).
It is identified that for maintaining smooth running at the competitive marketplace it is
necessary for the management team to develop all the plans and strategies according to the
changing situations. With the help of strategic management, Microsoft can easily grab
competitive advantages as well as effectiveness in near future. Therefore, it is required by
Microsoft to conduct an analysis of the whole industry. With the assistance of which, strategies
can easily be developed. For this, Porter’s Five Force model is used by higher authorities which
is one of the most effective strategy and help in examining the overall market situation in an
effective manner.