Strategic Management of Microsoft: Analysis of Satya Nadella's Leadership

STRATEGIC
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN ANALYSIS..........................................................................................................................1
Overview of topic........................................................................................................................1
Overview of Microsoft and importance of strategic management..............................................1
Satya Nadella managing Microsoft performance and efficiency................................................2
Leadership practice of Satya Nadela...........................................................................................3
Analysis of Microsoft’s performance in relation to declared/ undeclared strategy.....................6
CONCLUSION................................................................................................................................7
RECOMMENDATIONS.................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management can be defined as a process of setting goals, procedure, objectives
of an organization in order to make organization more competitive. It is one of the main parts of
an organization that helps an origination in achieving success or failure by achieving set goals
and objectives of organization (Makadok, Burton and Barney, 2018). It directly helps an
organization in taking initiatives that can be adopted by them for fulfilling needs and
requirements of all the main stakeholders of organization for achieving success. This report will
lay emphasis upon strategic management of Microsoft which is one of the largest multinational
technology corporations. In this report case study of Satya Nadella, C.E.O. of Microsoft has been
focused upon or evaluation of his efficiency and performance in Microsoft in relation to
declared/ undeclared strategies chosen by them. In this report efficiency of his strategies and
leadership will also be done for evaluation of strategic management of Microsoft.
MAIN ANALYSIS
Overview of topic
Strategic management can be analyzed as highly competitive aspect integral for building
new advanced business positioning productively, and gaining stronger determinants correlated
with varied untapped domains (Lopez Giron and Vialle, 2017). In recent time periods, Microsoft
company has been stringently advancing new strategies for diversifying efficacy among strategic
management operations variedly for longevity within business goals. Leadership and specific
innovation business competencies are evolved in brand, for attaining new quest growth scenarios
variedly at Microsoft where this further will be evolved within research in detail.
Overview of Microsoft and importance of strategic management
Microsoft is an American technology MNC that was founded in 1975 who’s main
headquarter is in Washington, US. They sell products and services like computer, computer
software’s, personal computers, and many other related services. Some of the well known and
star products of Microsoft are Microsoft Windows, Microsoft Office suits, internet explorer,
edge web browser etc. they are one of the largest software Maker. Strategic management is
extremely important for Microsoft in order to achieve success and gain competitive advantage
(Prakash, Bisla and Rastogi, 2021). It further helps them in resolving any kind of problem faced
by organization that can work as a hindrance in achievement of main goals and objectives of
organization in an appropriate manner. In other words, it directly helps in dealing with strategic
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issues or problems faced by corporation. It is important for Microsoft to focus upon developing
strategies that can directly help them in enhancing their overall performance and efficiency
Satya Nadella managing Microsoft performance and efficiency
Satya Nadella is current CEO of Microsoft who took over this position in 2014 and since
then overall shares of company has only moved up and achieve success since 1999 and reached
its highest value. Leadership of Satya Nadella was extraordinary because his leadership helped in
bringing growth mindset to Microsoft. This brought this within Microsoft by helping the
organization in becoming customer-obsessed, inclusive, and working as a single team Microsoft
to achieve growth (Gotsch, Lienhard and Schögel, 2019). Main focus of Satya Nadella was to
enhance focus upon innovation so that they can grow as a word class technology player and
valued technology partner. Overall performance of Satya Nadella in Microsoft was excellent
which further helped him in enhancing overall efficiency of organization by focusing upon
innovation. He had also focused upon providing leadership training to managers and other
leaders for development of skills and knowledge that can be used by them for contributing in
enhancement of overall performance and efficiency of organization and new desired goals can be
achieved. These initiatives and strategies developed by Satya Nadella helped Microsoft in
bringing improvement within overall performance and efficacy of the company which eventually
helped them in achieving hights and increase overall value of shares of Microsoft as well (Ibarra,
Rattan and Johnston, 2018). Some of the main initiatives taken by him for managing overall
performance of Microsoft are as follows:
 Initially Microsoft had focused upon enhancing their overall focus upon software and
software related services but he shifted back focus of Microsoft towards hardware and cloud
computing. Provision of cloud computing services and combining it with other software
services of Microsoft directly helped them in boosting overall performance of Microsoft. For
this, he majorly focused upon introducing innovative services and products to customers as
per need and requirements of costumers.
 Another initiative taken by Satya Nadella was to bring changes within existing culture of
Microsoft for enhancing its overall performance and efficiency. For this it was important to
change existing culture of Microsoft that was inflexible and rigid to flexible and non-rigid.
Or this hierarchy and peaking system had been developed and taken over so that creativity of
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