Strategic Management Assignment - Microsoft
Added on 2021-02-19
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Strategic Management
Table of ContentsIntroduction......................................................................................................................................4Company overview..........................................................................................................................4Philosophy of Microsoft.........................................................................................................4Current Business Scenario......................................................................................................4TASK 1............................................................................................................................................5Porter's Five Forces Model.....................................................................................................5TASK 2............................................................................................................................................8Porter's Generic Strategies......................................................................................................8TASK 3..........................................................................................................................................10Recommendation..................................................................................................................10Conclusion.....................................................................................................................................11References......................................................................................................................................12
IntroductionStrategic management refer to uninterrupted process of organisation which comprises ofplanning, monitoring, analysis, assessing and evaluation of entire processes which are needed foraccomplishing objectives of organisation (Doz, 2017). It is crucial for organisation as this allowsthem to identify opportunities within future and apply them in processes to acquire better results.This report is based on Microsoft Corporation which is headquartered within Redmond,Washington. It is a multinational organisation. This report includes identification and criticalanalysis of organisation in terms of strategic management. Different theories have been usedthrough which Microsoft can execute strategic management effectual.Company overviewMicrosoft Corporation is one of the largest technological organisation in the world whichwas founded by Paul Allen and Bill Gates in 1975. They have broad range of operations likedevelopment, manufacturing and sale of computer software, personal computers and electronics.The organisation has their own market around the world as they are the one who are trustedmostly by people with respect to performance, reliability and speed. Philosophy of Microsoft The mission statement of the organisation aims on reaching worldwide to attain their aim.Vision of Microsoft is to make businesses as well as people realise complete potential and worthof products which are being provided by them. Generally, the agenda of organisation is toempower each individual as well as organisation by which they can effectually achieve more anddevelop or evolve further (Grunig, 2013).Current Business ScenarioAt present, Microsoft is most important as well as leading player within electronicsubsectors where other organisations are struggling to make their presence. They have crossed$100 Billion mark by earning around $110 Billion revenue in year 2018. Organisation has a largeglobal market and they make effectual use of technologies thereby leads to enhancement in theircapabilities. The different innovative creations and aspects of organisation plays huge role withincompetent performance of organisation (Hahn, 2013).An instance can be taken which depicts performance of Microsoft are LinkedIn, Windowspro and Surface. Another source of their performance is “Commercial cloud”, for an illustration,
is a category which is developed by Microsoft comprises of Azure, Dynamics 365, Office 365and many others. The organisation has been focussing on their strategies through which they willbe able to enhance performance of cloud computing. Apart from this, organisation has managedsuccessfully with respect to gaming through which they have earned near about $10 Billion(Microsoft Annual Report 2018, 2019).But each organisation needs to formulate as well as execute strategic management throughwhich they can stay a step ahead from their competitors within market and improvise theireffectiveness. Microsoft needs to carry out detailed analysis through which they can criticallyevaluate the entire industry and then they must formulate the strategies. The main reason behindthis is that it will furnish them with a clear pathway related with potential threats andopportunities for an organisation accomplishing effectual strategic management (Hair and et. al.,2012). For this, Porter’s Five Force Model (a suitable approach) can be used by Microsoft toanalyse the entire industry.TASK 1Porter's Five Forces ModelThis model was developed by Michael E. Porter in 1980’s within a book “Strategy:Techniques for Analysing Industries and Competitors”. After that, this model has been usedwidely till date for identification of structure of industry and corporate strategies of organisation.As per Porter, there exist major five competitive as well as efficacious forces which areresponsible for shaping industry and market (Hill, Jones and Schilling, 2014). These forces assistin carrying out analysis of each and every aspect from intensity of competition within market forattracting and enhancing profitability of industry. These forces include Threat of New Entrants,Power of Suppliers, Power of Buyers, Threat of Substitutes and Competitive Rivalry. Thesefactors creates a strong influence on industry and will be very useful for an organisation toformulate strategies to make sure their longer sustainability as well as growth within future.Microsoft can make effective use of this model for determining profitability and attractiveness ofindustry. With respect to Microsoft, this model is elaborated below:Power of Suppliers:Suppliers imply the individuals who will be providing organisation with effectualcomponents and materials which will assist them to carry out their operations in suitable and
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