Strategic Management Assignment Sample (Doc)

Strategic
Managing

Executive Summary
As per the above report it is summarizing that strategic management is ongoing
procedure such as planning, determining, evaluating and assessment that will be done with the
help of business activities in reference to acquire its goals and objectives. In this report porters
five fore model is discussed which help to analysis the performance of company in the
competitive market such as bargaining power of supplier is low for company due to which they
can make supplier agrees to their terms and condition. The report also summaries the porter
generic strategies from which differentiation generic strategy have been selected in the context of
company that help to attract customers.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of organisations......................................................................................................1
Porter's Five force Model.......................................................................................................2
Porter's Generic Strategies......................................................................................................5
Recommendations..................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management is all about identifying and describing the approaches that follow
by the executives to obtain better efficiency and a competitive edge for the organisation (White
and et.al, 2016). It is managing different types of resources with the help of strategy and acquire
of organisation goals as well as objectives. The management focus on setting objectives,
determining the competitive environment, analysing the internal organisation, evaluate strategies
and assuring about the role of management across the company. It can be described as set of
choices and actions that undertaken by a director and determine the outcome of the company. To
better understand the report selected organisation is Microsoft. It is an American multinational
technology company. It was founded on April 4, 1975, by Bill Gates and Paul Allen about 44
years ago. The company has been worked in developing, manufacturing, licence and supporting.
It also sells out different types of computer software, consumer electronics, personal computers,
and related services. In the report consist of strategic analysis of business policy, strategic
management as well as the philosophical underpinning of set methodology in the reference of the
public and private sector for the strategic management domain. Additionally, there are including
recommendations on Microsoft's performance.
MAIN BODY
Overview of organisations
Microsoft Corporation is an American multinational technology company that was
founded on April 4, 1975, by Bill Gates & Paul Allen. It is a public sector company that is
dealing into different types of products such as windows, offices, servers, Skype, Visual Studio,
Dynamics, Xbox, surface, mobile and list of software. The company has been provided different
types of services which are mostly liked by consumers such as Azure, Bing, LinkedIn, MSDN
and many others. The headquarter of the company situated in Redmond and Washington in the
United States (Abrate and Viglia, 2016). The company also deals with hardware products Xbox,
video game software, Microsoft Surface, touch screen personal for computers and many more
products like this. Due to supply good quality and fulfil the requirement of customers company
develop a good brand image and goodwill that can help to earn more profit.
Microsoft is a major software development firm that serve its product worldwide.
Microsoft's leadership focuses on achieving the productive, lucrative and optimal number of
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businesses after that they can quickly and effectively deliver the facilities. The mission of the
company to empower every individual and business as well for acquiring a more competitive
advantage. The vision of Microsoft “to help people and businesses end-to-end the world realize
their full potential. As per the vision, it is analysed that company perform its business and
measuring products as tools that people and business utilised for the development (Mission and
vision of Microsoft Corporation. 2019).
Current Scenario of business organisation – Microsoft Company
In Current time, Microsoft presents efficiently and develop good image at the market
place with the help of different types of products as well as services. The company always tries
to provide the best products and cover a large market to compete with its competitors. Microsoft
focuses on its strategy to stay in the competitive market today. In this company, stakeholder
plays a valuable role for overall development. Today, Microsoft is known as a leading company
in the IT sector which is supplying several types of software, hardware, networking services and
many more.
In the year of 2015, Microsoft is focusing on market controlling in the context of IBM PC
compatible operating system and the office software suite, whether the company lost the number
of whole operating system market to Android. In 2018, Microsoft Surpassed Apple Inc. as the
most valuable publicly traded business in the world after being dethroned by the tech giant in
2010. In the rear of 2019, in April the company became the third U.S. Public company to be
valued at over $1 trillion after Apple and Amazon respectively, reached the trillion-dollar market
cap in 2018. Now the company more focus on its target customers to analysis their taste &
preference for its perspective of potential clients (Current scenario, 2019). To conduct strategic
analysis there is applied porter five forces model by the management of Microsoft that help in
modifying products as well as services as per the requirement and enhance the growth rate (Boon
and et.al, 2018).
Porter's Five force Model
Porter's five forces is a structure for determining a company's competitive environment.
Through these models recognise and analysis of five competitive forces that provide shape to
every industry. It was helpful to understand of industry's weaknesses and strengths. It is also
defined as a tool that works for an organisation to identify competitive advantage and how to
perform in a competitive market. This model introduces by Michael E. Porter in 1979. There are
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consisting five forces such as Bargaining power of supplier, Bargaining power of buyer, Threat
to substitute goods, Threat for the new entrance and Threat to competitive rivalry (Marler and
Parry, 2016).
Through Porter's five forces model the management of Microsoft easily understand and
determines market activities in efficient way. After the analysis of market activities develop
effective strategy that can help to achieve growth in business. On the Porter five model basis
Microsoft develop new profitable and effective strategies to increasing productivity as well as
profitability effectively.
Along with this, these all forces of this model analysis the construction of the company
and its culture to determine the level of competition at the market place. Additionally, it is
understanding that strong competition in the market provides low profitability results. It can help
to understand of barriers in new entries in new markets, substitute for their products. It will help
in developing a strategy to recover from low profitability of the business concern.
Microsoft Porter's model for company is described below: Bargaining power of buyers – Microsoft required to satisfying the need to customer that
will be determined after analysis of company's performance. As per the five force model
analysis, identify the effect of clients or buyer on the computer hardware and software
industry. Microsoft provides response to the moderate force regarding to bargaining
power of buyers that is depended on the external factors such as high quality of
information, availability of low substitute etc. Due to weak force arise problem of
effective substitutes to Microsoft's products. As per the internal variables in this part of
the Five Forces analysis, Microsoft Corporation should consist of corporate strategy for
the mild strength of the negotiating power of clients. Bargaining power of suppliers – In the IT sector, the business of the Microsoft
Corporation mainly depend on the supply condition (Delery and Roumpi, 2017). The
suppliers of the different companies supply the parts of hardware products such as tablets,
game console and many more. In the context of Microsoft, management identified their
market suppliers like Datawatch Corp, Adtran Inc., Cisco System, Nacco Industries inc.
and many more. The company establish good relation the suppliers to supply goods on
time. It is analysing that bargaining power of supplier is low because any time supplier
rise the amount of products that time Microsoft switch to other supplier.
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 Threat of substitute goods – It is occurred in the market when new product or services
fulfil the similar requirement of customer in various ways. In general term, it is defined
that if products that are launched by the other company which similar to Microsoft
product like features, similarities as well as functions. There are defined some example of
substitute goods such as Microsoft's Dropbox and google Drive as they have inbuilt
stronger technology in their products. It is analysed that threat of substitute for the
Microsoft's goods and services are very low. Some software products such as Office 365
persona, windows, office, servers, Skype, Dynamic, Xbox and many more. These
products are different from the other products and have different characteristics
(Szwejczewski, Sweeney and Cousens, 2016). Threat for the new entrance – Microsoft is dealing into software business so threat of
new entrance is low. To enter in the market face different barriers and for design software
need more money that is not arranging by every one. Most of the people have not
sufficient knowledge so existing player take advantages of cost due to the result of their
extended education and economies scale as well. In the hardware sector many companies
grow and develop good image in the market. Thy capture small market share in the video
games, tablets and many other. So overall analysis basis it is understanding that threat of
new entrants is low.
 Threat of competitive rivalry – The threat of rivalry consist of in the between of different
competitors are intense as the Microsoft Corporation present their functions in the
competitive market to tackle software & service industry. In the context of Microsoft it is
identified that in this market company have many competitors such as Apple, Oracle,
IBM, Google, SAP and many more. As such, the business of Microsoft focuses on the
reliable and productive provision of a broad spectrum of goods and services (Kirchoff,
Tate and Mollenkopf, 2016). The help to solve this threat is that Microsoft must
concentrate on doing development in their brand and sell their products shape in different
manner.
After analysing all the Porter's Five forces model of Microsoft Corporation, it is
understanding that there are wide of numbers to present threat in the competitive market.
Additionally, the result of the Porter's five forces of Microsoft put focus on competitive rivalry.
The company also develop different types of strategies to overcome from the all these threats. It
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is helping to company to cover all the market to generate more profit in effective as well as
efficient way. Microsoft must increase its research and growth efforts with the help of improved
product development to increase competitiveness against different firm's products. Through
creativity Microsoft improve their generic strategy as well as intensive growth strategy. The
threat of substitute is identified minimal consideration, Microsoft can also focus to enhance their
product effectiveness (Parakhina and et.al, 2017).
Porter's Generic Strategies
To conduct business activities, Microsoft company adopt different types of strategies to
get benefits. For survive business in effective manner it is required to apply business strategies
that play valuable and vital role. The management of Microsoft focus on the Porters generic
strategies and apply in effective manner in order to leading as top companies.
Porters Generic strategies defined that how a business effectively conduct market
research and run competitive market for acquiring its set objectives as well as aim. There are
consisting of three generic strategy such as cost, differentiation and focuses generic strategy.
Through these strategies organization get advantage in competitive market. The particular
strategy introduced by the Michael E. Porter in 1980 to introduce model that are very effective
and apply in the company. It helpful in effectively and properly conduct all the functions and
operations of business organization.
On the basis of Porter generic strategy different types of business select appropriate
strategy that can help to destroy of wastages resources from the organization. The main aim of
these strategies is to assistance and present the directions to business concern to provide support
in getting and attaining competitive advantages. According to this strategy Microsoft measure
their position with other organisation and understand firm profitability is above or below the
average of business (Steinbach and et.al, 2017). There are two fundamental types of competitive
advantage an industry possess such as low cost and differentiation. There are united with the
scope of activities which firm seeks to acquire them. Microsoft has been applied different types
of strategy defined below: Cost generic leadership strategy – It is a way of becoming a cost leader because it is
mainly deal with providing products and services. The firm sale out its products at low
price with good quality to generate more profit compare than their rivals. Companies
dealing in low price with good quality level and deduct overall cost by any reduction in
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cost that help them in increasing the profit margin. It is not simple to become cost leader
because there is required to focus on their operations as well as functions (Kleibrink,
Gianelle and Doussineau, 2016). As a result they able to improve effectiveness and
efficiency of their operations. There are price playing important role that must be taken
care by business organisation. In the context of Microsoft company apply the particular
strategy to get competitive advantages and supply products to customer with good
quality. The implementation can be done through cost cutting, a manager apply different
methods such as total quality management, lean production method, six sigma and federal
innovation to concentrate on the product as well as services. Differentiation strategy – To remain for long time in the market it is required to provide
different features in its products that is different from other companies. This strategy has
been known as the improvement in the products which provides specific dimension. Due
to add extra qualities and uniqueness in the goods provide permission to take more
charges on the product. The business believe that higher price cover than the extra costs
consist of unique products. To stay in the competitive market Microsoft company apply
differentiation strategy to make produce more exclusive as possible than comparable
products offered by the competition. Through effective marketing understand the
importance of unique products and provide products with new features such as artificial
intelligence, new technology, new software and develop effective products.
 Focus Strategy – This strategy concentrate on constrictive portion within the segment
and effort to acquire cost advantage or differentiation. The focus generic approach says
that company organisations should regard efficient and lucrative niche market with the
objective of providing distinct decisions. The companies utilise of focus strategy to enjoy
high degree of customer loyalty and this reinforced attachment prevents other companies
from trying to compete. Through the strategy company choose competitive scopes and
areas to apply this strategy (Martínez-Ferrero, Banerjee and García-Sánchez, 2016).
There is required to focus on the portion of business as per the focus strategy.
It is categorised into two types of focus strategy such as cost focus and differentiation
focus. The cost focus strategy apply in the Microsoft and set suitable prices for customers as
compare with its rival Apple. Microsoft concentrate on continue creativity and apply on their
products. It will help to remain long time in the competitive market. It is understanding with the
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help of example Microsoft wants to launch new software in the market so it is important to
analysis marketing activities. An organisation basically compare it's software with the
competitors such as Apple and then fix the cost in respect to remain in the market for longer
period of time (Johnsen, 2016).
Thus it is analysing that Microsoft corporation select differentiation generic strategy to
effectively conduct their business activities. It provides help to management of Microsoft to get
advantage in competitive market place. According to this strategy apply creativity in new
products and preset in front of customers to attract for buy products. Such as Microsoft want to
launch new tablet that time add new characteristics like water proof, flexible body and touch
screen. It is introducing in the market with updated technology and artificial intelligence. It
present products in different way and help to compete with their rivals. In this strategy Microsoft
focus on its internal strength such as approach to leading scientific research, create a team and
include members who have knowledge and highly experience in the product development team.
Develop strong sales team with the ability to get success and communicate to perceived strength
of the product. Focus on the corporate quality as well as their production to tackle with their
problems. It helps to get competitive advantage with their products when company present their
products with different features so every customer focus on new products. As a result company
get attention in the market and get competitive advantage.
Recommendations
After all the discussion it is understand that Microsoft company effectively survive in the
IT sector and manage by Satya Nadela in efficient manner. After applying porters five forces
model it has been recommended that Microsoft business should analysis market trends as per the
prepare effective strategies to present their product at the market place. After proper analysis it is
getting that there is required to focus on the functions of business and also their operations that
help to survive company in the market.
There is also recommended that to tackle new entrance in the market prepare best
strategy that help to compete with them. There is required to presenting product with different
features and cut down price in the market and increase customers (Arend, Zhao, Song and Im,
2017). As a result they cover large market. To overcoming from the bargaining power of buyers
should focus to develop effective strategies. Along with Microsoft Corporation handle
Bargaining power of buyer to attract more customers. It will help in different ways like deduct
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the bargaining power of purchaser and provide chances to business organization for creating its
sales through effective and improve production procedure of their products and services.
There are provided suggestion regarding to substitute of goods that make their product
unique from other company as a result no one compete with them. It is recommended to
Microsoft to sort the problem regarding to products as well as services and present as service
oriented company instead of product oriented for attract buyers (Meredith, Mantel Jr and Shafer,
2017). The company focus on the requirement of customer rather than of concentrate on what's
product customer is purchasing. Along with, tackle the problem of rivalry after developing
sustainable differentiation and set scale to compete with other competitors in effective manner.
There is required to collaborating with rivalry to enhance the market size rather than just
competing with small market.
After all the analysis it is recommended that through porter five forces present a complete
picture and their impacts on the profitability of the company in business software and service
industry. They can recognise game changing trends early and switch provide respond to present
the emerging opportunity. Additionally, Microsoft corporation from the different porters generic
strategies select differentiation strategy that can help to make different product as compare other
products. As a result customers attract to purchase products (Suarez, Calvo-Mora and Roldán,
2016).
CONCLUSION
As per the above discussion it is concluded that strategic management important part of
any organisation that arrange all objectives, aims in effective manner and provide different ways
for management. It is defining as fundamental alignment of the business goals with specific
strategy of an organisation. It is advantageous for the company to set strategic management that
will help in fulfil the requirement and also need and demands for an organisation in efficient
way. It is continuing procedure that including planning, accessing, monitoring and executing
target and gaols of the company. It is important for each and every company to determine market
for increasing the level of productivity. With the help of strategic management improve
productivity as well as profitability that apply in the reference of an organisation.
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REFERENCES
Books and Journal
Abrate, G. and Viglia, G., 2016. Strategic and tactical price decisions in hotel revenue
management. Tourism Management. 55. pp.123-132.
Arend, R. J., Zhao, Y. L., Song, M. and Im, S., 2017. Strategic planning as a complex and
enabling managerial tool. Strategic Management Journal. 38(8). pp.1741-1752.
Boon, C. and et.al, 2018. Integrating strategic human capital and strategic human resource
management. The International Journal of Human Resource Management. 29(1). pp.34-
67.
Delery, J. E. and Roumpi, D., 2017. Strategic human resource management, human capital and
competitive advantage: is the field going in circles?. Human Resource Management
Journal. 27(1). pp.1-21.
Hong, J., Shin, J. and Lee, D., 2016. Strategic management of next-generation connected life:
Focusing on smart key and car–home connectivity. Technological Forecasting and
Social Change. 103. pp.11-20.
Johnsen, Å., 2016. Strategic planning and management in local government in Norway: status
after three decades. Scandinavian Political Studies. 39(4). pp.333-365.
Kirchoff, J. F., Tate, W. L. and Mollenkopf, D. A., 2016. The impact of strategic organizational
orientations on green supply chain management and firm performance. International
Journal of Physical Distribution & Logistics Management. 46(3). pp.269-292.
Kleibrink, A., Gianelle, C. and Doussineau, M., 2016. Monitoring innovation and territorial
development in Europe: emergent strategic management. European Planning Studies.
24(8). pp.1438-1458.
Marler, J. H. and Parry, E., 2016. Human resource management, strategic involvement and e-
HRM technology. The International Journal of Human Resource Management. 27(19).
pp.2233-2253.
Martínez-Ferrero, J., Banerjee, S. and García-Sánchez, I. M., 2016. Corporate social
responsibility as a strategic shield against costs of earnings management
practices. Journal of Business Ethics. 133(2). pp.305-324.
Meredith, J. R., Mantel Jr, S. J. and Shafer, S. M., 2017. Project management: a managerial
approach. John Wiley & Sons.
Parakhina, V. and et.al, 2017. Strategic management in universities as a factor of their global
competitiveness. International Journal of Educational Management. 31(1). pp.62-75.
Steinbach, A.L. And et.al, 2017. Top management team incentive heterogeneity, strategic
investment behavior, and performance: A contingency theory of incentive
alignment. Strategic Management Journal. 38(8). pp.1701-1720.
Suarez, E., Calvo-Mora, A. and Roldán, J. L., 2016. The role of strategic planning in excellence
management systems. European Journal of Operational Research. 248(2). pp.532-542.
Szwejczewski, M., Sweeney, M. T. and Cousens, A., 2016. The strategic management of
manufacturing networks. Journal of Manufacturing Technology Management. 27(1).
pp.124-149.
White, G. O. and et.al, 2016. Trends in international strategic management research from 2000 to
2013: text mining and bibliometric analyses. Management International Review. 56(1).
pp.35-65.
Online
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Porters analysis of Microsoft. 2019. [Online]. Available through:
<http://panmore.com/microsoft-corporation-five-forces-analysis-porters-
recommendations>
Mission and vision of Microsoft Corporation. 2019. [Online]. Available through:
<https://notesmatic.com/2016/12/microsoft-vision-mission-and-values/>
Current scenario. 2019. [Online]. Available through:
<https://www.britannica.com/topic/National-Broadcasting-Co-Inc>
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