Leadership Report: Microsoft Business Model and Strategy

This report provides a comprehensive analysis of Microsoft's business and organizational leadership, focusing on its business model, SWOT analysis, and future strategy. The report begins by examining Microsoft's business model canvas, detailing key partners, activities, value propositions, customer relationships, customer segments, key resources, channels, cost structure, and revenue streams. A thorough SWOT analysis is then conducted, evaluating Microsoft's strengths, weaknesses, opportunities, and threats within the competitive landscape. The report also includes a competitive strategy recommendation for the next five years, emphasizing the need for innovation, enhanced brand image, strategic alliances, and cybersecurity improvements. Additionally, the report includes an analysis of New Belgium Brewery, exploring the potential for non-alcoholic fruit juices and the steps required for product development, from idea generation and screening to test marketing and product launch. The analysis highlights the importance of market research, product testing, and strategic marketing to ensure product success. The report concludes by providing a list of references.

Running head: BUSINESS AND ORGANZIATIONAL LEADERSHIP
BUSINESS AND ORGANZIATIONAL LEADERSHIP
Student’s Name
University Name
Author note

1BUSINESS AND ORGANZIATIONAL LEADERSHIP
Question 1: Business value and potential of Satya Nadella (CEO) Microsoft 1
Key
Partners
 Telco
compan
ies
 Retailer
s
 Supplier
s
 Manufa
cturers
 Distribu
tion
partners
 Microso
ft
partner
Key
Activities
 Resear
ch and
develo
pment
(R&D)
 Softwa
re
develo
pment
 Operati
ons
 Custom
er
service
and
Value
Propositions
 Technologi
cal
improveme
nts,
innovation
and
developme
nt.
 Increasing
productivit
y at higher
level
 Provides
intelligenc
e cloud
Customer
Relations
hips
 Dedicate
d
customer
support
and
service
 Provides
high
quality,
trust
worthy
and
reliable
products
Customer
Segments
 IT
administ
rations
 Software
develope
rs
 Individu
als and
mass
market
 Consum
er (End
Users)
 Corporat
e
1 Ibarra, Herminia, Aneeta Rattan, and Anna Johnston. "Satya Nadella at Microsoft: Instilling a
growth mindset." Harvard Business Review case no. LBS128 (Boston: Harvard Business School
Publishing (2018).

2BUSINESS AND ORGANZIATIONAL LEADERSHIP
network
 Acquisit
ions and
partners
( Skype,
Mojang,
Hexadit
e,
Yamme
r)
 Govern
ment
 Technol
ogy
alliance
s
 Wholes
alers
 Foxcon
n
support
 Infrastr
ucture
and
change
manage
ment
 Product
and
softwar
e
designi
ng and
develo
pment
 Licensi
ng and
quality
control
 Sales
and
marketi
systems
 Offers
wide range
of
computer
hardware
and
software
and
consumer
electronics.
 Most
valuable
personal
computers
and
operative
systems
 Largest
software
making
and
 Dedicate
d sales
and
service
since
past
years
 Certificat
e and
partner
program.
 Automati
on and
cross
side
network
effects
 Custome
r
assistanc
e
organiza
tions

3BUSINESS AND ORGANZIATIONAL LEADERSHIP
ng
 Hardw
are and
electro
nic
manage
ment
consumer
electronics
(Xbox One
Console,
Windows)
Key
Resources 2
 Leader
ship
from
Satya
Nadella
 Talente
d sales
force
 Softwa
re
develo
Channe
ls
 Retailers
 Microsof
t Store
 Compan
y website
 Internet
Bing
 OEM
 Events
 Blogging
2 Nadella, Satya, and Jim Euchner. "Navigating Digital Transformation: An Interview with Satya
Nadella." Research-Technology Management 61.4 (2018): 11-15.

4BUSINESS AND ORGANZIATIONAL LEADERSHIP
pers
 Experie
nced
and
talente
d
person
nel
 Intellec
tual
propert
y
 Product
innovat
ion
 It
infrastr
ucture
 Artifici
 PR
 Microsof
t’s
connect

5BUSINESS AND ORGANZIATIONAL LEADERSHIP
al
intellig
ence
and
researc
h
divisio
n
Cost Structure 3
 Systems development
 Structure development
 Marketing and sales
 Research and development
 Staff recruitment
 Product roadmap
 New projects and development
 Customer support and service
 IT development , operations and
Revenue Streams
 Products and services
 Revenue from XaaS services
 Products and sales of software
 Subsections
 OEM
3 Wang, Shichao, and Xi Chen. "Recognizing CEO personality and its impact on business
performance: Mining linguistic cues from social media." Information & Management (2019):
103173.

6BUSINESS AND ORGANZIATIONAL LEADERSHIP
maintenance
 Headquarters
 Taxes
 Acquisitions and partnership
SWOT analysis of Microsoft 4
Strengths Weakness
 Leading software business organization
 Global reputation and brand image
 Global market leader
 Largest company with dominant market
share
 Wide market reach and target audience
 Constant growth rate and reputation
 Huge market capitalization
 User friendly software
 Overexposure to personal computer
market
 Increase in cyber crimes and cyber theft
 Microsoft lacks innovation as
compared to other competitors like
Google
 Lacks leadership in internet browser
segment
 Inadequate mergers and acquisitions
Opportunity Threats
4 Muhtaroğlu, F. Canari Pembe, et al. "Business model canvas perspective on big data
applications." 2013 IEEE International Conference on Big Data. IEEE, 2013.

7BUSINESS AND ORGANZIATIONAL LEADERSHIP
 Cloud based services have increased
growth and demand
 Technological innovation and artificial
intelligence
 Partnerships and acquisitions
 Increase in the demand and growth of
smartphone industry
 Effective implementation of cost
leadership strategy 5
 The company has faced many criticisms
for Xbox Live game service.
 Aggressive competitive in the industry
 Changing needs and preferences of the
consumers
 Open source projects
 Increase in cyber crimes and theft
Competitive strategy recommendation for the next five years
As per research and analysis, it has been identified that the IT industry is facing stiff competition
in the market with the increase in smartphone companies such as Google, Apple, and Oracle.
With the development and advancement of technology, the consumers in the market demand and
expectations have increased6. With the emergence of artificial intelligence and robotics,
Microsoft needs rigorous innovation and product improvement. In order to overcome stiff
competition in the market, it is recommended that Microsoft needs to upgrade its software and
5 Coes, D. H. Critically assessing the strengths and limitations of the Business Model Canvas.
MS thesis. University of Twente, 2014.
6 Coes, D. H. Critically assessing the strengths and limitations of the Business Model Canvas.
MS thesis. University of Twente, 2014.

8BUSINESS AND ORGANZIATIONAL LEADERSHIP
bring further innovations in their products and services7. It must continue to enhance the
reputation and brand image in the global market in order to embrace the future innovation. It
needs to continue enhancing its image in the global market through effective marketing tools and
strategies. It is recommended to update the internet browser market and take initiatives to
increase the market share in the global market segment8. It is also recommended that the business
organization must build more competitive advantages in order to compete with strong
competitors in the market such as Google and Apple. Microsoft must also increase strategic
alliances, partnerships, and acquisitions in order to strengthen its market standings. In order to
overcome the prevailing threats in the market, it is recommended to resolve the cyber security
issues and address it by implementing advanced security network systems. Lastly, it is
recommended to diversify its business in order to enhance potential growth and market share.
Question 2. “New Belgium Brewery” + “Get the Boss to Buy In”
The new product idea: Fruit juices and other beverages without alcohol
Step 1: Idea generation
As per the market research, it has been identified that there are many health concerns of the
consumers9. Therefore, the idea of non alcoholic fruit juices can be a healthy substitute for
7 Wang, Shichao, and Xi Chen. "Recognizing CEO personality and its impact on business performance: Mining
linguistic cues from social media." Information & Management (2019): 103173.
8 Ibarra, Herminia, Aneeta Rattan, and Anna Johnston. "Satya Nadella at Microsoft: Instilling a growth
mindset." Harvard Business Review case no. LBS128 (Boston: Harvard Business School Publishing (2018).
9 "Get the Boss to Buy In". Harvard Business Review, 2020. Online. Internet. 15 Mar. 2020. .
Available: https://hbr.org/2015/01/get-the-boss-to-buy-in.

9BUSINESS AND ORGANZIATIONAL LEADERSHIP
alcoholic drinks and beverages. Considering the present scenario in the consumers markets, there
are changes needs and preferences of the consumers. The consumers have become highly health
conscious and prefer healthy food or drinks option. Therefore, the product idea of offering
organic fruit juices without alcohol along with added flavors or tastes is suitable for NBB. This
food option is acceptable among the consumers in the market especially among the consumers
who are health conscious and prefer healthy food options. The new product is also affordable and
attainable by the youth and children. This product is suitable for all age group people including
children, thereby making it favorable. The product idea will be evaluated through the SWOT
analysis and technique.
Step 2: Idea screening and evaluation
The screening process is highly essential to analyze the acceptability of the product in the
market. At this stage the product idea will be shared with the management team and determine
the return on investment and its affordability. This will enable the organization to understand the
market potential of the product in the market. The fruit juices with additional favors to enhance
its tastes will be acceptable by the consumers who look for healthy alternatives and are health
conscious.
Step 3: Idea Testing 10
At this stage, the concept of the product will be tested in the market. At this stage, the marketer
will target the market demographics and segment the market. The product idea and the concept
10 Battagello, Franco M., Livio Cricelli, and Michele Grimaldi. "A 7-step framework (7sf) for
gauging strategic assets through a flexible format. An industrial case study
application." International Journal of Management and Enterprise Development 13.1 (2014):
62-88.

10BUSINESS AND ORGANZIATIONAL LEADERSHIP
will be then introduced in the market. The marketers will implement various marketing strategies
to present the products in the market. For the market surveys, before revealing sensitive
information, confidentiality agreements will be signed.
Step 4: Business Analytics
The marketers need to analyze the product marketing strategy and analysis full cost of the
product in order to understand the profitability of the product idea. The potential competitors
offering similar products in the market need to be assessed. The product cost must be set in such
as way so as to understand the profitability of the company and its usefulness to the customers in
the market. The competitors products of NBB must be analyzed so as to understand whether the
new product offered will be profitable in the market.
Step 5: Product creation11
At this stage, the product will be created. The fruit juices with added flavors and colors to
increase its tastes will be created without any alcoholic touch. This product will be offered to
small group of consumers in the market. Then the marketers of the organization will conduct
surveys and take feedbacks to test the sales and success of the product within that small group of
people. By analyzing the feedbacks and market surveys, the marketers can analyze and access
the marketing strategy and adapt for larger scale. Based on the feedback and consumers
comments on the healthy drink alternative, changes in the products can be incorporated so as to
make its successful in the target market.
Step 6: Test Marketing 12
11 Nixon, Stephanie A., et al. "Seven-step framework for critical analysis and its application in
the field of physical therapy." Physical therapy 97.2 (2017): 249-257.

11BUSINESS AND ORGANZIATIONAL LEADERSHIP
At this stage, the feedback of the consumers will be assessed and analyzed. This will be used to
incorporate marketing strategies. The positive aspects of the product such as the healthiness of
the product, its taste, and affordability must be publicized. Product launch can be done to test the
sales of the product in the target market segmentation. Based on the results of the product launch
in the market, the marketers can adjust and alter the strategies of the product launch. They must
assess the marketing strategies and ensure that it is adaptable and acceptable among the target
market segmentation.
Step 7: Product launch in the market
Finally the product will be launched in the market. At this stage, the product will be made public
and visible to the consumers. For the product launch in the target market segmentation, the
organization can consider crowd funding or angel investment or direct selling based on product
manufacturing options and the market route. The organization at this stage needs to build
relationships with the advertisers and distributors of the product.
12 Wierenga, Debbie, et al. "A 7-step strategy for the implementation of worksite lifestyle
interventions: helpful or not?." Journal of occupational and environmental medicine 58.5 (2016):
e159-e165.

12BUSINESS AND ORGANZIATIONAL LEADERSHIP
References
"Get the Boss to Buy In". Harvard Business Review, 2020. Online. Internet. 15 Mar. 2020. .
Available: https://hbr.org/2015/01/get-the-boss-to-buy-in.
Battagello, Franco M., Livio Cricelli, and Michele Grimaldi. "A 7-step framework (7sf) for
gauging strategic assets through a flexible format. An industrial case study
application." International Journal of Management and Enterprise Development 13.1 (2014):
62-88.
Coes, D. H. Critically assessing the strengths and limitations of the Business Model Canvas. MS
thesis. University of Twente, 2014.
Dudin, Mihail, et al. "The innovative business model canvas in the system of effective
budgeting." Asian Social Science 11.7 (2015): 290-296.
Ibarra, Herminia, Aneeta Rattan, and Anna Johnston. "Satya Nadella at Microsoft: Instilling a
growth mindset." Harvard Business Review case no. LBS128 (Boston: Harvard Business School
Publishing (2018).
Muhtaroğlu, F. Canari Pembe, et al. "Business model canvas perspective on big data
applications." 2013 IEEE International Conference on Big Data. IEEE, 2013.
Nadella, Satya, and Jim Euchner. "Navigating Digital Transformation: An Interview with Satya
Nadella." Research-Technology Management 61.4 (2018): 11-15.
Nixon, Stephanie A., et al. "Seven-step framework for critical analysis and its application in the
field of physical therapy." Physical therapy 97.2 (2017): 249-257.

13BUSINESS AND ORGANZIATIONAL LEADERSHIP
Wang, Shichao, and Xi Chen. "Recognizing CEO personality and its impact on business
performance: Mining linguistic cues from social media." Information & Management (2019):
103173.
Wierenga, Debbie, et al. "A 7-step strategy for the implementation of worksite lifestyle
interventions: helpful or not?." Journal of occupational and environmental medicine 58.5 (2016):
e159-e165.