Case Study: Strategic Analysis of Microsoft Corporation's Business

This report presents a comprehensive strategic analysis of Microsoft, examining its organizational structure, strategies, and market position. It begins with an introduction to strategic analysis and its importance, followed by an in-depth look at Microsoft's business strategies, including its focus on cloud ...Read More

Strategic Analysis for Case Study
Approach

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN ANALYSIS..........................................................................................................................1
Strategy of company....................................................................................................................1
PESTLE analyse..........................................................................................................................2
Policy issues.................................................................................................................................4
Stakeholder analysis....................................................................................................................5
Public affairs strategy..................................................................................................................7
Alternative strategy......................................................................................................................9
CONCLUSION..............................................................................................................................10
RECOMMENDATION.................................................................................................................10
REFERNCES.................................................................................................................................11

INTRODUCTION
Strategic analysis is model to analyse organisation strength, weakness, opportunities and
threats. It is help to create foundation of different market strategies to improve market sector.
This report will be focus on business policy and strategic management will help to increase
performance of employees (Zasada and Zavalloni, 2017, p. 3). In this report is based on
Microsoft's organisation and American multinational technology company with headquarters in
Redmond, Washington. It develops, business, licenses, activity and sells computing device
software, consumer electronics, individualized computers, and services. Moreover, report will
cover different strategies and organisation new ideas for better future.
MAIN ANALYSIS
Strategy of company
Microsoft Corporation’s organizational structure enables the business to grow, especially
following the firm’s structural change implemented in 2015. The organisation is to be focus on
different factors to improve current market sector. This is arrearage the autonomy and
components of different sector. The organisation long term success is to be depend on
organisation structure and development of market share. Microsoft CEO is to be focus on
product line devilishly sector.
This structure is divided based on the computer hardware and software system. On the
other hand, organisational strategies are one of the most important part for improvement of
organisation in future condition (Babazadeh and M.S, 2017, p. 699). Microsoft adjusted these
group meeting on invention at a specialized and commercial enterprise level. Given the
establishment concentration on shaping the next coevals of computer science, there are at most 7
reasons why organisation should be reappraisal Microsoft’s up-to-the-minute efforts. Overall
strategies are change or modify as per the guidance of Satya Nadella, CEO of Microsoft
organisation and take correct action as per the need and future development. Fixing product like Morden Cloud Company: The organisation is to be moving fast as
per change in technology and beet current market. It is provides shaping updates within
weeks and updates regular way. Some changes are made for improve overall
development in market share. They are also focused on listing and responding the number
of feedback to solve customer problem and increase overall market environment.
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 Evaluation of web and computer interface: Evidently, Microsoft has been automotive
toward a cloud first institution with Windows, Office and Azure for some time. It is one
of the most important part to solve any problem. To be focus on next time generation to
solve any issue related product and growth of organisation.
 Conversation as a platform: Nowadays, customer is use most fast technology for help
increase price level. In addition, idea is to make over a fundamental interaction between a
institution and an individual that is more than human in nature. Microsoft's organisation
is deal in different sector, they are to focus on each and every customer to overcome any
issue related to product quality and improvement in future conditions of organisation. It
will be change something new as per the need of clients in market.
 To be use machine learning: Microsoft's organisation is to be focus on each factor is to
be used machine and improve internal performance of organisation. It’s accumulated its
offering to over 20 APIs when consider its preview APIs (Babazadeh and M.S, 2017,
p.700). Data scientific discipline are in scarce indefinite quantity and mixture like cloud-
based machine acquisition APIs will be the way institution can scale their data
investigation attempt. This is help to predict each customer and need of market share.
All such kind of different strategies is to use for improving organisation growth and increase
overall growth rate and future changes in market environment. In addition, listing and react the
number of natural process to solve client problem and addition overall securities' industry state
of affairs. In this context, API is most important part of overall development in social class
portion.
PESTLE analyse
Microsoft Corporation reveals the most significant issues based on the conditions of the
company’s remote or macro-environment. In this context, PESTLE model is help to solve some
issue which is improved current problem in organisation.
 Political factor : In this way, political stability is majority in market worldwide creates
opportunities for Microsoft to increase its investments and corresponding performance.
The organisation is improve sales and marketing is improved current environment and
increase profit level. Moreover, increasing international trade agreements develop a
remote or macro-environment that supports an increase in Microsoft’s global sales.
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Through this external factor, the company benefits from easier business deals in overseas
markets.
 Economical factor : In economical factor is help to improve economic stability and
majority of organisation. Moreover, the economic external factor of the overall global
rise of middle class disposable income creates opportunities for the company for higher
revenues.
 Social factor : In social factor is to be focus on existing possibility for Microsoft to
develop merchandise that can satisfy custom-made’ leisure penchant. For illustration, the
company can addition its investing in introduce computing machine gaming commodity
for this intention.
 Technology factor : Microsoft's organisation is based on technology and increase number
of customer in market level. Microsoft Corp. can better its carrying into action through
rapid invention of its mobile devices. This chance is supported on the rapid acceptance of
and rising economic process for mobile technology.
 Legal factor : In legal factor organisation must be use some law, rules and regulation is
provided different kind of services to improve current market level. However, this legal
external factor is also a threat that could impose additional challenges for the company in
addressing the environmental impact of its business.
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Illustration 1: PESTLE Analyse
(Source): PESTEL Analysis, 2018

 Environmental factor: In environmental factor is focus on accelerative preference for
green merchandise, Microsoft Corp. has the chance to heighten its sustainability erect.
For illustration, the establishment can create more situation friendly commodity, and
addition the use of greenish energy in its business concern operations.
BCG matrix
Figure 1: BCG matrix of Microsoft
[Source: BCG Matrix of Microsoft Corporation, 2018]
Question mark
This segment of products of Microsoft is having low market share and operating in high
sales in growth industry like that of Microsoft Phone hardware segment. Other than there are
Lumia and Non Lumia phones at the time when it was introduced to most customers like that of
windows phone as people started to switch to android only. But the market share of Microsoft
Lumia increased with having sales within sector which was good having potential to grow like
that as stars in markets.
Stars
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They are having very good market share and competing into markets with higher sales
and growth in industry. The consumer segment of Microsoft like that of Windows operating
System and word process are the stars of industry which are having higher sales and market
growth. Microsoft in the D&C segment is having competition like that of Apple and Google
Cash cow
The gaming segment of Microsoft which are the having high market segment with low
sales growth. These would be having more market potential for growth with stronger financial
position for longer duration of time including like that of Xbox and Xbox 360 having greater
market area but low sales than that of Sony.
Dogs
No product in Microsoft is having or included within this segment of dog as no service or
product is having lower sales and market share as they are considered to as liability for company.
Policy issues
There are some different policy is faced by organisation and planning for changes in
overall internal and external market share. The recent economical nuclear meltdown which hit
the global had severe deduction on all the major economic system and most of the establishment
intercontinental. Microsoft being one of them to faced such kind of challenges in market sector.
Microsoft's with the help of some essential tool to solve any problem related to market and
improve market environment.
The “Cloud for Global Good” is Microsoft’s argumentation roadmap, planned to assist
lawgiver and policy power with a set of recommendations to early the analogue transformation
chance that the cloud presents. Organisation is to be focus on latest technology to improve
overall market and increase number of customer. This policy is kind of road map and optimum
level of customer is to be amend securities industry share. Social and economic conditions are
must be change with the help of such kind policy is used in work place. Organisation is to be
implement it as per norms of government sector and collect data form them. It is give direct
impact on overall developments of future conditions must be change for long time.
On the other hand, need to equilibrium quality rights with in the public eye safety,
application fraud and online development, promoting state of affairs property, and addressing the
future policy issues approximately for internal as well as external organisation (Zasada and M,
2017, p. 11). Organisation is to be implementation for some changes in intelligence this plan of
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action roadmap to reflect the ever-changing precedence of lawgiver and policy determinant, and
will enlarge on issues where we feel exceptional attention and further exploration is warranted.
Furthermore, we’ll continue to show window the digital transmutation of our custom-made and
how they’re introduce on the physical phenomenon. In this way, organisation is need to changes
for implementation for overall changes in future conditions. There are some different factors is
considered are civil authority, government agenda and business sector. In all such sector, such
policy is beneficial and improve market condition.
Stakeholder analysis
Stakeholders of Microsoft will be those who are having any kind of interest within
organisation or its projects and they are having that much potential of influencing operations of
business. There are majorly two types of stakeholders of firm including external and internal
both are having potentials of influencing business and profits of Microsoft. The internal
stakeholders are those who are impacting company from within like that of customers,
employees, suppliers and investors of firm (Moutinho and Vargas-Sanchez, 2018). While on
other hand external factors are those who are aimed at guiding and influencing company like
government, communities, non-governmental and regulatory authorities.
Figure 2: Stakeholders of Microsoft
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[Source: The Top 5 Microsoft Shareholders, 2018]
Microsoft is having greater amount of responsibilities in order to develop and sustain
their relationship with stakeholders in both the external and internal terms. As this was included
in one of the Microsoft Citizenship Report on 2013 that their stakeholders are been divided into 2
major parts which is those who are directly affecting company like employees and policy and
other who are just guiding it like government.
Investors-
They are potential stakeholders which are investing their amount or money with in
company like that of Microsoft who are also having right to vote and timely receive relevant
information. Other than this they are also having right to have dividends and appraisal from time
to time so management of company should be keeping faith in them while disclosing information
and transaction (Babazadeh and Pishvaee, 2017, p. 701). As being CEO of Microsoft Satya
Nadella is also shareholder within firm with having about 2.9 million shares and he is also
having up to 6000000 additional share from company as well.
Customers-
They could be regarded to as one of the most sustainable stakeholders of firm who are
driven force related to sales and revenue generation. If organisation is providing higher quality of
products in market then it is surely customers will be satisfied with Microsoft.
Employees-
There is very committed and developed environment for employees of Microsoft as the
firm is sustaining their overall efforts in order to build up high performance working culture.
This HPW will be forming new business environment for employees in order to train them in
order to gain best performance out of them. All employees of Microsoft are allowed to join 5
days training each year which is based on monitoring their monthly performance bases. Other
than these career development plans are also implemented within organisation which is ensuring
their professional growth with their skills and job enrichment (Akkermans and Van Oorschot,
2018, p. 125). Microsoft is also giving employees chance to grow with identifying their skills
and performance which is done through giving awards like that of Great Idea, Quality,
President’s and Customer Award.
Communities-
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Microsoft is also helping community on larger bases to improve their lives and not just
confirmed to boardrooms or corporate wall only. They understand their corporate social
responsibility so company is able to contribute into promoting education and environment as
well. Within this Microsoft will be building up on employees driven volunteer which is aimed at
Saving soul for better tomorrow and this is most successful corporate social responsibility of
company.
Suppliers-
Company is also aimed to maintain good relationship with their all suppliers that could be
holding accountability, integrity and fairness within their business. Microsoft is also using
suppliers who are serving all kind of requirements of company in terms of capital and
expenditure (Kaiser and Buxmann, 2017, p. 155). There are many criteria that are been included
like that of capacity of business operations, quality of price of products and services, tracking up
of records and legitimacy of all operations.
Environment-
It is binding upon to all companies of world that they are understanding and regulating
their corporate social responsibilities in respect to environment. Microsoft need to adopt all type
of environmental policies and practices which is making their workplace better for their working.
Figure 3: MICROSOFT STAKEHOLDER MAPPING
[Source: The Top 5 Microsoft Shareholders, 2018]
In order to analysis the stakeholder of firm Microsoft is using tool which would be
showing them level of interest of all those who are interested within policy making of company.
This will be helping company to prioritise various opinions and influence into project or their
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business. There are different obligation and potentials from the side of Microsoft which is
helping management in order to meet all objectives and resolving conflicts as well.
Public affairs strategy
Due to explosion of world into technological advancement which is enabling company to
communicate with all people withi society. So every company is tend to have their own
communicators who would be respondible for circulating messgae of management throughout
market with use of all different types of avaliable tools or channels. There are many ways which
are getting information and data related to company so they should putting strategies for
changing nature. The most important factor which is driving success of Microsoft will be
considerably its image amoung public as they are having more emphasis on the public relation
(França, Broman and Trygg, 2017, p. 159). In year 1982 Microsoft firstly hired their PR who
was aimed to review and communicate important news of company to media person.
It was analysed that PR are very will be regarded to as most important factor which is
influencing which was in year 1995 so they launched Windows 95. There were no advertisments
which were there into market promoting their systems but then also more than 1 million copies
of Windows 95 was sold. By now it was analysed from market that Microsoft is having problem
with its PR on the recent time that is also assumed to be worst than ever. There are many
embarrassing parts which is turing out to be defensive strategies for Microsoft. Problems related
to publicity like that of employees who are negativily promoting company at the time when there
are no informations that are available (Junior and Sánchez-Hernández, 2017, p. 206). There are
many secrets which company would be needing to keep private and not disclosing them to
anyone like that of product, strategies and policies.
There are corporate participation of company into their public relation process which is
very important and essential part in order to enhace value of shareholder. Microsoft is striving
into ensuring participation of political process which is transparent and open aimed at having
clear to all shareholders of company. Company is been joining the government affair which is
meant to give education on main policies of public issues that are related to business of firm.
microsoft is also giving donation to individual person with their action which is named to as
Microsoft Political Action Committee (MSPAC).
Microsoft is also having its operation which is making them policy leader and they are
ensuring transparency and accountability with their public policy. In this regard in assisting
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policy influencers and law makers Microsoft has launched its roadmap for setting up of policy
like that of Cloud for Global Good. This will be aiming at powering the coming future of that is
also having commitment of firm in order to realise economica and social benefits of cloud
computing (Cvitanovic, Cunningham and Putten, 2017, p. 260). This will be carrying on various
form of policy areas which is also giving suggestions based on main 3 prinicple of company like
that of trusted, responsible and inclusive cloud.
Trusted cloud- this is based on personal privacy and giving access of data to government which
is also conserning to cybrecrime prevention and their norms.
Inclusive cloud- company will be wanting to have digital literacy, next generation skills and all
of them at an affordable price only (3 Strategies Could Drive Growth For Microsoft, 2018).
Microsoft also included to have support of business to those people who are having disability of
people.
Responsive cloud- in this order company need to have balance with their human right this will be
regulating prevention of online fraud and exploitation as well. This is also promoting
sustainablity of environment which is tend to address te policy related to Aritifical Intellegency
(AI).
There are also Regulatory and Public policy committee of Microsoft which is comprising
of BoD of company who all are responsible for regulating policies related to public work and
activites. With this the committee which is been set up would be receiving the correct and
regular or formal types of reports. This is done in order which management of Microsoft is able
to participate into all type of political process into USA (Zasada and Zavalloni, 2017, p. 5). The
Corporate Vice President of Government Affair of USA tend to report to President of Microsoft
who is Brad Smith and he will thus be reporting to Satya Nadella, CEO
Alternative strategy
There could be included to have three basic strategies which could be driving the growth
and development of Microsoft so they should be adopting into their policy making. In year 2014
when Satya Nadella took over Microsoft as its CEO from Steve Ballmer it was aimed that market
leader would be coming back into its growth and development pharse. Then the sales of
company grew at 5.6% rate which was only till 7.7% over past decade while shares of company
increase to 14% and many of the investors were finding company as growth factor. In one of the
interview founder of Microsoft Bill Gates included that company is at present year re examining
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all its strategies and thinking about how could organisation be able to move faster (Public policy
engagement, 2018). Strategies of company which Satya Nadella could be included be like that
of:
Cloud and SaaS markets- CEO focused on positioning itself into market with having dual
opportunities so company coyuld be transition the software for specified device and this is very
much important. They are aiming to transform software of company from PC to cloud based
computing or system so this becomes very much important for Microsoft to include into it.
More competitive from the tablet space- company could be also trying in becoming more and
more competitive which is based on their 9 inche smaller devices which will be excluding
Windows. Microsoft is also having its focus more on increase sales of phone and tablet that too
at lower price than that of Apple and Google. The price of 7,8 and 10 inhes divices will be
around $100-$500 which on other hand that of Google’s product Nexus is about starting from
$200.
Potential for Skype which is growing faster- they could also be growing their service based on
Skype which is at presently marketing for 1/3 of international calls which are made on global
level. In year 2012 it was included to have 40% of total growth which is just twice of all volume
growth which was made.
The company at present will be having more faster growth within the coming future as
there are major issues with the current financial health conditions. The sales of Microsoft which
increased to about 5.5% in 2013 while the operating expenses of firm lower down to about 10%
which were higher than its sales it was estimated to about 10% (França, Broman and Trygg,
2017, p. 158). The balance of cash was about to $88 billion within the end of year in 2014 and
long term debt was amounted to $21 billion.
CONCLUSION
From the above strategic analysis it could be concluded that Microsoft is having majority
of share in market which is enabling them to lead global plateform. In this sense company should
be including strategies related to their policy making and thus enablingit to grow. As before the
current CEO there was lower down of market share and growth of firm which grew after year
2014. So there would be many changes which company should be implementing within its
development and growth opportunities that is making or healping Microsoft to sustain.
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RECOMMENDATION
The CEO of Microsoft who is tend to effectively manage and lay down its ideas in
relation to company’s declared and undeclared strategies which is effective. It could be
recommmeded that strategies related to company and its growth opportunities should be included
as it is very much important from the term of planning.
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REFERNCES
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Akkermans, H.A. and Van Oorschot, K.E., 2018. Relevance assumed: a case study of balanced
scorecard development using system dynamics. In System Dynamics (pp. 107-132).
Palgrave Macmillan, London.
Babazadeh, R., and Pishvaee, M.S., 2017. An integrated data envelopment analysis–
mathematical programming approach to strategic biodiesel supply chain network design
problem. Journal of Cleaner Production, 147, pp.694-707.
Cvitanovic, C., Cunningham, R., and Putten, E.I., 2017. Using Social Network Analysis to
Monitor and Assess the Effectiveness of Knowledge Brokers at Connecting Scientists
and Decision‐Makers: An Australian case study. Environmental Policy and
Governance, 27(3), pp.256-269.
França, C.L., Broman, G., and Trygg, L., 2017. An approach to business model innovation and
design for strategic sustainable development. Journal of Cleaner Production, 140,
pp.155-166.
Junior, F.H., and Sánchez-Hernández, M.I., 2017. Strategic aspects in sustainability reporting in
oil & gas industry: The comparative case-study of Brazilian Petrobras and Spanish
Repsol. Ecological indicators, 72, pp.203-214.
Kaiser, J. and Buxmann, P., 2017. Organizational design of IT supplier relationship
management: a multiple case study of five client companies. In Outsourcing and
Offshoring Business Services (pp. 153-195). Palgrave Macmillan, Cham.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Zasada, I., and Zavalloni, M., 2017. A conceptual model to integrate the regional context in
landscape policy, management and contribution to rural development: Literature review
and European case study evidence. Geoforum, 82, pp.1-12.
Online:
3 Strategies Could Drive Growth For Microsoft. 2018. [Online]. Accessed through:
<https://seekingalpha.com/article/2257423-these-3-strategies-could-drive-growth-for-
microsoft?page=2>.
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Public policy engagement. 2018. [Online]. Accessed through: < https://www.microsoft.com/en-
us/public-policy-engagement/default.aspx>.
The Top 5 Microsoft Shareholders. 2018. [Online]. Accessed through: <
https://www.investopedia.com/articles/investing/122215/top-4-microsoft-
shareholders.asp>.
PESTEL Analysis, 2018 [Online]. Available through:
<https://www.professionalacademy.com/blogs-and-advice/marketing-theories---pestel-analysis>.
BCG Matrix of Microsoft Corporation. 2018. [Online]. Available through:
<http://bcgmatrixanalysis.com/bcg-matrix-of-microsoft-corporation/>.
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