This report provides a comprehensive strategic audit of Microsoft, examining its business development, industry analysis, and competitive landscape. It delves into Microsoft's company background, including its history and evolution, and analyzes the industry in which it operates, including its key competitors like Apple and Google. The report utilizes Porter's Five Forces to determine industry competitiveness and analyzes both external and internal business factors, including political, economic, social, and technological influences. It further includes a financial analysis, assessing key performance indicators, financial positions, and competitor comparisons. The internal environment is analyzed through Microsoft's mission, goals, values, and organizational structure, along with functional strategies in marketing, finance, operations, human resources, and IT. A SWOT analysis summarizes strengths, weaknesses, opportunities, and threats. The report concludes with strategic recommendations, including the implementation of artificial intelligence, product diversification, strategic alliances, and addressing increasing competition, and the importance of an increased presence in the smartphone industry.