Microsoft-Strategic Management Process


Strategic Management Process

Strategic management analyzes the major steps taken by the firms or organization top management keeping the owner in confidence, involving resources and performance in external environments. It specifies the organization’s mission, vision, objectives; developing policies and plan. It also contains the steps needed to achieve the objective through proper planning. Five major steps for company to follow while developing strategy (Burgelman et al, 2001)

·         Assessing the competitors and market condition

·         Goal setting and strategy making according to company’s current position
·         Reassessing the goals regularly (Quarterly) to show the progress of implementation
·         Searching for the alternatives or change in the strategy
·         Evaluating and controlling the business process.
Importance of strategic management process
For company to operate under variable market conditions, it is necessary that it has planning. The assessment of competitor gives company a chance to see their position in market with respect to competitors. The steps of goal setting also motivate the employee of the organization to achieve the mutually agreed objectives. Reassessing the strategy helps the company to look after alternatives if planned strategy does not work as per plan. Evaluating and controlling helps in assessing the strategy implementation process and deviation in the process.
Microsoft strategy implementation- Achieving the Competitive advantage by positioning (Carroll, P. 1996)



Horizontal Scope


The main products/ services include language (Software) and operating systems/languages applications. The main products attracted about 90% of revenue in the year1999.
Vertical Scope
The operating system, of the company is popularly known as Windows, has business model in the retail and OEM (original equipment manufacturer, such as Compaq) channels. The sales volume appears predominantly from OEMs. The business of software is done through OEM’s, applications through many channels that consist of corporate site licenses, computer companies, various retails channels and the internet.
Geographic Scope
The revenue originated from several channels throughout the globe. The South Pacific and American region claims for 40% of total revenue in 2001. OEM sales accounted for 30% and remaining30 percentage. Come from the rest part of the globe.
Microsoft strategy

Product market mix


 


Model for applying the strategy- Microsoft model

SWOT Analysis

The assessment of Microsoft’s strengths, weaknesses, opportunities and threats is as follows

Strengths

q  Presence of powerful leadership
q  Availability of large reserves of cash which is needed for quick development by acquisition and research and development of technologies
q  Good experience of the variable market
q  Already having good market share in the field of operating systems and applications software

Weaknesses

q  Proprietary software that is code of platform is not open and open movement in the field of software is getting much popularity
q  The present model is not support sustainable growth because after selling the main product, selling upgrades is only option left
q  Large size of organization make any move to be problematic

Opportunities

q  There is large option left in the Internet and Web Services
q  Another option exist in the field of proliferation of devices
q  Emerging field exist in the field of media Convergence
q  Microsoft can explore the Communications field
q   Renting software can become new source of income.

Threats

q  Open Source Movement poses much threat to window software
q  DOJ (Department of Justice) as many cases is pending against the company



 

      References

Burgelman, RA., Maidique, MA. and Wheelright, SC., 2001. “Strategic Management of Technology and Innovation.” McGraw-Hill Irwin.
Carroll, P. 1996. “Inside Microsoft: The Untold Story of How the Internet Forced Bill Gates to Reverse Course.” Business Week, July 15.
Munro, N. 2000. “A Window in Microsoft’s Strategy.” National Journal, 32(43): 3336.
Patricia Seybold Group, 2001. “Understanding Microsoft's Strategy: .NET, XP and Beyond.”

Comments

Post a Comment

Popular posts from this blog

Antilla-World Costliest House

Image
Antilla-Mukesh Ambani Paradise Antilla-Mukesh Ambani Manson located on Altamount Road in South Mumbai is estimated to be the second most expensive asset in the world after Buckingham Palace. Antilla was designed by Chicago-based architect Perkins and Will, the Australian-based company Leighton Holdings took charge of its production.  If media reports are to be believed, the cost of the high-end mansion is estimated to be $ 1-2 billion. The 400,000-square-foot building is located on Altamount Road in south Mumbai, which is considered one of the world's most expensive addresses. Passing through the trends of property, this road is between Rs 80,000 and Rs 85,000 per square foot of any real estate. There are some features of the building Mythical island-Palace Name Ambani's 27-story, 400,000 square foot skyscraper has been named after the name of a mythical island in the Antilla Atlantic, Forbes is at the top of the list of the world's most expen
Read more

Pataakha movie Review

Image
Pataakha movie Review Pataakha movie cast: Vijay Raaz, Sanya Malhotra, Radhika Madan, Namit Das, Saanand Varma, Abhishek Duhan Pataakha movie director: Vishal Bhardwaj Pataakha movie ratings: 3 stars   Two of the most beloved sister’s Champa Kumari and Genda Kumari, is in the center of Vishal Bharadwaj's new film, Pataakha, express 'can not live with them, can live without'.The Champa (Radhika Madan) is an elder sister – called by surname Badki. And then Chuttki (Sanya Malhotra) aka Genda aka Marigold, because her English-speaking husband calls him lovingly. The elder sister is simple in nature and having the limited desire and happy with bidis, cow and dream to open dairy later on in life. Younger sister Champa is a dreamer, and dream to be a teacher. She lives in a village in Rajasthan with her father, role done by Vijay Raj. Champa and Gonda do not get along, and this is the biggest inclination of their existence. Throw in a Jester - Sunil Gro
Read more

YOGA -For Body and Mind

Image
YOGA -For Body and Mind  Yoga came back from India for a long time, where it is still considered a symbol of learning yoga. This is not necessarily a physical exercise. The practice of 'yoga' not only practice asana but also includes mental discipline, including psychological practices. Moreover, the benefits of yoga are being provided by the centers of learning, yoga practice in India.Yoga has been described as an ancient discipline of doing different body movements to purify the body and mind for purity and strength. In ancient times, various body movements called "Asana" were used to help with all the development of mind with meditation, health, strength and soul. Yoga is a very safe, easy, and healthy way to fit a whole life without any problem. It requires regular exercise only in the activities of the body and in the right way to breathe. It regulates the relationship between the three components of our body such as body, mind and soul. It regulates
Read more