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Overview of microsoft corporation
The influence of stakeholders on a business
Overview of microsoft corporation
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Strategic Management and Strategic Competition
Introduction
The Microsoft Corporation is a publicly traded company. It was founded in 1975 and prides itself as a leader in software and product solutions for individuals and businesses. Their mission and vision is to be a go-to source for everyone globally, and to be able to consistently produce platforms and products superior to the competition. Their comprehensive line-up makes them a very competitive business in the market, and one that can partner with a multitude of sources. They feature a broad array of products and services including Windows, Office, Windows Phone, box, Skype, MSN, Bing and Surface (Microsoft, 2015). Technology changes have been promoted by the company, and they have
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They have also used these same changes to impact their consumers and the market position as well. The Industrial organization and resource-based models are further applied to produce above average returns. Finally, the company mission and vision statement properly reflects how Microsoft plans to continue to lead the industry and promote global connectivity. Each category of stakeholder also impacts the company 's success. How Microsoft serves its internal and external stakeholders is with the delivery of cutting edge products and the production of above-average returns. Microsoft will continue to be a major competitor and industry leader through its strategic management and …show more content…
A good corporation will use its resources and strengths to achieve above-average returns. Above-average returns are "returns in excess of what an investor expects to earn from other investments with a similar amount of risk) (Hitt, Ireland & Hoskisson, p. 5). A firm is strategically competitive when they have a value-creating strategy. By maximizing production and output, the company has strategically placed itself in position to see significant profit. In order to be strategically competitive in producing above-average returns, a strategy first has to be formulated, and implemented. Referring to Figure 1.1 in the text (p. 5), there are several ways to approach strategy formulation. This includes at the business and corporate-levels, through competitive rivalry and competitive dynamics, acquisition and restructuring, international strategy and cooperative strategy. Leadership would then be in charge of communicating the necessary objectives to the team in order to assign roles and
Competitive strategy is a long-term action plan that is devised to help a company gains the competitive advantages over its competitors. There are Four Porter’s Competitive Strategy which including cost leadership, differentiation, cost-focused and focused-differentiation.
While the Microsoft Empire maintains its status as a vast company of large-scale production, readily contributing to the national GDP, and yielding high interest and profits to its associates, criticism and controversial accusations keep mounting. The thought of a monopoly as the economic device for good business seems almost mind-boggling to Microsoft’s competing corporations, as well as the entire economic community, legal and commercial.
Microsoft is an American company that was founded by William Henry Gates III, as known as Bill Gates, and his his high school friend Paul Gardner Allen in 1975 April 4. But unluckily, Paul Allen resigned from Microsoft in 1983 after developing Hodgkin’s disease. In 1985 October 20, Microsoft released Microsoft window. It is the first original operating system. It is a graphical extension for MS-DOS. Even though, it’s not handy like nowadays Microsoft window. Then in 1990, Microsoft introduced Microsoft office, which is a bundle office productivity application with Microsoft Word and Microsoft excel. The Microsoft Word was the first application that could display italics. And the Microsoft Office would be available for free for all the PC World’s computer that is produce on that same year in November. In the 2000 February 17, Microsoft released Window 2000 operating system, and according to Microsoft it is the most safe operating system in the world at that time. But still, there are so many problems and glitches need to be fixed. Besides there are mutable computer viruses are made specially to attack Window 2000. Rush to gain back the sales. In the 2001 October 25 Window xp is available. The new operating system fix most of the problem. Although some of the user were still complaining the system that it will take your information, but in the 2007 January, there are 76% of people in the entire world are using the operating system.
Microsoft has devoted huge amounts of effort to marketing in developing their products and services, as well as to the integration of their software products with one another in an attempt to create a seamless and consistent computing environment for the user.
Microsoft is currently the largest company in the computer industry. With a market capitalization of $291 billion, Microsoft has built an empire by dominating software sales for personal computers. Stock growth over the past 25 years has increased by more than 30,000%. However, Microsoft’s growth has substantially decreased since the market collapse of 2001(Niemond 25 April 2007).
"Microsoft Corporation, is a multinational computer technology corporation with global annual revenue of US$44.28 billion and 71,553 employees in 102 countries as of July 2006. It develops, manufactures, licenses, and supports a wide range of software products for computing devices. Headquartered in Redmond, Washington, USA, its best selling products are the Microsoft Windows operating system and the Microsoft Office suite of productivity software, each of which has achieved near-ubiquity in the desktop computer market. Microsoft possesses footholds in other markets, with assets such as the MSNBC cable television network, the MSN Internet portal, and the Microsoft Encarta multimedia encyclopedia. The company also markets both computer hardware products such as the Microsoft mouse as well as home entertainment products such as the Xbox, Xbox 360 and MSN TV" ("Microsoft").
According to Wheelen & Hunger, strategic management “is that set of managerial decisions and actions that determines the long-run performance of a corporation. It includes environmental scanning (both external and internal), strategy formulation (strategic or long-range planning), strategy implementation, and evaluation and control” (2004, p2). All eleven good to great companies are benefit from strategic management and gain long term strategic advantage then lead to outperforming compared companies.
Strategic management is the ongoing process of ensuring a competitively superior fit between the organization and its ever-changing environment (Kreitner, G13). Strategic management serves as the competitive edge for the entire management process. It effectively blends strategic planning, implementation, and control. Organizations that are guided by a coherent strategic framework tend to execute even the smallest details of their mission in a coordinated fashion. The strategic management process includes the formulation of a strategy/strategic plans, implementation of the strategy, and strategic control. A clear statement of the organizational mission serves as the focal point for the entire planning process. People inside and outside the organization are given a general idea of why the organization exists and where it is headed. Working from the mission statement, management formulates the organization's strategy, a general explanation of how the organization's mission is to be accomplished. Then general intentions are translated into more concrete and measurable plans, policies, and budget allocations. Implementation is the most important part of the strategy. Strategic plans must be filtered down to lower levels to be success. Strategic plans can go astray, but a formal control system helps keep strategic plans on track. In the strategic management process general managers who adopt a strategic management perspective appreciate that strategic plans require updating and fine-tuning as conditions change. Given today's competitive pressures, management cannot afford to let strategic plans sit as is. A strategic orientation encourages farsightedness. Sun Microsystems Inc. is one company that developed a strategy to become the competitive leader and become the most reliable in the net business. I will explain how Sun's strategy integrates their marketing, management, technology, and service functions into one effective strategy. First I'll discuss who Sun is and what encouraged them to develop their strategy.
...ncome and increase in demand. Microsoft met another challenge from the rapid rate of new technology. Specially coming from competitor such as Apple, Google, IBM, AT&T corporation, and cable giant media ONE. The Internet also allowed for new growth, because companies can get their message out in second anywhere in the world. However, the management of Microsoft was able to fully utilize the skills, expertise, and wisdom of its employees to remain successful. Microsoft continues to be successful with its creativity and innovation by producing new product such as windows and Xbox. Management has shown diversity by employing 91000 people worldwide in over two-hundred countries. This cultural success has propelled Microsoft to the front of the technology world. This can be attributed to the efficiency and effectiveness.
Throughout the global economic environment the desire to out-perform the competition is always present. In every situation, the companies who do better are the ones with superior strategy (Rothaermel, 2013). Strategic management is therefore important in every company, no matter what industry or market they operate in; and as stated by M. Carpenter and G. Sanders, 2013, is described as "The process by which a firm manages the formulation and implementation of its strategy". Strategic management is a constant topic under discussion with different schools of theorists with different beliefs and attitudes which is described as "A tense array of disagreement" (Rees, 2012).
What are the three or four most important drivers of Microsoft’s business model over the past 10 to 15 years that have accounted for the company’s spectacular results?
This essay plans to focus on the corporate strategy of Microsoft, and show how Microsoft has used diversification successfully within their corporate strategy to gain a competitive advantage.
PROBLEMS: The People lack DEEP KNOWLEDGE: With a gross cut in the number staff of about 200,000 as a result of noticeable decline in performance, IBM 's control continued to wane around 1990s. IBM reported its first huge loss in 1990; its income declined by 74.8% toward the end of the year. Resultantly IBM was relegated to 45th place in the Forbes records. IBM woes further deepened as a result of the promoters’ denial of the fact that their income and reputation were on the dwindling trend. Another factor responsible for the downward trend of IBM around this time is the incursion of new IT companies, Microsoft Corporation and Intel Corporation. The company lack of knowledge in the ensuing consumerism structure brought about by the internet
Microsoft is the leading and the largest Software Company in the world. Found by William Gates and Paul Allen in 1975 Microsoft has grown and become a multibillion company in only ten years. It all started with a great vision – “a computer on every desk and every home” - that seemed almost impossible at the time. Now Microsoft has over 44,000 employees in 60 countries, net income of $3.45 billion and revenue of 11.36 billion. Company dramatic growth and success was driven by development and marketing of operational systems and personal productivity applications software.
This indicates the importance of strategic management for organisations in making appropriate decisions and selecting strategies which will assist them to gain strategic competitiveness and as a result earn above-average returns.