Business and Management SL Internal Assessment
Should Microsoft change their motivational and leadership
strategy in order to increase employee’s productivity?
Microsoft is an American multinational technology
company, and its headquarters is in Redmond Washington.
Microsoft develops, manufactures, license, supports and sells computer
software, consumer electronics and personal computers and services. Microsoft
is the best-known software manufacturer. It was founded by Paul Allen and Bill
Gates in 1975, their purpose was to develop and sell basic interpreters, It
rose to dominate the personal
computer operating system
market with MS-DOS in the mid-1980s, and they followed by Microsoft Windows. The
company’s initial public offering , and subsequent rise in its share price,
created three billionaires and an estimated 12,000 millionaires among Microsoft
employees. Since the 1990s, it has increasingly diversified from the operating system
market and has made a number of corporate
May 2011, Microsoft acquired Skype Technologies for $8.5 billion, and in December 2016 bought LinkedIn for $26.2 billion.
Focusing on Microsoft’s motivational and leadership
strategy; Microsoft focuses on motivating their employees in a more caring way,
they look for ways or methods to motivate their employees, because Microsoft
thinks that motivating employees takes a huge role in running the business. Microsoft
offers their employees services based on them, their family and parents, for example,
maternity leave, paid time off for new parents, discounts on child services and
so on. Another method for motivating their employees is including them in investing,
Microsoft employees get to buy shares in a discounted price. In addition to
that, new employees receive a $50 credit to give to the charity of choice.
Microsoft includes learning and development for their employees to lead
I chose this question “Should Microsoft change their
motivational and leadership strategy in order to increase employees
productivity?” because Microsoft is a very huge company , it’s the largest
globalized company known , where their employees’ productivity is very
important and plays a huge role in sales and productivity.
A huge world-wide reach: Microsoft is a very well-known
computer and software system through the past 40 years, it has been
manufacturing quality products for more than 40 years. Basically, their
computers and software appear in almost every house all over the world, showing
their massive popularity. With this, they have a powerful customer base and
often a high range of customer loyalty, although, their advertising platform is
strong through their existing products.
Plenty of capital: Microsoft is the 5th
largest world companies, so this shows how much money they have to spend.
Herewith, they can adopt much more belligerent marketing strategies and invest
more money and time into manufacturing and developing more of these great
A good track records: Microsoft may not produce much free
software, but their customer care sector is one of the best, they do offer
plenty of customer support options and have a line of products which generally
work ad advertised.
High price point: bear in mind the fact that there are
desktop publishing suites or operating systems available for free, you begin
understanding how much Microsoft charges. This allows greater revenue, it
certainly discourages customers and could be growing a problem.
Plenty of competition: nowadays, Microsoft has a lot of
competitors in the software system sector, or basically technology space. Of
the four largest companies above Microsoft, two of them which are Apple and
Google are also a multinational technology companies battling Microsoft. Plenty
of alternatives exist to the products that Microsoft offer.
Microsoft could offer vouchers or discount offers to its
valued costumers so that they are motivated to keep paying using Microsoft’s
A suggestion for the other weakness is for Microsoft to
come up with eye catching services that will grab the attention of the people
Making the most of their currents standings: Microsoft
seems to have a lot of money lying around. Their opportunity is great in
developing the world’s best software using their talented programmers and large
amounts of money to invest.
Fully harnessing the power of their customer base: Microsoft is broadly accepted by customers,
so if they can bring some dynamic to the status quo, then there is plenty for
them to earn. Fundamentally, Microsoft has the ability to convert their
existing customer base, who typically pay for expensive products only every few
years, into more active spenders.
To ensure that they don’t miss out on these
opportunities, Microsoft could cut funding from their weaknesses and increase
the funding on software development and increasing it’s costumer base
Losing out of new markets: the fact is, Microsoft was
late for the mobile revolution. Companies like apple had targeted the
opportunity in this, and managed to work on it. If Microsoft doesn’t manage to
keep current and on time, its products will grow out of date, and they will be
Static pricing models: Microsoft products are typically
big, expensive purchases that consumers only consider every few years.
Microsoft doesn’t really offer any particularly cheap products, and so lose out
on market share. Unless they change this to a more modern system, they might
lose out to the microtransactions other companies already employ today.
matrix of Microsoft
market penetration: market penetration is the increase of
company sales without departing from the original product market strategy. The
products that are presented on Microsoft’s product line are Surface Tablet,
Window Nokia Lumina and Office 365. Mistrust highlighting the thin line between
paid advertising and original content.
present product line to new markets, however products may have to be adapted to
cater for new market. Basically, market development is a growth strategy that
identifies and develops new market segments for currents products. It targets
non-buying customers in currently targeted segments. It also targets new
customers in new segments.
Continuing their longstanding commitment and leadership
in developing advanced accessibility solutions.
Making the computer easier (see, hear and use) by
manufacturing accessibility into their products and services.
Promoting innovative of accessibility in the development
community and working with industry organization to encourage innovation.
Building collaborative relationships with a wide range of
organizations to raise awareness of the importance of accessibility in meeting
the technology need of people with disabilities.
Microsoft product development: the first product that Microsoft
manufactured is Altair Basic interpreter for Altair 8800 computer in 1975.
Microsoft has some good and bad rated products. The good one is Windows 7 OS
which was released in October 2009 as replacement for Windows vista. The bad
product is Windows Vista OS which was released in January 2007 with a cost of 7
billion dollars to launch.
Diversification: Microsoft and unrelated diversification; Microsoft
venture with Nokia, in September 2013 Microsoft payed 7.7 billion dollars to
buy over Nokia. The operating platform already used in Nokia Lumina was
Microsoft’s technology, then Microsoft stated ” we want to improve our device
portfolio” however, some industry experts have described it as a ‘Hail Mary’
play and a last-ditch effort to stay on a pare with Apple.
Economies of scale:
competitive skills show how Microsoft operates globally with popular product
suites such as Windows, Office and Azure. Network effect, economies of scale
and strong brand all work in Microsoft’s favor, but it operates in highly
competitive markets that are changing at accelerating rates.
Microsoft is an American multinational technology
company, which is headquartered in Redmond Washington. Microsoft was found in
1972. The tools used for Microsoft corporation are SWOT analysis which
constructs the strengths, weaknesses, opportunities and threats of the company.
Another tool is Ansoff’s matrix, this explains market penetration, market
development, product development and diversification. The last tool is
economies of scale, this describes the competitive skills of how Microsoft
Bibliography and references