Business and Management SL Internal Assessment Should Microsoft change their motivational and leadershipstrategy in order to increase employee’s productivity? Introduction Microsoft is an American multinational technologycompany, and its headquarters is in Redmond Washington.Microsoft develops, manufactures, license, supports and sells computersoftware, consumer electronics and personal computers and services. Microsoftis the best-known software manufacturer. It was founded by Paul Allen and BillGates in 1975, their purpose was to develop and sell basic interpreters, Itrose to dominate the personalcomputer operating systemmarket with MS-DOS in the mid-1980s, and they followed by Microsoft Windows.
Thecompany’s initial public offering , and subsequent rise in its share price,created three billionaires and an estimated 12,000 millionaires among Microsoftemployees. Since the 1990s, it has increasingly diversified from the operating systemmarket and has made a number of corporateacquisitions. InMay 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 leadershipstrategy; Microsoft focuses on motivating their employees in a more caring way,they look for ways or methods to motivate their employees, because Microsoftthinks that motivating employees takes a huge role in running the business. Microsoftoffers their employees services based on them, their family and parents, for example,maternity leave, paid time off for new parents, discounts on child services andso on. Another method for motivating their employees is including them in investing,Microsoft employees get to buy shares in a discounted price. In addition tothat, new employees receive a $50 credit to give to the charity of choice.Microsoft includes learning and development for their employees to leadmotivation.
I chose this question “Should Microsoft change theirmotivational and leadership strategy in order to increase employeesproductivity?” because Microsoft is a very huge company , it’s the largestglobalized company known , where their employees’ productivity is veryimportant and plays a huge role in sales and productivity. SWOT AnalysisStrengths:· A huge world-wide reach: Microsoft is a very well-knowncomputer and software system through the past 40 years, it has beenmanufacturing quality products for more than 40 years. Basically, theircomputers and software appear in almost every house all over the world, showingtheir massive popularity.
With this, they have a powerful customer base andoften a high range of customer loyalty, although, their advertising platform isstrong through their existing products. · Plenty of capital: Microsoft is the 5thlargest world companies, so this shows how much money they have to spend.Herewith, they can adopt much more belligerent marketing strategies and investmore money and time into manufacturing and developing more of these greatproducts.
· A good track records: Microsoft may not produce much freesoftware, but their customer care sector is one of the best, they do offerplenty of customer support options and have a line of products which generallywork ad advertised. Weakness: · High price point: bear in mind the fact that there aredesktop publishing suites or operating systems available for free, you beginunderstanding how much Microsoft charges. This allows greater revenue, itcertainly discourages customers and could be growing a problem.
· Plenty of competition: nowadays, Microsoft has a lot ofcompetitors in the software system sector, or basically technology space. Ofthe four largest companies above Microsoft, two of them which are Apple andGoogle are also a multinational technology companies battling Microsoft. Plentyof alternatives exist to the products that Microsoft offer.Suggestions:· Microsoft could offer vouchers or discount offers to itsvalued costumers so that they are motivated to keep paying using Microsoft’sservices· A suggestion for the other weakness is for Microsoft tocome up with eye catching services that will grab the attention of the peopleOpportunities:· Making the most of their currents standings: Microsoftseems to have a lot of money lying around. Their opportunity is great indeveloping the world’s best software using their talented programmers and largeamounts 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 forthem to earn. Fundamentally, Microsoft has the ability to convert theirexisting customer base, who typically pay for expensive products only every fewyears, into more active spenders.
Suggestions:· To ensure that they don’t miss out on theseopportunities, Microsoft could cut funding from their weaknesses and increasethe funding on software development and increasing it’s costumer base Threats: · Losing out of new markets: the fact is, Microsoft waslate for the mobile revolution. Companies like apple had targeted theopportunity in this, and managed to work on it. If Microsoft doesn’t manage tokeep current and on time, its products will grow out of date, and they will bepushed aside. · Static pricing models: Microsoft products are typicallybig, expensive purchases that consumers only consider every few years.Microsoft doesn’t really offer any particularly cheap products, and so lose outon market share. Unless they change this to a more modern system, they mightlose out to the microtransactions other companies already employ today.
Ansoff’smatrix of Microsoft market penetration: market penetration is the increase ofcompany sales without departing from the original product market strategy. Theproducts that are presented on Microsoft’s product line are Surface Tablet,Window Nokia Lumina and Office 365. Mistrust highlighting the thin line betweenpaid advertising and original content. Marketdevelopment: offerpresent product line to new markets, however products may have to be adapted tocater for new market. Basically, market development is a growth strategy thatidentifies and develops new market segments for currents products. It targetsnon-buying customers in currently targeted segments.
It also targets newcustomers in new segments. Microsoft’smarketing development: · Continuing their longstanding commitment and leadershipin developing advanced accessibility solutions. · Making the computer easier (see, hear and use) bymanufacturing accessibility into their products and services.· Promoting innovative of accessibility in the developmentcommunity and working with industry organization to encourage innovation.
· Building collaborative relationships with a wide range oforganizations to raise awareness of the importance of accessibility in meetingthe technology need of people with disabilities. Microsoft product development: the first product that Microsoftmanufactured is Altair Basic interpreter for Altair 8800 computer in 1975.Microsoft has some good and bad rated products. The good one is Windows 7 OSwhich was released in October 2009 as replacement for Windows vista. The badproduct is Windows Vista OS which was released in January 2007 with a cost of 7billion dollars to launch.
Diversification: Microsoft and unrelated diversification; Microsoftventure with Nokia, in September 2013 Microsoft payed 7.7 billion dollars tobuy over Nokia. The operating platform already used in Nokia Lumina wasMicrosoft’s technology, then Microsoft stated ” we want to improve our deviceportfolio” 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:Thesecompetitive skills show how Microsoft operates globally with popular productsuites such as Windows, Office and Azure.
Network effect, economies of scaleand strong brand all work in Microsoft’s favor, but it operates in highlycompetitive markets that are changing at accelerating rates. Conclusion Microsoft is an American multinational technologycompany, which is headquartered in Redmond Washington. Microsoft was found in1972. The tools used for Microsoft corporation are SWOT analysis whichconstructs the strengths, weaknesses, opportunities and threats of the company.Another tool is Ansoff’s matrix, this explains market penetration, marketdevelopment, product development and diversification. The last tool iseconomies of scale, this describes the competitive skills of how Microsoftoperates globally. Bibliography and references Introduction References: https://en.wikipedia.org/wiki/Microsoft https://www.microsoft.com/en-gulf/SWOT analysishttp://www.statista.com/statistics/263264/top-companies-in-the-world-by-market-value/ http://windows.microsoft.com/en-us/windows/history#T1=era0 http://www.engadget.com/2016/01/04/windows-10-200-million-installed-devices/ http://www.howtogeek.com/224746/screenshot-tour-the-29-new-universal-apps-included-with-windows-10/ http://www.pcworld.com/article/2996626/microsoft-losing-the-mobile-race-see-its-future-in-the-cloud.htmlAnsoff’smatrix https://prezi.com/55ss-bt9wowr/apple-and-microsoft/