Business Report on Microsoft

 

Business Report on Microsoft

1.0 The mission of the company (50)

          Founded on 1975, Microsoft refers to a public multinational corporation that develops, manufactures, licenses and supports a range of computing-related products and services. Amongst these products and services are computer software, consumer electronics, digital distribution, computer hardware, video games, IT, consulting, online advertising, retail stores and automotive software. Basically, Microsoft aims at helping people and businesses throughout the world realize their full potential.  

2.0 The formal structure (50)

          At the top, Microsoft is consisted of two broad categories: Board and Directors and Board Committees. There are 9 members of the board who maintain the 5 committees. These committees are the Antitrust Compliance Committee, Audit Committee, Compensation Committee, Governance and Nominating Committee, and Finance Committee.  The chart below specifies the composition of the board and their respective committees.

3.0 The strategic environment (200)

          An effort to participate in the international market is the main goal of Microsoft Company that is why they choose to implement international strategies. Basically, Microsoft is committed to mergers and acquisitions as a way to expand globally and to reach new markets. Other effort includes a massive advertising of Microsoft products. To drive the international strategies, Microsoft developed and established a new group – Media/Entertainment & Technology Convergence Group – to consolidate the strategies for different services and for complying with industry standards. The group is responsible for ensuring the effective business relationships, technologies and polices to meet the consumer demand as well (Microsoft PressPass).

4.0 Broader organizational features (200)

          Microsoft is a huge global brand. It is recognizable for two main reasons. It was one of the largest software developers it has developed a customer base of around 30 million people. It has built its reputation on the successful development of its computer softwares namely the Windows line of products. Brand is all-important. Microsoft is one of the most established and healthy IT brands in the World, and has a very loyal set of enthusiastic customers that advocates and uses the brand. With loyal customers, it means that Microsoft does not only recruits new customers but retains old ones.

          The company is composed of different main offices inside the United States and around the globe making the distribution and development of its products easily accessible to the consumers. It has its offices in Germany, United Kingdom and Europe and sub offices in countries such as China, France and Korea.

5.0 The fit between the organization and its environment (200)

          Microsoft moved into the Chinese market by producing computer programs based on the Chinese language and giving discretionary authority to the Chinese government to censure and to eaves drop on emails, documents and webpage. Gates resorted into “something is better than nothing” strategy so that Chinese nationals could experience by themselves the difference between the original and the pirated softwares. There is no coercion involved only a reverse psychology that targeted the purchasing processes of the people. As such, there had been the transition from unethical purchasers to ethical purchasers, converting them into paying customers. The “Doctrine of Mean” explains that the traditional cultural values of Chinese and their cognitive orientations influence how people adopt a non-assertive approach to conflict resolution. This is what exactly Bill Gates did.

          Microsoft has also diversified its products. During the past years the company has ventured into fields such as game design, game developing and publishing and the production of game consoles such as the Xbox. However, since the company is diversifying in other fields it competes its products with the products being made by companies who have been experts in their chosen industry. The company might eventually lost its battles in making its products competitive when put side by side with products made by corporations which has established their name and reputation to the customers.

6.0 Recommended future actions (50)

          The company has also branched out to provide free email and news services to its customers. It has also developed softwares and computer programs that are vital in organizing business spreadsheets and data. Measures that would help curb the effects of computer viruses and the company must employ stiff computer firewalls against hackers and identity thieves. Assuming viruses do get into the system, Microsoft must have an immediate manpower and technical resources to remedy the situation and in addressing the issues, and helping the costumers with regards to their computer problems. This is very vital since the absence of frequent maintenance and a customer service hotline could adversely affect the company’s reputation, profits and costumers.

          With regards to its products and softwares, Microsoft must be extra watchful when it is going to release a product. It must consider all legal and political changes occurring in the society to avoid being sued and fined with a heavy sum. This incident is not only counterproductive to the goals of the company but also damaging to a company’s reputation. Microsoft can also win against piracy by making its products pirate proof, making all softwares and products unable to function when they are recopies of the original.

 

References

Kirkpatrick. D. (2007). How Microsoft Conquered China? Fortune Magazine.

Microsoft PressPass, 2004, ‘Microsoft Forms New Group to Drive Global Strategies and Relationships With Media and Entertainment Industries’, Microsoft Corporation.

Our Mission. (2010). Retrieved on 17 November 2010, from http://www.microsoft.com/about/en/us/default.aspx.

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