Transformational Leadership

· The Leader as a Strategist Report

The Leader as a Strategist Report

The Leader as a Strategist Report |

LASA 1: Assignment 2 |

|Introduction

This Paper will consist of an analysis of the strategic cascade of Microsoft. It will also include a SWOT analysis that will answer some primer questions. And a synthesis of the information evaluating the ability of the organization to implement the strategy using Kouzes and Posner’s Five Practices as a framework. |

Microsoft Corporation is an American multinational corporation headquartered in Redmond, Washington, United States that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions. Established on April 4, 1975 to develop and sell BASIC interpreters for the Altair 8800, Microsoft rose to dominate the home computer operating system market with MS-DOS in the mid-1980s, followed by the Microsoft Windows line of operating systems. Microsoft is one of the largest software corporations in the world that has diversified in recent years into the video game industry with the Xbox and its successor, the Xbox 360 as well as into the consumer electronics and digital services market with Zune, MSN and the Windows Phone OS. [ (Microsoft, 2012) ]

Primarily in the 1990s, critics contend Microsoft used monopolistic business practices and anti-competitive strategies including refusal to deal and tying, put unreasonable restrictions in the use of its software, and used misrepresentative marketing tactics; both the U.S. Department of Justice and European Commission found the company in violation of antitrust laws. Known for its interviewing process with obscure questions, various studies and ratings were generally favorable to Microsoft's diversity within the company as well as its overall environmental impact with the exception of the electronics portion of the business. [ (Microsoft, 2012) ]

Analysis of the Strategic Cascade

Microsoft has diverse audiences that are deeply engaged across all of our digital experiences (i.e. PC, TV, gaming and mobile). So we can deliver our message to them whenever and wherever we go. Microsoft has categorized our audience members as follows:

* Affluent Consumers - Affluent consumers manage their finances online, on their own terms. Leverage media and technology to reach them while they bank, conduct financial research and trade stocks.

* Boomers - Boomers are the largest and fastest-growing demographic in America, with the highest amount of personal wealth and disposable income. Target these consumers online, and your profits could skyrocket.

* Latinos - Latinos place high value on recommendations from family and friends, and want to do business with companies that care about their community.

* Men - Men can be hard to pin down. To connect with them online, advertisers must partner with a company that delivers broad reach and the high-quality, engaging content that men want.

* Moms - Moms are master multi-taskers, and they can be hard to reach especially when they’re using multiple screens. Get a revealing look at how moms are interacting across screens, and learn what they expect from marketers.

* Young Adults - Young adults are insatiable consumers of media and social technologies. To captivate this often distracted, multi-tasking audience, reach across numerous sites, channels and devices.

* Research - Read the latest research from Microsoft Advertising about what specific audiences are interested in, how they use media, and what motivates them to take action. (Microsoft, Reaching Your Target Audience, 20112)

Every brand has a story to tell. Our ad solutions help you deliver relevant, effective campaigns that target your particular audience and achieve your unique goals. See how our creativity and technology can move your story forward. Some Ad Solutions we’ll offer to support your everyday needs are:

* Search Advertising - Expand our reach Advertise on Bing and Yahoo! Search and reach millions of potential customers.

* Display Advertising - Engage our audience with display advertising across a network that features the most trusted, sought-after media brands and sites.

* Social Advertising - Social advertising campaigns to build brand awareness, drive customer engagement, and spark positive word of mouth. (Microsoft, Reaching Your Target Audience, 20112)

Insight is Microsoft’s LARGEST GLOBAL RESELLER and has been providing Microsoft solutions for over 25 years. It was one of Microsoft’s Large Account Resellers and

Enterprise Software Advisors. Our focus is serving as a Trusted Advisor to our clients, and this drives our unique approach to our clients within the Microsoft realm. We are focused on maximizing your Microsoft investment. We accomplish this with these activities:

• Ensure your IT Strategy is aligned to your Microsoft spend and vice versa

• Discuss technology solutions and their respective fit within your environment

• Provide benchmarking and negotiation tactics to ensure you get the best Microsoft deal

• Consistent communication on upcoming changes, releases, and information

• Ongoing reconciliation of purchases and usage

• Optional Services offerings that optimize the technology you own. (The Insight Microsoft Value Proposition, 2012)

Most marketers know that the process of uniquely positioning an offering is the key to driving profitable growth. However, positioning is not about what you do to your company’s products or services, but what you do in the mind of the customer. To effectively position an offering, you must begin by understanding how your company’s brand is currently perceived by the customer and what windows of opportunity exist that your brand can fill. One of the primary challenges to doing this correctly is discerning what metrics should be used to measure the brand’s current position as well as those of competitor brands. Microsoft’s release of its new Windows Phone 7 operating system is an interesting case study in positioning. We are clearly trying to reverse market share losses sustained over the past few years by establishing new offering as the “always delightful” solution that helps users get tasks done quickly and get “back to life.” If these are unmet desired outcomes customers have when using their phone, then this is a solid foundation upon which to spend more than $100 million on a new advertising campaign to make that position known. (Lyons, 2011)

Microsoft’s Sustainable Competitive Advantages over time has been its ever-present operating system and its presence on corporate and personal computers, tied to contractual licenses. If a software or hardware firm wanted to sell to these MS end users, they had to go through Microsoft in order to write to its specifications. U.S. and European governments have sought to reduce the MS stranglehold on the software market. But even Microsoft’s huge market share is not impenetrable and immune to attack. (Blake, 2012)

SWOT Analysis of Microsoft Corporation

STRENGTHS:

• 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 software’s 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 recruit 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.

WEAKNESSES:

• Microsoft lacks a solid client and service support center on the internet. This is important since problems and bugs with regards to their products must be fixed rapidly to attain efficiency. The lack of a customer service center would erode the integrity and quality perceived by costumers on Microsoft products. 

• Microsoft products have compatibility issues with other hardware and software manufactured by other companies. This compatibility issue would then limit the ability of the customer to buy all products made by Microsoft since it would affect the stability and performance of a computer. 

• Microsoft does not share the programming codes of its software making modification difficult if bugs and other malfunctions are detected by programmers not affiliated to the company. 

OPPORTUNITIES: 

• 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.

• 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.

• The company has also branched out to provide free email and news services to its customers. It has also developed software and computer programs that are vital in organizing business spreadsheets and data.

THREATS:

• The success of Microsoft in software development has spawned other competitors to follow the footsteps of the company towards success. The primary competitor of the company in the operating systems industry is the Linux program developed by independent programmers. This program is easy to use and can be obtain free of charge.

• Since the company is diversifying in other fields it compares 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.

• Another threat that is being faced by Microsoft is the different lawsuits and indictments against the company being made by independent companies, programmers and software developers. These lawsuits do not only exhaust the financial resources of the company but it also promotes negative publicity and bad public image.

Diminish the impact of these problems and difficulties, the company must undertake needed reforms and initiate policies that will improve certain aspects of the company. (Mathur, 2011)

Internal Environment

Microsoft still lacks a president but it now has eight chief financial officers who make it a point to follow the following structure when producing new products.

Structure

Systems

Microsoft has named financial executives to head each of its seven business units. The unit CFOs will all report to the heads of the business units. John Connors, Microsoft's CFO since 2000, remains the corporation-wide chief financial officer and will work with each of the business unit finance executives. The chief financial officers will mean better accountability for how each individual business unit performs. In addition, it will let investors see more clearly how each unit is faring. (Jung, 2003)

The company started splitting its operations into seven business units in late 2001 under a reorganization thought up by chief executive Steve Ballmer. The company's seven business units are: Client, which includes its Windows operating system; Information Worker, including Office business software applications; Server Platforms, for server software; Home and Entertainment, including Xbox video-game consoles and the Xbox Live online gaming service; MSN, its Internet service; Business Solutions, including software for small and medium sized businesses; and CE/Mobility, including software for wireless phones and mobile devices. (Jung, 2003)

Culture

Microsoft may appear to some people as a company without culture, but that impression changes upon entering the Sigma Building, which houses Microsoft Research Asia. Chatting with the great minds at Microsoft Research Asia, one is reminded of an open university that knows no boundaries. “Mentors” here are erudite but never short on passion; “pupils" are diligent and willing to take risks. This is where “Microsoft culture” resides. (Wu, 2009)

All commercial transactions take place across globally interconnected networks, on which no one can escape software and data, in a process that moves from one island of information to the next. Anything that one might need is just a simple search away. One’s life, regardless of station, is driven by technology. Economic development, propelled by digitalization and computing, is advancing at the speed of light. (Wu, 2009)

Synthesis of Information

Company Culture

Microsoft Values guide our behaviors and must shine through in all our interactions with each other and our stakeholders. Microsoft employees are great people who share the following values:

* Integrity and honesty

* Passion for customers, partners, and technology

* Open and respectful with others and dedicated to making them better

* Willingness to take on big challenges and see them through

* Self-critical, questioning, and committed to personal excellence and self-improvement

* Accountable for commitments, results, and quality to customers, shareholders, partners, and employees. [ (Microsoft, Microsoft Standards of Business Conduct, 2010) ]

These Standards of Business Conduct provide information, education, and resources to help you make good, informed business decisions and to act on them with integrity. In addition, managers should use this resource to foster, manage, and reward a culture of accountability and integrity within their groups. Working together, we can continuously enhance our culture in ways that benefit customers and partners, and that strengthen our interactions with one another. Then we can truly achieve our mission of enabling people and businesses throughout the world to realize their full potential. [ (Microsoft, Microsoft Standards of Business Conduct, 2010) ]

Employee Behaviors

Microsoft employees get a lot of personal freedom over both the work and the work environment. They order their own supplies, customize their office as they see fit, schedule their own trips and meetings, and select their own training courses. They also choose when they show up for work and when they leave, and what to wear while there. You can eat on campus or off, reheat something from home in the kitchen or scavenge leftovers from meetings. You can even work remotely from home (within reason). (Brundage, 1990-2005)

Given that Microsoft's been convicted of monopolistic practices, it may shock you when I say that Microsoft's upper management will strike you as very ethical. They talk about ethical behavior all the time and lead by example. I find Microsoft's upper management to be very trustworthy. They're also thinking very far ahead, and doing a good job getting the information they need to make solid decisions. Microsoft's leaders are also very generous, and frequently encourage the rest of us to make charitable donations (both money and time) a priority. Giving is a large part of Microsoft's corporate culture. (Brundage, 1990-2005)

Leadership

In order to be a good leader at Microsoft one must develop a passion in the markets where innovation is essential. Because our business is software and software doesn't wear out, we have to be about innovation. If a new release isn't any good, people will not upgrade to it, so whatever we have done or will do in the future, the culture, the leadership tone has got to be about innovation. Microsoft has maintained a position of leadership throughout a number of transformations in its business. The company helped to create the PC industry, transitioned from text-based interfaces to the era of graphical computing and evolved again when the Internet transformed information technology. Patience will be crucial as Microsoft targets new growth areas. The company has two primary cash cows -- its Windows and Office franchises -- and has been spending heavily to expand into new markets. Microsoft's Zune is designed to compete with Apple's hugely successful iPod. Despite a third-place market share in search (behind Google and Yahoo), Microsoft is trying to close the gap. In addition, the company is facing the rise of entirely new ways of developing and distributing software that present a challenge greater than that posed by any individual company. The key to all the goals Microsoft is trying to accomplish is talent. Can Microsoft effectively recruit and retain the brainpower to expand its traditional markets while also tackling the challenges of the new business models introduced by the growth of the web? The task is even more crucial as rivals like Yahoo and Google are increasingly competing for talent. (Ballmer, 2007)

Works Cited

Ballmer, S. (2007, January 10). Steve Ballmer Speaks Passionately about Microsoft, Leadership ... and Passion. Retrieved from Knowledge@Wharton : http://knowledge.wharton.upenn.edu/article.cfm?articleid=1628

Blake, M. P. (2012, May 25). HOW TO WIN CONSISTENTLY IN COMPETITIVE WARFARE. Retrieved from Blake Consluting : http://turningpa.com/Resources/MPB-winconsistently.pdf

Brundage, M. (1990-2005). Working at Microsoft. Retrieved from QBrundage: http://www.qbrundage.com/michaelb/pubs/essays/working_at_microsoft.html

Jung, H. (2003, July 23). Microsoft Management Structure: Eight CFOs, No President. Retrieved from CRN: http://www.crn.com/news/channel-programs/18823343/microsoft-management-structure-eight-cfos-no-president.htm

Lyons, Z. (2011, March 9). Stand Out from the Competition by Stepping Back. Retrieved from Positioning Innovation : http://posivation.wordpress.com/

Mathur, S. (2011, April 3). SWOT ANALYSIS OF MICROSOFT. Retrieved from Management Paradise : http://www.managementparadise.com/forums/human-resources-management/217974-swot-analysis-microsoft.html

Microsoft. (2010, JUne 17). Microsoft Standards of Business Conduct. Retrieved from Microsoft: http://www.microsoft.com/about/legal/en/us/compliance/buscond/default.aspx

Microsoft. (20112, May 24). Reaching Your Target Audience. Retrieved from Microsoft Advertising : http://advertising.microsoft.com/ad-network/audience

Microsoft. (2012, May 24). Microsoft. Retrieved from Wikipedia: http://en.wikipedia.org/wiki/Microsoft

The Insight Microsoft Value Proposition. (2012, May 24). Retrieved from Images01: https://images01.insight.com/media/pdf/MicrosoftValuePropDatasheet%20042011.pdf

Wu, J. (2009, Janurary 5). Discovering Microsoft’s Corporate Culture. Retrieved from China Internet Weekly: http://research.microsoft.com/en-us/news/asia/features/ciw_mscorpculture.aspx