. Management structure and nature. 3.1. Strategy and Organisational structure of Microsoft: “One Microsoft one Strategy “-Reorganisation Microsoft underwent organisational restructuring in the 2013 shifting its executive around different roles. Previously the company was divided into eight product and services division. The concept of restructuring was to aim at “One Microsoft” objective to mitigate the issue of sub orientation. The new structure was built around functions to avoid duplication of services and increase revenue. This implementation of the alignment strategy resulted in the increase in the revenue by 6% which was subsided by the decline in the PC Market shifting to new market like cloud, phone, tablets etc. The diagram below depicts the present organisation structure. Diagram: Microsoft Present organisational structure 3.2 BOARD OF DIRECTORS: As Microsoft is public traded company. So the board of directors include person who is outside the company. These members are selected in annual shareholders meeting through voting. They holds the five committee within the organisation to look into specific issues. Current Board of Directors: William H. Gates III Founder and Technology Advisor, Microsoft Corporation Maria M. Klawe President, Harvey Mudd College Teri L. List Stoll Executive Vice President & Chief Financial Officer, Kraft Foods Group, Inc.
Organizational Structure Organization structure is the differentiation; that is the way the organisation is differentiated into tasks, responsibilities, departments and hierarchies and the integration (the way the organisation is coordinated to form a unitary whole). It defines how activities in the organization are directed toward the achievement of organizational aims. The structure provides the foundation on which standard operating procedures and routines rest, determines which individuals get to participate in which decision making processes and thus to what extent their view shape the organization’s actions (Stephen, 1987) United Parcel Services Organization Chart United Parcel Service, Inc. (UPS) is the world’s largest package delivery
They have expand their business from only on computer software and hardware to online search engine, home gaming devices and smartphone, those business are the popular business in the world, Microsoft is trying to adapt the new market.
Because the Board of Directors only meets four times a year, the day-to-day operations are managed by a Chief Executive Officer. The CEO has appointed five Chiefs as his
The company is geographically located in most major united states locations. It employs a hierarchal organizational design. One of the contributing factors to its success is the company’s success in providing a dining experience for its customers that excel in choices, price, customer service, and serving size. The company is known world-wide for its delicious cheesecakes with the key factor being the variety.
Brand positioning is essential to the success of any firm because it delivers a perception into the consumer’s minds which differentiates them from their competitors. Microsoft began to grow their brand over 20 years ago with Bill Gate’s an underlying vision of “a computer on every desk and in every home”. This resulted in Microsoft developing into a huge multinational company with personal computing at the forefront of their business. Microsoft dominated this industry for many years which is reflected in the high brand recognition of Microsoft products worldwide.
Joshua Kennon (2007), stated that “The board of directors is the highest governing authority within the management structure at any publicly traded company and is usually made up of the directors who are elected for a specific number of years by the shareholders”. According to Wikipedia,” A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization”.
The Board of Directors currently hosts 13 members, of which, four are women and two are minorities. There are six distinct committees of the board consisting of (a) audit, (b) compensation and benefits, (c) finance, (d) nominating and corporate governance, (e) public policy, and (f) science and technology. The committees receive recommendations and guidance from 22 corporate officers and 19 company group chairmen. The 2005 Annual Report also details the accomplishments of the members of the Board of Directors. There is a vast wealth of experience and knowledge within the Board of Directors including:
Microsoft's struggles might seem somewhat perplexing, given its stunning success with Windows and the fact that it seems to have pursued a 'related linked' diversification strategy of primarily concentrating on products 'linked' to technology. It has not acquired businesses that are fundamentally anathema to its core product. "Companies' implements related diversification strategies in order to achieve and
The Board of Directors are in charge of determining the corporation’s leadership structure on an annual basis and determine if the board will be led by an independent Chairperson or an independent Lead Director. The board has decided that Ronald Sargent, the CEO of Staples, will remain and the Chairman of the board. The Board of Directors is broken down into five committees made up of around three or four board members. Each committee has there own responsibilities and are in charge of making critical decisions that they must assure is communicated properly throughout the entire company. This leadership structure assures that the Board of Directors has a proper balance of leadership roles that allows for a system that prevents any conflict of interests that may come from having the CEO serving on the board.
This essay will utilise the following structure. It will commence by providing the reader with a brief history about Microsoft and then go onto explaining what corporate strategy is. Following this will be Microsoft’s diversification strategy in parallel with the reasons why they choose to diversify. Within this section the author plans to explore Microsoft’s related diversification approach, their corporate rationale, alongside why skill transferring is essential to them sustaining a competitive advantage and also how they achieved
Microsoft Corporation is a public multinational corporation headquartered in Redmond, Washington, USA 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
The Board of the Company consists of 11 (eleven) Independent Directors and 2 (two) Inside Directors. They have expertise in the areas of business, finance, law, audit and public companies.
Bill Gates Believed Microsoft’s core source of competitive advantage was the ability to attract, motivate and retain superior people. In attracting employees Microsoft mainly targeted the stars. Stars are the core employees that can add value to the organization through their knowledge, skills and abilities (Boselie, 2010). At Microsoft there has been a hands on mentality made for ambitious people.
in order to create possibly the most effective and versatile workforce of any corporation in existence. To study Microsoft's way of doing business is to look at the company from many angles, from a managerial and organizational standpoint to its process of developing products and services for its customers and its competitive environment. The purpose of this paper is to analyze Microsoft from a strategic fit
The structure of an organisation is built in order to achieve the distinct tasks by the labour and coordination between teams to provide goods and services. Organisational structure is selected in order to have a basic work and consistency according to the situation. The most foremost factors in an organisation are skilled labours, mutual understanding among the fellows and direct control to frame a good result. A good structured organisation results in quality production, which can be taken into peoples consider through marketing. When an organisation tracks in a solid structure, management plans and tasks can be easily constructed and executed. In this essay, I have been explained about the concept of Mintzberg five