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UNIVERSITY OF MUMBAI
PROJECT ON
ROLE OF BILL GATES IN DEVELOPING MICROSOFT
MASTERS OF COMMERCE (BUSINESS MANAGEMENT) SUBJECT: STRATEGIC MANAGMENT SEMESTER II 2013-14
IN PARTIAL FULFILLMENT OF THE REQUIREMENT UNDER SEMESTER BASED CREDIT AND GRADING SYSTEM FOR POST GRADUATE (PG) PROGRAMME UNDER FACULTY OF COMMERCE
SUBMTTED BY ALI JAMAL ROLL NO 67
PROJECT GUIDE DR.RAJESHWARI G K.P.B. HINDUJA COLLEGE OF COMMERCE 315 NEW CHARNI ROAD MUMBAI 400004
M.Com (BUSINESS MANAGEMENT) II SEMESTER
ROLE OF BILL GATES IN DEVELOPING MICROSOFT
SUBMITED BY ALI JAMAL ROLL NO: 67
CERTIFICATE
This is to certify Mr. Ali Jamal of M.Com Business management semester 2nd 2013-2014 has successfully completed the project on ROLE OF BILL GATES IN DEVELOPING MICROSOFT under the guidance of DR.Rajeshwari G.
Project Guide
_________________________
Course Coordinator
_________________________
Internal Examiner
_________________________
External Examiner
______________________
Principal
_________________________
Date: ________ Place: Mumbai
DECLARATION
I Mr. Ali Jamal the student of M.Com Busniess management 2nd semester (2013-2014) hereby declare that I have completed the project on ROLE OF BILL GATES IN DEVELOPING MICROSOFT
The information submitted is true and original to the best of my knowledge.
ALI JAMAL
(Signature)
ACKNOWLEDGMENT
My sincere Thanks to Ms. DR Rajeshwari G , K.P.B. Hinduja College of Commerce, Mumbai for her valuable guidance and support at all time. Also, I would like to thank and remember my neighbours & friends for their effort and helping hand. Every effort has been made to enhance the quality of work. However, I owe the sole responsibility of the shortcoming, if any, in the study.
ALI JAMAL Roll No : 67 M. Com - II Semester
TABLE OF CONTENT
Sr. No TOPIC 1 Introduction 2 History 3 Key Products 4 Case Study 5 Market Research 6 Vision, Mission and Objectives 7 Internal and External Enviorment 8 Strategies 9 Conclusion 10 Bibliography CONTENTS:Abstract . Introduction................................................... Aim of Microsoft SWOT.............................................................................. ECONOMIC..................................................................... SOCIAL.......................................................................... TECHNOLOGICAL......................................................... ENVIRONMENTAL........................................................ BARRIER TO ENTRY..................................................... SUPPLIER POWER....................................................... BUYER POWER............................................................. COMPETITIVE RIVALRY ..............................................
PAGE 1 3 4 10 12 15 18 23 29 30
Types of Information Systems needed to aid in the decision making process at managerial levels......................................................... Improvement of Customer Relations.. Critical analysis of competitive advantages to an organization Challenges to an organization & Managing change Conclusion.. References. Bibliographies.
M i c r o s o f t C o r p o r a t i o n TM583 Page 1
Microsoft Corporation
Term Project
By: Thomas Liquori Professor Marion Strategic Management (TM583) May 5, 2011
Table of Contents
Microsofts History ...........................................................3 Technology Strategy .........................................................5 Core Competencies ...........................................................6 Industry Dynamics ............................................................8 Technology Sourcing and Internal Innovation..................9 Product Development Strategy .......................................10 Strategy to Protect Innovations .......................................12 Bibliography ...................................................................14
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Microsoft Corporation Microsofts ambitions have been anything but small since its inception in the early 1980s. Microsofts is the worlds number one software company and has controlled an overwhelming share of the personal computer operating system market. Microsofts products do not stop at just an operating system; the company supplies the world with a number of other products including their Office Software Suite, their video game console Xbox, CRM Applications, server and storage software, and Zune, their digital music player. The company has had acquisitions to bulk its presence in markets such as online advertising, mobile devices, and enterprise software. Throughout this paper, I will be discussing a little history Microsoft, their Technological Strategy, the companys core competencies, industry dynamics, sourcing and innovation, and their strategy to protect their innovations.
Microsofts History
Bill Gates founded Microsoft (originally named Micro-Soft) in 1975 after dropping out of Harvard at the age of 19 and teaming up with High School friend Paul Allen to sell a version of the programming language BASIC. Gates moved Microsoft to Seattle in 1979 and began developing software that let other write programs, thus the modern personal computer was born in 1980 when IBM choose Microsoft to write the operating system for its new machines. The company went public in 1986, and Gates became the industrys first billionaire a year later. In 1995 antitrust concerns cost Gates a $1.5 Billion dollar acquisition of his personal finance. Later that year, Gates introduced the Microsoft Network that licensed the Java Web Programming Language from Sun and introduced its Internet Explorer Web browser, as well as launching
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Microsoft Corporation Expedia.com, its online travel site. After settling a lengthy lawsuit from Sun in 2001 for $20 Million dollars for allegations that Microsoft was creating an incompatible version of Java in 1997, the company in 1999 agreed to invest $5 Billion for a minority stake in AT&T as part of a move to acquire cable operator Media One. In addition, the company also bought Windows technical drawing software Visio for $1.3 Billion, and sold a stake in Expedia to the public. In 2000 Gates named Ballmer the new CEO of the company and Gates remained chairman and added the title of chief software architect to himself. Later that year, a judge ruled that Microsoft used its monopoly powers to violate antitrust laws. Microsoft agree to uniformly license its Windows operating system, cease to offer exclusive contracts with manufactures, and allow competing software to be included with its operating systems. Throughout the next couple of years Microsoft still faced some bumpy roads, with a lawsuit from Netscape in 2002 and announcing in 2005 a reorganization designed to streamline its decision making and speed up execution across its divisions. Microsoft put many of its legal woes behind them after 2008 and partnered with mobile device makers such as Hewlett Packard and Motorola to develop handheld computers and mobile devices that utilize Microsofts Windows Mobile and Windows Media software. In 2009, Microsoft overhauled and rebranded its own search business Bing after failure of acquiring Yahoo! in 2008.
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Technology Strategy
Microsofts technology strategy service enables business innovation and helps builds the companys competitive advantage.
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Microsofts technology strategy
helps organizations improve IT service excellence, lower costs, and build competitive advantage through the innovative application of the Microsoft platform. Microsoft delivers its technology strategy services through Enterprise Strategy Consultants and senior level experts. Using the IT roadmap, IT advisors help organizations successfully plan, deploy, operate, and optimize Microsoft technology solutions. A Microsoft Technology Strategy Service engagement offers significant ongoing benefits to large organizations that run Microsoft Technologies. The company helps plan for IT governance and compliance by establishing well defined procedures and clear standards for acquiring, integrating, and maintaining IT systems over time. Microsofts work can lead to: M T S S B E N E F I T S: IT service excellence with help to improve operational efficiency to lower total costs of ownership Help reduce redundancy and streamline IT processes and service deliveries across regions and international boundaries Help ensure the success and reduce the risk of future IT upgrades and systems Operate from a consistent and executable IT service architecture and delivery plan
http://www.microsoft.com/australia/services/consulting/strategy.mspx
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Core Competencies
A companys core competencies are typically considered to be more than a core technology, a companys core competencies differentiates them strategically from their competitors. Several core competencies underlie an individual business and can indicate an organizations structure. Microsofts products can be divided into seven main families; these products include Windows, Servers, Business Solutions, Xbox Game Console and Games, MSN, Developer Tools, and Windows Mobile.
Windows Operating System Windows 7, Media Center, Tablet PC, among others Business Solutions MS Office, Project, Visio, SharePoint, Live Meeting, One Note MSN Microsoft Network, Security Essentials xBox Console and games Developer Tools Visual Studio, Expression Web, Web Matrix Servers BizTalk Server, Commerce Server, SilverLight, .NET Framwork, among others. Mobile Smart Phones
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Microsoft Corporation Microsoft delivers the right services at the right time by strengthening IT as a strategically focused, business aligned organization. The company offers a competitive advantage through their technological innovations. The company maps IT applications, infrastructures, and operations into a consistent set of services that support business goals. They help eliminate redundancies, service delays, and inefficient processes for faster response times, and they also seize the opportunity to take the competitive lead by applying technology in innovative ways. For a variety of reasons it is difficult to imitate Microsofts core competencies because customers perceive the benefits associated with the Microsoft products. Microsoft currently has its own partner network where businesses can showcase their expertise through Microsoft competencies. Microsoft has two types of competencies that they can provide a new business. Gold or silver competencies can help set a company apart from the competition by demonstrating a proven skill set to potential customers. Consumers can easily identify a companys capabilities and expertise because Microsoft is aligned with how customers actually buy a companys products.
Silve r Competencie s
Offers a clear path to help showcase a company's skillset
Gold Competencie s
Demonstrates a company's best in class expertise within the marketplace.
Earning a silver competency from MS can place your business in the top 5% of MS partners worlwide
Earning a gold competency from MS can place you in the top 1% of MS partners worldwide for outstanding proficiency
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Industry Dynamics
Microsoft offers a competitive advantage through technology innovation by delivering the right services at the right time by strengthening IT as a strategically focused and business aligned organization. From the use of Microsoft industry dynamics, companys can map IT applications and operations into a consistent set of services that support business goals. They can also seize opportunities to take the competitive lead by applying technology in innovative ways. Based on what Microsoft states on their website, 2When you want CRM in the cloud that is flexible, scalable, and easy to use, and that delivers outstanding value and business insights, theres no comparison to Microsoft Dynamics CRM. Using industry trends, Microsoft can help a firm drive sales productivity by tracking sales opportunity, boost customer satisfaction, improve a firms marketing effectiveness, and help firms reach quarterly goals. One of the most powerful features of Microsofts CRM dynamic business management software is the native outlook client which allows users to access the full capabilities of Microsoft dynamics CRM right within the Microsoft Outlook interface. And because sales, marketing, and customer service tasks are handled within a familiar application, any team can work smarter and be more productive on any project that they are working on.
http://crm.dynamics.com/online/default.aspx?tabid=fits-yourbusiness&CR_CC=200008220&WT.srch=1&WT.mc_ID=SEARCH_CRM&CR_SCC=200008220&fbid=MaoDx 0DAMmG
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Technology Sourcing and Internal Innovation
By using the Microsoft Dynamics CRM online application, firms have the ability to use a strategy to source their methods. Firms can improve sales planning and management by setting up territories and teams for optimal organizational efficiency. Firms can also better coordinate tracking leads within one centralized system and assign leads and tasks automatically based on predefined rules. Firms who use Microsofts online CRM application can also mange opportunities effectively by enabling a more effective sales team with team based ownership. They can also create and monitor customized offers and pricing for each opportunity, by more effectively positioning against competition with a seamless competitor tracking tool. A firm can also streamline a proposal creation with embedded document management capabilities and establish consistent sales processes with predefined workflows. Users of Microsofts CRM dynamic tool have the ability to streamline account management and enhance pipeline management by increasing the accuracy of revenue projections with individual or rollup forecasting. Firms can leverage guided dialogues across sales organizations to reduce training and speed up time to simplify workflow processes. Users can also empower their sales force with real time data from any web enabled device to get on the go leverage. And, the use of CRMs analytical tool helps firms gain visibility and exposure through improved decision making using robust data for insightful trending analysis. Using the intuitive report wizard helps firms take advantage of the application to instantly create ad-hoc reports.
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Product Strategy
Development
During a professional developers conference in 2010, a Microsoft Executive addressed the companys plan to incorporate HTML 5 and Silverlight together. HTML is the only cross compatible solution for both Windows and Apple platforms. Microsofts Silverlight strategy is Microsofts development platform for their windows phone. While servers, desktops, and mobile devices have arguably identical issues with compatibility, the solution and answer lies within HTML 5, and the driver in both cases is user demand. Thanks to the steady and regular market share gains, the Mac now has the upper hand of the market, especially in the U.S, where Apple has already exceeded 10 percent of the market share. The problem Microsoft is having is that the demand for Macs comes largely from the demands for I-Phones. If a user has a good experience with an I-Phone, this will lead into repeated trips to the Apple store on site and online, with more and more users considering and purchasing Apple products, including Macs, I-Pads, and I-Pods. Android has also benefitted from a similar popular demand recently in the mobile device world, and since Google has its own platform now, users have more choice with both hardware and wireless carriers. The problem with these platforms is compatibility, which was a bigger issue in the past than now, but still an issue. No new major PC specific applications have appeared in the past several years, instead, all new apps have been web based and run well on standard based browsers on any desktop computer operating system including Windows, Mac, and Linux.
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Microsoft Corporation Embracing web standards can eliminate a lot of problems currently, and when it comes to web standards, the industry is rallying around HTML 5, JavaScript, and CSS 3 (Cascading Style Sheets). Microsoft embraces HTML 5 because they feel it is the future of web technology that they are exploring by using Internet Explorer 9 and within the next few months Windows 8. On the mobile side HTML 5 is leaned more towards the future of mobile devices, but at the same time will bridge the gap between disparate and incompatible platforms like the I-Phone, Android, and Windows phones. Todays smart phones all run on different operating systems with incompatible apps for each, but if developers create mobile solutions instead of native apps, there would be no need to develop three completely different types of apps in different environments, and with several different languages. Instead they can create and users would embrace a single web app that is cross compatible on all operating systems. Microsoft is wise with its goals for Silverlight, but at the same time the software giant is welcoming HTML 5 with arms wide open as its path to the future of the company. Microsofts aim with Windows 8 is to make the user experience a natural extension of the device. This attempt is a design that Microsoft hasnt attempted since the days of Windows 95. The new user experience also extends to how applications will run on the Windows 8 software. Developers will also be able to use common web technologies, such as HTML 5 and JavaScript to create applications for the PC to further ease integration and adoption. To aid developers in building applications for the new Windows 8 platform, Microsoft has opened a new developer conference called BUILD which will take place in California later on this year 2011. Needless to say, Microsoft is keeping up with technology and innovation by embracing new technologies that can be implemented into their existing platforms that will make the Microsoft brand even bigger and better than it already is.
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Strategy to Protect Innovations

Although Microsoft lags behind Apple in innovation, during 2010 Microsoft was granted the third most patents of all companies with almost 3,100 patents behind the leaders IBM and Samsung. Apple checked in at number 46 with only approximately 560 patents, but Apple was also cited with the greatest increase of patents in 2009, up by 94%. Microsoft in general doesnt release innovative products, except for the Kinect gaming system for X-Box, which is an exception to that rule. Microsoft spends approximately nine billion dollars a year in research, development, and acquisitions, totaling over sixty nine billion over the last decade, which for Microsoft has not brought the breakthroughs to the public like they wish they could. Innovator evangelists believe that Microsoft is suffering from a innovators dilemma, which occurs when a company focuses on protecting their existing markets, rather than trying to create new ones. Although Microsoft never quite ranked among famous labs such as Bell Labs and the Xerox Palo Alto Research Center, Microsoft itself still feels that they are one of the few remaining companies that still do pure research and development, including kinds that may not turn into products for several years to come. Microsoft has a problem when it comes to protecting innovations, Steve Ballmar, who is Microsofts current CEO is not a visionary and simply does not have the vision to create innovative products. But, when we look at the CEO of Apple Steve Jobs, we can see that Steve Jobs is a brilliant forecaster and knows what people want even before the public realizes it and then having great products designed to fill their need. Another problem the company faces is corporate culture. Apple focuses on new innovative products, while Microsoft focuses on protecting their turf, which is no way to be innovative in todays market. TM583 Page 12
Microsoft Corporation Although Microsoft does deserve a lot of credit for the amount of money it is willing to put in their research and development, and their researchers also deserve credit for the number of patents they receive, the company needs to rethink its approach to innovation and product development, so that it can also reap the rewards and benefits of their work. In conclusion, Microsoft will go down in history as one of the most innovative companies that have changed the way people go about their daily lives. Microsoft has come a long way from the days of settling lawsuits with numerous companies to being the powerful software giant in the world today. With technology comes innovation, and Microsoft has proven that it can be technological innovative with all of the great products that we have seen from them over the years. Given the companys strategies, core competencies, dynamics, and innovative breakthroughs, it is no wonder why Microsoft has lasted this long, and will be around for many more years to come.
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Bibliogra phy M i c ro s
of t C orpora t i o n P repa red f or T M583 Microsoft Corporation. (15 May). Hoover's Company Records,14120. Retrieved
May 20, 2011, from Hoover's Company Records. (Document ID: 995430341). Computer Hardware; Microsoft Previews 'Windows 8'. (2011, June). Computers, Networks & Communications,49. Retrieved June 11, 2011, from ProQuest Computing. (Document ID: 2369060401). Thibodeau, P.. (2011, May). Case Closed: Microsoft Marks the End of
an Era. Computerworld, 45(10), 6. Retrieved June 1, 2011, from ProQuest Computing. (Document ID: 2360266821). Henschen, D.. (2010, April). Microsoft's Plan. InformationWeek,(1262), 32. Retrieved June 1, 2011, from ProQuest Computing. (Document ID: 2022248701). http://crm.dynamics.com/online/default.aspx?tabid=fits-yourbusiness&CR_CC=200008220&WT.srch=1&WT.mc_ID=SEARCH_CRM&CR_SCC=20000 82 20&fbid=MaoDx0DAMmG#fits-your-business http://www.microsoft.com/australia/services/consulting/strategy.mspx
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https://partner.microsoft.com/UK/program/competencies http://blog.softheme.com/silverlight-html5-and-microsofts-opaque-developmentstrategy/ http://blogs.computerworld.com/17661/microsoft_dominantes_apple_in_patents_so_wh y _does_it_lag_in_innovation
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Abstract: In my assignment I have highlighted the aims of the renowned organization like Microsoft whose continuous success due to their strong strategies and planning astonished the entire IT industry in the 21st century. I clearly stressed Microsofts strength, weaknesses, opportunities and threats which explains the organization continuous business strategies and planning. Based on various obvious facts I must say that any organization who want to be successful must plan ahead to achieve the companys desire goal which should include economic, social, technological and environmental factors.
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INTRODUCTION:
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Bill Gates 1955 Cofounder and chairman, Microsoft Corporation Born: October 28, 1955, in Seattle, Washington. Education: Attended Harvard University, 19731975. Family: Son of William Henry Gates II (attorney) and Mary Maxwell (teacher); married Melinda French (Microsoft manager), January 1, 1994; children: three. Career: Lakeside Programming Group, 19681969, founder; Traf-O-Data, 19701973, founder; Microsoft Corporation, 1975, founder and chairman; 19752000, CEO; 19921998, president. Awards: U.S. National Medal of Technology, 1993; Chief Executive of the Year, Chief Executive, 1994; President's Medal of Leadership Award, New York Institute of Technology, 1995; Louis Braille Gold Medal, Canadian National Institute for the Blind, 2002; Knight Commander of the Order of the British Empire, 2004. Publications: The Road Ahead (with Nathan Myhrvold and Peter Rinearson), 1995; Business @ the Speed of Thought, 1999. Address: Microsoft Corporation, 1 Microsoft Way, Building 8, North O, Redmond, Washington 980526399; http://www.microsoft.com. William Henry Gates III cofounded the Microsoft Corporation in 1975, built his software company into the one of the most successful businesses in the world, and established himself in the process as the world's richest man. Although Bill Gates started Microsoft as a small business based on a single innovative software program that he had helped to develop, his real genius was his business acumen. As the long-time CEO of Microsoft, Gates was able to borrow and integrate other computer programmers' innovations and sell them to a new and rapidly expanding home computer market. In 1985, 10 years after Microsoft was founded, it had $140 million in revenue, which grew to $28 billion by 2002. One of the pioneers of home computing, Gates proved himself to be a technological visionary and software applications guru. According to industry analysts, he also demonstrated that he was a shrewd marketing strategist as well as an aggressive corporate leader. A PRECOCIOUS PIONEER Gates grew up in a prosperous area of Seattle, Washington, with his parents and two sisters. The son of a lawyer and a schoolteacher, Gates attended a public grade school and then the Lakeside School, a private college preparatory institution. It was at Lakeside that he first became interested in the relatively new field of computer programming, met his friend and future business partner Paul Allen, and developed his first computer software program at the age of 13. In 1968 the Lakeside School was still purchasing computer time on a machine owned by General Electric, as computers were extremely expensive in the late 1960s. Gates and his friends from Lakeside became fascinated with the machines and formed the Lakeside Programmers Group to try to make money in the computer field. The Programmers Group primarily earned its founders free computing time on machines owned by a company in Seattle. Gates and Allen then formed a company that they called Traf-O-Data. They put together a small computer for measuring traffic flow and made about $20,000. The company remained in business until Gates and Allen graduated from high school. Although Gates was interested in computers, he enrolled at Harvard University with the intention of becoming a lawyer like his father. By the time he was a sophomore in 1975, however, Gates was more interested in computers and electronics than in his pre-law studies.
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What became the Microsoft Corporation grew out of two college undergraduates' bluff and bravado. Gates's old friend Allen showed him an advertisement for a kit to build a home computer. The two called the computer's manufacturer, MITS, saying that Gates had taken a primary computer language called BASIC and adapted it for the machine. When MITS expressed interest, Gates and Allen ignored their studies and spent the next four weeks frantically working on turning their boast into reality. In an interview in Money, Gates later recalled, "One little mistake would have meant the program wouldn't have run. The first time we tried it was at MITS, and it came home without a glitch" (July 1986). Having written the first computer language for a personal computer, Gates and Allen established the Microsoft Corporation in 1975. The name "Microsoft" was formed from the words "microcomputer" and "software." Gates then dropped out of Harvard in 1976 and focused on building the new business. He believed that there was a market for computer software and that the market was going to expand rapidly as affordable computers were developed for home use. RIGHT PLACERIGHT TIME Although Gates rightfully earned credit for building one of the fastest-growing and most profitable companies ever established, Microsoft started out on a shaky foundation. Gates and Allen had sold their first commercially developed software for $3,000 and royalties. Before long, however, Microsoft found itself unable to cover its overhead. Even though Gates and Allen received royalties, their software was also pirated by computer hackers. This piracy led Gates to write an "Open Letter to Hobbyists," which said that computer software should not be copied by the then relatively small computer community without the developer's permission. Gates also recognized at this point in time that the future of computer software lay in owning a standard software package to be used on most computers. By the late 1970s the computing giant IBM had plans for marketing a personal computer for home use. They approached Microsoft to develop the standard operating system for their home computer models. Gates and Allen then went out and purchased for $50,000 an operating system called Q-Dos, which had been developed by Seattle Computer. Q-Dos was compatible with the Intel processor that IBM intended to use. The two then adapted the Q-Dos system and presented it to IBM. Money magazine quoted Gates as recalling, "We bet all our resources on that system" (July 1986). Gates had learned well his early lessons in the software business. He insisted that IBM make Microsoft the exclusive software licensee for their home computers, meaning that all IBM products would have Microsoft operating systems. Furthermore, Gates negotiated a contract that allowed Microsoft to retain the right to manufacture and license the software, which he and Allen had named MS-DOS, to other manufacturers. Because there were three other operating systems for microprocessors at that time, Gates didn't own the sole industry standard. But he was well on his way. He and Allen made MS-DOS the most attractive system to computer manufacturers because Microsoft offered a flat-fee license rather than a per-unit contract. Gates and Allen also encouraged software developers to create programs that would broaden their system's capabilities. Their strategy was a huge success because manufacturers initially saved money. In addition, the software developers had an easier job designing such single applications as word processing for use on computers made by other manufacturers. These negotiations demonstrated that Gates was willing to defer immediate earnings for much greater future profits. His plan was based on building a mass of users for Microsoft products, which would mean the company would own the industry standard. Once Gates's company owned the standard, it could then revert to selling its software at per-unit prices rather than general licenses. While the contract with IBM placed Microsoft on its way to legendary business growth, it also established a precedent for what some considered Gates's unsavory business practices. When he and Allen had approached Seattle Computer, the software's original developer, they omitted to mention that they were in negotiations with IBM to develop their operating system. Seattle Computer later sued Microsoft on the
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grounds that it had hidden its relationship with IBM in order to purchase Seattle's system at what turned out to be a bargain-basement price. The two companies came to an out-of-court settlement without Gates or Microsoft admitting to any guilt or duplicity in the original purchase. MARKETING TRUMPS CHALLENGERS Paul Allen, who had been serving as Microsoft's head of research and new product development, left the company in 1982 after being diagnosed with Hodgkin's disease. The following year, Gates faced a major challenge to Microsoft's domination of operating systems for home computers when a company called VisiCorp developed a mouse-driven computer system with a user interface based on graphics rather than the keyboard-based and text-driven system of MS-DOS. Gates quickly recognized that VisiCorp's system would be the wave of the future because it was much easier for technologically unsophisticated people to use. Even though Microsoft did not have such a system in the works at that point, Gates started an advertising campaign with an announcement at the Plaza Hotel in New York City that a new Microsoft operating system with graphical user interface (GUI) would soon be marketed. This next-generation system was to be called "Windows." Gates's announcement was a bluff; the truth was that Microsoft was nowhere near developing such a system. But the marketing ploy worked because people preferred to wait for a system designed to be compatible with their existing Microsoft products rather than undergo the trouble and expense of installing an entirely new operating system. Furthermore, Windows allowed users to avoid buying new software applications to replace the DOS-compatible programs they currently owned. Windows 1.0 was finally released in 1985. That same year Microsoft reported $140 million in revenue, including $46.6 million from overseas users. Microsoft's growth continued to be relatively smooth in spite of several challenges, in part because the fiscally conservative Gates had financed most of the company's expansion entirely from its earnings. This cautious approach to financing, however, did not reflect an unwillingness to take risks. In January 1986 Gates launched an ambitious long-term project to develop a new data storage system based on a compact disk, or CD-ROM, that could hold any type of computer file, including music and visual files. In March of that same year, he took the company public. His 40 percent ownership of Microsoft shares made his net worth $390 million by June 1986. Gates had effectively cornered the market for operating software for the vast majority of personal computers (PCs) as well as developing a wide range of other popular programs. He effectively became a billionaire in March 1987, when his company's stock rose to $90.75 per share, up from $21.50 per share when the company went public. Brian O'Reilly commented a few months later in Fortune, "[Gates] apparently has made more money than anyone else his age, ever, in any business" (October 12, 1987). GATES SWITCHES GEARS Industry analysts had praised Gates for guiding his company on a path of growth that saw its revenue stream increasing by more than 50 percent per year in a extremely competitive, even cutthroat, market. They credited much of this success to Gates's ability to capitalize early and effectively on industry trends and his willingness to take risks on such fledgling technologies as Microsoft's CD-ROM-based software packages, which became industry standards. Furthermore, Gates had organized the company's structure so that it worked concurrently on all phases of a software product's business cycle from development to distribution. Larry Michels, an early software developer, told Mary Jo Foley of Electronic Business, "Other software vendors have modeled themselves after the hardware business. Microsoft created its own model of how to do business" (August 15, 1988). Although Gates had established himself as a visionary, he did not always hit the mark. For years he had paid little attention to the business potential of the Internet, which led him to say later that he regretted not
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having focused more closely on Microsoft's capabilities for e-mail and networking. In 1995, however, he did an about-face and began to redirect the company's efforts in this area. His success was measured by the fact that Microsoft's Internet Explorer Web browser had become the industry leader by 2000. Gates's success in developing a competitive Internet browser, as well as coming out on top of the desktopdatabase and office-suite wars of the 1990s, proved that he had formed a company nimble enough to jump into a market that others were developing and take the lead away from the competition. In 1998 Gates announced a new phase in Microsoft's expansion that would allow him to concentrate his energies on strategy and product development. At the same time the company funneled larger amounts of money into improving customer support and feedback. Gates planned to direct the company's work in such areas as intelligent telephones and television, as well as the integration of such new computer input techniques as speech, vision, and handwriting. Although Windows had already gone through several upgrades, Gates wanted to continue improving its ease of use and reliability. To free himself up for this work, he stepped down as president, a position he had held since 1992, but remained Microsoft's chairman and CEO. SHOWDOWN WITH THE GOVERNMENT Microsoft earned $19.75 billion in revenue during the fiscal year 1999. Bill Gates had become an icon not only in the computer and business worlds but also in the eyes of the general public. His ghostwritten book The Road Ahead, which outlined his vision of the future, topped many best-seller lists for more than three months. In spite of Gates's financial and literary success, however, he found himself facing his biggest challenge yet as the 1990s came to an end. The challenge came this time from the United States government rather than from Microsoft's competitors. Gates and Microsoft had come under increasing scrutiny for unfair business practices from the time of the court case that followed Microsoft's purchase of the Q-Dos operating system from Seattle Computer in 1980. In 1993 the U.S. Justice Department began an investigation into Microsoft's contracts with other computer manufacturers that led to an agreement from Gates in 1994 to eliminate some of Microsoft's restrictions on the use of its products by other software makers. In 1997, however, the Justice Department sued Microsoft for forcing computer makers to sell its Internet browser as a condition of using the Windows systema de facto violation of the 1994 consent decree. In December 1997 a U.S. district judge issued a preliminary injunction forcing Microsoft to temporarily stop requiring manufactures who sold Windows 95 "or any successor [program]" to install its Internet Explorer. Microsoft appealed the injunction, but the following year the Justice Department and 20 state attorneys general sued Microsoft, charging that it illegally thwarted competition to protect and extend its software monopoly. Although Microsoft won its initial appeal in 1998 to reverse the 1997 decision, Gates soon found himself being questioned for 30 hours over a three-day period in a videotaped deposition for the upcoming antitrust trial. The government finally rested its case on January 13, 1999, and the Microsoft defense team ended its case on February 26. The final oral arguments from each side were presented on September 21, 1999. After the judge presented his findings of fact on the case on November 5, Gates issued a response disagreeing with many of the findings that went against Microsoft. In a statement released to the press as reported by Court TV Online, Gates noted, "Microsoft competes vigorously and fairly. Microsoft is committed to resolving this case in a fair and a factual manner, while ensuring that the principles of consumer benefits and innovation are protected" (November 6, 1999). U.S. District Judge Thomas Penfield Jackson ruled in June 2000 that Microsoft was a monopoly which had illegally exploited the dominance of Windows, at that point installed on over 95 percent of the world's personal computers. Judge Jackson then ordered Microsoft to be broken up into several smaller companies. It was the most severe antitrust ruling since the breakup of AT&T in 1984. Jackson's decision
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was reversed on appeal, however, and the company received a far less severe punishment directed toward restricting some of its business practices. In spite of this relatively favorable outcome, however, Gates continued to battle competitors in American courtrooms over Microsoft's business practices. In addition, he found himself subjected to litigation in Europe, where Microsoft was once again accused of exploiting its monopoly of Windows to control other computer-related industries, including media-player and server software companies. Despite the controversy over whether Gates had created a company that used its dominance of the desktop computer system to obtain unfair control of newer computer-related markets, Microsoft continued to prosper. Gates stepped down as CEO in 2000 but kept his position as chairman of Microsoft as well as its chief software architect. In 2004 he doubled the company's research and development budget to $6.8 billion and began pushing a new Windows personal computer operating system code-named Longhorn. MANAGEMENT STYLE: WORKAHOLIC Although Gates was long known as a "boy wonder" in the computer and business worlds, his management style was anything but immature. As was noted in a BBC News article, "Gates has come to be known for his aggressive business tactics and confrontational style of management" (January 26, 2004). Although he was considered a charismatic leader within his own company, he was also extremely toughhe fired Microsoft's first company president after only 11 months on the job. An intense businessman who typically put in 16-hour days and took only two three-day vacations in the first five years after establishing the corporation, Gates was demanding and strong-willed about implementing his vision. Coworkers, clients, and industry analysts also remarked, however, that he did not surround himself with yes-sayers but was more than willing to change his mind if someone convinced him of a better alternative. Analysts also observed that one of the keys to Gates's success was his ability to focus on the fundamentals of the business while keeping office politics or his own ego from getting in the way. "Most of what I do is leading," Gates once said in Electronic Business. "Managing applies to the people who work directly for me" (August 15, 1988). Gates was known from the beginning of his career as the epitome of a hard-driving businessman respected by his allies and feared by his competitors. It was his vision that guided Microsoft's immense success. In addition, Gates had an uncanny ability to tackle both the managerial and technical sides of Microsoft's operations. He was especially noted for his success as a marketing strategist who priced his products for the mass market rather than computer specialists. In 1999 the Journal of Business Strategy listed Gates among a handful of people who had the greatest influence on business strategy over the last century. Gates also had his fair share of critics. In addition to accusations of predatory and possibly illegal business practices, some analysts remarked that Gates did not really foster in-house product innovation but tended to focus his attention instead on blocking advances by other companies. On the other hand, supporters of Gates's managerial style and business acumen pointed out that Microsoft continued to prosper even in the midst of the 2002 information technology slump, growing at 20 percent each quarter and posting a phenomenal 35 percent after-tax profit margin. Despite all his financial success, however, Gates remained a fiscal conservative. He was renowned for his penny-pinching traveling habits, demanding that his schedule be filled for the entire day when he was on the road promoting his company. NO TIME TO REST Gates was still the world's wealthiest person in early 2004, with a personal fortune estimated at $60.56 billion. He remained a hands-on leader at Microsoft, however, maintaining an active work schedule as the company's chairman and chief software architect. As noted by Ron Anderson in Network Computer,
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" no doubt his presence [at the company] will make itself known well into the decades ahead" (October 2, 2000). In addition to extending Microsoft's success, Gates also turned his attention to philanthropy, including the establishment of the Bill and Melinda Gates Foundation. Gates and his wife endowed the foundation with $24 billion to support philanthropic initiatives in the areas of global health and learning. For example, Gates made plans in February 2004 to donate $82.9 million for research to develop a new vaccine against tuberculosis. In addition to his duties at Microsoft and his efforts in philanthropy, Gates sat on the board of ICOS, a company that specialized in protein-based and small-molecule therapeutics. See also entry on Microsoft Corporation in International Directory of Company Histories. sources for further information Anderson, Ron, "Top 10 Most Influential People: No. 2 Bill Gates," Network Computing, October 2, 2000, p. 51. "Bill Gates' Response to Microsoft Decision," Court TV Online, November 6, 1999,http://www.courttv.com/archive/business/1999/1106/gates_ap.html. Foley, Mary Jo, "Boy Wonder: Microsoft's Bill Gates," Electronic Business, August 15, 1988, p. 54. "Interview: Bill Gates Opens Up," PC Magazine, February 24, 2004, N/A. O'Reilly, Brian, "A Quartet of Hi-Tech Pioneers," Fortune, October 12, 1987, p. 148. "Profile: Bill Gates," BBC News, January 26, 2004, http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/3428721.stm. Schlender, Brent, "On the Road with Chairman Bill," Fortune, May 26, 1977, p. 72. "Sir Bill and His DragonsPast, Present, and FutureMicrosoft," Economist (US), January 31, 2004, p. 68. "Strategists of the Century," Journal of Business Strategy 20, no. 5 (September 1999), p. 27. Tuhy, Carrie, Richard Eisenberg, and Greg Crouch, "Software's Old Man is 30," Money, July 1986, p. 54. David Petechuk
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According to William E. Ward: Four steps to achievements Plan purposefully, prepare prayer fully, proceed positively and peruse persistently Strategic business management and planning in business world and in business organization whether it is a public sector organization or private sector organization refers to the set or the change of the goals and aims of the organization. Strategic management and planning is a key to success to reach the corporate ladder that is to give the organization a strong plat form from the very beginning of the business. The management is responsible for the strategy and planning as how to achieve a one desire goal of an organization. The management should give the judgment after considering all the aspects of that planning. Good management and planning strategy. According to L.H.Hunt Decide what you want, decide what you are willing to 34
exchange for it. Establish your priorities and go to work MICROSOFT This assignment is about the Microsoft. Microsoft is the worlds leading producer of computer software. Microsoft was founded in Albuquerque, New Mexico in1975 by Bill Gates and Paul Allen and is now one of the largest and most successful companies in the world (Microsoft, 2005). They are the largest and most successful companies in the world. Microsoft headquarters are located in Redmond, Washington, a suburb of Seattle. It is the developer and distributor of softwares such as Windows, Microsoft Office, and DirectX and other programmers and games which will be listed later on in this assignment. In almost all the countries in the world people are using Microsoft operating system. Microsoft is one of the most dramatic examples of network externality in economics. The Microsoft Corporation is doing a monopoly business and their product has an effective domination in the operating system market. Almost every computer that is sold has a copy of Microsoft Windows pre-installed (Microsoft industry products and solutions, 2006). This assignment describes its mission statement (Microsoft), evaluating its strengths and weaknesses using the SWOT analysis, establishing the strategic information systems needed to give the company a competitive edge, discussing the information systems (ISs) that could aid in the decision making processes at the different managerial levels.
Aim of the Microsoft At Microsoft, we work to help people and businesses throughout the world realize their full potential. This is our mission. Everything we do reflect this mission and the values that make it possible. A mission statement captures an organisation's purpose, customer orientation and business philosophy. Effective missions are inspiring, long-term in nature, and easily understood and communicated (Learn Direct Business, 2003) The mission statement of Microsoft comprises of a general objective which is, to assist individuals and businesses become cognizant of their presently unrealized capacity. Secondly, not only does the mission statement capture this but in the journey to allowing individuals and businesses realize their full potential they intend to do this in a morally ethical way. Thirdly the mission statement captures the target group for Microsoft which is the world. The question is then asked, Has Microsoft achieved its goals and objectives outlined in its mission statement for the last 31 years and if yes, how? In allowing people realize their full potential Microsoft has made available the following Office Software including Word (a word processor), Excel (a spread sheet), PowerPoint (presentation software) and Access (a database storage) to list a few Microsoft Windows pre-installed on most computers, the current versions being XP and Windows server Microsofts company web browser the Internet Explorer Hotmail (online mail service) MSN Messenger (online chat service) 35
Windows media player (for listening to music) XBOX, for those individuals who are into gaming and this is also used for playing movies Microsoft's succession of Windows operating systems, Vista is the most recent. Microsoft has indeed been achieving one if its goals which is being a global organization as their product has had an effective domination in the operating system market. Almost every computer that is sold has a copy of Microsoft Windows pre-installed. Microsofts web browser is most widely used in the world and it has become a default browser with all the version of Windows since Windows 95. Microsoft has definitely aided in the realizing of our full potential as individuals as the preparation of this assignment is using Microsoft word. Organizations are able to have soft copy storage of data and so easy retrieval of information. In the financial services Microsoft 'experience Financial Services' program assists businesses in increasing their revenue by improving customer satisfaction and employee productivity while reducing operational costs (Microsoft industry products and solutions, 2006.) The work environment can be relaxing by listening to some music on the very computer you are using instead of spending more money to buy a radio. In the home the same device you use to play your games can be used to watch a movie. In so doing Microsoft has enabled us to maximize on our monetary funds. The company has made its presence in markets by online advertising, mobile devices, and enterprise software. In 2008 Microsoft made repeated efforts to acquire Yahoo! But ultimately two companies would instead sign a deal in 2009 to combine their search operations. Strengths and Weaknesses of Microsoft (SWOT analysis) There are two types of environmental factors that affect every organisation, these are remote and industrial. An organisations strengths and weaknesses are those factors within or closely related to the organisation such as Porters five forces (these include barriers to entry, supplier power, buyer power, substitutes available and competitive rivalry). However the opportunities and threats faced by the organisation are those remote environmental factors and these include economic, social, political, technological and ecological (PESTE) .In evaluating the possible opportunities and threats that Microsoft is faced with this report will group them according to the acronym PESTE. Political Many organizations are faced with possibly threats from political factors such as laws that can be enforced by the government and terrorism to list a few. Microsoft has experienced many political factors that have tried to impact on the organization in a negative way but the company has been successful in overcoming these factors and has been able to sustain its sales. In the past two years, Microsoft has made significant progress in resolving many of the legal issues facing the company including the recent U.S. Court of Appeals decision reaffirming its settlement with the Department of Justice, most of the state class-action lawsuits, and the AOL and Sun Microsystems cases along with patent claims such as the InterTrust litigation. Resolving these issues marks an important step forward in clarifying Microsoft's legal and related business risk (Gilbert and Katz, 2001). "We have resolved the large majority of our legal issues, which the company has always said was a prerequisite to addressing our cash management plans," said Brad Smith, Microsoft's general counsel. "While we still have a number of legal issues and we 36
take them seriously, we have reduced the legal uncertainties facing the company, and we have a much clearer understanding of the potential risks involved in the cases that remain, such as the ongoing European Commission case" (Redmond, 2004). Economic These factors usually pose as potential threats in an organization, such as internal and external inflation. Currency exchange rate has been affecting the demand for computers in certain parts of the world and fluctuating currencies can negatively impact revenues in the global marketplace (Microsoft, 2005). Increasing globalization of the Microsoft industry has definitely been a significant advantage for the company as this creates a domino effect which increases profitability for the company. Social The social lifestyle is not one that would affect Microsoft as in every country and in every industry, they desire new technology to help them boost their organization ahead of others in this rather competitive world that we live in. In other words Microsoft will not encounter much of a social barrier globally; it is a product that is welcomed by everyone. This is definitely a probable strength in favour of Microsoft as it means the sky is the limit socially. Technological Microsoft has made significant advancement in their technology which has definitely worked in their favor and so has strengthened the company. They continue to be innovative with their products and utilization of these innovations where increasing their market share is concerned. They are a pure dot-com enterprise which facilitates lower cost both for themselves and the customer, data communication and are user friendly. Being the big giant in the software market they have made and still continue to make hardware to support specific software business strategies and to list a few: Microsoft mouse which encouraged the use of windows operating system Graphical User Interface (GUI). This made GUI more user-friendly and so increased its sales Web TV (an internet television appliance) The tracing of stolen goods such as laptops and pirated software (this is done when these people log on to the internet. (This has given Microsoft huge benefits) PDA also known as the wireless system (The maximization of peoples time so they can mail while on their way) Microsoft has a big involvement in the productions of modified software for NASA and the Pentagon Recently introduced is the Trusted Computing which Microsoft has presented as their solution to computer insecurity Ecological/Environmental Being a software industry Microsoft has not been affected by these factors which comprise of elements such as salinity levels etc. To add to this Microsoft has had many opportunities in its favor as cheaper global telecommunication costs open new markets as people connect to the market; mobile phone applications and exploitation of personal digital assistants; popularity among people for internet access and the demand for personal computers in the global market. Possible threats in the market exist from Apple and Linux, UNIX dominates high-end mission-critical applications, software piracy and hardware manufacturers (Sun Microsystems, Oracle, IBM, AOL and Apple) are issuing their own pre-bundled programmes on their own hardware. . 37
DISCUSSION
ABOUT THE COMPETITIVENESS AND ATTRIBUTES OF EMERGENT ORGANIZATIONAL CHANGE IN THE LIGHT OF P ORTER S FIVE FORCES MODEL :
In a business world competition factor can never be overlooked and it is just like a built in threat or I say a mandatory threat which must take into consideration by the management of any organization while planning its strategy. Therefore the profit or the rates of return must be constant for any organization to be successful. Economic research states that many organization can face the above mentioned threat of competition factor and can be sustained to a certain level of profitability, thus following are the five forces that any organization can be effected by -: Barriers to Entry Microsoft has made it difficult for new entities into the software industry by increasing the barrier to industry. Klein, 2001 says that the dominance of windows in the market for operating systems is due in large part to its success as a software platform; that is, to the fact that a great many software developers write application programmes solely for the windows operating system. Because porting or rewriting application programmes to run on other less popular operating systems can be expensive, an applications barrier to entry may exist in the market for operating system but not succeed in competition with windows because of the lack of sufficient applications. Bessin and Baskin, 1999 state that the standard economic rationale for patents is to protect innovators from imitation and thereby give them the incentive to incur the cost of innovation. Conventional wisdom holds that, unless would-be competitors are constrained from imitating an innovation, the inventor may not reap enough profit to cover that cost. Thus, even if the social benefit of invention exceeds the cost, the potential innovator without patent protection may decide against innovating altogether (Gilbert and Katz, 2001). Supplier Power Being the great Monopoly Microsoft has been, its bargaining power is quite high which would cause a decrease in supplier power. Buyer Power Being a monopoly for many years Microsoft has been able to reduce buyer power however with the increase in competition this is gradually going up (Gilbert and Katz, 2001). It will however take a while for this to be of significant interest to the company as its products and devices are user friendly and it has in someway made its products very inelastic. Substitutes Available and Competitive Rivalry It is in the interest of any thriving company to seek to have both competitive rivalries and substitutes of their products being low. There are not many substitutes available and so this has definitely worked in the favor of Microsoft. However they have to be very careful that they increase on their innovativeness and marketing strategies as the present competitors (AOL, Netscape, Oracle etc.) have been introducing great products and have every intention of being the next giant. Microsoft presently owns most of the market and if it keeps on increasing its technology it should be able to overcome the present and possible future substitutes (Netscape Communications Corporations Company Backgrounder, 1999).
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In addition to its weaknesses Microsoft has unsatisfied employees. Employees' complaints are rooted in a number of factors. They resent cuts in compensation and benefits as profits soar. They're disappointed with the stock price, which has barely budged for three years, rendering many of their stock options out of the money. They're frustrated with what they see as swelling bureaucracy, including the many procedures and meetings Chief Executive Steven A. Ballmer has put in place to motivate them. And they're feeling trapped in an organization whose past successes seem to stifle current creativity. "There's a distinct lack of passion," says one engineer, who would talk only on condition of anonymity. "We're missing some spunk" (Troubling exist at Microsoft, 2005). Still, Microsoft faces serious long-term challenges: the rising popularity of the Linux open-source operating system, a plague of viruses attacking its software, and potent rivals such as Google in the consumer realm and IBM in corporate computing (Bessin and Baskin, 1999; Yoffie and Cosumano, 1999). Operating systems ranging from Windows 98 to Windows Server 2003 64-bit edition, as well as the Outlook Express e-mail program, are affected by the problems with the imperfect and insecure codes (Clark, 2004). Strategic Information Systems to keep Microsoft ahead in the game Decisions are classified into structured (repetitive) and unstructured (not routine). This information will allow the organisation to develop the best strategy to achieving or fulfilling its mission. Most scholars in strategic management are familiar with the distinction between "content" research which deals with the content of strategies and "process" research which examines the strategic decision process and the factors that affect it. Content research has been quite useful in providing rules and guidelines on the types of strategies which lead to the best performance for different types of organisations in different competitive conditions (Schwenk, 1995). Before a company can achieve improvements in its organisation, the company has to first recognise its weaknesses (intelligence phase), conceive alternative solutions (design phase), select the best suited among the alternatives (choice phase) and then execute the best choices (implementation phase). The question is then asked, what information is required to increase the competitiveness of Microsoft? Key Success Factors, factors which must go right if the company is to achieve it mission are indications of the position Microsoft stands in relation to its competitors and where it needs to go. In implementing systems that will aim at improving its security Microsoft will then increase its market share as people will be forced to buy. Secondly Microsoft will need to do intensive research on its competitors, researching the products that they have (and Microsoft lacks) and improving on these systems. Making sure that its softwares (Microsoft) are always ahead of its competitors; improving on its present systems such as Internet Explorer, the Microsoft Secure Sockets Layer (SSL) Library and Remote Procedure Call (RPC). Also extending its cliental and the types of softwares available will definitely give Microsoft a competitive edge to its competitors such as the automotive industry. Competitiveness and efficiency are more important now than at any time in the history of the automotive industry. Microsoft Dynamics business software can help with powerful manufacturing, financial, and CRM solutions that support lean business processes (Microsoft Dynamics solutions for automotive suppliers: Increasing global competitiveness, 2006). Also Microsoft will need to improve on its human resources as this is a critical factor to the successiveness in any organisation. On a tactical level, an enterprise competes for present market share. It does this by offering a continuing succession of product features and by adjusting price. As the niche fills with competitors, the competition becomes a squabble and profitability is eroded. On a strategic 39
level, an enterprise competes for the future by envisioning a new niche, inventing and fielding the product capability to service the niche first, and reaps the benefits of this innovation and risk taking. However, Given human nature, evolving threat models and the increasing interconnectedness of computers, the number of security exploits will never reach zero," Gates wrote in the recent letter (Clark, 2004), (see fig.2).
Characteristics Information Source Scope Level of aggregation Time horizon Currency Required accuracy Frequency of use
of Operational
Planning Tactical Planning and Strategic Planning and Control Control External Very wide Aggregate Future Quite old low infrequent
and Control Largely Internal Well defined Detailed Historical Highly current High Very Frequent
Fig 2: The required characteristics of information in different planning and control activities Gory and Scott Morton, 1971 Planning: For any organization to be successful in the business word and to reach the corporate ladder business planning is one of the major factor and this allows organization to handle any un avoidable circumstances which may comes in the way to success of any organization. Planning ahead of time gives the opportunity to identify any threat and to utilize business key strength at the right time. A proper business plan gives the precise picture of the companys goals and objectives, it does also foresee financial structure of an organization including financial forecast. Business plan must explain as how the business is going to be developed and how the finances will be managed. As I have discussed about the planning and strategy of Microsoft In implementing systems which aims the security of Microsoft result in increase of its market share, however by applying right planning formula Microsoft has to go in extensive research on its competitors and have to 40
watch competitors movement, only planning ahead can make the difference in the interest of Microsoft. Types of Information Systems needed to aid in the decision making process at managerial levels An information system is a system, whether automated or manual, that comprises people, machines, and or methods organized to collect, process, transmit, and disseminate data that represent user information. There are 6 main types of information systems, these are: 1 1 1 1 1 1 Executive Support Systems (ESS) Decision Support Systems (DES) Management Information Systems (MIS) Knowledge Work Systems (KWS) Office Automation Systems (OAS) Transaction Processing Systems (TPS)
The three main managerial levels are; strategic, tactical and operational (Fig.3)
Figure 3: Strategic, Tactical and Operational BI
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Quinn, 2006
It is at these levels that the different information systems are used. ESS is utilized at the strategic level by senior managers. Business intelligence (BI) is an IS which provides performance metrics to management and executives, often in conjunction with a formal management methodology such as Balanced Scorecard or Six Sigma. Strategic business intelligence, one of the latest crazes, is generally called performance management (PM). Depending upon which analyst firm you subscribe to, PM might be preceded by a C for corporate performance management, an E for enterprise performance management or a B for business performance management (not to be confused with BPM, the acronym for business process management). ESSs are very expensive to develop and are used to monitor key performance indicators of the organization (e.g. Dividends and market share) and comparing them with competitors. It is at this stage that the decisions made are of an unstructured format and so will take more time and careful planning. This will indeed be beneficial to Microsoft in aiding in the decision making process (Quinn, 2006). As suggested by DeLone & McLean (1992), the executive managers are ideally positioned to act as key informants in a qualitative assessment of IT impacts in their corporations. MISs and DSSs are utilized at the management or middle level used by professionals and staff. In making decisions managers are faced with what is known as limits on rationality; this is where the human perceptual system is slow, personal biases exist and personal characteristics such as dogmatism pose to be problems. DSSs assist managers in this area as they look at all the possible options, analyze them in terms of cost/risk etc. and then assist in the choice phase. Tactical business intelligence, called traditional and or analytical in various industry articles, is the application of business intelligence tools to analyze business trends, frequently comparing a specific metric (such as sales or expenses) to the same metric from a previous month or year. The analysts within Microsoft in each department would use online analytical processing (OLAP) and hoc query to perform this task.
KWS is used by the technical staff especially research and development and this exist between the lower most level and the middle level. As Microsoft is an innovative leading company in technologies, it is essential to establish a good knowledge work system in which the tactical 42
managers and the operational managers within Microsoft branches in different countries can follow the same standardized knowledge, instructions and decisions made by the executive level. Standardizing quality control systems and procedures and smooth functioning in manufacturing processes have occurred when companies have established good knowledge work systems. With these systems in place and efficiently utilized Microsoft will definitely stay ahead in the game. TPSs are basic computerized systems which are used at operational level. This system can be used to record and process day-to-day transactions of an organization. However they are most successful for both B2B (business to business) and B2C (business to customer) companies and in the establishment of innovative and creative transaction processing systems in which both frontline staff and outside customers can used these transaction processing systems via online. This will enable these systems to be operated for dual purposes. Although the main purpose of transaction processing system is to gather day-to-day transaction information towards the company, these systems are being adapted as a customer relationship tool innovatively by companies, e.g. online order processing system, online payment and online after sales service system). Nowadays more or less customer relationship management programmes (CRM) are integrated with companies transaction processing systems and are playing a vital role for the companies long term success. Microsoft could adapt the transaction processing system at operational level to gather day-to-day transaction information as well as maintain existing customer relationship by creating online service programmes (e.g. DELL computers) (Marketing research and business information system, 1996). Office automation system consists in a fully computerized and automatic system which can be used at any managerial level in a company. When the office automation systems have been created by the large companies these systems are operating by themselves without much human control. Creating an error-free culture within the company, cost effectiveness & less human interference and speed and accuracy are the main benefits of a good office automation system. Nowadays the large companies are operating with their own specific office automation systems in which these companies can manage their large customer data base as well as other relevant stake holders and cater to all of them by using intranet and extranet. Microsoft could have a 43
specific and unique office automation system throughout the branches which could help to manage the large number of customer data base and relevant stake holders as well as inside and outside of the organization (Marketing research and business information system, 1996).
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Improvement of Customer Relations In thinking of how Microsoft can improve its customer relation with IS/IT systems Microsoft has to first analyze its present strategic situation by asking itself some questions; these are 1 1 1 1 1 1 1 1-What are the industrys dominant economic features? 2-What is the competition like and how strong are the competitive forces? 3-What is causing the industrys competitive structure and business environment to change? 4-What companies are in the strongest/weakest positions? 5-What strategic moves are rivals likely to make next? 6-What are the key factors for competitive success? 7-Is the industry attractive and what are the prospects for above average profitability?
The answers to these questions and the IS/IT systems used will improve Microsofts customer relation. The key factor that must affect the industry within the market place is identifying the basis of customers choosing Microsoft over competing brands. (What can Microsoft offer me that AOL is not offering me?). Microsoft also needs to ensure that it has the necessary resources and competitive capabilities to compete successfully and they need to ensure that they achieve and sustain this competitive advantage. Key Success Factors (KSFs) are also known as Key Result Areas (CSFs); each key success area needs a measure of performance or performance indicator. In the software industry a key performance indicator could be the ability of Microsoft to increase its technology with new and innovative softwares and browser provider. The customer relations seem to be improved when the use of technology and efficient flows of information are available for both parties. The IT/IS facilitates better customer contact and thus bigger customer loyalty when they can contact the business representatives with no need to queue, thanks to the Web (online procedures such as e-mails, e-commerce and e-business) or the telephone itself. This kind of system at the end of the day leaves the customer and the employees smiling. According to Porter, 1999, efficiency is achieved by using IT to reduce operating costs or to improve productivity, while effectiveness comes from using IT to foster greater flexibility and responsiveness to changing market needs.
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CHALLENGES TO THE ORGANIZATION: Change is very living part of every organization. In the business worlds, all people like change. Change can be implemented in many factors. Organizational structure, Policies and rules, processes, systems, work force, culture, factual activities. Changes are not new. In past decade, changes are taking place In todays economy, major three factors are influenced. They are knowledge, change, and globalization. The competitive pressure forced the changes in the counties in various parts of the world and the creation of Free trade agreements. It creates changes in economics, changes in technology and political changes. Tragic options are value added activities, Raw Materials, Components, End Products Firm, Specific Knowledge, priority Technologies, Management Skills, Marketing Skills, Brand Equity Production, know-how agreements. Changing is very important context. All business organization faces new challenges from globalization, new technologies and business models. Plan for the development of change in an organization I would like to highlight the process of organizational change as follows-:
Planning for the change to meet the Challenges:

Analysis of the environmental and social economic system Analysis of the stake holders Decision making of facilitating community Developing of an ECHO System management strategies. Negotiation among agencies and other organization Strategy of the management system in an organization.
DOING: Making changes in the managements Building of the capacity 46
Experts in projects and advancement of technologies Running the management system successfully Development of the community REVIEWING: Evaluation of the success and performance of the organization Analyze the social and economic outcome of an organizational change
Conclusions In this ever changing world a corporation needs a lot of things to survive and compete. Microsoft has been a giant success story in the software industry for approximately 30 years. Being an industry that produces softwares, Microsoft can better improve itself by using what it produces in aiding decision making at specific levels of management. Microsoft will guarantee itself success in this rather competitive market by coming up with creative devices and softwares that are globally craved for. Furthermore, we can say that strategic business management and planning is a process of making wise judgment and selection of different options while considering the information available from different sources. Thus management and planning we decide the aim and objective of business organization then we look to achieve one common goal that is professional management and planning.
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8.0 References Bessen, J and Maskin, E (2002) Sequential Innovation, Patents and Imitation. Research on Innovation and Visiting Scholar, MIT Sloan School of Management [online] Available from <URL:http://www.researchoninnovation.org/patrev.pdf> Clark, M (2004).Software giant Microsoft has admitted to no less than 20 new flaws in its software, the most ever announced at once. Entropy [online] <URL:http://www.electricnews.net/news.html?code=9407701> DeLone, H and McLean, R (1992) Information Systems Success: The Quest for the Dependent Variable. Information Systems Research Gilbert, RJ and Katz, ML (2001). An Economists Guide U.S. v. Microsoft Journal of Economist Perspective 15: 25-44 Gory, GA and Scott Morton, MS (1971) A framework for management information systems Sloan Management Review 13 (1) Learn Direct Business, (2003) [online] (Available from <URL:http://www.learndirectbusiness.co.uk/campaigns/finances05/glossary/ Marketing research and business information system, (1996) The Chartered Institute of Marketing Microsoft Dynamics solutions (2006) for automotive [online] suppliers: Increasing global from Available from
competitiveness,
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Davenport, TH (1998). Putting the Enterprise into the Enterprise System. Harvard Business Review, pp. 121-131. How BTs e-ticketing service, Rialto, helped Alton Towers improve customer service while increasing cost efficiencies (2005) [online] Available from <URL: http://www2.bt.com/static/i/media/pdf/alton%20towers.pdf Information Systems as Aids in Managerial Decision Making [online] Available from <URL: http://zeus.bke.hu/oktatas/cems/perspectives/DecisionMaking.pdf> Klein, B (2001). The Microsoft Case: What can a dominant firm do to defend its market position? Journal of Economist Perspective 15: 45-62 Moaz, M and Fellow, G (2006). The Best Customer Strategy: Fire the Manager, Not the Employee [online] Available from <URL: http://crm.blog.gartner.com/blog/index.php?blogid=7>
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Microsoft CorporationTerm Project By: Thomas Liquori Professor Marion Strategic Management (TM583) May 5, 2011TM583 Page 1 2. Microsoft CorporationTable of ContentsMicrosofts History ........................................................... 3Technology Strategy ......................................................... 5Core Competencies ........................................................... 6Industry Dynamics ............................................................ 8Technology Sourcing and Internal Innovation .................. 9Product Development Strategy ....................................... 10Strategy to Protect Innovations ....................................... 12Bibliography ...................................................................14TM583 Page 2 3. Microsoft Corporation Microsofts ambitions have been anything but small since its inception in the early1980s. Microsofts is the worlds number one software company and has controlled anoverwhelming share of the personal computer operating system market. Microsofts products donot stop at just an operating system; the company supplies the world with a number of otherproducts including their Office Software Suite, their video game console Xbox, CRMApplications, server and storage software, and Zune, their digital music player. The company hashad acquisitions to bulk its presence in markets such as online advertising, mobile devices, andenterprise software. Throughout this paper, I will be discussing a little history Microsoft, theirTechnological Strategy, the companys core competencies, industry dynamics, sourcing andinnovation, and their strategy to protect their innovations.Microsofts History Bill Gates founded Microsoft (originally named Micro-Soft) in1975 after dropping out of Harvard at the age of 19 and teaming up withHigh School friend Paul Allen to sell a version of the programminglanguage BASIC. Gates moved Microsoft to Seattle in 1979 and begandeveloping software that let other write programs, thus the modernpersonal computer was born in 1980 when IBM choose Microsoft to write the operating systemfor its new machines. The company went public in 1986, and Gates became the industrys firstbillionaire a year later. In 1995 antitrust concerns cost Gates a $1.5 Billion dollar acquisition of his personal finance. Later that year, Gates introduced the Microsoft Network that licensed the Java Web Programming Language from Sun and introduced its Internet Explorer Web browser, as well as launchingTM583 Page 3 51
4. Microsoft CorporationExpedia.com, its online travel site. After settling a lengthy lawsuit from Sun in 2001 for $20Million dollars for allegations that Microsoft was creating an incompatible version of Java in1997, the company in 1999 agreed to invest $5 Billion for a minority stake in AT&T as part of amove to acquire cable operator Media One. In addition, the company also bought Windowstechnical drawing software Visio for $1.3 Billion, and sold a stake in Expedia to the public. In 2000 Gates named Ballmer the new CEO of the company and Gates remained chairman and added the title of chief software architect to himself. Later that year, a judge ruled that Microsoft used its monopoly powers to violate antitrust laws. Microsoft agree to uniformly license its Windows operating system, cease to offer exclusive contracts with manufactures, and allow competing software to be included with itsoperating systems. Throughout the next couple of years Microsoft stillfaced some bumpy roads, with a lawsuit from Netscape in 2002 andannouncing in 2005 a reorganization designed to streamline its decisionmaking and speed up execution across its divisions. Microsoft put manyof its legal woes behind them after 2008 and partnered with mobile devicemakers such as Hewlett Packard and Motorola to develop handheld computers and mobiledevices that utilize Microsofts Windows Mobile and Windows Media software. In 2009,Microsoft overhauled and rebranded its own search business Bing after failure of acquiringYahoo! in 2008.TM583 Page 4 5. Microsoft CorporationTechnology Strategy Microsofts technology strategy service enablesbusiness innovation and helps builds the companys 1competitive advantage. Microsofts technology strategyhelps organizations improve IT service excellence, lowercosts, and build competitive advantage through the innovative application of the Microsoftplatform. Microsoft delivers its technology strategy services through Enterprise StrategyConsultants and senior level experts. Using the IT roadmap, IT advisors help organizationssuccessfully plan, deploy, operate, and optimize Microsoft technology solutions. A Microsoft Technology Strategy Service engagement offers significant ongoing benefitsto large organizations that run Microsoft Technologies. The company helps plan for ITgovernance and compliance by establishing well defined procedures and clear standards foracquiring, integrating, and maintaining IT systems over time. Microsofts work can lead to:MTSS BENEFITS: IT service excellence with help to improve operational efficiency to lower total costs of ownership Help reduce redundancy and streamline IT processes and service deliveries across regions and international boundaries Help ensure the success and reduce the risk of future IT upgrades and systems Operate from a consistent and executable IT service architecture and delivery plan1 http://www.microsoft.com/australia/services/consulting/strategy.mspxTM583 Page 5 6. Microsoft CorporationCore Competencies A companys core competencies are typically considered to be more than a coretechnology, a companys core competencies differentiates them strategically from theircompetitors. Several core competencies underlie an individual business and can indicate anorganizations structure. Microsofts products can be divided into seven main families; theseproducts include Windows, Servers, Business Solutions, Xbox Game Console and Games, MSN,Developer Tools, and Windows Mobile.Windows Operating System Windows 7, Media Center, Tablet PC, among othersBusiness Solutions MS Office, Project, Visio, SharePoint, Live Meeting, One NoteMSN Microsoft Network, Security EssentialsxBox Console and 52
gamesDeveloper Tools Visual Studio, Expression Web, Web MatrixServers BizTalk Server, Commerce Server, SilverLight, .NET Framwork, among others.Mobile Smart PhonesTM583 Page 6 7. Microsoft Corporation Microsoft delivers the right services at the right time by strengthening IT as astrategically focused, business aligned organization. The company offers a competitiveadvantage through their technological innovations. The company maps IT applications,infrastructures, and operations into a consistent set of services that support business goals. Theyhelp eliminate redundancies, service delays, and inefficient processes for faster response times,and they also seize the opportunity to take the competitive lead by applying technology ininnovative ways. For a variety of reasons it is difficult to imitate Microsofts core competenciesbecause customers perceive the benefits associated with the Microsoft products. Microsoft currently has its own partner network where businesses can showcase theirexpertise through Microsoft competencies. Microsoft has two types of competencies that theycan provide a new business. Gold or silver competencies can help set a company apart from thecompetition by demonstrating a proven skill set to potential customers. Consumers can easilyidentify a companys capabilities and expertise because Microsoft is aligned with how customersactually buy a companys products. Silver Gold Competencies Competencies Offers a clear path to Demonstrates a companys best in class help showcase a expertise within the companys skillset marketplace. Earning a gold Earning a silver competency from MS competency from MS can place you in the top can place your business 1% of MS partners in the top 5% of MS worldwide for partners worlwide outstanding proficiencyTM583 Page 7 8. Microsoft CorporationIndustry Dynamics Microsoft offers a competitive advantage through technology innovation by deliveringthe right services at the right time by strengthening IT as a strategically focused and businessaligned organization. From the use of Microsoft industry dynamics, companys can map ITapplications and operations into a consistent set of services that support business goals. They canalso seize opportunities to take the competitive lead by applying technology in innovative ways.Based on what Microsoft states on their website, 2When you want CRM in the cloud that isflexible, scalable, and easy to use, and that delivers outstanding value and business insights,theres no comparison to Microsoft Dynamics CRM. Using industry trends, Microsoft can helpa firm drive sales productivity by tracking sales opportunity, boost customer satisfaction,improve a firms marketing effectiveness, and help firms reach quarterly goals. One of the mostpowerful features of Microsofts CRM dynamic business management software is the nativeoutlook client which allows users to access the full capabilities of Microsoft dynamics CRMright within the Microsoft Outlook interface. And because sales, marketing, and customer servicetasks are handled within a familiar application, any team can work smarter and be moreproductive on any project that they are working on.2 http://crm.dynamics.com/online/default.aspx?tabid=fits-yourbusiness&CR_CC=200008220&WT.srch=1&WT.mc_ID=SEARCH_CRM&CR_SCC=2 00008220&fbid=MaoDx0DAMmGTM583 Page 8 9. Microsoft CorporationTechnology Sourcing and Internal Innovation By using the Microsoft Dynamics CRM online application, firms have the ability to usea strategy to source their methods. Firms can improve sales planning and management bysetting up territories and teams for optimal organizational efficiency. Firms can also 53
bettercoordinate tracking leads within one centralized system and assign leads and tasks automaticallybased on predefined rules. Firms who use Microsofts online CRM application can also mangeopportunities effectively by enabling a more effective sales team with team based ownership.They can also create and monitor customized offers and pricing for each opportunity, by moreeffectively positioning against competition with a seamless competitor tracking tool. A firm canalso streamline a proposal creation with embedded document management capabilities andestablish consistent sales processes with predefined workflows. Users of Microsofts CRM dynamic tool have the ability to streamline accountmanagement and enhance pipeline management by increasing the accuracy of revenueprojections with individual or rollup forecasting. Firms can leverage guided dialogues acrosssales organizations to reduce training and speed up time to simplify workflow processes. Userscan also empower their sales force with real time data from any web enabled device to get on thego leverage. And, the use of CRMs analytical tool helps firms gain visibility and exposurethrough improved decision making using robust data for insightful trending analysis. Using theintuitive report wizard helps firms take advantage of the application to instantly create ad-hocreports.TM583 Page 9 10. Microsoft CorporationProduct Development Strategy During a professional developers conference in 2010, a MicrosoftExecutive addressed the companys plan to incorporate HTML 5 andSilverlight together. HTML is the only cross compatible solution for bothWindows and Apple platforms. Microsofts Silverlight strategy is Microsoftsdevelopment platform for their windows phone. While servers, desktops, andmobile devices have arguably identical issues with compatibility, the solutionand answer lies within HTML 5, and the driver in both cases is user demand. Thanks to thesteady and regular market share gains, the Mac now has the upper hand of the market, especiallyin the U.S, where Apple has already exceeded 10 percent of the market share. The problemMicrosoft is having is that the demand for Macs comes largely from the demands for I-Phones. Ifa user has a good experience with an I-Phone, this will lead into repeated trips to the Apple storeon site and online, with more and more users considering and purchasing Apple products,including Macs, I-Pads, and I-Pods. Android has also benefitted from a similar popular demand recently in the mobile deviceworld, and since Google has its own platform now, users have more choice with both hardwareand wireless carriers. The problem with these platforms is compatibility, which was a biggerissue in the past than now, but still an issue. No new major PC specific applications haveappeared in the past several years, instead, all new apps have been web based and run well onstandard based browsers on any desktop computer operating system including Windows, Mac,and Linux.TM583 Page 10 11. Microsoft Corporation Embracing web standards can eliminate a lot of problems currently, and when it comes toweb standards, the industry is rallying around HTML 5, JavaScript, and CSS 3 (Cascading StyleSheets). Microsoft embraces HTML 5 because they feel it is the future of web technology thatthey are exploring by using Internet Explorer 9 and within the next few months Windows 8. Onthe mobile side HTML 5 is leaned more towards the future of mobile devices, but at the sametime will bridge the gap between disparate and incompatible platforms like the I-Phone, Android,and Windows phones. Todays smart phones all run on different operating systems withincompatible apps for each, but if developers create mobile solutions instead of native apps, 54
therewould be no need to develop three completely different types of apps in different environments,and with several different languages. Instead they can create and users would embrace a singleweb app that is cross compatible on all operating systems. Microsoft is wise with its goals forSilverlight, but at the same time the software giant is welcoming HTML 5 with arms wide openas its path to the future of the company. Microsofts aim with Windows 8 is to make the user experience a natural extension of thedevice. This attempt is a design that Microsoft hasnt attempted since the days of Windows 95.The new user experience also extends to how applications will run on the Windows 8 software.Developers will also be able to use common web technologies, such as HTML 5 and JavaScriptto create applications for the PC to further ease integration and adoption. To aid developers inbuilding applications for the new Windows 8 platform, Microsoft has opened a new developerconference called BUILD which will take place in California later on this year 2011. Needless tosay, Microsoft is keeping up with technology and innovation by embracing new technologies thatcan be implemented into their existing platforms that will make the Microsoft brand even biggerand better than it already is.TM583 Page 11 12. Microsoft CorporationStrategy to Protect Innovations Although Microsoft lags behind Apple in innovation, during 2010 Microsoft was grantedthe third most patents of all companies with almost 3,100 patents behind the leaders IBM andSamsung. Apple checked in at number 46 with only approximately 560 patents, but Apple wasalso cited with the greatest increase of patents in 2009, up by 94%. Microsoft in general doesntrelease innovative products, except for the Kinect gaming system for X-Box, which is anexception to that rule. Microsoft spends approximately nine billion dollars a year in research,development, and acquisitions, totaling over sixty nine billion over the last decade, which forMicrosoft has not brought the breakthroughs to the public like they wish they could. Innovator evangelists believe that Microsoft is suffering from a innovators dilemma,which occurs when a company focuses on protecting their existing markets, rather than trying tocreate new ones. Although Microsoft never quite ranked among famous labs such as Bell Labsand the Xerox Palo Alto Research Center, Microsoft itself still feels that they are one of the fewremaining companies that still do pure research and development, including kinds that may notturn into products for several years to come. Microsoft has a problem when it comes to protecting innovations, Steve Ballmar, who isMicrosofts current CEO is not a visionary and simply does not have the vision to createinnovative products. But, when we look at the CEO of Apple Steve Jobs, we can see that SteveJobs is a brilliant forecaster and knows what people want even before the public realizes it andthen having great products designed to fill their need. Another problem the company faces iscorporate culture. Apple focuses on new innovative products, while Microsoft focuses onprotecting their turf, which is no way to be innovative in todays market.TM583 Page 12 13. Microsoft Corporation Although Microsoft does deserve a lot of credit for the amount of money it is willing toput in their research and development, and their researchers also deserve credit for the number ofpatents they receive, the company needs to rethink its approach to innovation and productdevelopment, so that it can also reap the rewards and benefits of their work. In conclusion, Microsoft will go down in history as one of the most innovative companiesthat have changed the way people go about their daily lives. 55
Microsoft has come a long way fromthe days of settling lawsuits with numerous companies to being the powerful software giant inthe world today. With technology comes innovation, and Microsoft has proven that it can betechnological innovative with all of the great products that we have seen from them over theyears. Given the companys strategies, core competencies, dynamics, and innovativebreakthroughs, it is no wonder why Microsoft has lasted this long, and will be around for manymore years to come.TM583 Page 13 14. Microsoft Corporation Bibliography Microsoft Corporation Prepared for TM583 Microsoft Corporation. (15 May). Hoovers Company Records,14120. Retrieved May 20, 2011,from Hoovers Company Records. (Document ID: 995430341). Computer Hardware; Microsoft Previews Windows 8. (2011, June). Computers, Networks &Communications,49. Retrieved June 11, 2011, from ProQuest Computing. (Document ID: 2369060401). Thibodeau, P.. (2011, May). Case Closed: Microsoft Marks the End of anEra. Computerworld, 45(10), 6. Retrieved June 1, 2011, from ProQuest Computing. (DocumentID: 2360266821). Henschen, D.. (2010, April). Microsofts Plan. InformationWeek,(1262), 32. Retrieved June 1,2011, from ProQuest Computing. (Document ID: 2022248701). http://crm.dynamics.com/online/default.aspx?tabid=fitsyourbusiness&CR_CC=200008220&WT.srch=1&WT.mc_ID=SEARCH_CRM&CR_SCC=2 00008220&fbid=MaoDx0DAMmG#fits-your-business http://www.microsoft.com/australia/services/consulting/strategy.mspx https://partner.microsoft.com/UK/program/competencies http://blog.softheme.com/silverlight-html5-and-microsofts-opaque-development-strategy/ http://blogs.computerworld.com/17661/microsoft_dominantes_apple_in_patents_so_why _does_it_lag_in_innovationTM583 BENETT INTERNATIONAL COLLEGE POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENTStrategic Business Management & PlanningPrepared byName-Deepak KapoorWord limit- 5000 1 2. TABLE OF CONTENTS:-Abstract .Introduction....................... ............................Aim of Microsoft SWOT..............................................................................ECONOMIC................................. ....................................SOCIAL..........................................................................TECHNOL OGICAL.........................................................ENVIRONMENTAL..................................... ...................BARRIER TO ENTRY.....................................................SUPPLIER POWER.......................................................BUYER POWER.............................................................COMPETITIVE RIVALRY ..............................................Types of Information Systems needed to aid in the decision making process atmanagerial levels.........................................................Improvement of Customer Relations..Critical analysis of competitive advantages to an organizationChallenges to an organization & Managing changeConclusion..References .Bibliographies.
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3. Abstract:In my assignment I have highlighted the aims of the renowned organization likeMicrosoft whose continuous success due to their strong strategies and planningastonished the entire IT industry in the 21st century. I clearly stressed Microsoftsstrength, weaknesses, opportunities and threats which explains the organizationcontinuous business strategies and planning. Based on various obvious facts I must saythat any organization who want to be successful must plan ahead to achieve thecompanys desire goal which should include economic, social, technological andenvironmental factors.INTRODUCTION:According to William E. Ward: Four steps to achievements Planpurposefully, prepare prayer fully, proceed positively and perusepersistently Strategic business management and planning inbusiness world and in business organization whether it is a publicsector organization or private sector organization refers to the set orthe change of the goals and aims of the organization. Strategicmanagement and planning is a key to success to reach the corporateladder that is to give the organization a strong plat form from thevery beginning of the business. The management is responsible forthe strategy and planning as how to achieve a one desire goal of anorganization. The management should give the judgment afterconsidering all the aspects of that planning. Good management andplanning strategy.According to L.H.Hunt Decide what you want, decide what you arewilling to exchange for it. Establish your priorities and go to workMICROSOFTThis assignment is about the Microsoft. Microsoft is the worlds leading producer ofcomputer software. Microsoft was founded in Albuquerque, New Mexico in1975 by BillGates and Paul Allen and is now one of the largest and most successful companies in 3 4. the world (Microsoft, 2005). They are the largest and most successful companies in theworld. Microsoft headquarters are located in Redmond, Washington, a suburb ofSeattle. It is the developer and distributor of softwares such as Windows, MicrosoftOffice, and DirectX and other programmers and games which will be listed later on inthis assignment. In almost all the countries in the world people are using Microsoftoperating system. Microsoft is one of the most dramatic examples of network externalityin economics.The Microsoft Corporation is doing a monopoly business and their product has aneffective domination in the operating system market. Almost every computer that is soldhas a copy of Microsoft Windows pre-installed (Microsoft industry products andsolutions, 2006). This assignment describes its mission statement (Microsoft),evaluating its strengths and weaknesses using the SWOT analysis, establishing thestrategic information systems needed to give the company a competitive edge,discussing the information systems (ISs) that could aid in the decision makingprocesses at the different managerial levels. Aim of the MicrosoftAt Microsoft, we work to help people and businesses throughout the world realize theirfull potential. This is our mission. Everything we do reflect this mission and the valuesthat make it possible. A mission statement captures an organisations purpose,customer orientation and business philosophy. Effective missions are inspiring, long-term in nature, and easily understood and communicated (Learn Direct Business, 2003)The mission statement of Microsoft comprises of a general objective which is, to assistindividuals and businesses become cognizant of their presently unrealized capacity.Secondly, not only does the mission statement capture this but in the journey to allowingindividuals and businesses realize their full potential they intend to do this in a morallyethical way. Thirdly the mission statement captures the target group for Microsoft whichis the world. The 57
question is then asked, Has Microsoft achieved its goals andobjectives outlined in its mission statement for the last 31 years and if yes, how?In allowing people realize their full potential Microsoft has made available the followingOffice Software including Word (a word processor), Excel (a spread sheet), PowerPoint(presentation software) and Access (a database storage) to list a fewMicrosoft Windows pre-installed on most computers, the current versions being XP andWindows serverMicrosofts company web browser the Internet ExplorerHotmail (online mail service)MSN Messenger (online chat service)Windows media player (for listening to music)XBOX, for those individuals who are into gaming and this is also used for playingmovies Microsofts succession of Windows operating systems, Vista is the most recent.Microsoft has indeed been achieving one if its goals which is being a global organization 5. as their product has had an effective domination in the operating system market. Almostevery computer that is sold has a copy of Microsoft Windows pre-installed. Microsoftsweb browser is most widely used in the world and it has become a default browser withall the version of Windows since Windows 95. Microsoft has definitely aided in therealizing of our full potential as individuals as the preparation of this assignment is usingMicrosoft word. Organizations are able to have soft copy storage of data and so easyretrieval of information. In the financial services Microsoft experience FinancialServices program assists businesses in increasing their revenue by improving customersatisfaction and employee productivity while reducing operational costs (Microsoftindustry products and solutions, 2006.) The work environment can be relaxing bylistening to some music on the very computer you are using instead of spending moremoney to buy a radio. In the home the same device you use to play your games can beused to watch a movie. In so doing Microsoft has enabled us to maximize on ourmonetary funds.The company has made its presence in markets by online advertising, mobile devices,and enterprise software. In 2008 Microsoft made repeated efforts to acquire Yahoo! Butultimately two companies would instead sign a deal in 2009 to combine their searchoperations.Strengths and Weaknesses of Microsoft (SWOT analysis)There are two types of environmental factors that affect every organisation, these areremote and industrial. An organisations strengths and weaknesses are those factorswithin or closely related to the organisation such as Porters five forces (these includebarriers to entry, supplier power, buyer power, substitutes available and competitiverivalry). However the opportunities and threats faced by the organisation are thoseremote environmental factors and these include economic, social, political,technological and ecological (PESTE) .In evaluating the possible opportunities andthreats that Microsoft is faced with this report will group them according to the acronymPESTE.PoliticalMany organizations are faced with possibly threats from political factors such as lawsthat can be enforced by the government and terrorism to list a few. Microsoft hasexperienced many political factors that have tried to impact on the organization in anegative way but the company has been successful in overcoming these factors andhas been able to sustain its sales. In the past two years, Microsoft has made significantprogress in resolving many of the legal issues facing the company including the recentU.S. Court of Appeals decision reaffirming its settlement with the Department of Justice,most of the state class-action lawsuits, and the AOL and Sun Microsystems cases alongwith patent claims such as the InterTrust litigation. Resolving these issues marks animportant step forward in clarifying Microsofts legal and related business risk 58
(Gilbertand Katz, 2001). "We have resolved the large majority of our legal issues, which thecompany has always said was a prerequisite to addressing our cash managementplans," said Brad Smith, Microsofts general counsel. "While we still have a number of 5 6. legal issues and we take them seriously, we have reduced the legal uncertainties facingthe company, and we have a much clearer understanding of the potential risks involvedin the cases that remain, such as the ongoing European Commission case" (Redmond,2004).EconomicThese factors usually pose as potential threats in an organization, such as internal andexternal inflation. Currency exchange rate has been affecting the demand for computersin certain parts of the world and fluctuating currencies can negatively impact revenuesin the global marketplace (Microsoft, 2005). Increasing globalization of the Microsoftindustry has definitely been a significant advantage for the company as this creates adomino effect which increases profitability for the company.SocialThe social lifestyle is not one that would affect Microsoft as in every country and inevery industry, they desire new technology to help them boost their organization aheadof others in this rather competitive world that we live in. In other words Microsoft will notencounter much of a social barrier globally; it is a product that is welcomed byeveryone. This is definitely a probable strength in favour of Microsoft as it means thesky is the limit socially.TechnologicalMicrosoft has made significant advancement in their technology which has definitelyworked in their favor and so has strengthened the company. They continue to beinnovative with their products and utilization of these innovations where increasing theirmarket share is concerned. They are a pure dot-com enterprise which facilitates lowercost both for themselves and the customer, data communication and are user friendly.Being the big giant in the software market they have made and still continue to makehardware to support specific software business strategies and to list a few:Microsoft mouse which encouraged the use of windows operating system GraphicalUser Interface (GUI). This made GUI more userfriendly and so increased its salesWeb TV (an internet television appliance)The tracing of stolen goods such as laptops and pirated software (this is done whenthese people log on to the internet. (This has given Microsoft huge benefits)PDA also known as the wireless system (The maximization of peoples time so they canmail while on their way) Microsoft has a big involvement in the productions of modifiedsoftware for NASA and the Pentagon Recently introduced is the Trusted Computingwhich Microsoft has presented as their solution to computer insecurityEcological/EnvironmentalBeing a software industry Microsoft has not been affected by these factors whichcomprise of elements such as salinity levels etc.To add to this Microsoft has had many opportunities in its favor as cheaper globaltelecommunication costs open new markets as people connect to the market; mobilephone applications and exploitation of personal digital assistants; popularity amongpeople for internet access and the demand for personal computers in the global market.Possible threats in the market exist from Apple and Linux, UNIX dominates high-end 7. mission-critical applications, software piracy and hardware manufacturers (SunMicrosystems, Oracle, IBM, AOL and Apple) are issuing their own prebundledprogrammes on their own hardware. .DISCUSSION ABOUT THE COMPETITIVENESS AND ATTRIBUTES OF EMERGENT ORGANIZATIONAL 59
CHANGE INTHE LIGHT OF PORTERS FIVE FORCES MODEL :In a business world competition factor can never be overlooked and it is just like a builtin threat or I say a mandatory threat which must take into consideration by themanagement of any organization while planning its strategy. Therefore the profit or therates of return must be constant for any organization to be successful. Economicresearch states that many organization can face the above mentioned threat ofcompetition factor and can be sustained to a certain level of profitability, thus followingare the five forces that any organization can be effected by -:Barriers to EntryMicrosoft has made it difficult for new entities into the software industry by increasingthe barrier to industry. Klein, 2001 says that the dominance of windows in the market foroperating systems is due in large part to its success as a software platform; that is, tothe fact that a great many software developers write application programmes solely forthe windows operating system. Because porting or rewriting application programmesto run on other less popular operating systems can be expensive, an applicationsbarrier to entry may exist in the market for operating system but not succeed incompetition with windows because of the lack of sufficient applications. Bessin andBaskin, 1999 state that the standard economic rationale for patents is to protectinnovators from imitation and thereby give them the incentive to incur the cost ofinnovation. Conventional wisdom holds that, unless would-be competitors areconstrained from imitating an innovation, the inventor may not reap enough profit tocover that cost. Thus, even if the social benefit of invention exceeds the cost, thepotential innovator without patent protection may decide against innovating altogether(Gilbert and Katz, 2001).Supplier PowerBeing the great Monopoly Microsoft has been, its bargaining power is quite high whichwould cause a decrease in supplier power.Buyer PowerBeing a monopoly for many years Microsoft has been able to reduce buyer powerhowever with the increase in competition this is gradually going up (Gilbert and Katz,2001). It will however take a while for this to be of significant interest to the company asits products and devices are user friendly and it has in someway made its products veryinelastic.Substitutes Available and Competitive RivalryIt is in the interest of any thriving company to seek to have both competitive rivalries andsubstitutes of their products being low. There are not many substitutes available and so 7 8. this has definitely worked in the favor of Microsoft. However they have to be very carefulthat they increase on their innovativeness and marketing strategies as the presentcompetitors (AOL, Netscape, Oracle etc.) have been introducing great products andhave every intention of being the next giant. Microsoft presently owns most of themarket and if it keeps on increasing its technology it should be able to overcome thepresent and possible future substitutes (Netscape Communications CorporationsCompany Backgrounder, 1999).In addition to its weaknesses Microsoft has unsatisfied employees. Employeescomplaints are rooted in a number of factors. They resent cuts in compensation andbenefits as profits soar. Theyre disappointed with the stock price, which has barelybudged for three years, rendering many of their stock options out of the money. Theyrefrustrated with what they see as swelling bureaucracy, including the many proceduresand meetings Chief Executive Steven A. Ballmer has put in place to motivate them. Andtheyre feeling trapped in an organization whose past successes seem to stifle currentcreativity. "Theres a distinct lack of passion," says one engineer, who would talk only oncondition of anonymity. "Were missing some spunk" (Troubling exist at Microsoft, 2005).Still, Microsoft faces serious long-term challenges: 60
the rising popularity of the Linuxopen-source operating system, a plague of viruses attacking its software, and potentrivals such as Google in the consumer realm and IBM in corporate computing (Bessinand Baskin, 1999; Yoffie and Cosumano, 1999). Operating systems ranging fromWindows 98 to Windows Server 2003 64-bit edition, as well as the Outlook Express e-mail program, are affected by the problems with the imperfect and insecure codes(Clark, 2004).Strategic Information Systems to keep Microsoft ahead in the gameDecisions are classified into structured (repetitive) and unstructured (not routine). Thisinformation will allow the organisation to develop the best strategy to achieving orfulfilling its mission. Most scholars in strategic management are familiar with thedistinction between "content" research which deals with the content of strategies and"process" research which examines the strategic decision process and the factors thataffect it. Content research has been quite useful in providing rules and guidelines on thetypes of strategies which lead to the best performance for different types oforganisations in different competitive conditions (Schwenk, 1995). Before a companycan achieve improvements in its organisation, the company has to first recognise itsweaknesses (intelligence phase), conceive alternative solutions (design phase), selectthe best suited among the alternatives (choice phase) and then execute the bestchoices (implementation phase). The question is then asked, what information isrequired to increase the competitiveness of Microsoft? Key Success Factors, factorswhich must go right if the company is to achieve it mission are indications of theposition Microsoft stands in relation to its competitors and where it needs to go. Inimplementing systems that will aim at improving its security Microsoft will then increaseits market share as people will be forced to buy. Secondly Microsoft will need to dointensive research on its competitors, researching the products that they have (andMicrosoft lacks) and improving on these systems. Making sure that its softwares 9. (Microsoft) are always ahead of its competitors; improving on its present systems suchas Internet Explorer, the Microsoft Secure Sockets Layer (SSL) Library and RemoteProcedure Call (RPC). Also extending its cliental and the types of softwares availablewill definitely give Microsoft a competitive edge to its competitors such as theautomotive industry. Competitiveness and efficiency are more important now than at anytime in the history of the automotive industry. Microsoft Dynamics business software canhelp with powerful manufacturing, financial, and CRM solutions that support leanbusiness processes (Microsoft Dynamics solutions for automotive suppliers: Increasingglobal competitiveness, 2006). Also Microsoft will need to improve on its humanresources as this is a critical factor to the successiveness in any organisation. On atactical level, an enterprise competes for present market share. It does this by offering acontinuing succession of product features and by adjusting price. As the niche fills withcompetitors, the competition becomes a squabble and profitability is eroded. On astrategic level, an enterprise competes for the future by envisioning a new niche,inventing and fielding the product capability to service the niche first, and reaps thebenefits of this innovation and risk taking. However, Given human nature, evolvingthreat models and the increasing interconnectedness of computers, the number ofsecurity exploits will never reach zero," Gates wrote in the recent letter (Clark, 2004), (see fig.2).Characteristics of Operational Tactical Planning Strategic PlanningInformation Planning and and Control and Control ControlSource Largely Internal ExternalScope Well defined Very wideLevel of aggregation Detailed AggregateTime horizon Historical 61
FutureCurrency Highly current Quite oldRequired accuracy High lowFrequency of use Very Frequent infrequentFig 2: The required characteristics of information in different planning and controlactivitiesGory and Scott Morton, 1971Planning:For any organization to be successful in the business word and to reach the corporate 9 10. ladder business planning is one of the major factor and this allows organization tohandle any un avoidable circumstances which may comes in the way to success of anyorganization. Planning ahead of time gives the opportunity to identify any threat and toutilize business key strength at the right time. A proper business plan gives the precisepicture of the companys goals and objectives, it does also foresee financial structure ofan organization including financial forecast. Business plan must explain as how thebusiness is going to be developed and how the finances will be managed.As I have discussed about the planning and strategy of Microsoft In implementingsystems which aims the security of Microsoft result in increase of its market share,however by applying right planning formula Microsoft has to go in extensive researchon its competitors and have to watch competitors movement, only planning ahead canmake the difference in the interest of Microsoft.Types of Information Systems needed to aid in the decision making process atmanagerial levelsAn information system is a system, whether automated or manual, that comprisespeople, machines, and or methods organized to collect, process, transmit, anddisseminate data that represent user information. There are 6 main types of informationsystems, these are: 1Executive Support Systems (ESS) 2Decision Support Systems (DES) 3Management Information Systems (MIS) 4Knowledge Work Systems (KWS) 5Office Automation Systems (OAS) 6Transaction Processing Systems (TPS)The three main managerial levels are; strategic, tactical and operational (Fig.3) 11. Figure 3: Strategic, Tactical and Operational BIQuinn, 2006It is at these levels that the different information systems are used. ESS is utilized at thestrategic level by senior managers. Business intelligence (BI) is an IS which providesperformance metrics to management and executives, often in conjunction with a formalmanagement methodology such as Balanced Scorecard or Six Sigma. Strategicbusiness intelligence, one of the latest crazes, is generally called performancemanagement (PM). Depending upon which analyst firm you subscribe to, PM might bepreceded by a C for corporate performance management, an E for enterpriseperformance management or a B for business performance management (not to beconfused with BPM, the acronym for business process management). ESSs are veryexpensive to develop and are used to monitor key performance indicators of theorganization (e.g. Dividends and market share) and comparing them with competitors. Itis at this stage that the decisions made are of an unstructured format and so will takemore time and careful planning. This will indeed be beneficial to Microsoft in aiding inthe decision making process (Quinn, 2006). As suggested by DeLone & McLean (1992), the executive managers are ideally positioned to act as key informants in aqualitative assessment of IT impacts in their corporations. 11 12. MISs and DSSs are utilized at the management or middle level used by professionalsand staff. In making decisions managers are faced with what is known as limits onrationality; this is where the human perceptual system is slow, personal biases exist andpersonal characteristics such as dogmatism pose to be problems. DSSs 62
assistmanagers in this area as they look at all the possible options, analyze them in terms ofcost/risk etc. and then assist in the choice phase. Tactical business intelligence, calledtraditional and or analytical in various industry articles, is the application of businessintelligence tools to analyze business trends, frequently comparing a specific metric(such as sales or expenses) to the same metric from a previous month or year. Theanalysts within Microsoft in each department would use online analytical processing(OLAP) and hoc query to perform this task.KWS is used by the technical staff especially research and development and this existbetween the lower most level and the middle level. As Microsoft is an innovative leadingcompany in technologies, it is essential to establish a good knowledge work system inwhich the tactical managers and the operational managers within Microsoft branchesin different countries can follow the same standardized knowledge, instructions anddecisions made by the executive level. Standardizing quality control systems andprocedures and smooth functioning in manufacturing processes have occurred whencompanies have established good knowledge work systems. With these systems inplace and efficiently utilized Microsoft will definitely stay ahead in the game.TPSs are basic computerized systems which are used at operational level. This systemcan be used to record and process day-to-day transactions of an organization. Howeverthey are most successful for both B2B (business to business) and B2C (business tocustomer) companies and in the establishment of innovative and creative transactionprocessing systems in which both frontline staff and outside customers can used thesetransaction processing systems via online. This will enable these systems to beoperated for dual purposes. Although the main purpose of transaction processingsystem is to gather day-to-day transaction information towards the company, thesesystems are being adapted as a customer relationship tool innovatively by companies, 13. e.g. online order processing system, online payment and online after sales servicesystem). Nowadays more or less customer relationship management programmes(CRM) are integrated with companies transaction processing systems and are playing avital role for the companies long term success. Microsoft could adapt the transactionprocessing system at operational level to gather day-to-day transaction information aswell as maintain existing customer relationship by creating online service programmes(e.g. DELL computers) (Marketing research and business information system, 1996).Office automation system consists in a fully computerized and automatic system whichcan be used at any managerial level in a company. When the office automation systemshave been created by the large companies these systems are operating by themselveswithout much human control. Creating an error-free culture within the company, costeffectiveness & less human interference and speed and accuracy are the main benefitsof a good office automation system. Nowadays the large companies are operating withtheir own specific office automation systems in which these companies can managetheir large customer data base as well as other relevant stake holders and cater to all ofthem by using intranet and extranet. Microsoft could have a specific and unique officeautomation system throughout the branches which could help to manage the largenumber of customer data base and relevant stake holders as well as inside and outsideof the organization (Marketing research and business information system, 1996). 13
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14. Improvement of Customer RelationsIn thinking of how Microsoft can improve its customer relation with IS/IT systemsMicrosoft has to first analyze its present strategic situation by asking itself somequestions; these are 11-What are the industrys dominant economic features? 22-What is the competition like and how strong are the competitive forces? 33-What is causing the industrys competitive structure and business environment to change? 44-What companies are in the strongest/weakest positions? 55-What strategic moves are rivals likely to make next? 66-What are the key factors for competitive success? 77-Is the industry attractive and what are the prospects for above average profitability?The answers to these questions and the IS/IT systems used will improve Microsoftscustomer relation. The key factor that must affect the industry within the market place isidentifying the basis of customers choosing Microsoft over competing brands. (What canMicrosoft offer me that AOL is not offering me?). Microsoft also needs to ensure that ithas the necessary resources and competitive capabilities to compete successfully andthey need to ensure that they achieve and sustain this competitive advantage. KeySuccess Factors (KSFs) are also known as Key Result Areas (CSFs); each key successarea needs a measure of performance or performance indicator. In the software industrya key performance indicator could be the ability of Microsoft to increase its technologywith new and innovative softwares and browser provider. The customer relations seemto be improved when the use of technology and efficient flows of information areavailable for both parties. The IT/IS facilitates better customer contact and thus biggercustomer loyalty when they can contact the business representatives with no need toqueue, thanks to the Web (online procedures such as e-mails, e-commerce and ebusiness) or the telephone itself. This kind of system at the end of the day leaves thecustomer and the employees smiling. According to Porter, 1999, efficiency is achieved 15. by using IT to reduce operating costs or to improve productivity, while effectivenesscomes from using IT to foster greater flexibility and responsiveness to changing marketneeds.CHALLENGES TO THE ORGANIZATION:Change is very living part of every organization. In the business worlds, all people likechange. Change can be implemented in many factors. Organizational structure, Policiesand rules, processes, systems, work force, culture, factual activities. Changes are notnew. In past decade, changes are taking place In todays economy, major three factorsare influenced. They are knowledge, change, and globalization.The competitive pressure forced the changes in the counties in various parts of theworld and the creation of Free trade agreements. It creates changes in economics,changes in technology and political changes. Tragic options are value added activities,Raw Materials, Components, End Products Firm, Specific Knowledge, priorityTechnologies, Management Skills, Marketing Skills, Brand Equity Production, know-howagreements.Changing is very important context. All business organization faces new challengesfrom globalization, new technologies and business models.Plan for the development of change in an organization I would like to highlight theprocess of organizational change as follows-:Planning for the change to meet the Challenges: Analysis of the environmental and social economic system Analysis of the stake holders Decision making of facilitating community Developing of an ECHO System management strategies. Negotiation among agencies and other organization Strategy of the management system in an organization. 15
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16. DOING: Making changes in the managements Building of the capacity Experts in projects and advancement of technologies Running the management system successfully Development of the communityREVIEWING: Evaluation of the success and performance of the organization Analyze the social and economic outcome of an organizational changeConclusionsIn this ever changing world a corporation needs a lot of things to survive and compete.Microsoft has been a giant success story in the software industry for approximately 30years. Being an industry that produces softwares, Microsoft can better improve itself byusing what it produces in aiding decision making at specific levels of management.Microsoft will guarantee itself success in this rather competitive market by coming upwith creative devices and softwares that are globally craved for. Furthermore, we cansay that strategic business management and planning is a process of making wisejudgment and selection of different options while considering the information availablefrom different sources. Thus management and planning we decide the aim andobjective of business organization then we look to achieve one common goal that isprofessional management and planning. 17. 8.0 References Bessen, J and Maskin, E (2002) Sequential Innovation, Patents and Imitation. Research on Innovation and Visiting Scholar, MIT Sloan School of Management [online] Available from <URL:http://www.researchoninnovation.org/patrev.pdf> Clark, M (2004).Software giant Microsoft has admitted to no less than 20 new flaws in its software, the most ever announced at once. Entropy [online] Available from <URL:http://www.electricnews.net/news.html?code=9407701> DeLone, H and McLean, R (1992) Information Systems Success: The Quest for the Dependent Variable. Information Systems Research Gilbert, RJ and Katz, ML (2001). An Economists Guide U.S. v. Microsoft Journal of Economist Perspective 15: 25-44 Gory, GA and Scott Morton, MS (1971) A framework for management information systems Sloan Management Review 13 (1) Learn Direct Business, (2003) [online] (Available from <URL:http://www.learndirect-business.co.uk/campaigns/finances05/glossary/ Marketing research and business information system, (1996) The Chartered Institute of Marketing Microsoft Dynamics solutions for automotive suppliers: Increasing global competitiveness, (2006) [online] Available from <URL:http://www.microsoft.com/dynamics/industry/automotive.mspx.> Microsoft industry products and solutions, (2006) [online] Available on <URL: 17 18. http://www.microsoft.com/business/industry.mspx> Netscape Communications Corporations Company Backgrounder, (1999) [online] Available on URL:http://wp.netscape.com/company/about/backgrounder.html Porter, M (1999) Ser Competitivo: Nuevas Aportaciones y Conclusiones. Spain. Product overview: Microsoft Dynamics CRM 3.0 [online] Available from <URL:http://www.microsoft.com/dynamics/crm/product/overview.mspx> Redmond, W (2004) Remarks by Bill Gates, Chairman and Chief Software Architect, Microsoft Corporation Microsoft CEO Summit 2004 [online] Available from <URL: http://www.microsoft.com/billgates/speeches/2004/05-20CEOSummit.asp> Quin, K (2006). Strategic Information Architecture: Strategic, Tactical and Operational Business Intelligence [online] Available from <URL:http://www.dmreview.com/article_sub.cfm? articleId=1055164> Schwenk, CR (1995). Strategic decision making - Special Issue: 65
Yearly Review of Management Journal of Management Available from <URL:http://www.findarticles.com/p/articles/mi_m4256/is_n3_v21/ai_17154315> Troubling exists at Microsoft, [online] Available form <URL: http://www.businessweek.com/magazine/content/05_39/b3952001.htm> Yoffie, DB and Cosumano, MA (1999) Judo strategy. The competitive dynamics of Internet time Harv Bus Rev. 77: 70-81. 19. 9.0 Bibliography Davenport, TH (1998). Putting the Enterprise into the Enterprise System. Harvard Business Review, pp. 121-131. How BTs e-ticketing service, Rialto, helped Alton Towers improve customer service while increasing cost efficiencies (2005) [online] Available from <URL: http://www2.bt.com/static/i/media/pdf/alton %20towers.pdf Information Systems as Aids in Managerial Decision Making [online] Available from <URL: http://zeus.bke.hu/oktatas/cems/perspectives/DecisionMaking.pdf> Klein, B (2001). The Microsoft Case: What can a dominant firm do to defend its market position? Journal of Economist Perspective 15: 45-62 Moaz, M and Fellow, G (2006). The Best Customer Strategy: Fire the Manager, Not the Employee [online] Available from <URL: http://crm.blog.gartner.com/blog/index.php?blogid=7> Nicho, M (2004) Implementation Failures in Customer Relationship Management Software Bulletin of Applied Computing and Information Technology Vol 2, Issue 1 (March 2004). Microsoft Acquires Anti-Spyware Leader GIANT Company New Offerings Will Help Customers Keep Spyware and Other Deceptive Software off Their Computers, (2004) [online] Available from <URL:www.microsoft.com> 19
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ROLE OF BILL GATES IN DEVELOPING MICROSOFT

MASTERS OF COMMERCE (BUSINESS MANAGEMENT) SUBJECT: STRATEGIC MANAGMENT SEMESTER II 2013-14

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Microsofts technology strategy

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Strategy to Protect Innovations

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Figure 3: Strategic, Tactical and Operational BI

Planning for the change to meet the Challenges:

DOING: Making changes in the managements Building of the capacity 46

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