Case study

summary

Microsoft was a well reputed software company They are doing monopoly business in selling software Microsoft was highly centralised management Their major disadvantage of Microsoft is their corporate culture The company was strong in product development and sales, but weak in financial management CEO Ballmer appointed 7 CFO , the CFO is responsible for fixing setting financial targets ,handling budgeting, measuring performance Etc.. Each unit has its own profit and loss statement

Cont
Ballmer segregated in to different operating units each

unit run by GM The new mission statement to enable people and business throughout the world to realise their full potential Group vice president discovered $2billion revenue fall in his group Ballmer setting dispute by spiting the revenue Group vice president discovered $2billion revenue fall in his group Ballmer setting dispute by spiting the revenue The new stature things are properly delegated

Issues
High centralized management Lack a clear sense of how each venture was really

performing Weak financial management Top management fail to delegate the authority Dispute between the department

SWOT analysis

strength
Flexible workforce through contingent workers for

cyclical project Multinational corporation operating more than 60 countries Good reputation among the customers Competitive advantage among other companies Good brand name

Contd
Higher market share Software have high name recognition

The company have numerous powerful feature that are

in used world wide Strong at product development and sale

weakness
High centralized management
Weak financial management Depending on hardware manufactures to pre install

Microsoft PC operating system Microsoft did not recognize the growth opportunity of internet such as search engine ,mail products Lack a clear sense of how each venture was really performing Top management fail to delegate the authority

0pportunities
Cheaper global telecommunication cost open new

market as people connect to the internet Popularity among people for internet access The demand of personal computers in global market remain the same Expansion of product line Microsoft to innovative

Threats
Other software companies threaten Microsoft market

share of the desktop operating market Other operating system influence is growing in the mind of customer Rapid development of mobile device that will replace personal computers Software piracy threatens revenue streams Technology life cycle is shorter and shorter

Recommendation

Implement decentralized system in place of

centralized one Delegate the authority among the employees Use their goodwill for capturing the market

Organizational chart
Bill Gates /Steve Ballmer CFO John
Connors

GM /CFO

GM/ CFO

GM/ CFO

GM/ CFO

GM/ CFO

GM/ CFO

GM/ CFO

MANAGER

MANAGER

MANAGER

MANAGER

MANAGER

MANAGER

MANAGER

staff

staff

staff

staff

staff

staff

staff

Stronger financial management

Microsoft was a weak financial management
Ballmer appointed seven CFO and rearrange the

Microsoft The CFO is responsible for setting financial targets, handling budget measuring performance Ballmer decentralize the management of Microsoft The stature provide Microsoft in to a strong financial management

Industrial giant
The Microsoft was headed by Bill Gates and the CEO

Steve Ballmer He appointed general managers for each units Steve Ballmer appointed seven CFO , the CFO was for setting financial targets, handling budget measuring performance Steve Ballmer decentralize the management and delegate the authority The activities taken by Ballmer help the company to rebuild there goodwill

Ballmer is an effective delegator

The Microsoft was headed by Bill Gates and the CEO

Steve Ballmer He decentralize the management and delegate the authority He appointed general managers for each units He rearrange the management He app0inted seven CFO for each department

Thank you