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Microsoft Business Strategy

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Microsoft Business Strategy
Microsoft Project

Summer 2006

BUS 597A

INTRODUCTION

In 1975, Bill Gates and Paul Allen created a company called Microsoft. More than thirty years later, Microsoft is a leader in the field of computer programming. Gates and Allen both had big plans for their company and came up with different ways of managing people and products

in order to create possibly the most effective and versatile workforce of any corporation in existence. To study Microsoft's way of doing business is to look at the company from many angles, from a managerial and organizational standpoint to its process of developing products and services for its customers and its competitive environment. The purpose of this paper is to analyze Microsoft from a strategic fit perspective. Hence, the topics included are mission and values, resources and competitive advantages, organizational structure and management systems, Microsoft's customers, Microsoft's competitors, and Microsoft's Suppliers.

INTERNAL ENVIRONMENT

Mission of Microsoft

"To enable people and businesses throughout the world to realize their full potential"

"As the world's leading software developer, Microsoft has a passion for helping people reach their potential through the technology we design and deliver. Everything we do is with our customers and partners in mind. How will this help businesses and individuals achieve their goals? What can we make possible?" (Microsoft.com)

Delivering on Microsoft's mission requires a clearly defined set of values and tenets. Values that guide Microsoft's operations are:
• Integrity and honesty.
• Passion for customers, for our partners, and for technology.
• Openness and respectfulness.
• Taking on big challenges and seeing them through.
• Constructive self-criticism, self-improvement, and personal excellence.
• Accountability to customers, shareholders, partners, and employees for commitments, results and reality.

Tenets that propel Microsoft's mission:
• Customer trust.
• Broad



References: Bresnahan, Timothy F., (Fall 2001). A Remedy that Falls Short of Restoring Competition. Retrieved June 3, 2006 from http://www.stanford.edu/~tbres/Microsoft/anti-bre.pdf. Conner, K. R. and K. Prahalad., (1996). Resource- Based theory of the Firm: Knowledge vs. Opportunism. Cusumano, Michael A., (1995). Microsoft Secrets, New York, The Free Press. Demerjian, Charlie., (December 28, 2003). The IT industry is shifting away from Microsoft. The Inquirer. Retrieved June 3, 2006 from http://www.theinquirer.net/?article=13350. Hamilton, Robert, Eric D. Eskin and Max Michaels., (2000). The Gap Between Strategic Intent and Core Capability. Leander, Tom., (August 10, 2004). Does Microsoft Need China?. CFO Asia. Retrieved June 3, 2006 from http://www.cfo.com/article.cfm/3015475/7/c_2984272. Rothberg, Deborah., (March 2006). Microsoft 's Performance Evaluation System Roils Coders. Retrieved from http://www.eweek.com/article2/0,1895,1941354,00.asp www.entrepreneur.com www.microsoft.com

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