Project in Strategic Management

As a group (referring to groupings in reporting), choose a Business Organization/Company

within the Philippines or any foreign company. You can do this by making online research
provided that all references will be acknowledged. Avoid copy-pasting the content taken from
the internet.

Basic Guidelines:
1. Use numbered headings and paragraphs.
2. 1 ½ line spacing. Font size should be 11 using Arial.
3. Page Layout: Portrait
4. Size: Short Bond Paper
5. Hard Copy, soft bound.
6. Quote and include all your references. Also, include a list of references at the back of
your project. This is very important.
7. Structure:
a. CAPS and BOLD for the main headings
b. Bold for subheadings
8. Deadline of submission: on or before May 12, 2023
Title Page

Table of Contents
Should indicate the headings in the project as well as the table of contents.

Part I. Introduction to the Company

Microsoft was established in 1975. Our objective is to help people and businesses
throughout the world reach their full potential by developing technology that changes the way people
work, play, and communicate. We create and offer software, services, and hardware products that
add new possibilities, convenience, and value to people's lives. We do business globally and have
offices in over 100 countries.

We generate revenue by developing, licensing, and supporting software products and services,
designing and selling hardware devices, and delivering relevant online advertising to a global
customer audience. We also offer suites of products and services.

Our products include operating systems, server applications, productivity applications, business
solution applications, desktop and server management tools, software development tools, video
games, and online advertising. We also design and sell hardware devices such as Surface RT and
Surface Pro, the Xbox 360 gaming and entertainment console, Kinect for Xbox 360, Xbox 360
accessories, and Microsoft PC accessories.

We provide cloud-based solutions that deliver software, services, and content to consumers via the
Internet using shared computer resources housed in centralized data centers. Microsoft Office 365,
Microsoft Dynamics CRM Online, Windows Azure, Bing, Skype, Xbox LIVE, and Yammer are some
of the cloud-based computing services we provide. Usage fees, advertising, and subscriptions are
the main sources of cloud revenue. We also offer consultancy, product and solution support, and
training and certification for computer system integrators and developers.

We conduct research and develop advanced technologies for future software, hardware, and
services. We believe that we will continue to grow and meet our customers' needs by delivering a
family of devices and services for individuals and businesses that empower people around the globe
at home, at work, and on the go, for the activities they value most. We will continue to create new
opportunities for partners, increase customer satisfaction, and improve our service excellence,
business efficacy, and internal processes.

Part II. Analysis of Vision, Mission, and Core Values of the Company

Mission
To empower every person and every organization on the planet to achieve more.

Vision
To help people and businesses throughout the world realize their full potential.

Core Values
Innovation, trustworthy computing, diversity and inclusion, corporate social responsibility,
philanthropies, and environment.
Part III. The External Environment Analysis
 Identify External Environments that affect the operation of the company.
Favourable Unfavourable
1. Customers 1. Competitors
2. Students 2
3. 3.

Part IV. The Internal Environment Analysis

 Identify External Environments that affect the operation of the company.
Favourable Unfavourable
1. Employees 1. Competition
2. Business Opportunities 2
3. 3.

Part IV. The Strategy of the Company

 Analyze how the company achieve the Business Level Strategy; Cost Leadership;
Differentiation, & Focus

Cost Leadership
Cost leadership strategy involves gaining a competitive advantage by lowering the cost. Cost
leadership is the main generic strategy that Microsoft uses in various consumer markets.

The discussion of Microsoft’s cost leadership strategy has outlined many benefits offered by
this generic strategy, such as- gaining quick brand recognition, expanding the customer
base, encouraging consumption and achieving sales targets by emphasizing over product’s
affordability and accessibility. Although, the analysis of Microsoft Microsoft’s competitive
advantage strategies highlight cost leadership as the main strategy, the company also uses
the differentiation strategy along with cost leadership to set the basis for sustainable
competitive advantage in the intensely competitive global consumer market.

Differentiation
Differentiation is another most commonly used generic strategy to build a competitive
advantage. Microsoft uses differentiation in combination with the cost leadership strategy to
achieve growth objectives.

The company offers a wide variety of flavors to match the unique taste needs of consumers.
It uses innovation as a tool to offer differentiated augmented services that may delight the
customers and increase their preference of Microsoft over other brands.

Focus
Focus is the third generic competitive strategy that encourages companies to concentrate
their resources on expanding the narrowly targeted segments. When companies adopt the
focus strategy, they serve particular market segments and base their competitive advantage
on niche marketing.

Microsoft adopts the focus strategy both in terms of low cost and offering the best value. The
low-cost focus strategy is adopted by serving the needs of a niche market segment at the
lowest possible price. While, best value focus strategy is adopted by emphasizing over the
 taste, size and design of the product that could best match the customers’ needs and
requirements.
By focusing on product attributes, Microsoft revises its branding strategies and brings
continuous changes in the product designing and packaging to satisfy the customers’
psychological expectations and maximize value for money.

 What strategies were applied by the company in terms of: Integration, Intensified,
Diversification and Defensive Strategies

Microsoft’s Intensive Strategies (Intensive Growth Strategies)

Market Penetration (Primary Strategy). Market penetration is the primary intensive

strategy that Microsoft uses to grow its business. This intensive growth strategy involves
selling more products to the markets where the company currently has operations. For
example, the company grows by intensifying its marketing and sales in its current markets in
Asia. This intensive growth strategy is responsible for Microsoft’s global dominance in the
IBM PC-compatible operating system market. The company effectively applies market
penetration through the broad differentiation generic strategy, which uses product
uniqueness to attract more customers from various market segments. A strategic objective
based on this intensive strategy is to ensure Microsoft’s growth through aggressive sales and
marketing.

Product Development (Secondary Strategy). Microsoft Corporation uses product

development as a secondary intensive growth strategy. This intensive strategy facilitates
growth based on the development and sale of new products. For example, Microsoft
continually develops new software products to generate higher revenues. Through new
products that address market needs, the company supports its generic strategy, which
requires product uniqueness as a competitive advantage. This intensive strategy points to
the strategic objective of enabling Microsoft’s growth through product innovation.

Market Development (Supporting Strategy). Market development is a supporting intensive

growth strategy that has considerable but minimal impact on Microsoft’s current business
performance. Market development supports business growth through the firm’s entry into
new markets. For example, in its early years, Microsoft applied this intensive strategy to sell
its computer software products outside the United States. However, considering that these
products are already globally popular, market development is no longer as significant in the
company’s growth. The generic strategy of broad differentiation empowers Microsoft in
applying market development as an intensive growth strategy. For instance, through unique
business-specific computer products, the company initially entered overseas markets. A
strategic objective linked to this intensive strategy is to grow Microsoft by entering new
markets, likely in developing countries or regions.

Diversification (Supporting Strategy). Microsoft Corporation considers diversification as a

supporting intensive growth strategy. In this intensive strategy, the company grows by
developing new businesses. For example, Microsoft diversified its business when it acquired
Nokia’s devices and services division to re-enter the smartphone hardware market. The
company can effectively apply this intensive growth strategy through new product
development in new business ventures, based on the broad differentiation generic strategy.
A strategic objective based on this intensive strategy is to facilitate Microsoft’s growth
through mergers and acquisitions.

PART V. Organizational Design

 Draw its design
PART VI. Business Ethics, Social and Environmental Responsibility
 Discuss the application of Business Ethics, Social and Environment Responsibility in the
company

PART VII. Conclusion

In this section, you have to make some conclusions and recommendations to the company for the
way forward. Based on the finding in the project, where do they see themselves in the future? What
can you suggest or recommend to them?

PART VIII. References

1.
https://www.microsoft.com/investor/reports/ar13/financial-review/business-description/
index.html

2 kay rizza ng references. Kasi complete un.

4.
https://www.essay48.com/12632-Microsoft-Porters-Generic-Strategies
https://www.essay48.com/12632-Microsoft-Porters-Generic-Strategies

(Reference: https://www.slideshare.net/harshitkansal/strategic-management-project-1)