report microsoft background and history of microsoft forms of business ownership

¢ Functional structure - Microsoft has a farther seven functional divisions - Business Development and Evangelism - Finance - Human coffers - Legal and Commercial Affairs - Engineering o

REPORT MICROSOFT

Lecture: Dr Nguyen Hai Trung

Date: 7/1/2024

Group’s members:

1

Trân Ngọc Nghi Phương — BABATU23215

Huỳnh Gia Bảo - BABAIU23032

Nguyễn Minh Hào - BABAIU23082

Phạm Thị Phương Thảo - BABAWE23091

Trân Nguyễn Phước Tài - BABAIU23235

Total score: /100

TABLE OF CONTENT:

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Background and history of Microsoft Microsoft’s organizational structure Microsoft’s objectives and strategies Microsoft’s performance

Management of Human Resources Marketing

The competition/competitors MS are facing References

1 Background and history of Microsoft (+ forms of business ownership) Microsoft is a multinational computer technology corporation In 1975 Bill Gates and Paul G Allen, two boyhood friends from Seattle, converted BASIC, a popular mainframe computer programming language, for use on an early personal computer (PC), the Altair Shortly afterward, Gates and Allen founded Microsoft, deriving the name from the words microcomputer and software They refined BASIC and developed other programming languages over the next few years Microsoft was commissioned in 1980

by International Business Machines Corporation (IBM) to create the operating system, or core software, for the IBM PC, the company’s first personal computer After making changes, Microsoft renamed the operating system it had bought from another business as MS-DOS (Microsoft Disk Operating System)

1981 saw the debut of MS-DOS along with the IBM PC Following that, most personal computer manufacturers licensed MS-DOS to be used as their operating system, which brought Microsoft enormous profits By the early 1990s, the program had sold over 100 million copies and had vanquished competitors like IBM OS/2 and CP/M, which it had first replaced in the early 1980s Microsoft strengthened its stronghold in the operating system market with Windows, a graphical user interface whose third iteration garnered widespread recognition upon its troduction in 1990 About 90% of PCs worldwide were running Microsoft operating systems in 1993, when Windows 3.0 and its successors were selling one million copies every month The business developed Windows 95 in 1995, which equaled Apple Computer's Mac OS in simplicity of use and for the first time fully merged MS-DOS with Windows Microsoft, which was founded in 1985 and was already well-known for the popularity of its multimedia encyclopedia Encarta, significantly mcreased the size of its electronic publishing branch With a broad range of goods and services, it also made forays into the information services and entertainment sectors The most notable of these were the Microsoft Network and MSNBC, a joint venture between the company and the National Broadcasting Company, a significant American television network that ran from 1995 to 2012

Thus, by the mid-1990s, Microsoft—which went public in 1986—had established itself as one of the most profitable and potent brands in American history It maintained an astounding record profit margin of 25 cents on every dollar of sales The business reached $2 billion (about $6 per person in the US) (about $6 per person in the US) (about $6 per person in the US) in net income for the first time in its 1996 fiscal year, and it went on to produce profits continuously even throughout the 2007-09 Great Recession (by the

2009 fiscal year, its net income had risen to more than $14 billion (about $43 per person in the US) (about

$43 per person in the US) (about $43 per person in the US) (about $43 per person in the US)) Microsoft and its supporters responded that its rise had spurred technological innovation and competition rather than restricting either, and that its software had steadily become more affordable and useful After a U.S Justice Department inquiry ended in 1994, Microsoft modified some sales practices—practices that the agency claimed allowed the corporation to unfairly dissuade OS users from trying other programs—as part of a settlement agreement The next year, the Justice Department successfully objected to Microsoft's plan to acquire Intuit Inc., the top PC financial software maker at the time

2 Microsoft’s organizational structure

Microsoft has a product-type divisional organizational structure, with each division fastening on a specific line of goods and services likewise, each has a separate exploration and development arm and devoted deals and client support staff

Since current CEO Satya Nadella was appointed in 2015, the company has experienced several structural changes Presently, Microsoft has two core engineering (product development) divisions

¢ Functional structure

- Microsoft has a farther seven functional divisions

- Business Development and Evangelism

- Finance

- Human coffers

- Legal and Commercial Affairs

- Engineering (operating systems, bias, workrooms, operations, services and pall and enterprise units)

- Dynamics

- Advanced Strategy and Research

Despite each division having some autonomy, divisional heads must still report directly to Nadella

¢ Geographic divisions

Microsoft also contains two geographic divisions United States and International

® Span of control

Microsoft has a wide span of control (SOC) This means the company has a comparatively advanced number of inferiors under a single director

se Centralization

Unlike Apple — where decision- timber is made by all situations of operation — Microsoft remains centralized with opinions made by those with authority

introduced by Bill Gates, centralized decision-making standardizes work affairs and removes the eventuality of impulses This creates a unified company with universal norms of performance and progression

e Advantages

Streamlined invention With a product-grounded divisional structure, workers work on systems that suit their chops and Moxies probative leadership with access to the CEO gives product specialists the freedom and coffers to introduce This ties in nicely with Microsoft’s core strategy of creating a family of integrated bias and services

Minimization of internal conflict With little imbrication in the compass of each division’s conditioning, there's little chance for conflict over coffers or chops

Inflexibility and responsiveness Each division operates as a pseudo-entity, equipped with the functions and coffers necessary to negotiate its charge This makes the divisional structure of Microsoft more adaptable Divisions can be added, removed, or intermingled as needed and do not impact other units

e Disadvantages

Incompatibility The divisional structure has led to a script where Microsoft’s own products were inharmonious with each other This passed when the business software division was unfit to integrate Microsoft SharePoint with Windows Live

minimum consideration for transnational requests Microsoft has a sole geographic division for the rest of the world sans the United States It could be argued that a single geographic division fails to capture the nuanced differences between indigenous requests

crucial takeaways

e Key takeaways

Microsoft has a product-grounded divisional organizational structure The company has sought to streamline product development over time, with current CEO Satya Nadella creating just two product divisions These are Cloud and Artificial Intelligence Platforms, guests, and bias

Microsoft has a further seven functional divisions, with each divisional head reporting directly to Nadella Microsoft’s divisional structure helps it streamline invention and support a core strategy of intertwined products and services Divisions also help the company operate as a collection of flexible and adaptive realities with separate operations and access to coffers

3 Microsoft’s objectives and strategies

Microsoft’s Generic Competitive Strategy (Porter’s Model)

Microsoft Corporation uses broad isolation as its general strategy for competitive advantage Broad isolation involves unique products tended to a wide variety of guests In this case, the company’s products are unique in terms of features, like software products specifically designed for business associations Also, this general competitive strategy is broad in the sense that the company sells its products to colorful request parts For illustration, mdividualities, homes, and associations buy Microsoft’s consumer electronics and pall- grounded storehouse products Through the broad isolation general strategy, the company builds its competitive advantage to attract a large population of guests encyclopedically This general strategy also aligns with Microsoft’s commercial charge statement and commercial vision statement, which emphasize landing a global market A strategic objective applicable under Microsoft’ s broad isolation general strategy is to develop business competitive advantages through nonstop product invention This strategic ideal is pivotal to long- term success, considering that Microsoft operates in a fleetingly changing and dynamic assiduity The oneness of product design is another strategic ideal linked

to the broad isolation general strategy This strategic objective highlights the significance of palpable and impalpable attributes of products as considerations in erecting the competitive advantages and business strengths enumerated in the geek analysis of Microsoft Corporation For illustration, aesthetic design and effective branding can strengthen computer tackle products against reproduction particularity to the Windows operating system can also help reduce the problem of product reproduction

Microsoft’s Intensive Growth Strategies (Ansoff Matrix)

e Market Penetration (Primary Strategy)

Request penetration is the primary ferocious strategy that Microsoft uses to grow its business This ferocious growth strategy volves dealing further products to the requests where the company presently has operations For illustration, the company grows by enhancing its marketing and deals in its current

requests in Asia This ferocious growth strategy is responsible for Microsoft’s global dominance in the IBM PC-compatible operating system request The company effectively applies request penetration through the broad isolation general strategy, which uses product oneness to attract further guests from colorful request parts A strategic ideal grounded on this ferocious strategy is to ensure business growth through Microsoft’s marketing blend (4Ps), involving aggressive deals and marketing strategies and tactics

e Product Development (Secondary Strategy)

Microsoft Corporation uses product development as a secondary ferocious growth strategy This ferocious strategy facilitates growth grounded on the development and trade of new products For illustration, the company continually develops new software products to induce advanced earnings Through new products that address request requirements, the business supports its general strategy, which requires product oneness as a competitive advantage This ferocious strategy of product development points to the strategic ideal of enabling business growth through product invention, with support from Microsoft’s operations operation for the design of goods and services, quality operation, and other areas

e Market Development (Supporting Strategy)

Request development is a supporting ferocious growth strategy that has a considerable but minimal mmpact on Microsoft’s current business performance request development supports business growth through the establishment’s entry into new requests For illustration, in its early times, Microsoft applied this ferocious strategy to vend its computer software products outside the United States Still, considering that these products were formerly encyclopedically popular, request development is no longer as significant in the company’s growth The general strategy of broad isolation empowers Microsoft in applying request development as a ferocious growth strategy In case, through unique business-specific computer products, the company originally entered overseas requests A strategic ideal linked to this ferocious strategy 1s to grow the information technology business by entering new requests, in developing countries or regions

e Diversification (Supporting Strategy)

Microsoft Corporation considers diversification as a supporting ferocious growth strategy In this ferocious strategy, the company grows by developing or acquiring new businesses For illustration, the company diversified its business when it acquired Nokia’s bias and services division to re-up the smartphone tackle request Microsoft can effectively apply this ferocious growth strategy through new product development in new business gambles, grounded on the broad isolation general strategy A strategic ideal grounded on the ferocious strategy of diversification is to grease the information technology company’s growth through combinations and accessions These combinations and accessions come with changes in Microsoft’s organizational structure or commercial structure

4 Microsoft's performance

The purpose of HRM practices is to manage the people within a workplace to achieve the organization's mission and reinforce the corporate culture When people management is done effectively, HR managers can help recruit new employees who have the skills to further the company's goals HR professionals also aid in the training and professional development of employees to meet the organization's objectives

A company is only as good as its employees, making HRM a crucial part of maintaining or improving the health of the business Additionally, HR managers monitor the state of the job market to help the organization stay competitive This could clude ensuring compensation and benefits are competitive, events are planned to keep employees from burning out and job roles are adapted based on the market

¢ How does HRM work?

HR professionals manage the day-to-day execution of HR-related functions Typically, human resources can be assessed in numerous ways, depending on the specific aspect you are interested in Here is a brief overview of how they have been doing in some key areas:

e Financials

Record revenue and operating income in fiscal year 2022: Microsoft reported $198 billion (about $610 per person in the US) (about $610 per person in the US) in revenue and $83 billion (about $260 per person in the US) (about $260 per person in the US) (about $260 per person in the US) in operating income, both representing significant year-over-year growth

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Microsoft Cloud surpassing $100 billion (about $310 per person in the US) (about $310 per person in the US) in annualized revenue:

This segment, driven by Azure and other cloud services, has been a major growth engine for the company

e Strong stock performance:

Microsoft's stock price has steadily climbed over the past few years, reaching all-time highs in late 2023

e Products and services:

Surface Laptop, Microsoft Office 356, Microsoft Office, OneDrive,

¢ Continued dominance in productivity software:

Office 365 remains the leading suite of productivity applications for businesses and consumers alike

® Growing cloud market share:

Azure is the second-largest cloud computing platform globally, and Microsoft continues to invest heavily

in this area

e Success in gaming:

Microsoft's Xbox division has seen rapid growth in recent years, driven by the popularity of its Game Pass subscription service and new hardware releases

Overall, Microsoft's performance has been extraordinarily strong in recent years The company is well- positioned to benefit from ongoing trends in cloud computing, remote work, and gaming

5 Management of Human Resources

e HUMAN RESOURCES MANAGEMENT AT MICROSOFT

Reclamation and Selection — In the morning Bill Gates 1s the driving force for Microsoft and from the moring of the company he believed in retaining extremely intelligent staff, favoring intelligence over experience, “his preference for hiring extremely intelligent, not inescapably educated, new council graduates dated from Microsoft's launch- up days, when he and cofounder Paul Allen signed the brightest people they knew from the academy — their ‘smart musketeers’” (Bartlett 1)

From the beginning Gates realized that his workers were his topmost means, shown by his quotations including “It's the effectiveness of our mventors that determines our success” and “take our 20 stylish people down, and I'll tell you that Microsoft will come to an insignificant company” (Bartlett 2) The reclamation strategies in the morning included people from elite educational installations like Harvard, Yale, MIT, Carnegie-Melon, and Stanford

The first stage was an interview “by at least 3, and occasionally over to 10, Microsoft workers” (Bartlett 2)

After the interview, canvassers would e-mail their decision on the interviewee with the words “Hire ‘or’

No Hire” and commentary on the problem area, the unborn canvassers would also use this commentary to further probe whatever issues there were with the interviewee (Bartlett 3)

This canvassing process was a ‘make or break’ one, where pollsters were pushed to their limits, if they thrived and survived this meant they would also thrive and survive in the Microsoft working terrain

After this series of interviews, if the maturity of canvassers were favorable, the interviewee would meet with their director, and this director would make a final hire/no hire decision

This person is meant as a final check that they are a good Microsoft person and to help directors hire the wrong people because they need to fill a certain position (Bartlett 3) This policy remforces that hiring the right people is more important than hiring just to fill a position

e Recruitment and Selection — Later Stages

Microsoft retained the same introductory principles as they expanded but had to change their styles when the number of new workers needed could no longer be sourced only from universities

These staff were set up, covered, and signed from other companies by over 300 recruiting experts, “once someone had been linked as hard core — Microsoft's circumlocution for the kind of talented and impulsive people they sought — the pursuit was grim, if subtle

Microsoft also took advantage of breaking openings like company layoffs, one illustration is with the AOL size, “when we heard AOL was denting Netscape's operations in the vale, we assembled a platoon

to identify the stylish gift and go knocking on doors” (Bartlett 10)

Recognizing that the maturity of workers was just out of the council, the Microsoft company operated like

a lot

Hand satisfaction was also swung by the occasion for growth, “development also passed by encouraging vertical transfers, and workers were encouraged to develop themselves by switching jobs” (Bartlett 6) One of the major changes was the demand for top operations to train lower situations, aiding in their development by doing so

These changes were all designed to increase hand satisfaction and commitment to the association while maintaiming the same spirit the small company began with

Once listed on the stock exchange, this continued, with the company offering stock options to workers grounded in performance

Critical to this is the link between individual performance and price, with semi-annual performance reviews linked to pay mcreases, perk awards, and stock options (Bartlett 7)

This formal review system also included more common evaluations by directors to ensure no

unanticipated diversions

The hand and director also meet to bandy the review (Bartlett 8)

Stock options awards are grounded on whether the hand is considered a long-term asset of the company and awarded on this base

This is an important symbol of Microsoft's commitment to retaming good workers