The Performance Objectives of Microsoft - Case Study Example

s s of Any organization may be analyzed based on its pre-determined performance objectives and the delivered results against those objectives. An apparent gap between the two directly points out to failure in strategy while having met certain objectives point to the strengths of the organization. However, this is not the case in every situation. The ground realities may be quite complicated to make a generic conclusion. Thus, various theories may be applied and strengths and weaknesses of each objective may be considered. Furthermore, the market competition and the performance of other organizations in similar industries may be assessed. To prove the point, the example of Microsoft may be analyzed since it is comparatively easier to compile data owing to the transparency policy of the organization; whereby all reports and strategy objectives alongside other company deliverables are available on request. Similarly, field data may also be gathered due to research-friendly policy of the organization. Microsoft offers a diverse range of information technology applications in the ever changing industry where innovation and globalization drives the business. In this context, Microsoft is aiming at performing on a scale where digital experience for the users enhances and technology becomes more intuitive to suit the needs of humans. However, the technology outcomes have been compromised to some extent, especially with reference to newer versions of technology like cloud computing since the customers fail to encourage the sales by denying on licensing the products. This has, however, more to do with the competition where other smaller companies are reaching out to the clientele base with products which don`t need to be licensed since their revenue generation base differs from that of Microsoft. In this context, various recommendations can be made to Microsoft in order to improve their performance against the set objectives. To elaborate on the company`s performance, the objectives need to be discussed first. An analysis of the company`s various reports as well as on first hand interaction with various stakeholders in the company, five major objectives may be concluded; though in originality, there are a wide range of objectives set by the company. Following are five of these objectives, which seem to be gauging the major chunk of preferences of Microsoft; To deliver high value, state of the art digital experience to the people all around the globe Establishing windows as the central platform for the entire ecosystem of the information technology world, where developers` needs may be in sync with the needs of the newer technologies i.e. PC, Tablets, Mobiles phone etc Building cloud based applications never experienced before to enhance business opportunities for individuals and companies all around the globe To develop technology which is not only machine friendly, but also highly intuitive to the needs of the humans To develop investor relations as friendly and as interactive as possible by ensuring transparency in information by publishing all material related to the company online In order to scrutinize the performance around these objectives, an analytical model may first be applied. In this context, the SMART objectives models may be coupled with Theory Y to foresee, analyze, predict and even recommend on the performance objectives of Microsoft. SMART model suggests that the objectives must be Smart, Measurable, Achievable, Realistic and Time bound. However, an issue with the set objectives in this context is that all objectives aren’t too quantifiable, and can only be judged based on the revenue generation, which doesn’t explain performance around all the objectives separately. Theory Y suggests that if the management style would be participative, the employees would be motivated enough to achieve the objectives. This model is central to the goal setting agenda on Microsoft since the objectives aren’t traditional ones; rather they ought to deal with innovation and high level of employee independence. Therefore, on interacting with the stakeholders in the company, a few performances related measures may be stated. The first objective is being handled by introducing application and syncing them with each other to offer digital high ground i.e. for instance syncing Skype with Microsoft office and excel to offer a better business environment. Similarly, the second objective is being met on hiring the most talented resources from around the globe to drive innovation in the organization. The third objective which deals with cloud computing is being met by deploying technology is a business friendly manner in such a way that identities are being protected in order to ensure that the future of the company is safe with cloud computing. The fourth objective is also being met by engaging the developers and technical resources into creating products which are closest to human intuition. The last objective of develop investor friendly relations is being met by ensuring transparency by using social media as a tool to actively engage in an online interaction with all the stakeholders. Thus, complying by the principles of theory Y, the management is employing ways to generate a pool of talent which is motivated enough to create state of the art products. An extensive analysis of the various strategies employed by the organization alongside the interaction with the stakeholders reveal a more holistic view of the patterns via which objectives are intended to be met. An analysis indicates that the Enterprise business Solutions is a significant aspect of management; also this aspect is the one where most of the competition exists. In other words, various other conglomerates and companies offer services in terms of strategy and application development where the clientele base may seek the required services from a pool of options. Furthermore, business planning and also the infrastructure services similar to Microsoft exist in other companies as well. Furthermore, the business niche of Microsoft i.e. the business community, students around the globe amongst others is also the focus of other companies where technology specific applications may be sought (Cushman & Kings 2003: 14-15). For instance, Microsoft Dynamic online CRM`s package is currently competing with Salesforce.com for CRM offerings. Similarly, Microsoft`s Azure is competing with Google, IBM, Amazon, VMware, Salesforce.com amongst other source offerings. Similarly, the operating system of Microsoft i.e. Windows system has to compete from operating systems from Google and Apple. However, Windows deals with the competition by offering flexibility, customer`s choice, user friendly interface along with compatibility with major other devices. Thus, Microsoft is striving to be amongst one of the largest operating systems enabling productivity and network support which competes in order to compete with other companies as well. However, on interviewing the significant stakeholders another issue seemed significant i.e. the issue of D&C Licensing. On one hand where Microsoft requires proper licensing to acquire full versions of the applications, on the other hand applications for other companies like Apple and Google, also other smaller companies offer similar software without the conditionality of licensing. Furthermore, companies like Apple distribute its products with pre-installed applications for instance, the emails, calendars, note taking and other similar applications are pre-installed for convenience. Similarly, Google offers a productivity suite and hosted messaging service via Chrome and Android. However, Microsoft gives the comparative advantage of being user friendly and powerful, yet secure and accessible from a wide range of devices (Arthur 2012: 54-55). Thus, in the given scenario, Microsoft has to compete in terms of innovation and offering intuitive solutions for programmers and developers around the globe where a wider array of personalized applications may emerge. Yet, Microsoft hasn’t given up on its policy of offering complete services only to licensed users since it believes in authenticity and offering secure packages. Yet, it gathered a revenue worth $18,803 million from licensing alone, while gaming hardware comprised only for about $9600 millions, which indicate how the revenue generation owes a lot to licensing alone (Hiezer & Render 2014:77-78). Thus, the entire range of objectives depends on the resource pool which is determined to offer innovative services to compete in the otherwise vibrant market. Since the innovation is driven by research and development segment of any company, thus, an analysis of Microsoft in terms of its research and development base is also crucial. The research expenditure in the year 2013 for Microsoft was $9.8 billion, while for the year 2014 is $11.4 billion (Finn 2014: 99). This drastic increase in expense suggests that Microsoft has been focusing on investing over market driven innovation to enhance its clientele base. Furthermore, the products and also the services in Microsoft are developed amongst four engineering groups. The first group is the ‘applications & Service Engineering Group’ which focuses on broad range of applications. Similarly, the second group is ‘Cloud & Enterprise Engineering Group’ which deals with back end applications, database and datacenter. The third group is the ‘devices engineering group’ which includes Xbox consoles, Lumia Smartphones and other similar devices. The last one is the ‘operating systems Engineering Group’ which deals with operating systems for PCs, mobile phones and other devices. Thus, the research and development base of Microsoft is quite strong and well managed, which leads toward developing a strong backbone for innovation and technological advancement. (Baporikar 2014: 66-67) Therefore, based on the findings generated via various resources the strengths and the weaknesses of the company may be pointed out. Based on these trends, various recommendations may also be made. The stronghold of Microsoft is its research and development facility which paves way for innovative products and services, where user friendly, intuitive and technologically advanced products are conceived and distributed. In terms of products and services, Microsoft has comparative advantage of being authentic yet user friendly and flexible. Also, other companies offer applications which aren’t accessible on all applications while Microsoft`s product can be synced with many other devices and applications. However, it is still relying on licensing where pirated versions of their programs are available which many people make use of. Yet, a few weaknesses may also be pointed out. The strategy trend is a little clichéd, for instance, the licensing trends and business enterprise solutions follow the strategies which are no longer a part of major organizations. For instance, Apple follows quite an impressive strategy where every product has a grand launch and all products go through a rigorous marketing procedure in such a way that it gives the impression of being the most desirable brand. Also, applications like ITunes which require licensing do so by means of email address and minute payments can be made while purchasing the tune (Wolenik 2014:44). On the other hand, Microsoft only allows access to trial versions while complete packages can only be purchased after licensing. With advancement in the field of IT, and collaboration of IT projects with cloud computing, such products would be available free of cost by smaller companies, which may affect revenues of Microsoft. Thus, Microsoft should start working on a way to transform the procedure of licensing in such a way that cost is minimized and benefits are maximized. Therefore, Microsoft must undergo minor changes in strategies in order to emerge as a unique yet vibrant brand in context to the ever changing aspects of globalization. Thus, conclusively, Microsoft has been analyzed in the paper in order to assess the performance objectives of the organization. The company was chosen out of a multitude of options since it is comparatively easier to compile data owing to the transparency policy of the organization; whereby all reports and strategy objectives alongside other company deliverables are available on request. Similarly, field data was also gathered which was possible due to research-friendly policy of the organization. Microsoft offers a diverse range of information technology applications in the ever changing industry where innovation and globalization drives the business. In this context, Microsoft is aiming at performing on a scale where digital experience for the users enhances and technology becomes more intuitive to suit the needs of humans which are the basic priority sectors for any company competing in the sphere of IT. However, the technology outcomes have been compromised to some extent, especially with reference to newer versions of technology like cloud computing since the customers fail to encourage the sales by denying on licensing the products. This has, however, more to do with the competition where other smaller companies are reaching out to the clientele base with products which don`t need to be licensed since their revenue generation base differs from that of Microsoft. In this context, it may be suggested that the company must focus on redesigning certain aspects of the strategy to further enhance revenue generation aspects for the organization. References: ARTHUR, C. (2012). Digital wars: Apple, Google, Microsoft and the battle for the Internet. London, Kogan Page. CUSHMAN, D. P., & KING, S. S. (2003). Communication best practices at Dell, General Electric, Microsoft, and Monsanto. Albany, State University of New York Press. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=114209. FINN, A. W. (2014). Microsoft private cloud computing. Indianapolis, Ind, Wiley Pub. http://www.books24x7.com/marc.asp?bookid=46785. BAPORIKAR, N. (2014). Information Strategy as Enabler of Competitive Advantage.International Journal of Strategic Information Technology and Applications (IJSITA). 5, 30-41. HEIZER, J. H., & RENDER, B. (2014). Operations management: sustainability and supply chain management. Boston, Prentice Hall. WOLENIK, M. J. (2014). Microsoft Dynamics CRM 2013 unleashed. Read More