The customer pyramid ethical issues - Essay Example

Module Business Strategy INTRODUCTION Successful managers focus on building an internal system that can neutralize the externalchallenges to keep sustainably the business going (Catlin-Legutko and Klingler, 101). It is necessary to evaluate critically the situation at Microsoft Corporation and explore some of these elements that constitute the internal environment of a business. Corporate StructureOrganizational structure is the operational arrangement of the internal system of an organization that allows it efficiently works towards achieving the set goals and objectives (McGuire and Rhodes, 167).

Microsoft is uses divisional corporate structure to coordinate and supervise its activities in its pursuit of the organizational objectives. Initially, Microsoft Corporation used functional structure in which various personnel would be categorized and placed under on department based on their specialization. As the company grew, functional structure was rendered inappropriate. In the current structure (divisional), the company has divisions with each unit focusing on a specific line of goods.

Corporate CultureCorporate culture is the shared beliefs, ideas, values, traditions and behavior patterns that uniquely identify one organization from another. The belief system and values that members of a particular company subscribe extensively influence the exhibited organizational behavior. Microsoft Corporation was founded on the values and principles held dearly by its pioneer, Bill Gates. Gates believed initiating a computer company that could ‘enlighten’ and make even the less fortunate persons in the society realize their dreams would be noble.

It is this initial deep-rooted philosophy that Microsoft has been built on to become what it is today. Currently, the company subscribes to market culture in which all focus is on the customer. The company seeks to efficiently and diligently carry out its tasks to meet the demands of the worldwide customers (King and Lawley, 98).Corporate ResourcesMarketingOne of the major reasons why Microsoft has grown steadily in this competitive industry is the marketing unit. The company utilizes platforms such as the internet, retail outlets and other resellers to meet the targeted global market.

The legal support Microsoft Corporation has received enables it to flex the agreements terms in a way that supports its marketing process. For example, the Enterprise Agreement Direct Advisors (EDA) is one of those that have substantially supported the company’s marketing.FinanceConsequently, the finance situation at Microsoft is a cornerstone in its sustainability and development. Recently, the company announced revenue of over 26 billion dollars. There are periods when these figures shoot as high as $70 billion.

This can be explained by various factors among them, its stable foundation that was built by the founder. It also prioritizes in its investments and this has positively earned the company high revenues.Research & Development (R&D)Being in highly competitive industry that requires constant innovation and invention, the company has invested sufficiently on research and development projects. It has different divisions within the R&D unit that ensure every aspect and dynamics of technological development is well covered.

This subunit includes Cloud and Enterprise, Devices, Applications and Services, and Operating Systems. Its other affiliate; Microsoft Research sources it further with data and information on how and what the company should improve.Operations and LogisticsMicrosoft has systems and structures in place to ensure that workflow is achieved. With its global market target, it has set various regional centers that mediate the customers with the headquarter offices. It has regional branches, virtually, across the globe to allow for easy access to information and facilitate logistical operations.

Its Device & Consumer system has enabled it to generate an online platform that enables it to conduct online transactions.Human ResourcesWith a relatively large workforce the company has sought to utilize the technology it readily have to improve the welfare and interaction amongst the workers. The cloud platform has helped enhance the interpersonal relationship among the staff. Supervision, as well as communication between the workforce and their supervisors has been greatly enabled by the advanced technology available.

Information TechnologyMicrosoft’s information technology is robust. It integrates ad coordinates the tailor-made serve software with middleware to achieve high efficiency. The company’s operations are free-flowing owing to its sophisticated IT system that controls the activities of the firm. Its cloud platform and the Windows Serve are critical in ensuring both information and communication are well managed.Conclusion and Summary of Internal FactorsIn summary, the success of Microsoft can be attributed largely on the strong and stable internal factors ranging from the solid corporate structure, well-established culture, finance, human resources, information technology, marketing to operations and logistics.

The company’s choice of a divisional structure is well-timed as it functional structure cannot be used to manage the expansive global enterprise Microsoft has turned into. Its culture has also been overhauled by the new manager hence orienting the organization towards meeting the demands of the customers. SWOTStrengthsHigh level of technologyFinancial powerLarge customer baseRich foundationWeaknessSlow Innovation Lack of proper grassroots leadershipOpportunitiesInnovation CapabilitiesFurther expansion capabilitiesThreatsIncrease in competitionPossible mismanagement Work CitedCatlin-Legutko, Cinnamon, and Stacy Klingler.

Organizational Management. Lanham, Md.: AltaMira Press, 2012. Print.King, Daniel, and Scott Lawley. Organizational Behavior. Oxford: Oxford University Press, 2012. Print.McGuire, John B, and Gary B Rhodes. Transforming Your Leadership Culture. San Francisco, CA: Jossey-Bass, 2009. Print.