STR 581 WEEK 1 Assignment, Career Connections – Values and Strategy Paper

STR 581 WEEK 1 Assignment, Career Connections – Values and Strategy Paper Choose an organization according to the following: • Current employer • Most recent or former employer • Place of business that you have patronized or have been familiar with over a long period of time. o Avoid choosing an organization that is so large that historical data would be difficult to apply. Firms in the Russell 2000® index may fit well, whereas firms in the Dow 30 Industrial index probably do not. • The organization can be a start-up that you or a significant other may create in the future. For a start-up, focus on an entrepreneurial idea that is of substantive interest, so this project leaves you with a product you may leverage in the future. Write a 1,050-word paper in which you address the following: • Identify the major components of the strategic management process. • Discuss how these components work together to create value for the organization. • Evaluate the company's mission statement, vision statement, motivation strategy, innovation strategy, and people strategy. If the organization does not have one or more of these, how does that affect the organization and its people? • Explain the role of ethics and corporate social responsibility in strategic planning. How does this direct their strategy? How does the organization's vison and mission align with your own values and vision? If you are currently working for the organization, how does your role influence this and vice versa? Career Connection: Values and Strategy Paper Bill Gates founded Microsoft in 1975 and held the vision of ensuring every desktop have at least one personal computer. Microsoft has established itself over the years to become the leader in several industries. In fact, the firm has been listed in the Fortune 100 and has amassed an exceptional portfolio of partnerships, customers, worldwide activity and resources (Chauhan, 2015). This paper evaluates Microsoft’s strategic management with the aim of suggesting recommendations for future implementation. Mission Statement The mission statement of Microsoft is provided by Bill Gates and is as follows: “Our vision is to create innovative technology that is accessible to everyone, and that adapts to each person’s needs. The accessible technology eliminates barriers for people with disabilities, and it enables individuals to take full advantage of their capabilities” (Chauhan, 2015, p. 2). External Opportunities and Threats Given its superior financial resources, Microsoft can acquire new start-ups which would introduce fresh skills, technology, and experiences to the firm. Also, since mobile advertising is projected to develop significantly shortly, the company could take the chance to join these markets with its mobile operating system (Chauhan, 2015; BurgeSmani and Wheelwright, 2004). Moreover, tablets and smartphones markets are expected to expand further, which gives Microsoft the opportunity to benefit from introducing its smartphones and tablets. On the other hand, the fact that consumers are changing their preference from personal computers to tablets and smartphones is a substantial threat to Microsoft. Microsoft tends to possess only a modest share in such markets (Chauhan, 2015). Also, Microsoft is compelled to come up with a desirable operating system for both personal computer and mobile given that its competitors such as Apple and Google have already established their own (Chauhan, 2015; Hitt et al., 2012). Internal Strengths and Weakness Microsoft products, especially Windows OS, have are popular among users because they are top-quality and often easy to use (Chauhan, 2015). Furthermore, the company has a huge cash reserve which has allowed it to put in considerable investments into R&D. However, Microsoft has been known to make several poor investment decision. Many of their acquisitions such as WebTV and Link Exchange have shut down (Chauhan, 2015). Further, the acquisition of Nokia led to a substantial drop in Microsoft’s share prices. The firm has projected a full recovery of these losses by 2016, but that is a long strategy because it is dependent on the prospective growth of the smartphone fair. Capabilities and Main Competencies A firm’s resources and capacities have to surpass those of competitors if the company is to have a higher strategic value (Hitt et al., 2012). Resources consist of a firm’s assets while capabilities refer to the manner in which the business makes use of its resources efficiently. Tangible Resources Microsoft has a cash reserve of approximately $67 billion which gives them a high level of financial flexibility (Chauhan, 2015). Additionally, since the company has a low financial leverage, it would be able to able to chase more debt financing to facilitate growth. Microsoft also has a proper customer base as well as well-built distribution channels for its products, consisting of mostly retailers and online merchants. Given the high amount of tangible resources, Microsoft has substantial resilience, reserves investment capacity and borrowing capacity. Intangible Resources Intangible resources may be reputation, know-how or business culture. Microsoft’s high-tech resources are majorly intellectual property and research capabilities. For instance, the company holds a vast patent portfolio and other kinds of intellectual property (Chauhan, 2015). Additionally, the company has a good reputation from its customer, making it second only to Apple in brand value. The business culture at Microsoft may be described as team-oriented and somewhat casual (Chauhan, 2015). Employees are highly valued and, in turn, they offer their commitment, giving the company a considerable competitive advantage. Human Resources A firm’s human resources may be evaluated regarding the average level of commitment and qualifications of its workers. Microsoft has excellent human resources because it employs the best talent in the information technology industry (BurgeSmani and Wheelwright, 2004). Capabilities A company should strive to convert its resources into capabilities to realise a competitive advantage (Hitt et al., 2012). Microsoft has several capabilities that allow the company to utilize its resources efficiently, including brand management, study capability, continuous improvements, financial control and engineering and technical expertise (Chauhan, 2015). Recommendations Microsoft has been a long-standing leader in several industries and has strong capabilities and resources to progress even further (Chauhan, 2015). Nonetheless, there is a need for improvements in the following areas: Reduce Bad Investments Apparently, Microsoft has made several poor investment decisions over the past few years (Chauhan, 2015). Such mistakes may be turned around if proper research is carried out before committing any money into new acquisitions. Product Innovation and Invention Microsoft has always excelled in creating exceptional in-house products such as Office Suit, Windows operating system and Windows Server (Chauhan, 2015). Therefore, the firm should use more resources in developing new products rather than making new acquisitions. Establish Strategic Alliances Making several strategic business alliances always enables a firm to remain dominant in the market (Chauhan, 2015). Even though Microsoft has managed to do so, it should focus on keeping the existing alliances and create more. References BurgeSmani, R. A., & Wheelwright, S. C. (2004). Strategic management of technology and innovation. READING, 1(1). Chauhan, C. (2015). Microsoft Corporation: Strategic Analysis Report (). Hitt, M., Ireland, R. D., & Hoskisson, R. (2012). Strategic management cases: competitiveness and globalization. Cengage Learning.