Strategy evaluation is vital to the organization of Microsoft Corporation well being. As we know, Microsoft Corporation is the main software company in the computer world, with brands amongst the most global and the specification of its operating systems almost in all computers. However, strategies that Microsoft Corporation uses are always need to be change in other to maintain the organization running the business effectiveness. Microsoft Corporation takes the huge responsibility and also implementing strategies in order to win the market and survive on the business scenario in today context. In the market nowadays, that is speculated that the successful companies in the industry that will be a competent the best go with the changing needs of potential customer. For the future product that towards technological integration of media products is predicted by Microsoft.
Referring to task 2, we select intensive strategies as a strategy that Microsoft Corporation must use for the future. The intensive strategies are required intensive efforts to improve a company such Microsoft Corporation to a position with their own product development. Strategy is an organization’s plan to success in future. The intensive strategies also well known as aggressive strategies which is involved the elements of market penetration, market development and product development for the company necessity. This proposal is also a strategic step aimed to ensure that Microsoft has a long term benefit in future regarding to the internet world and the ability to deliver world class search technology as part of their product offering.
We emphasized that the product development is an important strategy to develop the intensive approaches implemented by Microsoft Corporation. The Microsoft needs to develop and implement strategies for measuring and improving performance. In developing a products, there are need to create the new products and modify an existing products in order to enhancing their users of in the future.
4. 1 The resources to implement the strategy
The reputation of the company based on the successfulness of an organization that having the resources to implement the strategy. For instance, intensive strategies that we select as a strategy that Microsoft Corporation must use for the future. So, we propose the resources that Microsoft need to implement that strategy that we select in task 2 which is product development that a part of element in intensive strategies.
4. 1. 1 The resources to create new product
Create a new product mean that Microsoft Corporation should developing the new product regarding the resources that Microsoft need. The first step to create a new product, Microsoft Corporation must do a strong research and development capabilities. Other than that, the resources that Microsoft needs to implement the strategies are Marketing, Production, MIS, Finance, Human Resources and Development and etc.
4. 1. 1. 1 Research and Development
Research and development (R&D) is helping Microsoft Corporation to implementing the strategies which is enhance and will improve the reputation of Microsoft Corporation. Microsoft does R&D in advance technologies for future software products. Microsoft Corporation are needs to invest in research and development in the appearance of business for instance online solutions, mobile computing, online solutions, entertainment, communication and other areas that Microsoft Corporation believe can give advantages to their long-term growth. Microsoft Corporation also is needs to invest in R&D of advanced technologies for future software products.
3 major R&D approaches to implementing strategies for instance Microsoft Corporation must be 1st firm to market new technological products. Otherwise, innovative imitator of successful products and low-cost producer of similar but less expensive products can be a part of R&D approaches to implementing strategies.
As we know, Microsoft Corporation is the main software company in the computer world, and the specification of its operating systems almost in all computers. There are many technological that Microsoft Corporation has such as business software, entertainment which is games, hardware products, home and educational software, and also mobile device and software. Microsoft Corporation always comes out with their new product. For instance, the latest one product of Microsoft Corporation is Windows 7. Microsoft Corporation also is needs to invest in R&D of advanced technologies for future software products in order to compete in industry characterized by rapid technological development.
Low-cost producer of similar but less expensive products can be a part of R&D approaches to implementing strategies. Low cost producer mean that a corporation that can produce goods or services at a low cost. Generally, low-cost producer develop economies of scale in order to implement their strategy of low prices. On the other hand, low-cost producers could even price the goods or services at the same level as their competitors and keep up a wider scope. Low-cost advantages should lessen the attractiveness of substitute products. Business success built on cost leadership requires the business to be able to provide its product or service at a cost below what its competitor can achieve. New entrants competing on price must face an entrenched cost leader.
Marketing
Microsoft has been extremely successful in developing new products by promoting, or bundling, them with existing brands. The Windows operating system is perhaps the best example of this, where applications such as Internet Explorer and Media Player have become industry benchmarks due to their out of the box availability. A lot of organizations in the world consider Microsoft the top model of effective sales and marketing. Microsoft became one of the largest and most profitable companies in the world. Marketing are the important resources in order to introduce and promote the new product of Microsoft Corporation towards their customers or users.
Function of marketing is to create position for customer. For example, when Microsoft Corporation comes out with new products, it must do advertising in order to create awareness among the people. It can attract the people to use or buy the new product of Microsoft. According to lotsofessays. com (2010) Microsoft has to develop its product offerings and in doing so, it continues to encourage demand among software buyers for Microsoft’s newest and best products. The company has successfully navigated through changes in technology, the rise and fall of competitors, the growth of the Internet, and the globalization of business.
Production
Microsoft Corporation is seeking increased sales by developing a new product. On the other hand, Microsoft may need to replace with new product to increase the users of Microsoft product indirectly Microsoft can increase profit of their corporation. The main of Microsoft Corporation’s product is software. It includes various types for instance the windows, the Microsoft office and so on. According to Microsoft. com (2010) in the part of windows, there are a large amount of products. It displays them by windows, windows servers and windows live. For windows, the hot products like the windows 7, windows vista and windows XP are contained. In the part of windows servers, people can find the products of windows essential business server, windows home server and etc.
Finance
Microsoft must spend some money to implement the strategy that will select which is to create a new product toward advanced technologies for future software products. According to beginnersinvest. about. com (2010) the importance of the Web and connectivity is a persistent topic of its executives’ public addresses. So it should be no disclosure that Microsoft is spending its money where its mission is: broadband and communications investments and acquisitions. This investment can give a long-term benefit to Microsoft Corporation.
The resources to modify product
Microsoft not only have to focus in create a new product, Microsoft also must modify their product to fulfill the satisfaction of their clients in order to have a large potential clients and to make the clients loyal with product of Microsoft Corporation. Regarding on that, Microsoft needs a resources to modify product in order to implement the strategies on product development.
Research and Development
Microsoft must do R&D because it is very important in order to modify and enhance the product of Microsoft. There are many technological that Microsoft has such as business software, entertainment which is games, hardware products, home and educational software, and also mobile device and software. Microsoft invests in R&D in order to upgrade their products regarding to enhance and modify a technological product. It is important in order to modify and enhance the product of Microsoft.
Marketing
Marketing is the important tool of the resources to modify an existing product of Microsoft. Marketing is use to promote their product to users and the people. For example, nowadays most of users are using Windows Vista. However, Microsoft has launched the upgrade window which is Windows 7. Microsoft has needs to do marketing in order to introduce the enhanced of their products. By that, their clients are aware about the current products that Microsoft launched. By that, Microsoft can attract their potential and can keep their loyal clients. So from this, Microsoft can maintain and increase their sales and can make the corporation stable on profitability.
Production
At the highest level, Microsoft must think about innovation in relation to its ability to have a positive impact in the world. For Microsoft, it is not satisfactory to just only have a good plan, or a great proposal, or even a grand idea. Microsoft must determine their work by its broad impact. Microsoft Corporation will release a new and enhanced Hotmail at some with additional clutter-killing and spam-eliminating features. According to microsoft-watch. com (2010) a Microsoft management acknowledged that such an update was necessary to compete against rival offerings such as Google Gmail. Microsoft has upgrade from Windows Vista to Windows 7. According to microsoft. com (2010), Windows 7 has better ways to find and manage files. It is designed for faster and more reliable performance, so the PC just works the way we want it to.
Finance
Microsoft has spending money to modify their products to attract the people buy the products. As we know, Microsoft Corporation is always upgrading their software towards the advance technology in order to increase sales and compete with their competitor and challenger. Regarding on that, Microsoft should invest to modify product because Microsoft Corporation will get a long-term benefit in future if let say their clients will satisfy with the product and the business is running well. According to networkworld. com (2010) one of Microsoft’s most dramatic investments is whereas the company purchased $5 billion in AT&T securities that to accelerate the consumption of next-generation broadband and Internet services to million. Microsoft is continuing that trend and modifies the existing product. The company invested $50 million which is developing two-way broadband satellite access.
4. 2 Measuring organization Performance
Performance measures are excellent tools to determine how to implement the strategy of Microsoft, what Microsoft should do to measure effectiveness, where Microsoft need to make adjustment, and to focus on what really matter that Microsoft have facing. Organizational performance accumulated end results of all of the Microsoft’s process and activities. Measuring organization performance is needed to show effectiveness in order to get more and allocate resources.
An effective performance measurement and management system links individual and teamwork behaviors to the organization’s business strategies, goals, and values. In order to accomplish its targets, it is important for each worker to recognize individual roles and responsibilities for goal accomplishment, and there must be continuous conversation between leaders and workers of Microsoft Corporation to set performance potential, monitor development, and evaluate results. Through the performance planning phase, the first stage of performance measurement is including its mission, vision and objectives, and specific outcomes required to achieve the overall strategy.
The Microsoft needs to develop and implement strategies for measuring and improving performance. Careful planning, consistent in implementation strategies will help progressing of Microsoft to effective performance management. Otherwise, the importance of implement strategies is to improve what Microsoft has measure.
