BILL GATES AND THE MANAGEMENT OF

MICROSOFT
I. Bill Gates and the Management of Microsoft

II. Title Context

1. William Henry “Bill” Gates III, widely known as Bill Gates is the chairman

of Microsoft, the multinational computer technology corporation. They

build the world’s largest software business, through business strategy,

aggressive business tactics and technological innovation. Bill Gates is the

chief software architect with more than 8 percent of the common stock;

reasoned why he remains the largest individual stockholder. He held the

position of CEO and ranked consistently one of the world’s wealthiest

people and the wealthiest overall as of 2009.

2. Summary

Founded in Albuquerque, New Mexico on April 4, 1975, Microsoft is

solely based on the advancement of technology. Founders Bill Gates and

his partner, Paul Allen founded the first ever computer software, which

sets Microsoft apart from all other competitors. This was the start for a

whole new type of computer. From working on computers, they have

created PC’s, Windows, Microsoft Office, and so much more. They’ve also

teamed up with cell phone companies to install their software into them.

Most people in first world countries who can afford to purchase any type of

technology most likely end up using a version of Microsoft, even if they

purchase another company’s technology.

3. Mission of Bill Gates

diversity and inclusion is to create an environmental that helps Microsoft

capitalize on the diversity of its people and the inclusion of ideas and

solutions to meet the needs of its increasingly global and diverse customer

base.”

4. Vision of Bill Gates

According to Bill Gates, “Our vision is to create innovative

technology that is accessible to everyone and that adapts to each

person’s needs. Accessible technology eliminates barriers for people with

disabilities and it enables individuals to take full advantage of their

capabilities.”

5. Corporate Social Responsibility

Microsoft strives to be a responsible partner to the society. If

society has placed its trust in Microsoft then Microsoft functions to sustain

the trust. To focus on it, the brand works in a manner that is inclusive

transparent and respectful of human rights.

III. Statement of the Objectives

1. To establish and preserve management accountability to Microsoft’s

owners by appropriately distributing rights and responsibilities among

Microsoft Board members, managers and shareholders.

2. To provide a structure through which management and the Board set

objectives and monitor performance.

responsible business practices.

IV. Central Problem

Microsoft’s biggest, most glaring shortcoming is the fact that it hasn’t yet

figured out how to gain a foothold in the mobile market and its ecosystem isn’t

standing up to the competition.

V. Areas of Consideration

1. Strength

i. Windows OS and Office software products are so popular not just

because Microsoft has great monopolistic power, strong distribution

channels and good brand reputation but also because its products

are great quality and really easy to use.

ii. Microsoft has been leading OS and software provider, which

resulted in more than 90% market share for PC OS. Most of us

grew using its easy to use OS, are familiar with it and will keep

using it. It seems consumers tend to have a brand loyalty.

iii. According to Inter Brand, Microsoft’s brand is the 5 th most valuable

brand in the world, valued at $ 57.8 billion. Forbes listed the

corporate as the 7th most reputable business in the world. Brand

reputation leads to higher sales and greater market share value.

2. Weaknesses

i. Microsoft is a giant software corporation but it does not produce its

own hardware and depends on computer hardware manufacturers

alternative OS would appear, hardware manufacturers may simply

choose the alternative and Microsoft could do little to change the

situation.

ii. Windows OS, the main Microsoft product has been heavily

criticized for being so weak against various viruses’ attack.

Compared to other OS, Windows is the least protected against

such attacks.

iii. Microsoft has huge R&D resources and great position to enter new

markets with innovative products but constantly failed to do so. It

had an opportunity to be the first player in online advertising but

missed the opportunity. Its entrance to mobile OS was also too late,

while Google and Apple captured the market share.

3. Opportunities

i. Microsoft could exploit the opportunity by introducing more of its

own tablets and a new company phone since smart phone and

tablets markets will grow steadily over the next few years.

ii. Microsoft could expand its range of cloud services and software as

the demand for cloud-based services is expanding.

iii. Microsoft could start acquiring new startups that would bring new

technology, skills and competences to the business with a huge

reserve of cash.

4. Threats
 i. Competitors like Google and Apple have already established

positions therefore Microsoft is more than ever on the pressure to

introduce successful OS both in PC and mobile markets.

ii. Customer shift from buying laptops and standalone PCs to buying

smart phones and tablets, the markets, where Microsoft has only a

modest market share and may never establish itself.

iii. Microsoft has already been sued for many times and lost quite a

few large scale lawsuits. Lawsuits are expensive as they require

time and money. And as of Microsoft continues to operate more or

less the same way, there is high probability for more expensive

lawsuits to come.

VI. Alternative Courses of Action

1. A possible solution to the problem is Microsoft should get more apps in its

store.

ADVANTAGE:

 Having a robust ecosystem is critical to retaining customers and

growing device sales.

DISADVANTAGE:

 Developers don’t want to build apps that there isn’t demand for, and

consumers don’t want a phone that doesn’t come with all their

favorite apps.

2. They should continue to develop the Microsoft phone.

ADVANTAGES:
  The experience of users using Microsoft phone shows that their

device still work fast though it depends on the particular device and

whether it is flagship or not. The smoothness of the interface, the

speed of running apps, switching between open windows,

performing other operations occurs just fine.

 The Microsoft operating system is still the most secure compared to

Android and IOS. This has something to do with the source code

and a reliable system of protection.

DISADVANTAGES:

 Microsoft’s smart phones have almost disappeared from the market

and continue to lose their positions. This is largely due to the lack of

new flagship devices, significant updates to the OS and little

attention to Microsoft’s own platform: often the company prefers to

support IOS or Android, releasing updates or even new applications

for the competing platforms, and only later for Windows 10 Mobile.

 Microsoft announced that it would no longer release test updates

for the Windows 10 mobile OS in January 2018. Previously, the

company admitted that the platform would no longer receive new

features and the autumn update of Fall Creators Update would

become the last major update for smart phones running on the OS.

3. For any small business the decision to switch to cloud-based system

where all pieces of date can be stored online is one that’s worth

deliberating.
ADVANTAGES:

 Everything can be saved onto the cloud server, so long as you

have internet, you can carry on working. Even if you have poor

internet connection or suffer from regular downtime, some Office

365 plans allow you to install the full desktop versions of the

programs so you can carry on working and simply sync the

changes once you’ve reconnected. This makes it highly convenient

for remote employees who work at home.

 A feature that allows businesses to monitor, regulate and protect

sensitive business date.

 The multi-collaboration feature also helps to save time as you don’t

have to wait for other people to finish working on the piece before

you can make your edits.

DISADVANTAGES:

 The biggest advantage of Office 365 is its ability to allow users to

access their work wherever they are, but this can also be its biggest

disadvantage. Since its all cloud-based systems, uploads its data

onto the web which is how you can access your work and not need

to be on-premises or use your office computer.

 If your business suffers from poor internet connection or regular

downtime, then this can be a problem as you won’t be able to

access your most recent files.

business could face. Finding out that it isn’t compatible with your

old system.

Recommendation:

I, therefore, conclude that the best solution to the problem is alternative course of

action no. 1 which is the Microsoft has to get more apps in its store. And whether they’ll

do it, they should cut prices on its mobile line, across the board. If Microsoft could offer

deep discounts on smart phones and tablets on a par with Google and Amazon, they

will gain traction in the marketplace. They could also leverage Office and Xbox to

increase the value add for these devices.

I. Plan of Action

1. They must find a way to incentivize app developers. It could do so by

paying the app developers outright and offering higher margins on sales.

2. Microsoft could come up by offering consumers significant credit toward

app purchases. This will help them capture the hearts of the local markets.

3. They must cut prices on its mobile line to generate more sales; it will solve

this problem more directly.

1. What if Microsoft doesn’t have a third-party manufacturers like HP, Dell,

Samsung, Leno HP, Acer, Asus, etc. will it face even greater competition

in the markets?

2. What if Microsoft could not adapt to the changes of the fast-evolving

competitors?

3. What if Microsoft is out of touch with consumers?

III. Contingency Plan

1. Microsoft manufacturer’s partnerships are a net positive for the company,

but this lack over its products made it even harder to control the brand and

innovate with new features and designs. The company should discontinue

its surface line and focus instead on surface pro, where it can charge a

premium since the market is growing fast.

2. Microsoft should find a way in able to adapt to the fast-evolving changes

of the market. It seems even IBM, who invented the term ‘PC’ switch to

Apple already. When products are less defective than their competition,

not only do they foster more productivity among their end users, but also

tend to be simpler.

3. Over the past few years Microsoft has seen its influence waning, and it’s

also made a number of key mistakes. A better pricing strategy is what

Microsoft needed most of all. They had to stop taking the premium-model

approach with many of its products like phone, tablets, laptops and Xbox.

Microsoft also needs to stop pushing the Windows 8 metro-tile interface as

device it makes sense, but for traditional computers, it’s just not what

consumer wants right now.