Microsoft Case Study Harvard Business School

The term "culture" has been used more and more recently but what exactly does it mean? Some have even regarded culture as "the most central problem of all social science" (Malinowski, 1939). According to Merriam Webster (2016), culture is defined as the arts and other manifestations of human achievements. If culture was as simple as Merriam-Webster defines it then the lives of anthropologists, sociologists, and psychologists would be much easier. As we know, culture varies greatly across religion, countries, and some cases in just states; the difference between the north and the south. We can conclude that culture is a set of shared thoughts, values, and cognitions (Geertz, 1973). With culture in itself varying tremendously based on values and location, then surely organizational culture is no simple concept either. The term "organizational culture" has just recently become to be used more (Barley, 1988). Though there may be disagreements on defining culture universally, researchers tend to agree that culture is of vital importance in an organizational context, whether that organization is a company or a government (Kilmann, Saxton, & Serpa, 1986).

“Culture consists of the symbols, rituals, language, and social dramas that highlight organizational life, including myths, stories, and jargon. It includes the shared meanings associated with the symbols, rituals, and language. Culture combines the philosophy of the firm with beliefs, expectations, and values shared by members. It contains the stories and myths about the company's founder and its current leading figures. Organizational culture consists of a set of shared meanings and values held by a set of members in an organization that distinguish the organization from other organizations. An organization's culture determines how it perceives and reacts to the larger environment (Becker, 1982; Schein, 1996). Culture determines the nature

“Microsoft aspires to be a great company, and our success depends on you. It depends on people who innovate and are committed to growing our business responsibly. People who dedicate themselves to really satisfying customers, helping partners, and improving the communities in which we do business. People who are accountable for achieving big, bold goals with unwavering integrity. People who are leaders, who appreciate that to be truly great, we must continually strive to do better ourselves and help others improve.”

Microsoft’s story serves as a prime example of the pitfalls of success. In this case we can analyze, critique, and make recommendations to avoid a similar disaster in the future. While they were

All Organisations posses a distinct form of culture with some having more than a single culture. This culture is usually very difficult to measure, change and most especially change.

Microsoft Corporation firmly pursues long term positioning strategy of differentiation that focuses on branding, quality service, software design and innovation as opposition to low cost strategy that centres on reduction of input costs and economies of scale. It is essential to notice that organisations that pursue differentiation strategy like Microsoft contain highly skilled employees that help in developing reputation of the organisation. Microsoft is one of the market leaders in software

“Organizational culture consists of a set of shared meanings and values held by a set of members in an organization that distinguish the organization from other organizations” (Baack, 2012). These shared values have a strong influence on the people in the organization and dictate how they dress, act, and perform their jobs. Culture plays a huge role in the guiding of the behaviors of employees of an organization. There are three stages of culture that interact with one another to influence the behaviors in the organization. These stages are: observable artifacts, espoused values, and enacted values.

Guided by a belief that the computer would be a valuable tool on every office desktop and in every home, they began developing software for personal computers. Gates' foresight and his vision for personal computing have been central to the success of Microsoft and the software industry. Under Gates' leadership, Microsoft's mission has been to continually advance and improve software technology, and to make it easier, more cost-effective and more enjoyable for people to use computers. The company is committed to a long-term view, reflected in its industry-leading investment in research and development each year (Microsoft, 2011).

Microsoft’s mission statement under Bill Gates was “a computer on every desk and in every home,” and there is no doubt that the mission has been accomplished. The mission statement was short and very clear as to its intent. Using the SMART technique, Microsoft’s mission statement was measurable, and its progress could be easily tracked.

Cultural organization is unique and configures their norms, beliefs, values, and behavioral characteristics into the individual and groups that unite to get things accomplished. Patterns begin to evolve and become a rule of basic assumption; whether it is a new idea, one recently discovered or under development by a certain group as they learn to cope with internal integration and external adaptation problems. Cultural characteristics are hard to define because culture is multi-dimensional with integrated components that intertwine at different levels and ever-changing which takes time to establish and therefore time to change it also. Culture becomes the fabric or social glue that unites its participants, this will counteract any processes that are different becomes an unavoidable side-effect of life in an organization. Mutual understandings and a shared system of meanings becomes the basis of communication in a cultural organization. Functions of a society need to be fulfilled with a certain amount of satisfaction or culture can impede the efficiency of that organization. Problems with this concept arise when trying to categorize culture or when, why, or how corporate culture should be changed or finding the best, healthiest or most desirable one.

Organizational culture can be divided into four categories through the competing values framework: clan culture, adhocracy culture, hierarchy culture and market culture. Clan culture is characterized by employee development or empowerment, teamwork, commitment, participation and loyalty. Market culture is oriented toward the external environment and it is focused on transactions with external constituencies, including customers, suppliers and regulators etc. (Cameron & Quinn, 2011) A clan culture is more like a family-like type of working environment that emphasizes consensus and commonality of values and goals.

There are many definitions of organisational culture available in the literature, many of which are based on the fact that culture consists of values, beliefs, and assumptions shared by the majority of members of an organisation. These characteristics and shared views are then translated into common and repeated patterns of behaviour. Although it is difficult to come up with a single definition that would cover

This essay will utilise the following structure. It will commence by providing the reader with a brief history about Microsoft and then go onto explaining what corporate strategy is. Following this will be Microsoft’s diversification strategy in parallel with the reasons why they choose to diversify. Within this section the author plans to explore Microsoft’s related diversification approach, their corporate rationale, alongside why skill transferring is essential to them sustaining a competitive advantage and also how they achieved

Mr. Gates’ also explains how Microsoft tackled the challenge of integrating the Internet to be compatible with various Microsoft products. The biggest dilemmas were determining what should be incorporated into the existing Microsoft products, what should be packaged as new products, and how should the Windows Operating System support the Internet. He gives frequent examples of how the other competing computer industry giants were able to succeed in the computer industry. A lot of success he points out was made through trial and error as well as learning from one’s mistakes. He talks about how Microsoft has learned from projects that have failed such as the Multiplan spreadsheet that went on to be developed into Microsoft Excel, and the Omega database that would become Microsoft Access. One suggestion that Mr. Gates makes in achieving company success is by

Microsoft Corporation is one of the largest and most influential companies in the personal computer industry. It has won several awards for innovation, for their commitment to diversity, and for their flexible work arrangements. It has always been a leader in the market with regard to its compensation. With 80,0004 employees across the world, having more than $15 billion revenue, it is one of the biggest and best‐known technology companies in the world.