There are different management functions within any organization. In order to become as successful as Microsoft, it is essential that company excels in most of them so as to gain maximum profit from their business. The first and the foremost management function in which company has excelled are planning. This is the most crucial management function in modern day business. It can be seen that company’s long term and short term plans have resulted in a positive manner. Their planning regarding staying ahead of their competitors in terms of technology and the way in which they reach to the customers has helped them in increasing their profit. The innovation planning has safeguarded them from getting eliminated due to some disruptive innovation (Bott, 2018). Their resource planning has helped them in utilizing their resources at the optimum level which in turn has resulted in long term profits for the company. For instance the increase operating income of the company has been provided.
(Source: Annual report, 2017)
Their strategic planning towards hiring the best of talents in the industry has again made it on the top of the Information and Technology industry for over a two decade. Their strategic planning of keeping things simple for the firm and the customers has helped them in gaining success. They are understood to be as the company that is making software that is easy to understand and use. This has helped them in gaining higher profits by reaching higher amount of sale. There was a time in late 2004, where Microsoft was running short of investors due to limitation in ideas hence their corporate vice president of planning, strategy and analysis, Robert Uhlaner started a new strategic planning process that aimed at checking PC, entertainment and security market growth across boundaries (Rampton, 2016).
Along with this in terms of organizing also they have done well. For example, they have made more than 40000 partners in the world which is helping them in reaching to large number of customers (Microsoft, 2017). This wide reach of the company has been the major reason for their higher profits. In spite of fact that they have not made any serious disruptive innovations, company has performed well; this is just because they have organized all their operations in an appropriate manner. It’s their management’s organizing power that they have not faced any serious problems in the last two decades in spite of the fact that many big and small companies emerged in the market (Silverthorne, 2002). Working and organizing as a team has helped them in gaining success in the market. All their business units work under a common goals and objectives that a company has set for their future. It is due to this that they have been able to deliver their promises in the market on time which ultimately led to gaining higher profits. For instance their profit have climbed up to $6.5 billion for fiscal fourth quarter.
In terms of leading and controlling also they have been doing well. This is because the plans and policies made by their internal governance team have worked in favor of company’s financial performance. They have several units in various parts of the world and yet there is no such big issues related to discrepancies in the business operations have been noted in the company. Their control on their different organizational units has been great and has resulted in having edge over their rivals (Bernstein, Halevy and Pottinger, 2000). This acted as a competency for the company which ultimately has resulted in increasing the sale of the firm. There are large numbers of people working inside Microsoft and company has done well to maintain the standard of their employees. Continuous training has made them world class which has resulted in giving world class service and has played a critical role in their increase in profit margins.
Bernstein, P.A., Halevy, A.Y. and Pottinger, R.A., 2000. A vision for management of complex models. ACM Sigmod Record, 29(4), pp.55-63.
Bott, Ed. (2018) Running Windows 10? Here's how Microsoft plans to milk more profits out of its cash cow. [Online] Available at: https://www.zdnet.com/article/running-windows-10-heres-how-microsoft-plans-to-milk-more-profits-out-of-its-cash-cow/. [Accessed on 24th October 2018].
Microsoft, (2017) Annual Report. [Online] Available at: https://www.microsoft.com/investor/reports/ar17/index.html. [Accessed on 24th October 2018].
Rampton, J. (2016) How Bill Gates Became a Leadership Legend. [Online] Available at: https://www.entrepreneur.com/article/250607. [Accessed on 24th October 2018].
Silverthorne, S. (2002) The Secret of How Microsoft Stays on Top. [Online] Available at: https://hbswk.hbs.edu/item/the-secret-of-how-microsoft-stays-on-top. [Accessed on 24th October 2018].