Research Paper on Microsoft Corporation: Organizational Restructuring

Paper Type:  Research paper
Pages:  7
Wordcount:  1759 Words
Date:  2022-05-16


Remaining afloat with the ability to thrive and survive through the fore coming seasons is an aspect that most organizations endeavor to achieve. The given element emerges from the fact that changes are constant within any business niche. As such, it is usually upon each organization to individually prepare and embrace for the change through restructuring. Within any entity, the implementation of the restructuring phrase is a complicated procedure that often involves the initiation of new programs, alteration of department priorities, execution of budget reduction, and enhancement of organization effectiveness (Chen & Wang, 2015). An analysis of successful restructuring reveals that the process relies on active support structures, adequate planning, and preparation, as well as active communication, all in a bid to effectively address the reorganization needs, goals, and demands. Based on the elements of a successful restructuring platform, the following essay will expound and highlight on the successful transition of the Microsoft Company from a toxic and intra-competitive firm to a focused unified and collaborative functional unit.

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The ability to embrace transformation is an element that all organizations should be prepared for, given that businesses operate in a multidimensional environment, which is defined by the interaction of shifting and complex procedural, employment, regulatory, and legal environments. In the present day, business restructuring has become an effective platform responsible for fostering the growth and development of any institution. The element emerges from the fact that as a phrase, the re-engineering process redesigned the general firm's structure and redefined the staff's responsibilities, with the aim of streaming the production processes (Chen & Wang, 2015). Cumulatively, the "streamlining effect" enhances the organization's image, brand, and products, besides positively as well as negatively impacting the employee's attitudes and overall work climate.

Microsoft's Scenario

Microsoft Corporation is a world-recognized giant within the technology industry, which is acknowledged for its expertise in the production, retail, and distribution of computer software's, personal computers, and consumer electronics. In addition to this, the firm also offers support services to its products, coupled with the generation of licenses. In its diverse product portfolio, the company boasts of gaining recognition from the retail of the "Windows Operating System," and its Office Suit Packages, as well as its entertainment consoles,are known as Xbox (Sugaman, 2014). Being a firm that has operated for over four decades, Microsoft had previously implemented various restructuring programs, although none of them was able to attain the anticipated mark, regarding the results. However, its recent organizational restructuring changes (2015-2017) were endorsed by the need to better align the institution's new corporate strategy together with its crafted organizational culture, a target the company's current C.E.O SatyaNadella has managed to attain reasonably.

Initiating an organizational change is one of the most overwhelming and demanding endeavors that an institution such as Microsoft can engage in, because of the numerous associated risks of failure such as incompatibility or loss of momentum. Nonetheless, it is a radical move that when effectively implemented can redefine the organization's long-term prospects and enhance the attainment of future success (Dhilon& Gupta, 2015). In Microsoft's scenario,prior to the implementation of the organization's restructuring phrase, the firm had become a victim of its success. After the record-breaking hit and sale of its Windows operating system and Microsoft office products, the firm was struggling to bring up the second hit to the market.

In addition, the corporation's broad product and service portfolio compelled the firm's stakeholders into a state of constant turf, with each unit acting as more of a rival rather than a partner. For instance, one of the factors that defined the destructive internal competition was a duplication of efforts, an aspect that was nurtured by conflicting interests and poor coordination. The result of the constant rifles manifested regarding dropping sales, an element that resulted in staging innovation (Wharton University of Pennsylvania, 2013). At the given time, it is crucial to note that the intra-competition that was present between the firm's stakeholders created a toxic environment, which killed innovation. As a result, the giant firm lost in momentum in introducing new products and services to the market and instead opted to survive on the revenue generated from periodic cycles of windows and office updates, as wellas the sale of gadgets. From an exterior perspective, Microsoft's reliance on the sale of its personal computers was threatened by the drop in demand of PC's globally, an aspect that was reported by research firm Gartner at a record of 11% drop. This aspect coupled with the overwhelming competition in smartphone and tablet market from firms such as Google provoked the institution into a call for reorganization (Wharton University of Pennsylvania, 2013).

Implementing the Restructuring Phrase

Microsoft's most successful and recent restructuring phrase is primarily acknowledged as a result of SatyaNadella, the firm's CEO efforts. It is crucial to note that Nadella initiated the restructuring process once he was elected into office, as his first act within the company. At the time of his inauguration, Microsoft was a house dived by product lines that marketed in separate entities (Sugaman, 2014). The given aspect is what the chief executive officer cited as one of the variables that nurtured destructive internal competition. In a bid to rectify this aspect, the chief executive undertook several reforms, which aimed at consolidating the firm's diverse products on a unified platform. Based on Nadella's plan, the transformation could only be realized by creating a set of goals that applied to all departments. In his proposal's the tech wizard recommended reinventing business processes and productivity, building better personal computing, as well as crafting an advanced intelligent cloud platform. Cumulatively, Nadella hoped to transform how the firm organized, planned, and operated its tasks as an approach to effectively and swiftly attain the firm's corporate strategy.

Proposed Changes

In the first goal that revolved around the firm reinventing its products and processes, Microsoft intended to transform its production line from a packaged software platform to a devices and services firm. In its new resolution, the companyplanned to craft online applications and services, as well as consumer hardware's, which would be compatible with multiple and diverse screens and gadget platforms (Shaffer, 2015). The primary target of this goal, as elaborated by Nadella was to enhance the user experience of Microsoft high-value products and services on differentaccess interfaces.

The second target of Microsoft's first goal was the introduction a centralized operating structure. Under the new proposed transformation plans, the firm would forego the silos production structure for cloud computing technology, applications, devices, and operating systems (Wharton University of Pennsylvania, 2013). It is crucial to note that most of the employees in all of the departments were encouraged to directly contribute towards the development of Microsoft core products, as an aspect to boost the institution's joint growth. Collectively, the CEO hoped to foster an increased group contribution towards the attainment of the firm's goals, mission, and objectives.

Under the second goal of Microsoft's transition plan, the firm aimed to build better personal computing platforms. When breaking down the goal it is interesting to note that it aligns with the firm's vision of interconnecting every home through a digitalized cloud-based platform with the aim of maximizing the user's online experience. In its execution, Microsoft aimed at generating better and more effective technology supportive infrastructure, compelled by the need to empower the people, and ultimately amplify their ingenuity and capability, (Shaffer, 2015). From the firm's end, Microsoft pledged to build trust in technology and push the boundaries of its abilities with the commitment to craft a beneficial platform that would enable the users to shape the use.

Besides this, the company committed its resources under the second goal to maximally explore the utilization of artificial intelligence. In today's time, the constant reliance on technology by man has created vast pools of data that can be assessed and turned into useful statics and knowledge by the artificial intelligence platforms. Eventually, the exploration of A.I will result in the generation of applications and computing systems with new complex capabilities and techniques associated with advanced personal computing.

Crafting an advanced and intelligent cloud platform was the third goal under the new restructuring platform. Primarily, the approach was crafted with a futuristic target in sight, one that was based on the growth and reliance on the cloud platform, with escalating dependence on technology for man's daily operations. The third goal in the transition plan aimed at nurturing the growth of Microsoft cloud platform, "Azure" into a giant player in the sector. It is a fact that man's embrace of technology grows by the minute, and as such Microsoft hoped to capitalize on the potential market of prospective clients in the near and distant future (Copeland et al., 2015).

Microsoft desired to adopt a futuristic move that would be able to support the post-modern technology platforms. As man explores the capabilities of technology, there is a dire need to develop new ways of managing the resources, as well as variables of disturbed computing, an aspect that can be addressed through server-less computation (Copeland et al., 2015). Therefore, it is clear that Microsoft's embrace of advanced cloud computing was driven by the futuristic perception of the then world, where an intelligent cloud would nurture an innovative, creative, and intelligent user niche, capable of utilizing the platform to their maximum potential (Shaffer, 2015). Eventually, the aspect would enable the users to envision the impossible and actualize it through Microsoft's innovative tools.

Microsoft's Restructuring Operation's Change

Over time Microsoft's new operational structure has appeared to resemble that of tech giants; Google and Apple, as the firm has focused more on adopting hardware and service operation's structure. It is essential to note that in Microsoft's scenario, the firm had a broader and complex product portfolio, elements that were generated separately. However, under the new plan, Microsoft would uphold a centralized structure that would realign with the institution's new corporate strategy together with its crafted organizational culture. In a bid to foster effective change the firm also introduced various sessional camps and talks that are aimed at elaborating on the impact of transformation. In every institution, the senior, as well as junior employees, should all be provided with a supportive network, as an approach to enable them to deal with the changes in a positive manner (Luthans et al., 2015), an aspect the firm's CEO identified from the onset.

Notably, most of Microsoft's operations have been crafted with the intention of targeting six markets, such ashealthcare, financial services, education, the manufacturing sector, different national governments, and retail sectors, across the globe. In order to attain their target niches, the firm has e...

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Research Paper on Microsoft Corporation: Organizational Restructuring. (2022, May 16). Retrieved from

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