Under CEO Steve Ballmer, Microsoft can be characterized as the company with top-down strategic approach, when the planning was done by top management of the company (Rothaermel 135). However, he wanted to operate over delegation and did not think to back the solution taken by managers of lower levels. One of the main advantages of the top-down approach is that the top management of the organization determines the course of the company’s motion and gives specific guidance to units of how to approach the stated objectives (Henry 67).
Unfortunately, the top management is not always ready to issue specific decisions relating to the objectives. There were some ineffective decisions as refusal to buy Overture, failed launch of Zune, non-acceptance of idea to enter smart watches’ market as well as tablet computers, discontinue of NetDocs, etc. (Rothaermel 136). Another disadvantage of this approach relates to the dissatisfaction of subordinate units to limitations of their powers (Henry 68).
The failure in successful commercialization is in ineffective strategic planning, marketing research and decision-making processes. Effective implementation of the strategy requires appropriate internal organization of companies, business practices, organizational capability, reward systems, corporate culture, etc. If this is present, for the company it is easy to reach the desired results. One of the main responsibilities of management is the assessment of the organization’s effectiveness and progress of its activities. Managers are required to continuously monitor the internal and external environment of the company. The low efficiency, lack of progress, important new circumstances require changes in the long-term company’s development course, goals, business model and / or strategy (Henry 75).
Thus, Microsoft’s new CEO should concentrate company’s efforts on the development of a number of business areas, not only traditional ones, in which the Corporation is the leader and owns significant prevailing market shares, but also innovative solutions.
Works Cited
Henry, Anthony. Understanding Strategic Management. Oxford: Oxford University Press. 2011. Print.
Rothaermel, Frank T. Strategic Management: Concepts. New York: McGraw-Hill Higher Education. 2015. Print.
