EE204: Business Management for
Electrical Engineers and Computer Scientists

Final Paper: Microsoft

Read

1. Microsoft  (HBS course materials)
2. Supplementary readings:
1. Forbes: Xbox One Vs PS4: Is It Really Even a Console War Anymore?
2. Information Week: Microsoft Battles Google, Amazon In The Cloud
3. The Next Web: IDC estimates 221m tablets shipped in 013
4. Quartz: This is Microsoft's surprising 'Plan B' for mobile
5. Inc: Microsoft Survey Says Millennials Want These 3 Things
6. Yahoo! Finance: Microsoft's Recent Buyouts
7. Financials
   1. Geekwire: Microsoft earnings through Q2 1015
      

Case Summary

Within four weeks of becoming the new CEO of Microsoft, Satya Nadella lays out the major challenges that await him in the two letters he sends to everyone at Microsoft. He defines Microsoft's battlefield as the "mobile-first and cloud-first world". That is where Microsoft needs to get its products and technology right, to build platforms and ecosystems and to integrate Nokia devices, services and the new mobile capabilities. In order to do so, Microsoft needs to zero in on "a mobile and cloud-first world and do new things." In his view "...industry does not respect tradition - it only respects innovation". And in order to innovate, he needs his 125,000 strong staff around the world to lead and help drive cultural change, to find Microsoft's swing so that the team is "...in such perfect unison that no single action by any one is out of synch with those of all the others". Many challenges await Microsoft in its transformation journey. On platforms, it is not clear what the future will hold for Windows. On devices, Microsoft needs to find ways to woo application developers to build its mobile ecosystem. On integration, the Company has to find ways to transfer and to grow the mobile capability acquired from Nokia. And most importantly, Nadella must figure out how he can achieve cultural changes to focus everyone on innovation via collaboration.

Written Assignment

Your team has been hired as a independent consultant by Microsoft's Board of Directors to prepare a detailed report analyzing the company’s current restructuring results and strategic direction. They have submitted discussion questions, listed below, that they would like to see addressed as part of your report. Include assessment of the market, competition, results to date, and team

They want you to make recommendations to achieve the company goal of building market share in mobile and maintaining its market dominance of computing in an increasingly post-PC world. They would also like your perspective on the financial impact of your recommendations in terms of profitability and growth

NOTE: Only the facts presented in the case and linked to from this page should be used in your recommendation. This assures consistency of information and consistency in grading.

Discussion Questions

1. Why has Microsoft underperformed so poorly in the last 10 years and failed to capture market opportunities?
2. Assess Microsoft's goal to build market share in mobile and maintain its market dominance of computing in an increasingly post-PC world. Would you change it? If so, how?
3. Analyze the markets that Microsoft's product lines are participating in. Where are they going?
4. What is Microsoft's strategy for each of its product lines? How well do they align with your market analysis? Do you recommend any changes?
5. Analyze Microsoft's organization structure. Are there any changes you would recommend?
6. What organizational priorities should Nadella have and what actions should he take to lead Microsoft?
7. As one of your exhibits, a five-slide summary that he can use to present your findings at the next board meeting. Note: These slides should be as simple as possible. All exhibits in total count for 4/20 in the grading criteria.

FAQ

• Is it okay to use information from past cases?
  • Yes. Any information covered in class so far, including readings, cases, and case exhibits, may be used in your paper.
• Is it okay to use information outside of what is provided in the case and the supplementary articles?
  • No. To keep as level a playing field as possible, please restrict your supporting material to what has been covered in class.
• Should the exhibits in the writeup be exhibits from the case?
  • No. The exhibits in the writeup should be created for the writeup. They may contain elements of existing exhibits, but we advise against directly re-presenting information as it was presented in the case.
• What point of view should we take in the paper? Do we work for Microsoft or for a third party?
  • Either viewpoint is fine.
• What should the slides be like?
  • Your slides should contain whatever information from your recommendation and analysis that you feel most pertinent to make a compelling argument to the Board of Directors. Complicated slides are not necessary - bullet points are sufficient. Be sure to stick to the five-slide limit.
• For citing the case and other course materials, is it okay to use endnotes or a reference section at the end of the document? Can we exclude the reference listing from the 5-page limit?
  • Yes. A reference page (as used in the case itself, for example) may be used and does not count toward the page limit.

SCPD Students

Submit the written assignment as described above. There is no other write up due for this day of class.