Organizations understand the need to employ a continuous improvement (CI) strategy to achieve operational excellence in production. The most common business strategy suitable for continuous improvement is Six Sigma (Albiwi, 2017). Since its emergence in the United States around the 1980s, Six Sigma has been appreciated as a helpful tool for minimizing variation and improving the performance process. The approach reduces manufacturing costs and makes organizational savings occur as far as the bottom line. When done correctly, the approach helps guarantee customer satisfaction easily (Albliwi et al., 2017). Microsoft is among the prosperous organizations enjoying the concept of six-sigma is a continuous improvement plan, which aids the firm to identify, eliminating, and reducing product defects.
Microsoft as an Organization with a Problem for Improvement
Microsoft, as a technological firm operates on a divisional structure, as this is more suitable for its progress. The structure stresses the firms’ output, but at the same time forces it to shift its thinking about services and devices versus the packaging of the software (Tinypulse, n.d.). The main dilemma and problem were to align the operational strategy to the new corporate one. This strategy is more demanding for the company, making its trained employees operate as individuals in their orientation. Times are changing fast; therefore, the organization needed to comply, but the staff was used to executing as per the outlines of its previous strategy, thus, the responsive and executive speed was slow (Albliwi, 2017). As noted by Tinypulse (n.d.), despite the long-lived success of Office and Windows products for this business, Microsoft was struggling to match its product value to other companies. With a changed operation focus, in terms of structure, products, and services, the organization is supposed to maintain its sustainability in terms of its corporate structure to market forces and conditions.
The Objective of Using Six Sigma
Six Sigma is a tool that facilitates the identification, elimination, and reduction of defects from a process, a product, or a transaction. It works in a continuous improvement strategy, although the solution might not be achieved at the beginning but becomes clear throughout the process (Erturk & Tuerdi, 2016). This report seeks to utilize Six Sigma as a strategy, which helps Microsoft as a technological firm to establish its newly adapted divisional approach (Stevenson, 2018). The technique suggests the company balance its services and devices versus the packaging of its software for it to achieve its goals effectively. This problem requires the utilization of the available employees fully in their orientation. According to TINYpulse (n.d), this approach helps optimize and assess techniques, which makes the organization able to review new projects funneled into an improvement cycle. The action helps in the creation of a plan of action to sustain optimal performance maintenance. Such a study serves the company with the ability to note where to put more concentration in modifying a particular product to give customers the best.
Microsoft embraced the idea of Six Sigma as a way of generating a stabilized Quality Management approach. The technique has since been influential in identifying the organization’s pain points (Scott, 2019). This happens by embracing training and learning, metrics, and collaboration tools to help the team members, managers, and all management in the decision-making process. Through consultation with other corporations that were using this technique, Microsoft’s employability mechanism became more apt (Albliwi et al., 2017). The firm became able to incorporate independently other key findings as per its many years of experience to help sustain the Six Sigma process.
The Desired Outcome
The general ideology is that Six Sigma is a statistical term, with the ability to measure how a process deviates from perfection. This approach, therefore, will enable Microsoft as a firm to quantify the available number of defects in a given process, and understand the functional methods, which would help in eliminating the flaws. The desired outcome thus is for the organization to understand the process of acquiring focus, and the identification of the path to improvement.
Metrics to Measure Success
With Six Sigma, it is easier to identify the metrics that would measure processes through which the company would determine its performance. The technique will apply the DMAIC model as a metric, which employs a contextual technique that seeks the reduction of Microsoft’s problem and improvement of its product quality. The first metric is the definition of the objectives and problem. The definition is an important metric as it summarizes the project plan by focusing on the specification of the problem. It becomes easier to handle the problem when it is targeted in a clear manner (Riyadhi, 2020). This metric also helps link the project to the objectives of the business and helps in executing the problem statement. The goal and problem of the scope of the project are determined at this metric, thus, envisioning the ins and outs of the project.
The next metric which helps in determining success is the measurement aspect. The metric helps in the collection of the data, especially the relevant ones to the project. Through this phase, the parameters needed are identified, the ways to qualify them and collect the inappropriate data way. This phase is vital as it gives a common understanding and language suitable for the collected information (Scott, 2019). The analysis is another metric, and it is crucial in finding the root cause of the company’s problem. Through the available analysis, there is the identification of gaps that occur between goals and actual performance. This metric permits for the identification of causes, which have confined the firm in its current position.
Improvement is another metric, by which the process will be measured concerning the determination of its potential solutions and the ways to test, improve and implement them (Albliwi et al. 2017). The metric is important because it brings on board owners and stakeholders in terms of consultation and suggesting improvement plans. Control is the last metric, which is functional in the generation of a solution that is detailed in the context of the monitoring plan. Therefore, the definition, measures, analysis, improvement, and control are the metrics that would measure the success as they all connect to support the project.
The Process for Determining Root Causes
The process for determining to root causes would include redesigning and designing, the process that seeks improvement, and the management process. The main role of Six Sigma in an organization is to assure various titles, responsibilities, authorities are assigned to the staff’s independence in education. This means Six Sigma provokes the implementation of specialization. Such an arrangement ensures proper coordination of the organization effectively and in the event makes the processes to be easier (Albliwi et al., 2017). Therefore, it becomes easier for Microsoft company to understand the problem and manage that everyone is given a position that they understand the best.
Various methods can be used to help the company reach its improvement and sustain the appropriate results. Various tools would be used to follow through on the steps of the Six Sigma strategy; however, the main ones here would be utilizing data analysis and research designs. By using Six Sigma as a way to initiate an improvement, every company should first know the road map (Scott, 2019). Proper research will help investigators understand it envisions, which this approach gives in the context of criteria laid down by consumers (Stevenson, 2018). Research is vital here because it allows for a deeper understanding of the requisite for improvement in data analysis.
Methods for Improvement and Method to Sustain Results
Luckily, various tools support the use of Six Sigma if adequately put in use. For improvement purposes, it is appreciable to note the core processes as well as key consumers, in a perfectly defined manner. The performance of the project should then be measured, with important issues prioritized, implemented, and analyzed for improvements. Six Sigma should be integrated and expanded accordingly to maintain track of the project’s progress (Abd-Elwahed & El-Baz, 2018). These methods are vital in determining the viability and stability of the entire project. Define, measure, analyze, improve and control are continuous improvement strategies that will continue working for this Microsoft company.
In conclusion, it is essential to mention Six Sigma, as a useful approach, which ensures continuous improvement strategy for organizations. For instance, Microsoft is one of the many organizations utilizing this tactic to stabilize its organizational structure. The corporation was becoming outdated concerning service delivery, which made Google and other technology-related companies overpower them. Providentially, the Six Sigma mechanism made the enterprise acquire a proper Microsoft team to strengthen the business’ operation. With proper processes determining the root cause, and tools helpful in assessing the situation, it becomes easier for any firm to solve the at hand problems dragging the firm.
Though it started in the United States in the 1980s, the strategy aids hundreds of establishments to adopt speed and ease service delivery to customers.
References
Abd-Elwahed, M. S., & El-Baz, M. A. (2018). Impact of implementation of total quality management: An assessment of the Saudi Industry. South African Journal of Industrial Engineering, 29(1), 97-107. Web.
Albliwi, S. A, Antony, J., Arshed, N., & Ghadge, A. (2017). Implementation of lean six sigma in Saudi Arabian organisations: Findings from a survey. International Journal of Quality & Reliability Management, 34(4), 508-529. Web.
Erturk, M., & Tuerdi, M. (2016). The effects of six sigma approach on business performance: a study of white goods (home appliances) sector in turkey. Procedia – Social and Behavioral Sciences, 229 (2), 444 – 452. Web.
Microsoft Office. (n.d). Adopting quality management for business success. Web.
Organizational change is a buzzword in professional organizational communication. Thousands of large and small businesses pursue change, because it is fashionable, popular, and real. Unfortunately, few of them realize the true implications of organizational change for the quality of their performance. No less challenging are businesses’ perceptions of the way organizational change influences various stakeholders. For Microsoft, one of the most successful companies in the global software market, change represents a relevant means to update and refresh its principles of work.
Change reflects the company’s striving to be responsive to the needs of customers while, at the same time, creating a solid basis for the pursuit of organizational excellence. Just a few years ago, Microsoft underwent major organizational restructuring that had to enhance the company’s competitiveness in the long run. As of today, one of the most serious issues to deal with is achieving and maintaining a reasonable balance of customer and employee engagement. Yet, Microsoft will have to be particularly careful in its striving to satisfy the needs and interests of all stakeholders.
Proposed Change Initiative
Just a few years ago, Microsoft went through massive and extensive organizational restructuring, which had to create a firm basis for pursuing the company’s strategic and tactical objectives. That was one of the toughest periods in the history of Microsoft, when the company had to do everything possible to enhance its performance and productivity. However, even an organization as successful as Microsoft cannot use restructuring as the sole factor of organizational improvements in the long run.
As an open system that receives regular feedback from the market environment and positions itself as being receptive of and responsive to environmental shifts, Microsoft needs to balance the calls for greater employee engagement with the need for increased customer involvement. At present, the company requires a change initiative that will help to improve the patterns of cooperation with customers, while ensuring that employees do not feel betrayed and isolated from the decision making process.
People Involved
In order to understand how the proposed initiative will influence people, the most important stakeholders of the proposed change need to be identified. In relation to customer involvement and employee engagement, customers and employees will be primarily affected by change, followed by communities and shareholders. The quality of such effects is likely to become a driver of further changes and, possibly, improvements within Microsoft.
Although Lundkvist and Yakhlef (2004) confirm the importance of effective conversational approaches to consumer relations with companies, not all employees may be happy about the inclusion of customers in decision making processes within the organization. It is not until the most suitable balance of customer and employee participation is achieved that the company and its stakeholders will have enough opportunities to utilize the growth potential of Microsoft to its fullest.
Impact of the Initiative on People, Processes, and Products
People-stakeholders
Saks (2007) writes that the main reason why employee engagement initiatives are so popular among organizations is because they have positive effects on the quality of organizations’ performance. An emerging consensus is that employee engagement leads to better bottom-line results (Saks, 2007). From the perspective of employees, increased engagement is likely to diversify workers’ experiences and make them more satisfied with their obligations and tasks (Saks, 2007).
Engagement is believed to create better conditions for self-fulfillment and personal growth in the workplace. Employee engagement represents a relevant model of developing trust and loyalty that eventually result in mutual company-employee commitments (Saks, 2007). Most likely, the proposed change initiative will increase workers’ congruence with the nature of their workplace and organizational environment, as well as reduce their desire to quit (Saks, 2007).
As companies rethink the ways of generating new ideas, products, and services, their relationships with customers undergo serious changes. Companies reconceptualize the meaning of customers as potentially productive sources of innovative product ideas (Lundkvist & Yakhlef, 2004). With the ever growing costs of R&D, customers gradually become a quality alternative to conventional research and development models (Lundkvist & Yakhlef, 2004).
However, roles which customers are likely to play within Microsoft may vary from “co-producers” and “users” to “products” and “buyers” (Lundkvist & Yakhlef, 2004). Obviously, a company that seeks to translate customer engagement into a value-added process should treat every customer either as a co-producer or a source of innovations and creativity (Lundkvist & Yakhlef, 2004). Customers, as well as employees, should be actively involved in idea generation and development, for the sake of creating and implementing innovative product and service solutions.
Processes
Needless to say, Microsoft will have to adjust its processes to the new requirements of customer involvement and employee engagement. Gemmel and Verleye (2010) write that customer-employee encounters in organizations are associated with emotional outbursts. On the one hand, both customers and employees are emotionally attached to Microsoft. On the other hand, none of them is willing to give up a share of power for the sake of achieving the most promising goals and excellence results.
Most likely, Microsoft will have to develop new processes to reinforce the existing customer-organization and employee-organization linkages and create a synergy of their commitments that will work for the advantage of the entire organization and its stakeholders. That is likely to become one of the most complicated elements of the proposed change.
Products
Since customers are treated as integral participants of organizational decision making and a source of creative and innovative ideas, it is possible to assume that customer engagement will drive the development of new products and services, as well as present the image of Microsoft as being highly responsive to customer requirements and needs. Any customer engagement initiative is likely to benefit the company. Yet, these benefits will become available and realistic, only when Microsoft manages to create the most appropriate balance of customer and employee involvement in product and service development. Therefore, the company needs a well-developed strategy to ensure that the values of customer and employee engagement are closely aligned.
From Change to High Performance and Excellence: Focusing on People
The proposed change initiative will enable Microsoft to achieve high performance and staff excellence, if two essential conditions are met. First, the company must be ready to overcome resistance to change. Second, Microsoft must be able to align the results and advantages of customer engagement with those of employee involvement. In terms of resistance, it is certainly an inevitable component of any organizational change.
People are willing by nature to preserve their status quo by all possible means. Even when the change promises to result in substantial quality improvements, many people will keep resisting it. Successful change is impossible without effective employee cooperation and support, and any resistance is likely to impede the implementation of even the most prospective change initiatives (Thomas & Hardy, 2011).
Resistance often comes in waves or layers, particularly when employees disagree about the nature of the problem and, later, the nature of the most suitable solution (Umble & Umble, 2014). In case of the proposed change, resistance may come on the side of employees, who may not want to see customers as active agents of decision making at Microsoft. Simultaneously, customers may not be active enough sharing their ideas with the company, fearing disagreement and unreasonable critique on the side of employees.
In most situations, holding a general meeting to explain the nature and purpose of change could alleviate the burden of disagreement and bring the diverse parties together to work towards common goals. However, in the given situation, Microsoft will have to make another effort to bring together and balance the customer engagement and employee involvement priorities.
Apparently, the proposed change initiative will entail the development of new communication and exchange forms, which will allow translating employee engagement and customer involvement into long-term relationships with customers (Yuan, Lin, Shieh & Li, 2012). The company is equally interested in keeping employees and customers engaged in product development and organizational decision making.
While employees are formally responsible for the development of quality products and have the professional experience and expertise needed to implement product ideas into practice, customers see the world in a diversity of colors and want to know that their product ideas and wishes are accepted, evaluated, and used by Microsoft. Using the words of Gemmel and Verleye (2010), “companies must remake themselves into places of engagement, where people are committed to one another and their enterprise” (p. 89).
Recommendations
To ensure that the proposed change initiative paves the way to excellence and outstanding employee performance, Microsoft will first need to learn how to translate resistance into a competitive advantage. Afterwards, the company will need to develop systems and processes that would help to balance the calls for greater employee engagement with the efforts to involve customers in organizational decision making.
In this context, Microsoft should first decide how employee engagement will be conceptualized. Among its numerous meanings, the best one is that which positions engagement as the instrument of psychological empowerment (Macey & Schneider, 2008). As a concept, psychological empowerment means the sense of responsibility, authority, and autonomy in the workplace (Macey & Schneider, 2008).
Employees who are empowered to be creative and contribute to product and service development are likely to develop an enhanced sense of self-efficacy and professionalism, while being self-determined to work in accordance with the company rules. Such empowerment can manifest through the implementation of communication channels that motivate employees to express their ideas more openly, coupled with relevant reward systems to guarantee that the most prospective ideas are rewarded according to their contribution to organizational performance.
As Microsoft expands the presence of customers in its processes and decisions, a continuous dialogue between them and employees should be facilitated and improved. Employees should realize that customer involvement will not discriminate against their efforts to develop effective products and services, whereas customers should see employees not as competitors but as their allies in the development of the most successful and profitable products and services. Grove (2014) speaks about the value of social communication tools in tying customer involvement to employee engagement and balancing their priorities.
Nevertheless, it seems that social communication tools alone will never suffice to bring Microsoft to the desired change results. Personalization is what the company needs, as it is trying to bring together the diverse parties of the proposed change. Employees should know the customers, with whom they are likely to cooperate. Simultaneously, holding a common meeting to let the customers and employees develop a balanced cooperation and engagement solution/principle could speed up creative product and service development through the implementation of the proposed change initiative.
Conclusion
Microsoft is truly one of the most successful global providers of quality software. A few years ago, the company underwent one of the major restructuring changes in its history. However, restructuring alone can never guarantee sustained profitability and excellent performance. As of today, Microsoft faces the challenge of balancing the calls for greater employee engagement with the need to involve customers in organizational decision making and product development. The proposed change initiative will affect primarily employees and customers, followed by communities and company shareholders.
To make the change effective and achieve excellence, Microsoft will have to develop new communication and exchange forms, as well as bring together customers and employees to let them develop a balanced system of cooperation. Personalization and social communication tools will facilitate the implementation of the proposed strategy and speed up the creation of new products and services in the atmosphere of cooperation and collaboration among employees and customers. Employees and customers will create an atmosphere of creativity that is likely to become a major source of sustained competitive advantage for Microsoft.
References
Gemmel, P. & Verleye, K. (2010). Emotional attachment to a hospital: Bringing employees and customers into the engagement zone. Journal of Applied Management and Entrepreneurship, 15(3), 78-93.
Grove, H. (2014, March). Tying customer engagement to employee engagement. MIT Sloan Management Review, 1-7.
Lundkvist, A. & Yakhlef, A. (2004). Customer involvement in new service development: A conversational approach. Managing Service Quality, 14(2-3), 249-257.
Macey, W.H. & Schneider, B. (2008). The meaning of employee engagement. Industrial and Organizational Psychology, 1, 3-30.
Saks, A.M. (2006). Antecedents and consequences of employee engagement. Journal of Managerial Psychology, 21(7), 600-619.
Thomas, R. & Hardy, C. (2011). Reframing resistance to organizational change. Scandinavian Journal of Management, 27, 322-331.
Umble, M. & Umble, E. (2014). Overcoming resistance to change. Industrial Management, 56(1), 16-22.
Yuan, B.J., Lin, M.B., Shieh, J.H., & Li, K.P. (2012). Transforming employee engagement into long-term customer relationships: Evidence from information technology salespeople in Taiwan. Social Behavior and Personality, 40(9), 1549-1554.
The article, “Microsoft opens the gates: patent piracy and political challenges in China”, explores the difficulties that an American software firm has faced in its effort to establish a profitable market in China.
The company has been trying to make progress in its relationship with the people and the government of China. China’s business environment becomes a difficult situation for Microsoft since the government and people are ideologically isolated. The government of China has been unwilling to support Microsoft’s dominance in the software market (Blanchard 2012, p.2).
Since its first entry into the Chinese market, Microsoft has always considered China to be an important country to its business. First, China is a large country and is already the most populous country in the world. Secondly, China features a high economic, technological and intellectual growth rate.
This fast economic growth has made Microsoft speculate that China is going to be a more important consumer of its software products in the near future. On the other hand, Microsoft has suffered drawbacks in its efforts to remain the dominant software firm in America.
Competition from other software firms such as Google has made Microsoft seriously consider China has a major market for software. Although Microsoft remains the biggest software firm in the world, it has lost several markets for software products particularly in the United States (Blanchard 2012, p.3).
Much of the adversity that Microsoft has faced in China takes the form of nationalism and localism of the people of China. The government has been unwilling to protect Microsoft and its products since the former has a major interest in promoting growth of local software industry. In addition, piracy of Microsoft’s products is rife throughout China.
Pirated products are usually much cheaper than the original genuine software. Due to the average income level of the population in China, people have accustomed themselves to using the pirated products. Furthermore, the country poorly regulates business practices in the software industry.
The people and the government of China have not welcomed Microsoft as the company had expected (Fernández & Underwood 2006, p.6). Government policies limiting Microsoft from selling its products to certain customers such as government agencies indicate that the authorities in China do not want to allow dominance of foreign software companies in the country. In several events, Microsoft lost legal battles in suits filed by Chinese companies seeking legal redress in cases of patent violation.
Despite the difficult situation in China, Microsoft has been trying to convince the Chinese government to enhance regulation of software market practices to protect foreign companies, especially Microsoft. Gradually, the Chinese markets have reduced the rate of piracy of Microsoft’s products by a significant proportion.
However, the level of software piracy is still high with about eighty percent of Microsoft’s products still being pirated in China (Blanchard 2012, p.4). This makes the software business in China an unprofitable venture for the software giant.
Microsoft has decided to continue developing their establishment in China by investing billions of dollars in the Chinese software industry. In addition, the company has obtained concessions with the Chinese government seeking support for Microsoft in the vast country. However, considering the scale of effort that Microsoft has put in strengthening its ties with the Chinese people and the government, the progress is still far from satisfactory.
This is supported by the fact that the government still implements policies that give preference to products of local software developers. Since there is a noticeable improvement in the market and policy situation in China, Microsoft has set the country to be a future major partner in the software industry (Khanna 2007, p.20). Cordial relations between political leaders of the Republic of China and Microsoft officials such a Bill Gates indicate that the cold relationship between China and Microsoft will eventually thaw out.
Microsoft Challenges in Dealing with Lower Levels of Chinese Government
While Microsoft has a good relationship with high-level officials in China, the company cannot control attitude in the lower levels of the authorities (Blanchard 2012, p.1). Officials from the relevant ministries have severally advocated for use of alternative software rather than Microsoft’s products.
In addition, relevant ministries under which matters relating to development and sale of software fall are gearing towards increasing the sales of locally developed software. This ambition curtails the ability of the lower levels of the government, which are responsible for policy implementation, to cultivate a good relationship with Microsoft.
Google’s Challenge to China and Microsoft’s Course
When the Chinese authorities seemed to censor internet operations in China, Google, a software developer, chose to withdraw some of its services from the country in protest against the censorship and the market condition in the country (Vaidhyanathan 2011, p.118). This action highlighted Microsoft’s decision to continue cooperation with China.
Microsoft gained from its actions in that it is possible for the company to establish a permanent base in the Chinese market once systems in China eventually begin to rely heavily on its software (Blanchard 2012, p.5). This may make the company one of the biggest profitable software developers in China.
On the other hand, Microsoft stands to lose if the government in the United States has a negative reaction to the former’s actions. In this essence, the local market in the United States may continue to shrink and other local competitors might take advantage of Microsoft’s vulnerability (Levy 2011, p.267).
References
Blanchard, J 2012, Microsoft Opens The Gates: Patent Piracy and Political Challenges in China, San Francisco state university’, San Francisco.
Fernández, J. A., & Underwood, L 2006, China CEO: voices of experience from 20 international business leaders, Wiley, Singapore.
Khanna, T 2007, Billions of entrepreneurs: how China and India are reshaping their futures–and yours, Harvard Business School Press, Boston, Mass.
Levy, S 2011, In the plex: how Google thinks, works, and shapes our lives, Simon & Schuster, New York.
Vaidhyanathan, S 2011, The Googlization of everything, University of California Press, Berkeley.
Information empowerment- strategic marketing strategies.
Microsoft should use the holistic view so as to comprehend students’ needs and the most appropriate relationships to initiate. Customer- facing employees should be ready to seek information from students. This will ensure that Microsoft applies the best marketing strategies.
Price differentiation or discrimination is an extremely effective strategy that Microsoft can use to increase sales among students. For effective price differentiation, the market should be segmented appropriately. In addition, measures should be put in place to ensure that students do not resell the products at a discount.
Microsoft should price their products during development. This pricing strategy ensures that products and services promote profitable prices. The company should consider the strategic goals before formulating their prices.
Simple Gadgets, Software, Debates and Contests
Gadgets- memory cards, modems, flash disks.
Risks (viruses)- purchase of personal computers.
Debates on relevant technology topics.
Winners given awards.
Awareness about the company.
Students can suggest referrals.
Through the sale of simple and affordable software and gadgets, Microsoft can arouse interest in students. To use the software and gadgets, a student requires a personal computer. This might lead to the purchase of a personal computer to avoid risks such as viruses.
The company can also organize debates on relevant technologies. The winners can be awarded prizes such as personal computers and software.
Video Games
Video games stimulates the brain (Hellofs and Jacobson, 1999: 17).
Adaptations and creative solutions.
Thoughts and ideas- real life circumstances.
The society and people- creative and positive.
Video games industry.
Increased product sales.
Microsoft can create innovative and creative video games that students can use. Consequently, these video games can be advertised and sold in universities and colleges. The use of such video games requires other products that can be obtained from the company.
Recruitment and Employments Strategies
Training, education, recruitment, and employment (Klein, 2001: 20).
Success- immense knowledge about the company.
Recruitment strategies- various skills and knowledge.
Increase the market share among students.
Microsoft can engage in a wide array of recruitment, employment, education, and training strategies. Success in such programs depends on possessing immense knowledge about the company. Through these strategies, the company can acquire a greater market share.
References
Bontis, N 1998, “Intellectual Capital: An Exploratory Study That Develops Measures and Models”, Management Decision, vol. 36 iss. 2, pp. 63-76.
Cusumano, MA & Yoffie, DB 1999, Competing On Internet Time: Lessons From Netscape And Its Battle With Microsoft, Free Press, New York.
Hellofs, Ll & Jacobson, R 1999, “Market Share And Customers’ Perceptions Of Quality: When Can Firms Grow Their Way To Higher Versus Lower Quality?”, The Journal Of Marketing, vol. 3 iss. 2, pp. 16- 25.
Klein, B 2001, “The Microsoft Case: What Can A Dominant Firm Do To Defend Its Market Position?”, The Journal Of Economic Perspectives, vol.15 iss. 2, pp. 12-32.
Nadella was born in Hyderabad, India, which happens to be the location of Microsoft’s headquarters. His parents’ values and the environment in which he was raised have shaped much of what he believes and do today. Nadella had a strong sense of direction as an IAS officer and a Sanskrit lecturer from his father. His mom insisted on the importance of keeping one’s professional and personal goals in check. As a result of his captain’s decision to coach him rather than replace him, he received his first introduction to leadership lessons. He has shown how important it is not to jump to conclusions when dealing with others throughout his life. After realizing the importance of software in the growth of the global economy, he decided to pursue a career in computer science. He earned a triple major in electrical engineering, computer science, and business administration from the University of Chicago Booth School of Business. Nadella has displayed a corporate social responsibility by caring for the disabled in the production of Microsoft software and hardware systems. The company is involved in many social responsibilities like cancer awareness. By enhancing inclusivity and sustainability in the company’s practices, Nadella depicts a high sense of ethical sense and responsibility. In his progressive leadership, he urges the employees to build systems, and especially AI-trained components, in the most ethical way possible.
Nadella previously worked for Sun Microsystems, a provider of computer hardware, software, and IT services. It was inevitable that Nadella’s career path would change as he grew as a person. Nadella was Microsoft’s third CEO when he took the helm on February 4, 2014. A new emphasis on empathy, a growth mindset, and teamwork has been instilled in the company under his leadership.” In the six years since he became CEO, Microsoft’s market capitalization has grown by a factor of six. Satya Nadella’s business acumen has shown that empathy, kindness, and humility are just as important as business acumen in the workplace. His mother frequently inquired about how happy he was at work (Jones & George, 2022). He realized that happiness comes from more than money and material possessions, and he developed emotional intelligence as a result.
Life-altering events occurred for the family when his son Zain was diagnosed with cerebral palsy and paralysis. It dashed all of his aspirations for the future and weakened his self-esteem as a result. He had a completely different perspective when he saw how his wife handled the situation. Rather than allowing her grief to consume her, she focused on making sure her son was in good care. Her ability to empathize with her son’s pain allowed Nadella to see things clearly (Ronal & Marc, 2021). Empathy was essential to him both as a father and as the CEO of Microsoft. This incident served as a timely reminder of the importance of regularly displaying humility and compassion. That Nadella has taken this step publicly acknowledges that he is ready and willing to examine his actions. Because of his humility, he stands out among tech industry CEOs.
For the past five years, Microsoft CEO Satya Nadella has become a household name in the non-tech community. BK stands for unconventional leadership, and we wanted to learn more about Nadella’s unconventional approach to it. When you consider that this is Microsoft, the behemoth that brought you Windows and Xbox, Nadella’s accomplishments as CEO are all the more impressive. As an advocate of the growth mindset, Nadella encourages people to think about how they can grow and succeed rather than what prevents them from achieving their full potential. As a result of his outlook, he believes success is found regardless of the circumstances one faces (Valldeneu et al., 2021As we learned in class slowing down before speeding up is an integral part of effective leadership. One example is Satya’s transformation of Microsoft’s corporate culture.
Being Microsoft’s most powerful executive group leader, he wanted to ensure that everyone worked together effectively. Satya arranged for Seattle Seahawks psychologist Dr. Gervais to meet with the team following their Super Bowl victory, and he brought him along with him (Westerman, 2021). He helped Satya get to know his squad by directing them to a meeting where they were encouraged to talk about their interests and values. He was able to rely on his team’s understanding of him and his motivations because he took the time to get to know them and invest in their relationship.
Satya Nadella believes that great leaders and managers must first and foremost be transparent in their communication with their teams. Even though it is possible to navigate a clearly defined path on one’s own, when faced with uncertainty or turbulence, your team looks to you for guidance and relies on you to lead them through it. However, it should not be your sole responsibility as an excellent manager to provide clarity to your team during times of uncertainty, even though doing so is critical. According to him, being enthusiastic about what you do, in the opinion of Microsoft’s CEO, is one of the essential characteristics of a successful leader. Success is a difficult journey without its challenges. If there were no obstacles in the way, such as a competitor’s product launch taking place a month early or a hurricane delaying the shipment of your goods, leadership would be a simple task. Many variables outside of your control exist in the real world, and you have little control over them. To be successful in your endeavors, you must steer the ship and get things done by overcoming obstacles and achieving success despite these obstacles.
References
Jones, G. and George, J., 2022. Contemporary management.
Ronald, B., & Marc, L. (2021). The leadership challenge in times of the COVTD 19 pandemic – An empirical investigation on the impact of transformational leadership on motivation and team performance. Advances in Management, 14(3), 1-21. Web.
Valldeneu, M., Tarrats, E., PhD., & Ferràs, Xavier, MBA, MBA, PhD. (2021). Leadership Styles and Organizational Outcomes: A Study Across International Hubs. Organization Development Journal, 39(1), 13-22. Web.
Westerman, G. (2021). Rethinking Assumptions About How Employees Work. MIT Sloan Management Review, 63(1), 1-5. Web.
Properly performing a change initiative can be a difficult task for an organization’s executives. To implement such initiatives, the organization should be prepared to address the alterations, introducing a relevant change strategy and maintaining control over the elements that might affect it (Cameron & Green, 2019). As such, the Microsoft enterprise has proven itself as a business that can effectively utilize the Prosci ADKAR model of change to restructure its approach to organizational activities and secure higher productivity. This paper discusses the change initiative implemented by Microsoft in 2014, analyzing and critiquing the Prosci ADKAR approach used with regard to corporate culture, as well as outlining possible alterations to enhance the change activity.
The Context for Change
The Microsoft corporation is a well-recognized tech giant that currently occupies a strong position in the technological market. Nevertheless, when smartphone operating systems began to dominate the technological market, the enterprise’s profits began to decline (Hempel, n.d.). While Apple, Android, and Bada started to occupy larger portions of the market, Microsoft was struggling with accepting the change. In 2014, the new CEO, Satya Nadella, majorly restructured the company’s previous approach.
Prosci ADKAR: The Innovative Model of Change
To properly adjust the organizational processes and ensure that the necessary practices are smoothly integrated into the organizational activities, Microsoft executives were required to choose a relevant change strategy. The Prosci ADKAR model was chosen as the most promising message that allows efficiently executing the needed type of change: a corporation-wide transformational change (Cameron & Green, 2019). The ADKAR is interpreted as Awareness, Desire, Knowledgeability, and Reinforcement, and it is deeply connected to the concept of corporate culture (Cameron & Green, 2019). As such, successful utilization of this model requires that the executives alter the workers’ understanding of the company’s goals and achievements, encouraging them to participate in the change initiative.
In addition, Prosci ADKAR requires additional input from the company’s leaders. The transformational change framework suggests that to properly execute change, the leaders must fulfill their roles, motivating the employees and adapting the environment according to their current needs (Cameron & Green, 2019). For instance, Microsoft chose to educate the executive managers on change leadership, prompting them to improve the workers’ desire to transform the enterprise (Prosci, n.d.). In addition, the corporation hired professional change agents who facilitated the adjustments and controlled the process of change (Prosci, n.d.). These methods of conducting change are highly endorsed by the creators of Prosci ADKAR, exemplifying that Microsoft executives followed the Prosci ADKAR framework as closely as possible.
Initiating change through ADKAR
After the appropriate strategy has been chosen, the implementation process has been separated into distinct stages. The first step was to create an awareness of the need for change, ensuring that the corporate culture supports the change initiative (Cameron & Green, 2019). A strong organizational culture not only improves the workers’ motivation to engage in the change initiative but also increases the likelihood that the alterations will be accepted by the personnel.
After that, Microsoft executives focused on the second phase of the implementation strategy, generating the employees’ desire to participate and support the change. Considering that individuals often respond to adjustments negatively, attempting to preserve the current state of the environment, it is essential that change is desired by the workers themselves (Cameron & Green, 2019). From this perspective, Microsoft was able to successfully build the employees’ interest in changing the current approach, while the organizational culture encouraged employees to establish a solution on how to enter the smartphone software market.
The next stage that is crucial to complete when utilizing the Prosci ADKAR model is the promotion of knowledge on integrating the change into the current organizational processes. Before 2014, Microsoft’s corporate culture was focused on the promotion of only successfully distributed products, negatively affecting the creation of innovative solutions (Hempel, n.d.). By incorporating training programs and coaching instructors that informed the workers of the change methods, Microsoft was able to prevent misunderstanding and confusion, which are likely to arise without appropriate change knowledge. After that, the fourth step was to ensure that employees also possessed the skills necessary for performing the new activities (Cameron & Green, 2019). Focusing the organizational culture on practicing the skills is also vitally important for initiating the change process. As such, Microsoft executives introduced training seminars and professional consultations in order to improve the skills of the workforce and help them integrate the new behaviors into the working activities.
The final phase of the change initiative was to ensure that the change implementation was performed successfully. As such, the executives were required to enhance the workforce’s competencies in the implementation of desired behaviors. As such, corporate culture often sets specific expectations for performance, enabling employees to improve particular skills and behave according to the desired norms (Cameron & Green, 2019). Nevertheless, to change the practices commonly utilized to complete the working tasks, it is imperative to reinforce the change initiative, prompting the employees to use the skills and behaviors learned during change training (Cameron & Green, 2019). The Microsoft corporation launched several incentives programs specifically to support the implementation of new knowledge and encourage workers.
Implementation Outcomes
After the chosen strategy had been utilized, Microsoft executives reported several positive outcomes. In 2017, as a result of the change initiative, the company’s revenues surged, text and its position on the smartphone operating system market increased (Weinberger, 2016). In comparison with 2014, Microsoft incredibly improved its financial standing and regained the interest of all various customer populations (Weinberger, 2016). However, the most significant consequences of the initiative were the improvements in employee engagement and morale, suggesting that the workers were inspired to work for the corporation and motivated to contribute to its development (Delaini, 2021). Higher team cohesion and communication between members were also noted, with positive changes to the corporate culture observed.
Regardless of the beneficial outcomes, it is crucial to consider that the overall organizational environment includes factors that can promote and impede change. As such, although Microsoft was indeed experiencing a decline before 2014, it still held a strong position in the computer software market (Weinberger, 2016). Good financial standing is advantageous when implementing a change initiative, as the workforce is more likely to trust the executives’ choices due to the corporation’s current achievements (Cameron & Green, 2019). Furthermore, the necessity to advance into the smartphone operating systems market has already been addressed by the executives and recognized among the employees, meaning that the workforce might have already possessed the awareness for change.
Nevertheless, such elements as the change in leadership and lack of previous change experience could have hindered the implementation of the chosen initiative. When a company’s higher executives are replaced, it is common for the workforce to experience complications when adapting to the new leadership, meaning that the process of change can be less efficient (Cameron & Green, 2019). Moreover, as Microsoft had not previously utilized the Prosci ADKAR model, the lack of relevant knowledge might have decreased the strategy’s success.
Recommendations for Future Implementations
Microsoft’s example demonstrates that the Prosci ADKAR model can be highly efficient when implementing a change initiative. However, if another corporation were to utilize a similar strategy, alterations to this process could be suggested. Firstly, due to the potential differences in the corporate culture, it is possible that, contrary to Microsoft, awareness about change would be substantially lower. Thus, the firm should be prepared that additional efforts to improve awareness may be needed (Cameron & Green, 2019). After that, Microsoft employees have not reported resistance to change, possibly given the enterprise’s success in the computer software sector (Weinberger, 2016). Nonetheless, in a less successful organization, objection to adjustments might be significantly higher, and it is recommended to utilize extra measures to assess and overcome resistance (Cameron & Green, 2019). In this regard, the executives must ensure that the corporation’s internal environment and various factors affecting it are thoroughly analyzed before strategy execution.
Conclusion
To conclude, organizational change that occurred in Microsoft corporation after 2014 has been discussed in detail in this paper, outlining the implemented strategy and analyzing the change process. It is evident that the Microsoft executives, led by Satya Nadella, have successfully used the Prosci ADKAR method to incorporate the desired changes, not only improving the company’s outputs but also enhancing the workers’ engagement. Moreover, the employees successfully adapted to the new environment, with the enterprise overcoming potential obstacles. Nevertheless, it is advised that change awareness levels and resistance two adjustments are addressed when implementing a similar change initiative in a different organization.
References
Cameron, E., & Green, M. (2019). Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers.
The differences that exist between defensive and offensive marketing strategies are both practical and rational. These strategies apply to big and small companies alike. Offensive strategies come in handy in advancing the achievement of the objectives of a business venture and in improving its market position (Porter, 2008). On the other hand, defensive strategies are necessary for protecting the market position of a company. This is achieved by protecting the segments that are already safe and maintaining a company’s brand name (Sahaf, 2008). Therefore, this paper seeks to evaluate two offensive strategies and one defensive strategy while showing why a company like Microsoft Corporation would implement them.
The first offensive marketing strategy involves structuring the marketing department of a company through the creation of new roles that focus on a company’s marketing activities. This enables the department to develop a good corporate strategy and image (Porter, 2008). This will happen because the marketers will be able to have more interaction with the customers and develop ways through which they can improve their services to satisfy the customers’ needs. By structuring the marketing department, the creation of different tasks would imply that the recruitment of the most proficient candidates will take place. This would enable the company to attain its objectives efficiently (Sahaf, 2008). These actions provide the new employees with ample time to look into the company’s strategies. The structuring strategy also requires the marketing department to transform its relationship with other departments that they have to co-operate with when implementing the offensive strategy (Porter, 2008).
A corporation like Microsoft would have to implement this strategy to cut the time that most of its staff members spend in the implementation of short-term activities. Past studies reveal that Microsoft employees spend 80-90% of their time on tactical activities that are short-term. This issue has seen the corporation lag behind other similar corporations in terms of its long-term activities of innovating, creating new products, and increasing its profits. By employing the strategy, the company would create roles for various employees and ensure that the recruitment of candidates to various positions would be on merit so that those who qualify spend most of their time in marketing activities. The employees will also have more time for strategizing on how they can improve the company’s market position or improve relations with other players in the company in order to attain competitive advantage (Rainey, 2010).
The second offensive strategy involves implementing the concept of relationship marketing. Relationship marketing involves employing staff to mingle more with the customers of the company by arranging meetings with them to ascertain their specific needs (Sahaf, 2008). Relationship marketing is advantageous to a company since it provides many ways of meeting with customers. Technological advancements have led to the development of many cost-effective ways of meeting with customers (Porter, 2008). The building of high-quality databases that can store large amounts of information from customers on various products is possible to further the goals of a company’s relationship marketing strategy. It is from such information that a company can be able to effectively and efficiently respond to the customer trends in the market. This is mainly because the relationship marketing strategies that companies around the globe use help them in perceiving customers as income streams for their long-term trading activities (Sahaf, 2008).
Microsoft should implement the strategy so that it may maintain its market position as the global leader in selling software applications and other similar technologies. Previous studies reveal that Microsoft has been experiencing low sales and its profits have been on the downfall. These adverse effects arise from its competitors’ actions as they seem to have a better understanding of the customers’ needs. Microsoft’s competitors engage more in relationship marketing for longer periods. This issue enables them to come up with products that satisfy the customers’ needs. Therefore, for Microsoft to maintain its market position, it should adopt the strategy as it will enable it to gather vital information from its customers. This information will help in making and introducing creative products that satisfy its customers’ needs. The more sales that Microsoft makes, the more profitable it will become. These actions would help it to maintain its market position (Rainey, 2010).
The first defensive strategy involves ensuring that an organization has enough weapons at its disposal for protecting its market position (Sahaf, 2008). This may include ensuring that the brand identity, the customer’s perception of a company and its products, prices, and the advertising methods are accessible and available (Porter, 2008). The use of such a strategy by Microsoft would help it to counter the stiff competition it experiences from competitors. By securing the requirements for the defensive strategy, Microsoft will have the capacity to implement all activities that help in improving its brand’s identity and customer’s perception of its products and services. Such a measure would help the company in advancing its objective of protecting its current market position (Rainey, 2010).
In conclusion, the paper discussed two offensive strategies and one defensive strategy and how Microsoft should apply them to improve its performance. Therefore, from the discussion, it is clear that all these strategies are vital in the maintenance or protection of a company’s market position (Sahaf, 2008).
References
Porter, M.E. (2008). Competitive strategy: Techniques for analyzing industries and competitors. New York: Simon and Schuster.
Rainey, D.L. (2010). Enterprise-wide strategic management: Achieving sustainable success through leadership, strategies, and value-creation. Cambridge: Cambridge University Press.
Sahaf, M.A. (2008). Strategic marketing: Making decisions for strategic advantage. London: PHI Learning.
The business world is drastically evolving. In an attempt to address the global environmental and social challenges, big companies through their actions and influence are adopting new policies, products and approaches and are also demanding their dealers and their clients to change too due to both the market demands answers that assist a company of any size function in a sustainable manner and build sustainable brands.
This case looks at Microsoft Corporation, a technology firm that aims to develop software for sustainability required to make it possible for companies to move the needle on this vital concern.
Introduction
The society perception towards the environment is changing as people acknowledge that their everyday activities have a direct impact on the environment. Thus, the environment ought to be preserved and that there is as a correlation between environment, society and the economy.
Businesses due to their practices and public pressure have to acknowledge that they play a great role towards the positive and negative impact on the environment.
Hence, organizations such as Microsoft are aspiring to have sustainable development practices in their operations. Its aspirations of sustainable development can be seen in its global operations as Microsoft business activities cross over its boundaries due to its global market, distributors and supply chains (Hopwood et al., 2005).
Due to the need to grow sustainable businesses, companies and governments have come up with legal policies and frameworks aimed at ensuring that the business community understands and implement the principles of sustainable development into their organizations. Some even have incorporated sustainable development into their mission statements (Devinney, 2009).
Prior to sustainable development principles, companies used to value their strength by their financial position; thus the more profitable a company was, the stronger it was. Nevertheless, as time went by, the negative practices used by companies in their operations started affecting the environment.
Due to this, change was needed in the production cycles and as a result organizations started adopting green business practices but haven’t yet fully incorporated sustainable development practices. Organizations realized that using financial indictors as a measure of success was a short term analysis as long term effects would significantly affect the productivity of their companies.
Smith and Rees (1998) explain that “this meant expanding the company’s focus from merely creating shareholder value to include all stakeholders — meaning the people who work in our companies, the people who live in the communities where our products are manufactured, the customers who use our products and the workers in the factories that create them”.
Sustainable development is not only a motivating strategy for big corporations but a core element in the organizations future corporate efficiency. This paper will thus seek to critically analyze how Microsoft will hope to achieve the three aspects of sustainable development as employed by Microsoft namely; environment, society and the economy.
Review and Evaluate (Microsoft) policies and practices
Sustainable development takes into consideration three issues, that is, environment, society and the economy. According to Presas (2001, 205), “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”
Microsoft “aspires to be more than just a good company, it aspires to be a great company.” It acknowledges that it has to adopt sustainable development if it is to achieve this. Microsoft strives to incorporate the principles of sustainable development in its day to day operations towards its long term objectives.
This, in turn, Microsoft hopes will have a win-win situation among all its stakeholders in issues concerning the environment, the society and the economy.
As a result, Microsoft management aspires to take the three core issues seriously in its development agenda these as Ayong Le Kama (2001, 1915) notes that “three elements of sustainable development constitute a corporate evaluation model measured by the so-called ‘triple bottom line’, covering a company’s impact on people, planet and profit, respectively”.
Nevertheless, Microsoft acknowledges that there are issues in implementing the system; for instance, how would the company know if their practices are sustainable and to what extent?
With time, there has been significant development in sustainable development systems with the development of Global Reporting Initiatives (Florida, 2011). These guidelines operate as a framework that has key performance indicators in areas such as the economy, society and social sustainability.
According to Microsoft’s Environmental manager, the company hopes to attain its sustainable development by pegging itself on three core pillars, information technology, innovation and energy efficiency. As a result the company continues to celebrate earth day and stressing on the need of observing issues related to climate change. It further notes that IT products result in at least 3 percent of carbon emissions.
Due to this fact, the company is keen on new innovations that will cut back on its carbon emission and reduce its energy emission. “For instance, Microsoft’s own use of Unified Communications virtual meeting and telework software is already reducing employee travel by approximately 1 million air miles a year, and reducing our carbon footprint by 17,000 metric tons annually” (Pearce et al, 1989).
Thus Microsoft’s aspires to attain efficient, sustainable development by adopting strategies that focus around environmental sustainability. These will entail the company coming up with new and innovative technologies which can be adopted in the global arena.
In addition, the company is in the course of adopting other performance indicators that ensure effective and efficient green business practices in its operations, for instance, the ISO 14000. From late 2013, the company has put a system that will require its supplier and distributor chain to provide data on their compliance to environmental issues that are provided by the companies’ guidelines.
These guidelines act as a benchmark through which all other stakeholders have to adhere to. Florida, (2011) notes, “ the new reporting mechanism complements and strengthens Microsoft’s existing auditing and assurance programs, which include third-party monitoring of its contract hardware manufacturers.”
Therefore in the coming months, the company plans to start a sensitization program through which key stakeholders will be informed on its key policies on sustainable development. This will aim at encouraging transparency in its sustainable development program.
As indicated above, Microsoft takes sustainable activities seriously and is in the process of adopting all its practices into the system. Despite the fact that there are numerous hindrances in achieving their current and future objectives, Microsoft will have one of the best sustainable practices compared to other companies in the field.
This is due to its sustainable development policy and framework that will serve as a benchmark in its aim of achieving a sustainable development agenda. In addition, its policies encompass both a qualitative and quantitative approach, thus making it a very comprehensive framework. Microsoft also acknowledges that achieving a fully sustainable development practice into the company is an issue that will take a lot of time.
As a result, its performance indicators are scheduled to introduce the practice on a timeline basis, taking into consideration the bottlenecks it might face from different stakeholders. This forms one of the best practices as the company appreciates the fact that adopting sustainable development in all three core areas is quite a challenge but has formulated a timeline of achieving them in the long run.
Also Microsoft hopes to adopted proactive sustainable approaches where it will be applied not only in their production plants but also on its supply lines. This has been done in consideration that Microsoft’s sustainable strategies extend beyond it cooperates boundaries and if it is to achieve their sustainable development agenda.
In order to achieve this, it has had to come up with policies and internal control systems (ICS) as its suppliers and distributors come from outside Microsoft home region and are thus spread across the globe. As a result of this, a lot of environmental and social problems are spread across the globe using these supply and distribution lines (Manning et al., 2011).
As noted above, sustainable development practices are activities that companies aspire to attain but haven’t achieved yet. Microsoft is one company whereby it hopes to operate in a sustainable business environment; it hasn’t been able to do so.
Though their policies and guidelines that guide it in its activities to ensure that their activities operate in a green environment, they are still far from achieving a sustainable development practice. This is due to the fact adopting sustainable development practices are quite a hard task though it has its advantages in the long run.
Sustainable development will require the company and other organizations to make an overhaul to its traditional practices. This will require a lot of time, capital and human resource, a fact that companies don’t appreciate. In addition, there will be a significant change in the operating systems and a decline in profit margins a fact that the management and shareholders don’t appreciate.
As a result, Microsoft and other companies lack a strong and immediate structure that calls for a fast adoption of sustainable development. Due to the above facts, sustainable development continues to remain as a future goal and not something already in use.
Limitations
Organizations have realized that achieving sustainable development practices into their manual and activities is quite a hard issue as several issues need to be taken into account.
For example, some stakeholders in the supply and distribution chain weren’t keen in observing Microsoft’s sustainable development agenda as they saw it as an intrusion on their profit margins. In addition, there were legal issues as the supply and distribution chains fell in different legal jurisdictions hence lack of a harmonious approach to the issue.
There were also internal barriers whereby, the Microsoft management wasn’t in consensus about the right approach the company should take in this issue. Also, different stakeholders in Microsoft had different interests as they had to put the desires of shareholders (profits) into consideration since buy adopting sustainable development practices would mean cutting on profits in the first stages of implementation.
Methodology
Based on the research topic, the researcher used secondary sources of information as the main form of information for the research. The researcher used his discretion which enabled him to go through very large volumes of relevant data secondary sources and subsequently select the most appropriate data from published sources which came from books and official websites.
The data were collected from official websites and industry sources in order to add credibility and reliability to the research findings, additionally qualitative data was used to analyze the results and support discussions.
The Secondary data collection method that was used included Microsoft’s official website. Since the aim of the research was to investigate the sustainability performance of Microsoft with regards to its management of corporate strategies, it thus aimed the company’s website and journals.
The secondary data collection was an effective method of collecting information since it saves time and could offer more accurate and unbiased information.
Through journals, it was also easy to make a follow up when looking for finer details of any interesting piece of information by comparing peer-reviewed journals. Therefore due to the large amount of information collected by secondary data collection methods, they enabled a conclusive determination of the sustainability performance of Microsoft.
The choice of quantitative data collection as the methodology to be used is backed by the fact that quantitative research has the capacity of providing detailed information regarding the company’s sustainable development practices in its operations hence the methodology fitted well with the aim of the research.
Comparison of the data with other peer-reviewed when collecting information could only be achieved by using quantitative methods.
Data analysis is a crucial part towards completion of a study. In this research, data analysis involved carefully looking at the results from the journals and other websites. From the data provided by the articles, the researcher tried to identify how Microsoft manages corporate responsibility. In the analysis, the practicality of the research outcomes in solving the real problems in the field was also evaluated.
It is common for research undertakings to present challenges and this research is no exception. The first challenge was that some of the journals may have been too old and provided information that was not reliable. This may have been as a result of continuous change in operations or bias of some authors.
Another challenge was the financial cost of the research. Although the initial budget had been factored, additional cost sprung up while the research was in progress and this proved to be a limitation.
The research was generally time-consuming and this proved to be a limitation since a lot of time was put in the collection of data as well as in the analysis of the collected data.
Findings
Microsoft has committed itself towards providing software solutions and business practices that are sustainable and can thus assist the business world and the society achieve their sustainability maturity model. This has been done with a view to enable the market and other stakeholders have the capacity to analyze each of their decisions from an environmental as well as economical and social point of view.
Moldan et al. (2011 p.11) state that “to begin on that path, we have created the Environmental Sustainability Dashboard for Microsoft Dynamics® AX 2009 as a first foray in utilizing software to address the environmental sustainability challenge our customers face”.
These new systems are aimed at providing new solutions about an organization trends in matters of utilization, related costs and the environmental consequences arising out of it. Thus Microsoft develops its systems with the sole intention of creating awareness and solutions to enhance sustainable development.
As a result, organizations can now get crucial information or data on a daily occurrence, thereby incorporating the system as part of normal day activity. Consequently, the data gathered can be analyzed by professionals who can give a critical review about the success or failures of the company in attaining sustainable development.
It thus analyses the cost associated with their activities in relation to energy consumption. Once the analysis is made, an organization can take the necessary measures for cost reduction that also translates to environmental benefits.
Discussion
Environmental sustainability
In some cases environmental sustainability is implemented as a business strategy by green businesses and Microsoft is an example of such an organization. Since there are chief factors that have a potential influence on the environment, it is therefore necessary for the company to look into its sustainability performance.
It is therefore evident that the introduction of environmental sustainability measures in Microsoft Corporation; the company experiences a reduction in costs, a consequential increase in production and it acquires a good reputation. The aspect of reduction in costs arises from the fact that environmental sustainability saves resources since it greatly reduces waste matter.
Due to the implication of environmental sustainability, Microsoft has acquired a positive reputation as well as good public relations; a key factor that enhances the growth and success of the company. This results to the profitability of Microsoft Corporation (Ans & Rob, 2010).
Social sustainability
Microsoft has greatly invested time and resources in Corporate Social Responsibility (CSR) under its social sustainability business strategy. CSR is basically defined as the obligatory responsibility a company is expected to carry out for the society in form of enhancing both development and growth of the society.
It is vital for the Microsoft to indulge in Corporate Social Responsibility since it forms a platform for vital decision-making tools apparently which center on social impacts. The social sustainability of the corporation focuses on four fundamental. They include: charity, safety, health care, and lastly employment equity.
The corporation has achieved great heights in terms of carrying out Corporate Social Responsibility factors (Endress et al., 2005).
Economic sustainability
Microsoft has achieved sustainable development hence a reduction in its costs of production. For example, the corporation implemented the use of highly capable manufacturing facilities as well as the use of materials that have been recycled. This aspect has led to the corporation experiencing an increment in its profits (Dyllick & Hockerts, 2002).
Since governments and local communities in many parts of the world are knowledgeable on sustainable development of Microsoft, the corporation has resulted to keenly focusing on sustainable development of their stakeholders. In event, the company realizes economic benefits.
Conclusion
Sustainable development of business organizations has become a crucial point in the successful running of businesses. This has been as a result of the recent negative changes associated with environmental pollution.
As a result, organizations have taken a lead role in ensuring that their practices are sustainable and don’t pollute the environment; hence, the concept of “green businesses”. Green businesses embrace the theory of the interrelation between the environment, society and economy. Microsoft, like other organizations, has sought to balance these three concepts.
By achieving a balance of the three concepts, organizations will have achieved sustainable development in their activities. In addition, the government and the global population that forms the market have put pressure on organizations to be environment conscience; a fact that Microsoft has taken seriously. Thus, Microsoft has ensured that its sustainable activities go beyond its borders to its supplier and distribution chains.
Corporate social responsibility (CSR) are interconnected with green businesses and therefore form part of Microsoft’s mission and other companies that operate as “green businesses”.
As a result, organizations ought to ensure that they maintain a “green image” in order to ensure that it maintains its market and is in line with government policies concerning environmental issues. In addition, the consumer attitude has critically changed whereby they will use principles of sustainability in choosing where to buy or not to.
As a result, sustainable development strategies have become a crucial operating principle of Microsoft and other organizations that operate as “green businesses”.
Recommendations
Due to the business and environment changes, Microsoft management has been forced to change its perception towards the environment and acknowledge the importance it plays. As a result, the management ought to be in the fore front in ensuring that its practices and activities are compliant to sustainable development objectives.
It is on this point that Microsoft should take upon itself to implement sustainable development strategies in the development of its systems. Apart from that, the company should acknowledge the fact that its business transcends across its borders since it has a global market, distributors and supplier. Thus, it has to ensure that all stakeholders adhere to the principles of sustainable development.
In addition, the company should commit itself towards the development of software’s that embraces sustainability and can assist companies maneuver around this core and sensitive issue in the activities. In addition, the systems should assist its supplier and distribution chains to gather crucial data that they can use in assessing their performance in this issue.
The system can also be used as a reference point where organizations can take action in cases where its activities aren’t in line with sustainable development. More importantly, the systems should offer the cheapest and quick performance analyses systems which are very practical to green companies.
References
Ans, K & Rob, V 2010, ‘International business, corporate social responsibility and sustainable development’, International Business Review, vol. 19, pp.119–125.
Ayong Le Kama, L 2001, ‘Sustainable growth renewable resources and pollution’, Journal of Economic Dynamics and Control, pp. 25:1911–1918.
Devinney, T 2009, ‘Is the socially responsible corporation a myth? The good, the bad, and the ugly of corporate social responsibility’, Academy of Management Perspectives, vol. 23 no. 2, pp. 44–56.
Dyllick, T & Hockerts, K 2002, ‘Beyond the business case for corporate sustainability’, Business Strategy and the Environment, vol. 11 no. 2, pp. 130-141.
Endress, L, Roumasset, J & Zhou, T 2005, ‘Sustainable Growth with Environmental Spillovers’, Journal of Economic Behaviour and Organization, vol. 58 no. 4, pp. 527-547.
Florida, R 2011, ‘Lean and green: the move to environmentally conscious manufacturing’, California Management Review, vol. 54, no. 1, pp. 80-5.
Hopwood, B, Mellor, M. & O’Brien, G 2005, ‘Sustainable Development: Mapping Different Approaches’, Sustainable Development, vol.13, pp.38-52.
Manning, S, Boons, F, Von Hagen, O, Reinecke, J 2011, ‘National Contexts Matter: The Co-Evolution of Sustainability Standards in Global Value Chains’, Ecological Economics. Vol 4, pp. 12-45.
Moldan, B, Janouskovar, S & Hak, T 2011, ‘How to understand and measure environmental sustainability: Indicators and targets’, Ecological Indicators, vol. 12, pp. 4-13.
Pearce, A, Markandya, L & Barbier, R 1989. Blueprint for a green economy, London: Great Britain.
Presas, T 2001, ‘Interdependence and partnerships: building blocks to sustainable development’, Corporate Environmental Strategy, vol. 18 no. 3, pp. 203-8.
Smith, C & Rees, G 1998. Economic Development. Basingstoke: Macmillan.
Penrose (1959) pioneered the resource-based view. However, Chamberlain (1939) was the first to explain explicitly the concept of unique resources and capabilities. He explained that exploiting unique skills is the best strategy of achieving competitive advantage.
Wernerfelt (1984) did the first publication of Resource based theory, whereby he explained it as a compliment of the market based theory. He observed that competition for resources among firms would affect their ability to implement product market strategies.
Rumelt, Schendel and Teece (1984) also made significant contribution to this theory whereby they defined firms as bundles of productive resources. They therefore suggested that the economic value of these resources would be different depending on context within which they are used.
Mahoney and Pandian (1992) asserted that the main idea behind the Resource based view is that internal resources act as the source of a firm’s strengths and weaknesses. Therefore, for a company to have strength over its competitors it has to have resources that are different and superior to other firms.
Therefore, a firm’s unique resource endowment will influence its strategic choice or its conduct, which will in turn determine its economic success or performance (Collis & Montgomery, 1995).
Characteristics of Resources
There is no generally accepted typology of the resources. However, the resources of a firm can be divided in to two broad categories – tangible and intangible resources. Tangible resources describe the physical and financial resources which include production facilities, Information technology hardware and equity base.
On the other hand, intangible resources are further divided in two parts – personal and impersonal resources. Personal resources refer to skills and capabilities, Impersonal resources refer to intangible assets such as patents and rights as well as organizational processes and routines (Von Pock, 2007).
The main characteristics of the resources are based on two assumptions: firms in the same industry are different with respect to the resources they control. These resources controlled by these firms may not be perfectly mobile (Barney, 1991).
Barney (1991) identifies key parameters that can be used to determine the resources of a firm that leads to competitive advantage. First, the resources must be valuable, which refers to the ability to facilitate the exploitation of opportunities as well as reduce the threats that are in its competitive environment.
Secondly, the resources must be rare which means that they should not be easily available to current or potential competitors. Thirdly, imperfectly imitable, this means that they cannot be copied or obtained by competitors. Lastly, they should be non-substitutable.
This means that there are no other equivalent resources which can be used to develop the same strategies. All characteristics affirm the first assumption of heterogeneity. The second assumption of imperfect mobility is affirmed by the fact that some resources cannot be obtained from the factor markets.
These include strategic resources such as reputation, staff motivation and organizational knowledge. Therefore, the RBV theory is all about exploiting differences in the resources that firms control (Kirsch, 2007).
Resource creation and decay
Firms can have unique resources through two ways – accumulation and acquisition. Therefore, firms become heterogeneous, because throughout their history they accumulated different assets and acquired different intangible assets of dynamic routines and tacit learning (Peteraf, 1993).
Accumulation is a relatively clear process, because it entails development of internal resources to achieve competency. However, acquisition is a bit problematic. The benefit of acquiring the resources might be equal to or more than the cost of acquisition.
In addition, there are limits to acquisition of resources in the factor markets. Some resources cannot be transferred as physical assets. For instance employee motivation cannot be acquired, it has to be developed (Enders, 2004).
However, resources owned by a firm can decay, whereby they are no longer beneficial to achieving a competitive advantage. Decay is causes by various reasons which include a given technology becoming outdated. For instance, a firm can attain a competitive advantage over its rivals by developing a technology that is superior and unique t its rivals’ technology.
However, another firm that rivals that rivals that company can come up with a technology that is superior to the one that the company owns.
Therefore, the company’s resource will have decayed. Another way through which resources can decay is when rivals develop resources that are the same as those of the superior firm. Therefore, its superiority will have diminished (Shi, 2007).
Resource recombination
A firm will have to identify its critical resources or acquire them after which it will transform them in to core competencies of the company. These core competencies are then used to build competitive advantage (Dierrickx & Cool, 1989). Enders (2004) argues that capability is formed by institutionalization of resource combination.
Therefore, developing core competencies will depend on the management’s ability to combine its skills and knowledge base as well as its values, norms, technical systems and managerial systems to develop a competitive advantage.
As a result, organizational competencies find their roots in organizational processes if the firm has the ability to create and acquire knowledge and efficiently and effectively transfer that knowledge to achieve competitive advantage (Collis, 1991).
Resources and the Role of Managers
Resources alone do not lead to competitive, because they need to be transformed. Managers play an important role of converting the resources in to value for customers. Therefore, they need to be able to identify, develop or create, deploy and protect the firm’s resource to attain competitive advantage.
The manager should be able to identify the characteristics of resource that create competitive advantage. After identifying the resources, the manager should develop them to create core competencies. For instance, some resources cannot be acquired from outside the organization.
Therefore, it is upon the manager to put in measures that will ensures that such resources are accumulated to create a competitive advantage in the future. The next role after developing the resources is protecting them from rivals.
For instance, trade secrets and technology innovations need protection from copying. Lastly, the managers are charged with the task of deploying those resources effectively in the market place (Lei, Hitt & Bettis, 1996).
Resource Functionality
Resource functionality refers to how the resources are used to achieve competitive advantage. This involves determining an organizations strategy and deploying resources through the selected strategy to achieve a competitive advantage over competitors.
To determine a strategy a firm needs to identify its strength and weaknesses. The strengths of a firm are based in the resources that are unique to the firm, have value, and cannot be easily copied and non-substitutable. After this assessment firm can build on these strengths to attain a competitive advantage over its rivals.
Therefore, the management will deploy its resources to build on these competencies. In the end they will have attain some superiority over its competitors. To achieve sustainability, the management needs to put up measure to protect the attained advantage (Barney & Clark, 2007).
Firm Analysis
Microsoft Overall analysis
Every management would like to see its firm attain a competitive advantage. Microsoft has been able to achieve competitive advantage over its competitors through the VRIO approach.
The firm has resources that are immobile whose creation are path-dependent and have complex conditions, which has enabled it to develop and sustain its competitive advantage over its rivals. Some of these capabilities have been developed over along period, which makes it costly for its rivals to acquire.
For instance, the company has an operating system called windows a software that runs the computer hardware. The company started working on the windows software in 1982; this has enabled it to gain vast experience and expertise that competitors cannot acquire overnight (Shi, 2007).
The company has human resources as well as human resource practices that have enabled it to have creative employees who are able to come up with innovative ideas on how to better their products. The company achieves this through job satisfaction whereby it seeks to present Microsoft as the best company to work for.
It provides its staff with attractive salary packages as well as financial incentives for creativity. As a result, the company has been able to check on its competitors who are working hard to outdo the firm.
The company has also made strategic acquisition as a way of accessing critical resources that it cannot develop within cost-effectively. For instance, it recently acquired Skype as a way of venturing in to the video and more interactive technologies.
This year Microsoft acquired Skype at a value of $8 billion and in 2007 it acquired aQuantive at a value of 6 billion dollars. These two acquisitions demonstrate the financial might of the company which is a critical resource in attaining competitive advantage (Microsoft, n.d).
The company has also entered in to strategic alliances in order to have core competencies that will enable it to stay ahead of its competitors. For instance, the company has partnered with mobile phone giant, Nokia to develop windows phone which is projected to become the second in market leadership by 2015.
This type of relationship cannot be copied. This shows Microsoft’s ability to configure the market as well as develop and implement appropriate strategies. Lastly, the company has windows and office products, which are leading in their product categories.
It has achieved this through its core competency of research and development. For instance, Windows has undergone a series of innovations for the past 25 years, which has enabled it to maintain market leadership (Barney & Clark, 2007).
Analysis on a VRIO perspective
VRIO is an acronym that stands for the following elements of capability, Value, Rarity, Imitability and Organization. Rarity seeks to explain whether relatively few firms possess the resource or capability.
Imitability determines whether the resource or capability is difficult to copy and whether any firm that tries to copy, obtain or develop the capability or resource will find it disadvantageous in terms of cost. Organization checks whether the firm is organized, ready and able to exploit the capability or resource (Von Pock, 2007).
Microsoft has financial resource capability as shown by its ability to make large and costly acquisitions. However, this financial might is not enough if it cannot be coordinated to the advantage of the firm.
Therefore, organization in VRIO is important in determining how the finances are spent to ensure that the company obtains a competitive advantage. Although most of its competitors cannot afford such large amounts of money, this will only be helpful if the acquisition made with it is strategic and enables the company to secure a competitive advantage.
Therefore, the value of the resource is shown by its ability to acquire resources that the firm lacks such as technologies. It is rare because few firms can afford such amount of money and it is organizationally used to acquire a strategic venture (Kolakowski, n.d).
Innovation is another resource or capability that continues to give Microsoft an edge over its rivals, because it builds its reputation. This resource has been patented, which makes it a rare resource at least in the company’s product categories.
The company’s dominance in the windows and office products shows Imitability of the resource, because competitors are unable to match the company’s innovation capability. This resource has value, because the company has been able to exploit the software demand market through its innovative capability.
The company protects its human resource by providing for incentives for creativity and attractive remuneration packages, which enables it to protect its human resource from competitors (Microsoft, n.d).
Discussion
Resources at Microsoft’s disposal
The firm has tangible resources, such as the financial resources and intangible resources such as the employees’ innovative ability. Both of these have enabled the company to have a great reputation over its rivals. In addition, the company is able to coordinate and protect these resources through its organizational resource (Enders, 2004).
Level and characteristics of these resources
The tangible resources such as financial are so important to the company. Furthermore, its intangible resources and organizational resources are core and priority, because they determine the company’s performance. They are therefore, protected from competitors. As observed above these resources are valuable, imitable, and rare and cannot be substituted (Grant, 1991).
Creation of capabilities
The resources owned by Microsoft have the characteristics that enable them to create a sustainable competitive advantage. For instance, their innovative capability, which is an intangible resource, cannot be imitated, yet it has helped them to maintain market leadership for not less than two decades (Grant, 1991).
Sustainability Success
Microsoft’s success can last for a relatively long period before its competitors catch up with its competencies. Their continued improvement is an indication of continued dominance in the two product categories that they are leading in. Furthermore, its strategic alliances and acquisition will enable it to move to higher heights in the future (Coyne, 1986).
Conclusion
Resource based view is a widely held theory that managers can use to manage a company to success against its rivals. Microsoft has demonstrated that it has some core competencies, which it has built to attain a competitive advantage over its rivals.
The firm has the ability to identify and organize its critical resources in way that ensures that it maintains a higher performance compared to its rivals. These resources have the characteristics that make them competencies such as imitablity, rarity, value and non-substitutable.
In addition, the firm has put up measures, which ensure that these advantages are sustainable. This will ensure that its performance continues to increase and that it maintains its advantage.
List of References
Barney J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
Barney, J. B. and Clark, D. N. (2007). Resource-based theory: creating and sustaining competitive advantage. Melbourne: Oxford University Press.
Chamberlain, E., 1939, “The Theory of Monopolistic Competition”, Cambridge, MA: Harvard University Press.
Collis, D. J. (1991). A resource-based analysis of global competition: The case of the bearings industry. Strategic Management Journal, 12, 49-68.
Collis, D. J. and Montgomery, C. A. (1995). Competing on resources: Strategy in the 1990s. Harvard Business Review, 73, 118-128.
Coyne, K. P. (1986).Sustainable competitive advantage-What it is and what it isn’t. Business Horizons, 29(January-February): 54-61.
Dierickx I. and Cool K. (1989). Asset stock accumulation and sustainability of competitive advantage. Management Science, 35(12): 1504-1511.
Enders A. (2004). Management competence: resource-based management and plant performance. Vallendar: Springer.
Grant, R. M. (1991). The resource-based theory of competitive advantage: Implications for strategy formulation. California Management Review. 33, 114-135.
Kirsch K. (2007). Critically Review how the Resource-based View Has Developed Our Understanding of Strategy. Norderstedt: GRIN Verlag.
Lei D. Hitt, M. A and Bettis R. (1996). Dynamic core competences through meta-learning and strategic context. Journal of Management, 22, 549-569.
Mahoney, J. T and Pandian, J. R. (1992). The Resource-Based View Within the Conversation of Strategic Management. Strategic Management Journal, 13(5), 363-380.
Penrose E. (1959). The Theory of the Growth of the Firm. New York, NY: Oxford University Press.
Peteraf, M. A. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14, 170-181.
Rumelt, R. P., Schendel D and Teece, D. J. (1994). Fundamental issues in strategy: a research agenda. Boston, MA: Harvard Business School Press.
Shi M. (2007). Technology base of mobile cellular operators in Germany and China: a comparative study from the perspective of the resource based view. Berlin: Univerlagtuberlin.
Von Pock A. (2007). Strategic Management in Islamic Finance. Frankfurt: DUV.
Wernerfelt B. (1984). A resource-based view of the firm. Strategic Management Journal 5, 272-280.
This paper will show that Microsoft Corporation breached the terms of ethical business practice. It did this through unfair and brutal competitive practices that forced its competition to be unfairly beaten. By using the monopoly power it yielded, the company exploited its position and used this advantage illegally. The paper will show you how this happened and discuss why the practices shown are unethical. Additionally, it will show the effects of the unethical practices on the general economy.
Microsoft is undoubtedly the world’s biggest software company. Its size makes it a formidable force for any competitor who dares venture into its business territory. A firm of such status, and any other firm for that matter, would strive to keep this dominance in place. However, the nature of its industry requires it to constantly innovate and invest in new products and technologies (Purkayastha, 1999, 946). The company’s financial strength allows it to put a lot in innovation and research in order to stay ahead of the competition. However, its true power lay not in its finances, but its platform monopoly (Spinello, 2005, 343). The platform here would refer to its operating system. Since it has a monopoly in controlling the system, it can lock out competition by manipulating this unique advantage. This is where antitrust law steps in.
Antitrust laws are laws that are aimed at keeping the markets competitive and not dominated by monopolistic forces (Allbusiness.com, 1999). They are not meant to destroy competition, but keep competition alive by making sure that forces that would destroy it are controlled (Gillmor, 2002, 58). According to Hemphill (2004), this allows the economy to have sustainable and desirable activities (p. 128). So how did Microsoft breach ethics?
The first accusation leveled is that Microsoft instituted a barrier to entry, especially about the browser market (Spinello, 2005, 347). This is because the company refused to divulge its source code. This ensured that software companies that offered software products that would run on the Windows platform would be unsure of its compatibility and quality. Netscape’s Navigator was a casualty of this tactic. They were unable to ensure that the product run seamlessly with Windows while Microsoft optimized Internet Explorer (IE), its own web browser, for Windows (George, 2003, 183). Additionally, Microsoft turned into a bully, using its size to force computer manufacturers into exclusionary deals (Purkayastha, 199, 946). The manufacturers were forced to license a copy of Windows with every computer they produced, but the IE icon on the desktop and were expressly forbidden from putting competitor’s software icons on the desktop (Spinello, 2005, 348; Purkayastha, 199, 947 ). This promotional greatly hindered the competition.
They also obtained exclusionary deals with Internet Access Providers to use IE as their default browser in exchange for the position of home page (Spinello, 2005, 348). In addition, they practiced bundling Windows with IE (George, 2003, 183; Purkayastha, 1999, 947). This practice resulted in the reduction of choice for consumers.
However, in my opinion, it is the Java war that really brought out the ugliness of Microsoft’s tactics. Sun Microsystems developed a cross-platform programming language called Java. Its function was to provide a standard programming language across multiple platforms (Spinello, 2005, 346). Microsoft saw this as a threat to its platform dominance and sought to end it brutally. It created its own version of Java while simultaneously making Sun’s Java incompatible with Windows (Spinello, 2005, 347). Additionally, it entered agreements with Independent Software Vendors (ISVs) to provide them with technical information in exchange for exclusive use and promotion of Microsoft’s Java.
These competitive tactics applied by Microsoft were not only illegal, but were also grossly unethical. Unethical behavior here is determined with respect to the consumer and the economy as a whole.
In examining how this affects the consumer, we must look at the effects in long-term. Microsoft sought to retain its leading position by making the cost of their browser zero. By bundling the product with Windows, it allowed the consumer to obtain this software at no extra cost (Purkayastha, 199, 947). This is only beneficial to the consumer in the short run. In the long run, with competition dead, the company would so easily be able to increase its price since competition no longer exists.
However, apart from price, the major consumer concern is quality. It is common knowledge that competition breeds quality. This is why the antitrust laws exist in the first place, to preserve competition; so as to preserve quality by extension. In the market segment such as IT, quality would encompass the traditional meaning of quality and innovation (Hemphill, 2004, 133). Microsoft’s unfair business techniques mean that the competition is stifled and therefore innovation is slowed. If companies such as Sun Microsystems cannot create a financially viable product such as Java, then the creativity is stalled. The immorality of stifling creativity is that the customer in the end loses out.
What is needed is there to be a leveling out of the playing field. A level playing field means that one does not take unfair advantage of one’s position in order to defeat competition (Hemphill, 2004, 130). The firm is judged on the basis of the quality and innovativeness of its products, not the strength it can muster to stave the competition.
In summary, in the end, the customer loses out in terms of price, quality and innovation. The unethical practice Microsoft undertook was to use illegal and unfair practices to kill off competition to maintain its dominant position (Purkayastha, 199, 947). By instituting checks and balances to maintain positive competition, we benefit the market. Therefore, competitive ethics are not observed to the advantage of the firm, but rather to the advantage of the consumer and the whole market in total.
References
Antitrust Law. (1999). Allbusiness.com. Web.
De George, R. (2003). The Ethics of Information Technology and Business (Illustrated., pp. 181-184). Wiley-Blackwell.
Gillmor, S. (2002). Law and Order: Marrying the spirit to the letter of the law produces a victory for Microsoft customers, if not for competitors. InfoWorld, 24(45), 58.
Hemphill, T. (2004). Antitrust, Dynamic Competition and Business Ethics. Journal of Business Ethics, 50(2), 127-135.
Purkayastha, P. (1999). Bill Gates in the Dock: Anti-Trust Case against Microsoft. Economics and Political Weekly, 34(16/17), 946-947.
Spinnello, R. A. (2005). Competing Fairly in the New Economy: Lessons from the Browser Wars. Journal of Business Ethics, 57(4), 343-364.
Annotated Bibliography
Antitrust Law. (1999). Allbusiness.com. Web.
The article gives a brief introduction and definition to the concept of antitrust laws. It gives a general introduction to the concept, showing the law it comes from and how it is legally defined. This allows the reader who has no previous knowledge of this concept to gain a working understanding of the same. In short, the function of this article is to introduce. However, the page it is found on has a follow-up article on the Microsoft antitrust case. This gives the reader a real-life application of this law.
De George, R. (2003). The Ethics of Information Technology and Business (Illustrated., pp. 181-184). Wiley-Blackwell.
As the title suggests, this book offers a wide-ranged discussion on ethics and the business world involved in IT. The issues presented in this book cover a wide array of ethical subjects. Issues discussed range from privacy, intellectual property, censorship and numerous business issues in the IT world. This overview is good for individuals interested in general ethical issues in IT. The book is highly informative and allows one to create a relationship between ethics and IT. The author is a Professor of Philosophy and Business administration. He has published widely and is an acclaimed academic in the field of ethics. His academic standing makes his work authoritative and therefore credible.
Gillmor, S. (2002). Law and Order: Marrying the spirit to the letter of the law produces a victory for Microsoft customers, if not for competitors. InfoWorld, 24(45), 58.
This article gives a more legal edge to the case. It provides a summary of the legal judgment while giving the various winners and losers of the case. It essentially breaks the case into three parts, based on the judgment. Additionally, it provides insights and comments from various stakeholders involved in the case. This article is very useful for providing a quick and summarized view of the case. The writer of the article holds the position of director in the InfoWorld Test Center. His authority and reputation, derived from the title he holds, assures us of the credibility of the article.
Hemphill, T. (2004). Antitrust, Dynamic Competition and Business Ethics. Journal of Business Ethics, 50(2), 127-135.
The article provides a theoretical background to anti-trust in general. It assumes one to already be generally familiarized with anti-trust. It delves into several perspectives of the same: its economics, legality and ethic. The advantage of this article is that it looks at this issue from several industries’ perspectives, giving plenty of examples of how antitrust is applied. The bringing together of ethical, economical and legal perspectives gives a wholesome picture, allowing us to trace the inter-relation between these fields as far as antitrust is concerned. The content is well-cited, making liberal use of scholarly material. Additionally, the article is in a peer-reviewed journal, making the content credible.
Purkayastha, P. (1999). Bill Gates in the Dock: Anti-Trust Case against Microsoft. Economics and Political Weekly, 34(16/17), 946-947.
This short publication cites gives a concise outline of the anti-trust case background. The article is writer is Indian and therefore writes from an international perspective. It starts off by citing the importance of the case before delving into a timeline structure of the facts of the case. This allows one to see short, accurate yet somewhat detailed report of the main facts of the case. The source of the article is a peer-reviewed journal, allowing us to rest assured that the content is genuine and academically sound.
Spinnello, R. A. (2005). Competing Fairly in the New Economy: Lessons from the Browser Wars. Journal of Business Ethics, 57(4), 343-364.
Spinello provides a multi-dimensional perspective of several ethical issues raised during the browser wars. It is arranged in an incident-based format. In this format, the various incidents are listed and the moral issues and obligations arising are argued in the segment. The main aim of the article is to provide an argument; however, it still gives a concise chronology of events that raised the moral obligations. The article includes charts and graphs, providing information in a clearer format. The use of credible academic citing and the fact that it is in a peer-reviewed journal allows us to judge the content as credible and authoritative.
