Question

An organizational strategy is a plan that specifies how your business will allocate resources (e.g., money, labor, and inventory) to support infrastructure, production, marketing, inventory, and other business activities.

Organizational strategy can be divided into three distinct categories:

1. Corporate level strategy
2. Business level strategy
3. Functional level strategy

• How does Microsoft corporation utilizes organizational strategy based on these three distinct categories to build success for the company?

Answer 1

How does Microsoft corporation utilizes organizational strategy based on these three distinct categories to build success for the company?

Microsoft is a global corporate giant that has been providing computer hardware and software to the world since its birth in 1975.

Corporate level strategy-

The corporate level strategy of Microsoft is growth strategy by diversification of its business. Microsoft has a divisional organization. In other terms, each division or group focuses on a specific good or service. Customer service staff, research and development, and sales are all parts of each individual group. This allows for better customer support but at a higher expense. The 5 groups are Windows & Live Windows Group, Server Software, Online Services, Microsoft Business, and Entertainment and Devices.

Another large section of the corporate strategy is investments and global expansion throughout the world.  This is because in other parts of the world like China and India, population size is enormous.  This allows for a huge market that has maybe not been effected by all of what Microsoft has to offer.

Business Level Strategy

Microsoft's business level strategy involves driving and expanding innovation to achieve market excellence. The strategy to accomplish this is to incorporate the talents of Microsoft's diverse workforce into their products.

Microsoft Corporation uses broad differentiation as its generic strategy for competitive advantage. Broad differentiation involves unique products sold to a wide variety of customers. In this case, Microsoft’s products are unique in terms of features, such as software products specifically designed for business organizations. Also, this generic competitive strategy is broad in the sense that the company sells its products to various market segments.

Functional level strategy-

Functional level strategy of Microsoft like Production, marketing, sales , finance etc helps Microsoft to do these functions so that it can achieve its mission and vision. for example- Marketing department focus on marketing and promotion of new devices and products like surface pro,. Finance department make sure of finance and budget of business. HR department helps to select, train and retain talented employees in the organization. all of these functional department work in collab to make this company successful.