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Microsoft Corporation: Is Stack Ranking the Answer? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of Microsoft Corporation: Is Stack Ranking the Answer?


A vice-president of human resources at a technology software provider was reviewing the employee appraisal submissions for her firm. After years of rapid growth, the firm was underperforming relative to its peers and it seemed that part of the problem was its relaxed performance appraisal system. As much had been written about Microsoft Corporation's stack ranking system, the human resources executive wondered how much she could learn about appraisal systems from this example.

Authors :: David Loree, Ken Mark

Topics :: Leadership & Managing People

Tags :: Collaboration, Human resource management, Leadership, Organizational culture, Performance measurement, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "Microsoft Corporation: Is Stack Ranking the Answer?" written by David Loree, Ken Mark includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Appraisal Stack facing as an external strategic factors. Some of the topics covered in Microsoft Corporation: Is Stack Ranking the Answer? case study are - Strategic Management Strategies, Collaboration, Human resource management, Leadership, Organizational culture, Performance measurement and Leadership & Managing People.


Some of the macro environment factors that can be used to understand the Microsoft Corporation: Is Stack Ranking the Answer? casestudy better are - – customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, increasing commodity prices, cloud computing is disrupting traditional business models, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions, increasing household debt because of falling income levels, challanges to central banks by blockchain based private currencies, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc



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Introduction to SWOT Analysis of Microsoft Corporation: Is Stack Ranking the Answer?


SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Microsoft Corporation: Is Stack Ranking the Answer? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Appraisal Stack, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Appraisal Stack operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.




SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix


SWOT analysis of Microsoft Corporation: Is Stack Ranking the Answer? can be done for the following purposes –
1. Strategic planning using facts provided in Microsoft Corporation: Is Stack Ranking the Answer? case study
2. Improving business portfolio management of Appraisal Stack
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Appraisal Stack




Strengths Microsoft Corporation: Is Stack Ranking the Answer? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Appraisal Stack in Microsoft Corporation: Is Stack Ranking the Answer? Harvard Business Review case study are -

Operational resilience

– The operational resilience strategy in the Microsoft Corporation: Is Stack Ranking the Answer? Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.

Ability to recruit top talent

– Appraisal Stack is one of the leading recruiters in the industry. Managers in the Microsoft Corporation: Is Stack Ranking the Answer? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.

Highly skilled collaborators

– Appraisal Stack has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Microsoft Corporation: Is Stack Ranking the Answer? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.

Learning organization

- Appraisal Stack is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Appraisal Stack is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Microsoft Corporation: Is Stack Ranking the Answer? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Strong track record of project management

– Appraisal Stack is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

High switching costs

– The high switching costs that Appraisal Stack has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Superior customer experience

– The customer experience strategy of Appraisal Stack in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Successful track record of launching new products

– Appraisal Stack has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Appraisal Stack has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

Sustainable margins compare to other players in Leadership & Managing People industry

– Microsoft Corporation: Is Stack Ranking the Answer? firm has clearly differentiated products in the market place. This has enabled Appraisal Stack to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Appraisal Stack to invest into research and development (R&D) and innovation.

Effective Research and Development (R&D)

– Appraisal Stack has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Microsoft Corporation: Is Stack Ranking the Answer? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Ability to lead change in Leadership & Managing People field

– Appraisal Stack is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Appraisal Stack in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.

Low bargaining power of suppliers

– Suppliers of Appraisal Stack in the sector have low bargaining power. Microsoft Corporation: Is Stack Ranking the Answer? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Appraisal Stack to manage not only supply disruptions but also source products at highly competitive prices.






Weaknesses Microsoft Corporation: Is Stack Ranking the Answer? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of Microsoft Corporation: Is Stack Ranking the Answer? are -

Capital Spending Reduction

– Even during the low interest decade, Appraisal Stack has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Appraisal Stack supply chain. Even after few cautionary changes mentioned in the HBR case study - Microsoft Corporation: Is Stack Ranking the Answer?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Appraisal Stack vulnerable to further global disruptions in South East Asia.

Slow decision making process

– As mentioned earlier in the report, Appraisal Stack has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Appraisal Stack even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

Aligning sales with marketing

– It come across in the case study Microsoft Corporation: Is Stack Ranking the Answer? that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Microsoft Corporation: Is Stack Ranking the Answer? can leverage the sales team experience to cultivate customer relationships as Appraisal Stack is planning to shift buying processes online.

Slow to harness new channels of communication

– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Appraisal Stack is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Microsoft Corporation: Is Stack Ranking the Answer? can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.

High bargaining power of channel partners

– Because of the regulatory requirements, David Loree, Ken Mark suggests that, Appraisal Stack is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study Microsoft Corporation: Is Stack Ranking the Answer?, in the dynamic environment Appraisal Stack has struggled to respond to the nimble upstart competition. Appraisal Stack has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study Microsoft Corporation: Is Stack Ranking the Answer?, it seems that the employees of Appraisal Stack don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

Increasing silos among functional specialists

– The organizational structure of Appraisal Stack is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Appraisal Stack needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Appraisal Stack to focus more on services rather than just following the product oriented approach.

Products dominated business model

– Even though Appraisal Stack has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Microsoft Corporation: Is Stack Ranking the Answer? should strive to include more intangible value offerings along with its core products and services.

No frontier risks strategy

– After analyzing the HBR case study Microsoft Corporation: Is Stack Ranking the Answer?, it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.




Opportunities Microsoft Corporation: Is Stack Ranking the Answer? | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The opportunities highlighted in the Harvard Business Review case study Microsoft Corporation: Is Stack Ranking the Answer? are -

Manufacturing automation

– Appraisal Stack can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Loyalty marketing

– Appraisal Stack has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Appraisal Stack can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Microsoft Corporation: Is Stack Ranking the Answer?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Better consumer reach

– The expansion of the 5G network will help Appraisal Stack to increase its market reach. Appraisal Stack will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

Leveraging digital technologies

– Appraisal Stack can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

Redefining models of collaboration and team work

– As explained in the weaknesses section, Appraisal Stack is facing challenges because of the dominance of functional experts in the organization. Microsoft Corporation: Is Stack Ranking the Answer? case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Changes in consumer behavior post Covid-19

– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Appraisal Stack can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Appraisal Stack can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.

Reforming the budgeting process

- By establishing new metrics that will be used to evaluate both existing and potential projects Appraisal Stack can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Appraisal Stack can use these opportunities to build new business models that can help the communities that Appraisal Stack operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.

Reconfiguring business model

– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Appraisal Stack to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.

Creating value in data economy

– The success of analytics program of Appraisal Stack has opened avenues for new revenue streams for the organization in the industry. This can help Appraisal Stack to build a more holistic ecosystem as suggested in the Microsoft Corporation: Is Stack Ranking the Answer? case study. Appraisal Stack can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.

Building a culture of innovation

– managers at Appraisal Stack can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Appraisal Stack can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.




Threats Microsoft Corporation: Is Stack Ranking the Answer? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis


The threats mentioned in the HBR case study Microsoft Corporation: Is Stack Ranking the Answer? are -

Increasing wage structure of Appraisal Stack

– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Appraisal Stack.

Regulatory challenges

– Appraisal Stack needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.

Technology acceleration in Forth Industrial Revolution

– Appraisal Stack has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Appraisal Stack needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

Consumer confidence and its impact on Appraisal Stack demand

– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.

Capital market disruption

– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Appraisal Stack.

Easy access to finance

– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Appraisal Stack can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Learning curve for new practices

– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Microsoft Corporation: Is Stack Ranking the Answer?, Appraisal Stack may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .

Environmental challenges

– Appraisal Stack needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Appraisal Stack can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.

New competition

– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Appraisal Stack in the Leadership & Managing People sector and impact the bottomline of the organization.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Appraisal Stack can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Microsoft Corporation: Is Stack Ranking the Answer? .

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Appraisal Stack with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Instability in the European markets

– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Appraisal Stack will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.




Weighted SWOT Analysis of Microsoft Corporation: Is Stack Ranking the Answer? Template, Example


Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Microsoft Corporation: Is Stack Ranking the Answer? needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study Microsoft Corporation: Is Stack Ranking the Answer? is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study Microsoft Corporation: Is Stack Ranking the Answer? is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of Microsoft Corporation: Is Stack Ranking the Answer? is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Appraisal Stack needs to make to build a sustainable competitive advantage.



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