Microsoft Corporation: Is Stack Ranking the Answer? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
Strategy / MBA Resources
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.
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 - – there is increasing trade war between United States & China, increasing government debt because of Covid-19 spendings, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, technology disruption, talent flight as more people leaving formal jobs,
increasing commodity prices, cloud computing is disrupting traditional business models, etc
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 -
Analytics focus
– Appraisal Stack is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by David Loree, Ken Mark can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
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.
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.
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.
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.
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.
Diverse revenue streams
– Appraisal Stack is present in almost all the verticals within the industry. This has provided firm in Microsoft Corporation: Is Stack Ranking the Answer? case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
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.
Organizational Resilience of Appraisal Stack
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Appraisal Stack does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
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.
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.
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.
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 -
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.
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.
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.
Need for greater diversity
– Appraisal Stack has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Appraisal Stack needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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.
Skills based hiring
– The stress on hiring functional specialists at Appraisal Stack has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
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.
Interest costs
– Compare to the competition, Appraisal Stack has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
High cash cycle compare to competitors
Appraisal Stack has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
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 -
Developing new processes and practices
– Appraisal Stack can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Appraisal Stack in the consumer business. Now Appraisal Stack can target international markets with far fewer capital restrictions requirements than the existing system.
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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Appraisal Stack to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Appraisal Stack to hire the very best people irrespective of their geographical location.
Learning at scale
– Online learning technologies has now opened space for Appraisal Stack to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Low interest rates
– Even though inflation is raising its head in most developed economies, Appraisal Stack can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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.
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.
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.
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.
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.
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.
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.
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 -
Shortening product life cycle
– it is one of the major threat that Appraisal Stack is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
High dependence on third party suppliers
– Appraisal Stack high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
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.
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.
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.
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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Appraisal Stack business can come under increasing regulations regarding data privacy, data security, etc.
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? .
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.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Appraisal Stack needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
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.
