Microsoft Corporation is one of the leading organizations in the technological industry, possessing particular traits that promote its entrepreneurial and financial achievements.
As a prominent electronics developer, Microsoft is heavily focused on advancing innovation. As such, the company conducts and endorses research in artificial intelligence, computing, and human-machine interaction (Ibarra & Rattan, 2018). After that, networking is an essential part of the enterprise’s activity, as Microsoft promotes collaboration opportunities for small and large-scale businesses through various programs (Turkina, 2018). It is also notable that the corporation establishes not only attainable but also optimal objectives, avoiding satisficing (Chun, 2015). Therefore, Microsoft’s primary decision-making strategy hinges on profit maximization.
Several materials reveal that this organization is not afraid of risk-taking. Bill Gates’ choices and the overall Microsoft culture have been reported to promote adequate risk in order to achieve desired results (Walke, 2019). Nevertheless, the company also employs the Enterprise Risk Management Framework to avoid negative ramifications (Mazzoli, 2021). Concerning Microsoft’s Culture, the company actively endorses employee collaboration and diversity, adapting its management practices according to the workers’ needs (McLaren, 2019). In addition, Microsoft daily examines pertinent issues, ensuring that the corporation’s Culture and values are productive and appropriate. Thus, the social capital of the organization is especially well built.
Microsoft is also exceptionally aware of the necessity of change strategies and their benefits for company development. For instance, such practices as Allow Most Restricting High Impact and Concepts, Capabilities, and Culture are implemented to ensure that necessary alterations are established efficiently (Maiorescu-Murphy, 2020). Considering that Microsoft is one of the leaders in electronic innovation, the technological form of the intrapreneurial environment has prompted the organization to adapt its change strategies according to potential negative consequences (Mitra, 2020). As such, the company includes additional precautions to ensure that both productivity and profitability of novel products are optimal, proposing necessary alterations as soon as possible complications are found.
A prominent limitation of the profit maximization strategy used by Microsoft is the diminished production quality. Even though the corporation strives for optimal results, focusing on extra income reduces product potential (Drucker, 2015). For example, as an operating systems monopoly, Microsoft’s prices appear to be highly increased in comparison to marginal costs (Singh, 2015). Considering that the resources required to produce product alternatives are tremendously elevated, it is evident that the organization uses profit maximization, increasing output prices to generate additional income.
Chun, Y. H. (2015) ‘Multi-attribute sequential decision problem with optimizing and satisficing attributes’, European Journal of Operational Research, 243(1), pp. 224–232. Web.
Drucker, P.F. (2015) Innovation and entrepreneurship: Practice and principles. Abingdon: Routledge.
Ibarra, H. and Rattan, A. (2018) ‘Microsoft: instilling a growth mindset’, London Business School Review, 29(3), pp. 50–53. Web.
Maiorescu-Murphy, R. D. (2020) ‘Online diversity communication at Microsoft’, in Maiorescu-Murphy, R. D. (ed.) Corporate diversity communication strategy: An insight into American MNCs’ online communities and social media engagement. Cham: Springer International Publishing, pp. 103–119. Web.
Mazzoli, R. (2021) Risk management. Web.
McLaren, S. (2016) How Microsoft “renovated” its culture by following these 3 steps. Web.
Mitra, J. (2020) Entrepreneurship, innovation and regional development, 2nd ed. Oxon: Routledge.
Singh, R. H. (2015) ‘A review of SaaS profit maximization in cloud computing. International Journal of Computer Science and Information Technologies, 6(4), pp. 3392-3395.
Turkina, E. (2018) ‘The importance of networking to entrepreneurship: Montreal’s artificial intelligence cluster and its born-global firm Element AI’, Journal of Small Business & Entrepreneurship, 30(1), pp. 1–8. Web.