1. Introduction:

Microsoft Corporation is inevitably the world’s most renowned American multinational technology company. It’s been at the forefront of technological advancement for more than 40 years and has made significant contributions to the technology industry. It is engaged with creating PC programming, consumer electronics, PCs, and other related administrations. Its most popular programming items are the Microsoft Windows line of working frameworks, the Microsoft Office suite, and the Internet Explorer and Edge internet browsers. Its leader equipment items are the Xbox computer game control center and the Microsoft Surface setup of touch screen PCs.

Microsoft positioned No. 21 in the 2020 Fortune 500 rankings of the biggest United States partnerships by all out income; it was the world’s biggest programming producer by income as of 2016. It is viewed as one of the Big Five organizations in the America in information technology, alongside Google, Apple, Amazon, and Face book.

2. Vision & Mission:

We are living in the period of the intelligent cloud and intelligent edge, which is being formed by fast advances in conveyed figuring, surrounding insight, and multi sense, multi device encounters. This implies the spots we go and the things we communicate with will progressively become digitized, setting out new open doors and new forward leaps: from accuracy medication to accuracy agribusiness, from customized online business to customized schooling, and from associated fabricating floors to associated homes.

Our aggregate chance is to channel this insightful cloud and intelligent edge time into tech force for each organization in the world. Our client arrangement regions were worked for this period. They empower individuals, organizations, and whole enterprises to flourish as well as rethink the world. So organizations can enable their representatives, cultivating another culture for mixture work; draw in clients insightfully and essentially; change items with new plans of action; and upgrade tasks to keep clients and workers free from any problem.

3. Opportunities:

The five opportunities of Microsoft Corporation due to external strategic factors are follows:

3.1 Cloud Business Growth:

Its cloud-based administrations have acquired enormous development and accomplishment as of late. Consequently, there’s a chance for Microsoft to grow its cloud business.

3.2 Innovation for computer hardware products:

Microsoft has an enormous chance in numerous inventive regions like AI and game innovation. Putting resources into these spaces can give a high ground to Microsoft.

 3.3 Affordable Services:

Microsoft can acquire the chance of expanding its deals and income by offering its items at low costs. It might likewise forestall the programmers to utilize its product unlawfully

3.4 Business diversification:

The quickly developing business sector of cell phones and tablets offer a brilliant chance for Microsoft. It can benefit from the rising requests of these items.

3.5 Acquisitions:

Microsoft can zero in on going into new essential collusions and organizations. It will empower the organization to acquire high portion of the overall industry. Procuring significant howdy tech firms will likewise be a productive chance for Microsoft.

4. Threats:

The five threats of Microsoft Corporation due to external strategic factors are follows:

a. Strong competitive rivalry:

Microsoft sees an immense rivalry from Apple, Google, Oracle, IBM, and so on despite the fact that having an enormous item range; it sees a solid rivalry which is a danger to the brand.

b. Cybercrime:

Rising cybercrime theft and software piracy issues have drastically influenced Microsoft’s security network framework.

c. Workforce’s related criticisms:

Microsoft’s 2018 labor force variety insights showed unevenness in its selected labor force. The quantity of ladies and minorities working was very low, fuelling serious analysis and contentions against the organization’s HR strategy.

d. Technology Market:

The innovation market continues to change quickly and goes through a change in perspective. The quick changing circumstance makes it trying for huge organizations like Microsoft. Brands would need to zero in additional on advancement and advertising to get an immense client base and for their client maintenance.

e. Open source projects:

Like Linux OS and Open Source Office, many new open source projects have effectively gone into the market offering comparative administrations free of charge. It can compromise Microsoft that offers these items at a costly rate.

5. Pestle Analysis:

Microsoft PESTLE Analysis looks at the different outside factors like Political, Economical, Social and Technological (PEST) which impacts its business alongside legitimate and ecological components. The PESTLE Analysis features the distinctive extraneous situations which sway the matter of the brand. Microsoft Corporation’s supervisors incorporate PESTLE examination in their ways to deal with understanding the organization’s business circumstance.

The PESTLE Analysis model is a device for recognizing the outside factors that impact the remote or full scale climate of firms. On account of Microsoft, these outside factors mirror the presentation of the PC equipment and programming market. Such factors address the issues applicable to the organization’s business. Through the consideration of still up in the air through the PESTLE examination, Microsoft can create reasonable procedures that make business intensity and flexibility.

For instance, the organization can anticipate stable execution in these business sectors. Microsoft additionally has likely lifts in deals incomes in high-development non-industrial nations. This chance means consistent development in Microsoft’s worldwide sales.

6. Current Financial Performance:

In the Fiscal year ended June 30, 2020 the financial highlights as compared to previous year of June 30, 2019 are:

6.1 Revenue Expanded:

Revenue expanded $15.5 billion or 14%, driven by development across every one of our fragments. Intelligent Cloud income expanded, driven by worker items and cloud administrations. Usefulness and Business Processes income expanded, driven by Office and LinkedIn. More Personal Computing income expanded, driven by Surface, Gaming, and Windows.

6.2 Gross margin expanded:

Gross margin expanded $10.9 billion or 15%, driven by development across every one of our portions. Gross margin rate expanded somewhat, because of gross margin rate improvement across every one of our fragments and good portion deals blend. Gross margin remembered a 5%e point improvement for business cloud, fundamentally from Azure.

6.3 Working pay expanded:

Working pay expanded $7.9 billion or 23%, driven by development across every one of our fragments.

Key changes in costs were:

6.4 Cost of sales:

 Cost of sales expanded $4.6 billion or 12%, driven by development in business cloud, Surface, and Gaming.

6.5 Research & Development:

Research & Development (R& D) costs expanded $2.2 billion or 15%, driven by interests in cloud and man-made consciousness (“AI”) designing, Gaming, LinkedIn.

6.6 Sales and Marketing:

Sales and Marketing costs expanded $744 million or 4%, driven by interests in commercial sales capacity LinkedIn, and GitHub, offset partially by a reduction in advertising, sales and marketing costs incorporated an ideal foreign currency effect of 2%.

7. Strength (Internal Analysis):

The Internal analysis identifies the strength in following manners:

7.1 Biggest Technology Industry in the world:

The Microsoft is the biggest technology company around the world. Microsoft has held a position in the top ten biggest corporations in the world throughout its lifetime.

7.2 Constant growth:

The latest financial highlights that the Microsoft clearly demonstrated its strong growth in the cloud business and subsequently increased its revenue.

7.3 Reputed Brand:

It has undoubtedly the greatest loyal customer base due to its reputation as a brand. Customers trust the brand and remain loyal to it.

7.4 Vast Market:

Microsoft operates in every part of the world. It reaches more than 190 countries worldwide. 

7.5 Easy to use software:

Windows OS and Office software products are quite user-friendly with highest quality standards. It easily uses worldwide without any big obstacle.

8. Weaknesses:

The Internal analysis identifies the weakness in following manners:

8.1 Cybercrime theft:

The increasing cybercrime cases have left Microsoft in a vulnerable state. Hackers have reportedly attacked the cyber security.

8.2 Unsuccessful acquisitions:

Few acquisition of Microsoft was non profitable investment like web page.

8.3 Lacking innovation:

 The Microsoft has been lagging in innovation and advanced technology. Whereas, their competitors were very quick to adopt innovative technologies.

 8.4 Microsoft does not produce its hardware:

Microsoft produces operating software for hardware that is produced by third parties. 

8.5 Microsoft’s core markets are over-saturated:

 Microsoft’s options for growth are increasingly hard to identify and achieve. Coupled with its slow uptake in innovation and a reliance on its existing marketplace, Microsoft’s market position has some weaknesses.

9. Balance Score Card:

 The Balance scorecard is an administration framework pointed toward deciphering an organization’s vital objectives into a bunch of authoritative execution destinations that, thus, are estimated, observed and changed if important to guarantee that an organization’s vital objectives are met. Through this we assess the data of past performance of the organization and on the basis of it provide guidelines and make suggestions on how to make better decisions in the future. The balance scorecard can fill in as the point of convergence for the organization’s endeavors, characterizing and imparting needs to management, employees, investor, even clients.

10. Strategic Tool:

The balance score card is not really a strategy formation tool rather we have implemented the scorecard in those organization where the strategy has already been expressed and accepted.

Firstly, the most important strategy of scorecard is to build or vision the future prospects on the basis of current and past performances. If the vision is wrong, its execution becomes irrelevant.

Secondly, the score card creates shared understanding it gives chance to all employees of the organization and prepares them how they contribute in the betterment of the organization. If the model is wrong they were unable to optimize their performances.

Thirdly, the score card were focuses on change efforts, if the organization made right decision for investment they will achieve the desired result on the other the wrong decision will cost them and investment wasted.

Fourthly, the score card also helps the top management to understand and learn, the organization can test and check their strategy in real time and also adapt them. But without any explicit cause and effect linkages, no strategic learning can occur.

10.1 Suggested Tool:

The suggested tool for the strategy given to the organization is to build or vision the future prospects of the organization based on the past performances. The organization will grow when it make strategy on past performance of the company as it will helps them to overcome the problems to be occur in future and enhance the performance of the business and brighten the future prospects.