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Diagnosing the Change: Microsoft vs Apple, SWOT Analysis Example

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SWOT analysis

Strategy

The Diagnostic Model “The Six-Box Organizational Model” is the best model to best identify and measures the relevant aspects of the organization’s performance. This model is the best measurement tool because it does not entirely depend on financial performance. The model is heavy on the people-relationship side. Microsoft has a solid strategy that includes building their infrastructure that will be able to function and perform in the global markets.

Vision

Microsoft is considered one of the technology leaders that will improve the United States quality of life with new innovate products. The mission of Apple still bears the fingerprints of Steve Job who said he wanted to make the best products in the world while be recognize for bringing some of the most innovative technology to the world. Steve Jobs was success bring new technology to the market by purchasing a company called Pixtar (Roeper, 2011, pg.1). However, Microsoft clearly has visions of the future based on improving the line of Microsoft products. In contrast, Apple has begun to differentiate their label and products in the market. This year the Apple logo has become one of the most recognize logos in the world. In addition, you can see the vision of Steve Jobs that was present 30 years ago, has catapulted Apple as a viable computer company. The one area that Steve Job consistently prospered was the innovate designs of Apples’ product.

Competitive Advantage

The conventional consensus that Microsoft is not advancing new technology beyond the Windows Software while Apple is building innovate products with better quality that Microsoft. The Apple brand name has started to become a mainstay in the American way of life. The movie advertisement in major block buster movies would always use Microsoft product. However, Apple has become more popular with their products and quality engineering’s. In analyzing the face value of both companies do not be fooled by the hype and the media. In reality, Microsoft has a solid product distribution that allows Microsoft to continue to earn more revenues than Apple overall. However, the misleading factors is some quarters Apples looks better because they are diversified portfolio of  several products such as computer accessories, ITunes, IPad,I Pod, Mac and IPhone.

Direction

Microsoft has made an innovative move that is a welcome technology relationship. In the past, Microsoft has been successful making Microsoft products that were difficult to manage outside of the Microsoft products. Some believe that Microsoft has made the technology growth slow down because they were not willing to allow Microsoft to work with any other software or hardware. In the technology explosion in the 1980s, Microsoft refused to allow PCs to work with another browser because they wanted to dominate the market. This domination caused the Apples, Hewlett Packard, and Dells to spend more money or R&D just to create products that could work in harmony with Microsoft. The new Microsoft is trying to work towards capitalizing on the building technology relationships that will allow Microsoft to remain competitive. It was breaking news that for the first time in history Microsoft is available on the IPad. “CEO Satya Nadella made the news that was rumored to be true finally official: Microsoft Office is now available on the iPad. Shares of Microsoft were up on the news” (Hill,2013). Microsoft is heading in the right direction. In contrast, to the direction of Apple, Microsoft move barely puts the direction ahead of Apple. Apple direction is in the diversified products but Microsoft still has the advantage.

Structure

Power and Authority

Microsoft has the power and authority because they only make software they do not make computers. In contrast, Apple builds hardware but they do not have the long-term vendors, contracts, and government relationships built by Bill Gates. At one time, Bill Gates was the most powerful man in the world and demand respect and authority. In contrast, Tim Cook has to follow the power and authority of Steve Jobs. In the market, the CEO of any company can have power and authority over their corporate domain. However, to make an announcement that changes how the Standard & Poor’s closes at the end of the day is true power. Make no mistake there is different types of power and authority but Bill Gates has the ultimate power and authority. Both CEO’s of Apple and Microsoft have power and authority but the CEO of Apple has the power and authority that is motivating and empowering employees at Apple.

People Practices

Microsoft allows there employees the freedom the work with control over hours, desk, supplies and tools. However, everything is Microsoft so the employees lose contact and the ability to bring innovations because they do not own other market productions for technology except Microsoft. Microsoft wins in a landslide because Bill Gates left that legacy of taking care of their employees and the freedom to be great. Bill Gates who has been called the King of Computers by designing software for the entire world to use. (Net Industries, 2014). Apple has a reputation of cutting hours and benefits which employees value along with a decent wage to make a living. Apple is being in that department. One of the comments about Apple was as long as they keep opening stores they will be a leader in the market. Apple needs to invest in their employees while following the model Bill Gates has left for corporations to follow.

Reward Systems

The changes to Microsoft are evident with Bill Gates is leaving bonus are not as big, the salaries are tapering down and instead of cash bonuses they are being offered stock. However, dollar for dollar Microsoft has the best incentives and reward systems. Microsoft invests continuously to provide employees the opportunity to optimally combine work and private life. People are the key to our success (Microsoft, 2014, pg.1). We often hear about how many millionaires was made from the Microsoft stock. The news has been reporting about the rewards of Apple and Microsoft which sometimes more positive information than accurate. However, there are websites such as glassdoor.com that has comments about organizations from current and previous employees of each company. However, Microsoft has a documented history of providing rewards to employees for continuing to deliver a quality product for Microsoft year after year. The business model perception of Apple has always been good but the impression that was given sometimes that Apple was more concerned about Research and Developments next big technology breakthrough instead of rewarding tis employee with that profit.

Processes and Lateral Capability

Microsoft has develop years of Process Improvement initiative encourage employees to improve the Microsoft software each year. In addition, the networks, matrixes, and improve processes has been the foundation of Microsoft. It is necessary for an organization to develop cross-training of employees to develop lateral capabilities. The type of succession planning ensures the company has prepared for filling open positions with qualified employees. Microsoft has a reputation for create an effective and experienced workforce. Microsoft created a software working environment that trained and groom the world is leading software developers.

Recommendations

Microsoft must diversify its products in order to be a major player in the technology industry in the future. Apple should expand their markets to overseas and develop strategic technology partners. In addition Apple needs to improve market shares with innovative new products.

References

Hill, C. (2014).Microsoft new direction. Retrieved from http://www.fool.com/investing/general/2014/03/28/microsofts-new-direction.aspx

Microsoft. (2014).Benefits. Retrieved from http://careers.microsoft.com/careers/en/it/benefits.aspx

Net Industries. (2014). Gates, Bill: Overview, personal life, career details, social and economic Impact, chronology: Bill Gates

Roeper, R. (2011).Steve Jobs impact goes far beyond phones and computers. Retrieved from http://www.suntimes.com/news/roeper/8064619-452/apples-jobs-had-an-impact-on-all-of-us.html

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