Executive Summary

The ambition of most expanding organizations is to take the company to the top of the market as
well as gaining market shares and competitive advantages over their rivals. It is crucial for profit-
making organizations to either improve their process or technology to be in synchronism with the
consumers’ and their demands. The changes within the management levels should be made in
line with the consequences, otherwise, the organization will suffer unfavorable consequences in
its operations. Once applied, these changes will help in making the organization achieving their
goals and targets.

Leadership is a critical management role that enables an organization's resources be directed for
increased efficiency and goal attainment. Effective leadership not only leads, but also recognizes,
comprehends, and communicates the organization's vision in order to inspire others to help them
achieve their goals.

Microsoft's corporate structure was causing major issues within. Until, the new CEO Satya
Nadella took over and began serious reform for this large corporation. In this report we are going
to discuss the following:

1) The scenario prior to the change

2) The internal and external drivers that compelled the shift
3) The different types of leaderships applied within the organization
4) The Model of Change and its results
5) Different approach that can be taken as a senior officer
1. Introduction

1) Background of the company

Microsoft Corporation, founded in 1975, is the leading developer of personal-computer

software systems and applications. (Mark Hall, Gregg Pascal Zachary, 2020). Some of
the cloud-based services Microsoft offers include Microsoft 365, Skype, Xbox and many
more. As technology advanced and personal computers become so popular, the bulk of
Microsoft’s revenue was generated from sales to consumers. It was the first software
company to reach $1 Billion in revenues. As more and more versions of Microsoft
Windows were launched, Microsoft captured around 90% market share in the world.
(Cowling, 2016).

The company mission is to create technology that alters the way people work, play, and
communicate, allowing people and businesses all around the world to reach their full
potential. They also create and distribute software, services and hardware products that
provide individuals with new opportunities, increased convenience and increased value.
(Microsoft, 2013)

The company generate revenues by developing, licensing, and supporting a wide range of
software products and services, building and selling hardware, and delivering relevant
web advertising to a worldwide client base. We sell suites of products and services in
addition to individual items and services. (Microsoft, 2013)
2) The circumstance that necessitated the change

Along with the changing world the customer preferences, technology and the economy
shift. Businesses failing to adapt to changes fail to meet their consumer needs’ and end up
getting wiped away from the global market. Microsoft was known for the leading
developer of personal-computer software systems and applications as well as game
systems and many more.

However, even after its magnificent and prolonged success of Windows and Office
products, they were still struggling to be in line with other companies such as Google
whose dominance in the search and software markets, as well as Apple’s dominance in
the phone industry. The internal feuds across different divisions saw each other as rivals
rather than partners inside the same firm. As a result, creativity was stifled by a toxic
work environment which forced the corporation to rely more and more on Windows and
Office, the products being extremely popular, has placed the company in a precarious
comfort zone.

In 2014, Satya Nadella took over as the CEO of Microsoft, who did a major
reorganization of the corporation in order to reduce the damaging internal competition.
Along with the changing world the customer preferences, technology and the economy shift.
Businesses failing to adapt to changes fail to meet their consumer needs’ and end up getting
wiped away from the global market hence bring changes into the organization. There are various
factors that causes a change in the organization. Here are some:

Change in the market demand

People used to have to acquaint themselves with the items given by firms because there were not
many alternatives to pick from at the time. In today's market, there are multiple possibilities for
one product, and individuals have the ability to pick from any of the products, thus they are less
loyal to brands. They purchase goods from a company that offers high-quality goods at the
lowest possible price. Hence, companies must be alert and adapt quickly in order to meet the
changing needs of their clients.

For instance, Microsoft