ORGANIZATIONAL STRUCTURE
DESIGN & THEORY
Submitted to :
Prof. Mohammed Ilyas Abha
Submitted by :
Swarnika Kesarwani
Abhijeet Kansari
Purna Chandra
Amit Kumar Chaubey
Sailesh kumar yadav
 MICROSOFT
ABOUT Products
• Industry- Information Technology Software Development
• Founded- 1975 • Social Networking Services
• Founders- Bill Gates & Paul Allen • Cloud computing
• Headquarters- Redmond, Washington • Internet
• CEO- Satya Nadella SERVICES
• Revenue- $198.3 bn • Outlook.com
• Total Assets- $364.8 bn • Microsoft store
• No of Employees- 221,000 • Windows Update
• LinkedIn
 HORIZONTAL DIFFERENTIATION
• Microsoft follows horizontal differentiation as the company is flexible and
responsive to the needs of its various divisions and business units.
• This structure allows Microsoft to adapt quickly to changes in the market
and respond to the specific needs of its different product lines.
• It also allows for greater specialization and expertise within each division,
as employees can focus on specific areas of the business.
 SPATIAL DIFFERENTIATION
• Microsoft Spatial Differentiation is a term used to describe the use of
geospatial technology to analyze, visualize, and manipulate data based
on its physical location.
• It involves the use of geographic information systems (GIS) to analyze,
store, manipulate, and present location-based data.
• The main goal of spatial differentiation is to better understand the
relationships between different geographic locations and the associated
data.
• Microsoft has developed a suite of GIS tools, such as Bing Maps and
Microsoft MapPoint, that allow users to map and analyze their data in a
geographic context.
 FORMALIZATION
• Microsoft formalization is a process of ensuring that all Microsoft products, services, and
technologies are consistent and compatible, both within the Microsoft ecosystem and
with other third-party systems.
• This process includes the implementation of standards, policies, and procedures, as well
as the development of tools and services that make it easier for customers to implement
and use Microsoft products and services.
• Microsoft formalization also involves testing and certification processes to ensure that
Microsoft products and services meet certain standards of quality and reliability.
 CENTRALIZATION
• Microsoft's centralization decision depends on the company's goals, resources, and
strategy.
• Microsoft may have decided to centralize its operations in order to reduce costs,
streamline processes, improve efficiency, and ensure consistent quality across operations.
• The decision may also be driven by a desire to better manage risk, ensure compliance,
maximize resources, and improve customer service.
 MICROSOFT’S STRUCTURE
• Product Divisional Structure-
 Microsoft Corporation operates on a “product type divisional” organizational structure. This
structure implies divisions based on certain computer hardware and software products, or
organizational outputs.
 The characteristics of Microsoft’s organizational structure are, “Product type divisions”
(most dominant structural feature), “Global corporate groups” and “Geographic segments”.
 However, the main insinuation of Microsoft Corporation’s organizational structure is the
ability to focus on product development.
 
 Symbiotic interdependence of Microsoft

• Microsoft provides operating system to most of

laptop/computer manufacture companies like HP, H

Dell, acer and many more.
P
• Microsoft and these companies have symbiotic
Microsoft
interdepence because Microsoft provide OS, MS
Del Ace
office to these companies. l r
• HP, Dell, acer are some examples
 Competitive interdepence of Microsoft

• Microsoft, Apple and Google have competitive

Microsoft
interdepence among them.

• Microsoft provides Microsoft OS and Apple provides

Competitive
macOS to attract customers.
interdepence
• Microsoft cloud service Microsoft azure and Apple Apple Google

cloud service provides iCloud and Google provides

Google cloud platform(google drive) to its customers.

 Strategies to Manage Interdependencies
• Reputation :- Microsoft focus on Providing high-quality products and services,
being responsive to customer needs, building strong relationships with key
stakeholders.
• Co-optation :-Microsoft acquired linked in and Microsoft has power to make
decisions in linked in.
• Strategic alliance :- Accenture Sustainability Services, Avanade’s human-centered
digital experience, the Microsoft Cloud and each company’s robust data and
artificial intelligence (AI) capabilities, the expanded strategic partnership will
address both horizontal and industry-specific sustainability challenges to help
drive impact and deliver new value.
• Merger & takeover :- Microsoft acquired skype, LinkedIn, Nokia’s mobile and
devices division, Git hub etc.
 Global strategy of Microsoft
 Microsoft follows the global product structure.

 Microsoft product design, Product design, manufacturing &

marketing strategy standardized throughout the world.

 Their products like Microsoft OS, Microsoft azure, Microsoft 365 etc
forces for global integration.

 All these are used same through globally without any change.
 SPAN OF CONTROL
• Microsoft is known for having a relatively flat organizational structure, with
relatively few layers of management and a relatively wide span of control for many
managers.
• This allows for greater efficiency and flexibility within the company and allows
decisions to be made more quickly.
 FLAT ORGANISATION
• Microsoft has a flat structure, which eliminates the need for multiple layers of
management and allows individual employees to have more decision-making power.
• Microsoft's flat organizational structure allows for more open communication
between employees and managers, which can lead to faster development and
implementation of ideas.
• Additionally, this structure allows for more flexibility in terms of job tasks and
responsibilities.
 JOINT VENTURE
Microsoft has a number of joint ventures some of them are as follows:
• Kroger to develop a grocery delivery service and an online retail
platform
• Ford to develop a connected vehicle platform.
• Walmart to develop AI solutions for retail
• Novell to create a Linux-based operating system.