Microsoft Corporation Antitrust Suits Case Study Solution


Home >> Harvard >> Microsoft Corporation Antitrust Suits >>

Microsoft Corporation Antitrust Suits Case Study Analysis

Background and Facts

Microsoft Corporation Antitrust Suits an office materials seller for small and moderate sized businesses has just recently been involved in planning for a merger with its competitor House Deport, which has actually impacted efficiency levels in departmentswith the senior manager involved in legal problems put forth by the federal Trade Commission. With the Advertising and marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the near future. With obstacles in the type of a prospective cultural change and also reduced worker spirits, the company wants a total reengineering initiative at the marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social modification at the advertising and marketing division of Microsoft Corporation Antitrust Suits is increasing unpredictability in the workplace bring about different difficulties for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing critical decisions since Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Commission's intervention at the same time. Given the truth that the store has a worldwide existence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these countries might be able to influence performance or strategic objectives. Federal Trade Payment's antitrust match versus the merger occupied useful time of the organization's elderly management recommending that 'political' factors can have significant implications for a worldwide service.

Economic Factors: Financial factors such as the appearance of local business in the international scenario suggest that Microsoft Corporation Antitrust Suits is growing in an environment where there is possible growth of companies. Reality that shop consumers are primarily looking for office materials for home offices recommends that the market has an increasing pattern of business owners and also house based companies.

Social factors: Social patterns in the economic situation show that consumers are looking for convenience as well as attractive rates. Market research shows how the customer for Microsoft Corporation Antitrust Suits lacks understanding regarding discovering services which can use a mix of comfort and low costs.

Technical factors: Modern technology plays a crucial function in Microsoft Corporation Antitrust Suits's company technique particularly as the organization is piloting Innovation facilities which would provide modern technology sales and assistance in the type of memory upgrades, peripheral installments. (Summary of BUG in appendix 2).

OB Issues and Effects.

Numerous underlying Business Actions problems can be seen in Microsoft Corporation Antitrust Suits's case as highlighted in this section.

Concerns regarding social modification: There is worry about a cultural adjustment that would certainly happen when Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with a lot of the team member currently showing unhappiness over this possible move. This anticipated modification has actually developed stress and anxiety in the workplace which has been combined with the previous anxiety of preparing the company for a prospective merger with House Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is scarcity of employees that can match the difficult setting of a hectic company. Not just does this result in trouble in discovering the appropriate individuals, it places tension on new hires as can not hold up against the pace and pressure that the organization anticipates them to bear.

Dual Coverage Lines: Newcomers discover this business culture difficult as well as difficult to manage particularly as populated line relationships are indicated to be weaker as a whole and also unbiased setting and efficiency evaluation is still done by the strong line supervisor. This suggests that beginners can shed quality concerning their respective roles as well as objectives particularly as populated line coverage does not keep them in direct communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had been speculated that the latter would certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been qualified and proper for the work but the reality that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Work Insecurity: Fear and instability can be identified as 2 significant issues that Lewis would be dealing with specifically as the merger has currently be terminated and 2 senior execs of the advertising division would certainly be leaving. The whole responsibility of the division would be dropping on Lewis's shoulders that would certainly not simply be in charge of brining regarding a social change yet would also need to prove herself in her brand-new duty.

Incompatible Monitoring Design of Leader: Lewis's administration style and its incompatibility with the marketing department's duty can also be viewed as an OB obstacle particularly as she has actually been utilized to handling concerns in the procedures division where employees are instructed to focus on processes as well as get them right. The advertising and marketing division on the various other hand can be viewed as a group of people who are used to being supported by Krasnow who concentrated more on result than procedures.

Interdepartmental Differences: Interdepartmental arguments in between 3 departments, marketing, merchandizing and procedures specifically over the allowance of the advertising mix can be determined as one more OB concern. Although the advertising division does not share the same vision as the other two departments pertaining to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and also procedures divisions do not concur over the advertising and marketing mix appropriation among one another either.

Disintegration in Advertising Division: Fragmentation between the marketing and advertising departments can be identified as an additional OB problem which might require additional interest. The fact that the marketing and advertising areas in the marketing department are separated is preventing both departments from obtaining from each various other's experience and also knowledge. Combination of advertising and marketing with retailing and procedures would certainly end up being harder if the advertising and marketing division itself is disintegrated which can be an additional possible OB worry.

Microsoft Corporation Antitrust Suits Analysis

Numerous theories have been made use of to discuss the circumstances to obtain additional clearness regarding the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that juniors are passive and also lazy, have little passion and withstand change. The difficult variation of this theory highlighted threat, tight controls, risks as well as penalties. Gradually it creates low performance, subtle sabotage as well as competition (Bargain, 2003). The circumstance at Microsoft Corporation Antitrust Suits is not completely complying with Theory X, it can be seen that brand-new hires are discovering this environment instead demanding which might at some point lead to a higher inclination of the management towards Concept X. According to McGregor's supported sight, which he called Concept Y, the essential task of the monitoring is to set up organizational conditions to ensure that individuals can attain their own objectives best by directing their initiatives in the direction of organizational incentives. If individuals discover no satisfaction in their work, the management would have little choice yet to rely on concept X as well as outside control (Bargain, 2003). Also while examining Lewis's administration style, concept X may have been suitable in the operations department somewhat yet the Advertising department would need reliance on Theory Y to get the creative thinking and originality from the teams.

Tuckman's Teamwork Theory: As far as Lewis's problem concerning bringing consistency in between the advertising as well as advertising and marketing division is concerned, this would at first lead to contrast as discussed by Bruce Tuckman in his 'Synergy Concept'. By integrating the advertising and marketing as well as marketing division's job, there may be the same initial detach which might lead to the 2nd phase of 'storming' where the groups test one an additional.

When individuals are offered with modification, they get in phase one and so there may be emotions like despair, unpredictability, stress, temper, worry, denial and disorientation.The circumstance at the advertising and marketing department of Microsoft Corporation Antitrust Suits is similar so Lewis can obtain comfortable with the idea that it is not amazing actions. It is throughout this phase that Lewis will have to offer assistance to the department so that they can discover a sense of direction. It can be seen exactly how Krasnow has already made this transition less complicated by making Lewis obtain included in the division a year prior to his actual departure.
Vrio Analysis
Maslow's Requirement pecking order: The OB concern related to insecurity at the workplace has been activated firstly by the modification in administration and also secondly by the fact that the merging will no more be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has discusses the value of 'safety and security requires as being a lower degree demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel secure and also safe' goes to the second degree of needs. Prior to an employee can be made to develop psychologically, he needs to have his 'Physiological 'as well as 'Security' needs fulfilled. This suggests that unless the personnel are made to really feel safe and secure concerning their existing employment standing in Microsoft Corporation Antitrust Suits they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Microsoft Corporation Antitrust Suits Case Study

Effects of Analysis.

The OB analysis has actually checked out different concepts to comprehend how to handle the existing scenario at hand. The following 3 alternatives have been recommended to help Lewis deal with the business challenges in the advertising division. Each of these choices has actually been proposed for alleviating the transition required to bring the advertising department according to the demands of the market and for making the cultural modification that would follow as soon as the current leader leaves.

Combination of advertising and marketing functions. Separating Adverting as well as Manufacturing features. Integration of Advertising with Procedures.

Examination of Alternatives.

Combination of Marketing & Advertising Functions: The internal advertising and marketing agency of Microsoft Corporation Antitrust Suits is already toughness for the organization in regards to conserving up on expenses associated with advertising as well as promo. Given that no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the marketing feature, this is a desirable opportunity for integrating the advertising and marketing features. Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merger days has proficiency in business-to-business marketing in addition to company as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to deal with both advertising and marketing features.

The advantage of this approach is that it will certainly integrate the two features while minimizing the requirement for employing an additional resource for marketing. Lewis would certainly be heading the advertising division and in any case her substitute would be needed for the current duty that she is executing. The drawback of this alternative is that outside hiring may bring about resentment from inner personnel who may be considering the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Offered the affordable pressures and also excellent quality work called for from the ad agency, it is recommended that Lewis should enable the production device to be a different feature from the advertising unit. Given that many ad agency had these two features as separate units, it makes more feeling to follow the norm. In addition to this, both features may have the ability to focus on their core triggers much more successfully. Nevertheless, the drawback of this approach would certainly be that extra costs would have to be borne for establishing different production functions. A manufacturing head might have to be worked with which can raise expenses for the company.

Integration of Marketing with Procedures: Because Lewis is already taking care of the marketing as well as procedures departments simultaneously; it makes good sense to incorporate both functions because she has been successfully looking after both ends. The reality that the two departments already have major differences over allocation of resources recommends that this assimilation may have the ability to produce harmony particularly as Lewis would be heading both ends.However there are various negative aspects of this step specifically as it would place too much worry over Lewis's shoulders. The truth that Lewis needs to adapt her monitoring design for the marketing department recommends that these 2 divisions would be culturally diverse. Lewis may not be able to use one kind of leadership style to both divisions which can result in ineffectiveness in either one of the 2 functions.


An assessment of the 3 choices shows that integration of marketing and also procedures would not be a viable move due to the vast distinctions in between the two departments despite the reality that presently Lewis is managing both. While separation of the manufacturing function may have been a beneficial step for the advertising department, the fact that it would indicate putting a third feature under Lewis's wing means this need to be avoided.

Activity Strategy.
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

Judith Shapiro will be hired to take Lewis's area as SVP of advertising and marketing.

Manufacturing function will remain component of marketing under marketing function.

Lewis will separate herself from operations.

A democratic leadership style with worker empowerment will be used in marketing department.

Open door plan and also emphasis on cross department interaction will be targeted at getting rid of discord.

Backup strategy.

If the integration does not exercise as prepared, a backup strategy would certainly follow which would divide the manufacturing function from the advertising feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising and marketing department without an SVP. Because case the production function will certainly be divided by positioning it under an SVP production.