Microsoft Case

Question
Microsoft Case

1-Why is it so difficult for CEOs of large and successful companies such as Microsoft to balance exploitation – applying current knowledge to enhance firm performance in the short term—with exploration—searching for new knowledge that may enhance a firm’s future performance? What are your recommendations?
Please develop your answer (550 words)

Responses

1- Please comment to the follow response (137 word)
Hello everyone I would have to say it is always difficult for large and successful companies such as Microsoft to balance between exploitation and exploration due to different reasons effectively. First, these companies have their incentives only based on short-term revenues; hence, there is no encouragement from stockholders to pursue the long term goals. It is the norm of every company to motivate employees and other relevant stakeholders to improve the company’s performance. However, due to the reputation that the large and successful companies have, the CEOs only encourage the achievement of the short term goals. Also anything I would have to say is Before Apple launched the iPad, Microsoft had developed a tablet computer called the Courier. The Courier was a fully functioned tablet, many great features that related to the iPad such as touchscreen. Again, CEO Ballmer did not take the chance to compete with Apple, he pulled the plus on the tablet to redirect resources to the next version of windows, this launch was for more than two years away. Resulting in a failed attempt for Microsoft in mobile computing as well as desktop. In closing, it is vital that CEO’s rely heavily on members of their team to help them make decisions along with not being afraid to take finanical risks. Individuals within the company must also have enough knowledge on their company from all angles and as many reports and reviews should be analyzed in order to prevent the company from losing valuable customers and a loss in revenue.

2- Please comment to the follow response (137 word)
Microsoft is one of the biggest companies around the world. From 2000 to 2014 when Steve Ballmer was the CEO of Microsoft, the company was adopting the Top-Down strategy, which unfortunately affected Microsoft. The strategy that Microsoft was using during that time was not correct since the CEO was not open-minded to different opportunities for the project and was only focusing on one goal. CEO Steve Ballmer missed a few opportunities that could have made the company much better.
One of the biggest opportunities we see today is the ad in an online search. If Microsoft could have stuck and advertised better Link Exchange, the project would have been successful, the same way Google is today. CEOs and managers have a big responsibility when it comes to make a decision or innovate a new project or plan, but if they do not believe in their project there is a big chance that the project would not work.