Resource Based View of
as applied to Corporate Brands
Corporate Marketing Assignment
Submitted by:
MOHAMED A. JAME
NEEL SHANKARNARAYANAN
PUNIT VASU
SHIVAGAMA SUNDARI GUGAN
VIKAS VASISHT
05024000
05024004
Word count: 2496
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Statement of Authenticity
“I have read the University Regulations relating to plagiarism and certify that this assignment is all
my own work and do not contain any unacknowledged work from any other sources
Signatures and Date
MOHAMED A. JAME
NEEL SHANKARNARAYANAN
PUNIT VASU
SHIVAGAMA SUNDARI GUGAN
VIKAS VASISHT
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TABLE OF CONTENTS
_______________________________________________________________________________________________
2. INTRODUCTION ................................................................................... 5
3. THE VALUE, PROMISE, BEHAVIOUR OF MICROSOFT .................................. 5
4.1 VALUES .................................................................................................................................................................. 6
4.2 PROMISE ................................................................................................................................................................. 7
4.3 BEHAVIOUR ............................................................................................................................................................ 9
4.3.1 ON INNOVATION ..................................................................................................................................................... 9
4.3.2 ON BEING A RESPONSIBLE INDUSTRY PARTNER ...................................................................................................... 9
4.4 VPB ANALYSIS ..................................................................................................................................................... 10
4. THE MICROSOFT BRAND - RESOURCE BASED VIEW OF THE CORPORATION 11
4.5
4.6
4.7
4.8
4.9
4.10
4.11
VALUABLE ............................................................................................................................................................ 11
RARITY ................................................................................................................................................................. 11
DURABILITY.......................................................................................................................................................... 11
INAPPROPRIATABILITY .......................................................................................................................................... 11
IMPERFECT IMITABILITY ....................................................................................................................................... 11
IMPERFECT SUBSTITUTABILITY ............................................................................................................................. 12
RESILIENCE ........................................................................................................................................................... 12
5. MICROSOFTS SCORECARD ON RBV....................................................... 14
6. CONCLUSION .................................................................................... 14
9.1 BOOKS ..................................................................................................................................................................... 16
9.2 MAGAZINES, PERIODICALS, NEWSPAPERS, NEWS SERVICES.................................................................................... 16
9.3 REPORTS AND ACKNOWLEDGMENTS ....................................................................................................................... 16
9.4 WEB SITES ............................................................................................................................................................... 16
APPENDIX II – ....................................................................................... 22
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ABBREVATIONS
_______________________________________________________________________________________________
DNATA
DLM
EGIT
ROI
QMS
QAG
EPG
OLA
CMMI
ITIL
The largest Air travel services organization in the Middle East.
Destination and Leisure Management
Emirates Group I.T
Return on Investment
Quality Management System
Quality Assurance Group
Engineering Process Group
Operational Level Agreement
Capability Maturity Model Integrated
I.T Infrastructure Library
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1. EXECUTIVE SUMMARY
_______________________________________________________________________________________________
"Brand is really important to Microsoft because ultimately that's what we have; it's a strategic
business asset we have for our customers to be able to understand the portfolio of products that
Microsoft delivers and the value and distinct position of each of those brands and products," says
Karl Isaac, director, brand and marketing strategy, Microsoft.
Good branding can help a company ensure that customers return and continue to purchase from them - brand loyalty is
the highest reward in an age of fickle decision-making and a dazzling array of merchandise from which to choose.
2. INTRODUCTION
_______________________________________________________________________________________________
The Resource Based Value analysis takes an “inside-out” or firm specific perspective on why
organizations succeed or fail (Dicksen, 1996). Resources that are valuable, rare, inimitable and
nonsubstitutable (Barney, 1991) make it possible for businesses to develop and maintain
competitive advantages, to utilize these resources and competitive advantages for superior
performance (Collis & Montgomery, 1995; Grant, 1991; Wernerfelt, 1984). Key Proposition from
Balmer (2003), is that the Corporate Brand has strategic value and gives the corporation advantage
over it’s competitors. In this report, the Microsoft Brand has been analysed based on this economic
theory.
3. THE VALUE, PROMISE, BEHAVIOUR OF MICROSOFT
_______________________________________________________________________________________________
The comprehension and management of Corporate brands entails the orchestration of troika of
Values, Promise and Behaviour Balmer (2004). Microsoft’s chief corporate identity is that they are
worldwide technology leaders in the computer software industry and in innovating advancements in
technology for future software products. They have extended their product range beyond operating
systems and software development platforms and tools. Microsoft is now being widely recognized
in productivity applications and software for servers, intelligent devices, distributed computing such
as PDAs, business solutions software (such as CRM) and also video, console and PC games (such
as XBOX). The concepts fundamental to the corporation’s ideology appears to be commitment to
customer, growth, Innovation and passion to Lead. Microsoft has 97% Market share in PC
Operating System software. According to Alvin Hall, (World’s most powerful, BBC) In
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Computing, Bill Gates is rated as the World’s Most Powerful – the company’s identity is ubiquitous
and influences majority of the daily lives in the computing industry.
4.1 Values
As a Corporation, and as employees, Microsoft’s Values are:
1
Integrity and honesty.
2
Passion for customers, for our partners, and for technology.
3
Openness and respectfulness.
4
Taking on big challenges and seeing them through.
5
Constructive self-criticism, self-improvement, and personal excellence.
6
Accountability to customers, shareholders, partners, and employees for commitments,
results, and quality.
Microsoft’s Values on customer commitment is established by their pervasive Products whose
feature-richness and innovation is beyond what the market envisages and conjures for. “We do not
build our Products to gain position amongst competitors but solely with end customer experience in
mind” –Bill Gates (2002). The products, services and solutions are based on the mission to help
people and companies realise and reach their potential. For partners, the power that comes along by
being associated with Microsoft can be hugely advantageous. Microsoft has become more centric
towards small and medium business units and mainly hardware partners. “It’s hard to decide where
the supply chain ends, and where a company begins and partners are crucial to Microsoft’s
innovation and success”, Steve Ballmer CEO, Microsoft (2006) when introducing CEOs of Dell,
Intel, AMD, Toshiba and HP. On innovation, Microsoft sees a future full of potential, working on
continually improving and advancing current products and embarking on fundamental research for
breakthroughs. Refer Appendix 1, - employees within the organization are intensely self-critical and
strive on continuous improvement. On Microsoft's community investment programs, the focus is
upon improving the quality of life for underserved individuals around the world through monetary
grants, software, technology solutions, curriculum donations, and employee volunteer hours.
Microsoft Community Affairs is the largest contributor in the high-tech industry and one of the
largest among all businesses in the United States. Microsoft employees give more per person than
bany other company's employees. Last year, Microsoft donated more than US$68 million in cash
and $331 million in software to nonprofit organizations throughout the world. After the European
antitrust ruling, legal battles and infamously, well known anti-competitive practices, the company’s
has paid scrupulous attention in building values that will strengthen relationships with partners
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within the industry and the government. Bill Gates (2005) elucidated that Microsoft will continue to
create long term value for its stakeholders and Microsoft is committed to being a responsible
industry partner by working with businesses, communities, and governments to help advance social
and economic well-being and to enable people around the world to realize their full potential.
Microsoft's commitment and responsibilities as a global corporate citizen is focused on mobilizing
resources around the world, to create opportunities in the communities to serve the public through
innovative technologies and partnerships. The Microsoft Global Citizenship Initiative is organized
around three strategic concepts: Responsible Business Practices, Security and Internet Safety, and
Building a Knowledge Economy. The initiative is organized to ensure that the business strategies
fully support commitment to corporate governance, business ethics, and global citizenship.
4.2 Promise
The Microsoft brand is a language (Balmer, 2006) with it’s all pervasive international recognition
and geographical reach. Its positioning and core promise of being the “the leader in helping people
do exciting things today and in the future” is widely understood across national boundaries. The
emotional contracts of consumers with limited exposure to the computing field often assume that
Microsoft is “it” the only option they have. “There are people who don't like capitalism, and people
who don't like PCs. But there's no one who likes the PC who doesn't like Microsoft." - Bill Gates
The Microsoft Corporation generates a wide variety of perceptions around the world. The general
public perceives Microsoft as the software company, the main source of computer functionality.
Software developers often have a very pro- or anti-Microsoft stance. Direct competitors to
Microsoft regard then as ruthless and dangerous. Other software companies regard them as a
necessary evil; they don't like Microsoft but need them to survive. Many nations such as India and
China do not like relying on a foreign corporation for a substantial part of their technical
infrastructure. One perception is that Microsoft is an “Evil Empire” gobbling up competitors,
producing high priced low quality software, and hurting the computer industry. Another is that
Microsoft is the World’s best providing the World with the best software available today. Microsoft
brand’s Promise is still driven by the idea of a computer on every desk and in every home.
Microsoft products are for ordinary computer users, not technogeeks. The brand enables people to
leverage the power of computing to work better, have fun and fulfill their aspirations. Its advertising
asks users, "Where do you want to go today?" The company is a giant, but there are mixed
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responses on whether it is a friendly giant or an Evil one capitalizing on it’s monopoly and
formulates high profits by limiting customer rights through restrictive licensing.
Ballmer (2007) reiterates the Promise of Microsoft.
Customer Trust
To earn customer trust through the quality of
products and responsiveness and accountability to
customers and partners.
Broad customer connection
To connect broadly with customers, understanding
their needs and uses of technology, and providing
support when they have questions or concerns.
Innovative,
evolving,
responsible
and
To expand to platform innovation, provide benefits
platform
and opportunities for customers and partners,
leadership
openness in discussing future directions, getting
feedback, and working with others to ensure
products and platforms work well together.
Enabling people to do new
This means broadening choices for customers by
things
identifying new areas of business, incubating new
products, integrating new customer scenarios into
existing businesses, exploring acquisition of key
talent and experience, and integrating more deeply
with new and existing partners.
A
global
inclusive
commitment
This means thinking and acting globally, employing
a multicultural workforce that generates innovative
decision-making for a diverse universe of customers
and partners, innovating to lower the costs of
technology, and showing leadership in supporting
the communities in which we work and live.
Excellence
This means excellence in everything to deliver on
the mission: to improve the potential of customers,
and the world.
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4.3 Behaviour
Microsoft may be the world’s best known brand, but it’s not necessarily the best-loved. Microsoft’s
behaviour demonstrated when battling the anti trust allegations and crushing Netscape in the
browser wars has imprinted a negativity that it is aggressive, muscular and unmindful of customers,
partners and the industry. The corporation is trying hard to balance its competitiveness with
leadership activities, such as initiatives using technology to improve education.
4.3.1
On Innovation
"Microsoft looks at new ideas, they don't evaluate whether the idea will move the industry forward,
they ask, 'how will it help us sell more copies of Windows?'" - Bill Gates, The Seattle Weekly, 1998.
"The best way to prepare is to write programs, and to study great programs that other people have
written. In my case, I went to the garbage cans at the Computer Science Center and fished out
listings of their operating system." - Bill Gates (1986) According to analysts and critics, from their
very beginning in 1975 Microsoft has taken other people's ideas and repackaged them as their own,
either by cloning or purchasing. This appears to be a far cry on the Corporate values on True
Innovation. While competition in computer hardware drives devices is faster, smaller, and cheaper,
the lack of comparable competition in software makes innovation slower, bloated, and expensive.
MS-DOS
QDOS and CP/M
MS Windows
In original form was a copy of MAC OS
Power point
Original developer purchased by Microsoft
Internet Explorer
NCSA Mosaic
Visual Studio
Borland’s Turbo /C++
Concepts of .NET
Sun Microsystem’s Java
4.3.2
On being a Responsible Industry Partner and Global Citizen
Three years later, Microsoft still hasn’t complied with the main demands of the European
commission’s ruling. Even though withholding interoperability information is an illegal competitive
tactic, Microsoft claims that it is justified as it comes from innovation and is protected by patents.
Also fundamental analysis shows, to date Microsoft's only successful method has been to
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implement the factory model of software development, maintaining high profits and limiting
customer rights through restrictive licensing. Software - even Microsoft's - however, is a limitless
resource. Giving someone one’s software does not deprive the person of any software. The sale
value is created by the artificial limit placed by copyright on licensed software by Microsoft. Steve
Ballmer retorts Microsoft’s “evil empire set on world domination” image saying that Microsoft
works in the best interests of the consumers and that dominance is not based on abuse of market
position but by producing compelling products.
4.4 VPB Analysis
Values, promise and the corporations’ behaviour should be orchestrated into a meaningful and
appealing whole. Balmer (2004). After scrutinising Microsoft’s behaviour to map against it’s values
and promise, it appears quite conspicuous that the corporation should strive hard in bringing it’s
behaviour in congruence with its Values and Promises. According to some analysts, Microsoft has
come a big way since the mid 1990s and has matured and gained respectability, and many of the
vehement detractors are disappearing. According to Lee (2006), survey responses indicate that
impressions of the brand are becoming progressively more positive. The company’s pitch towards
small and midsize businesses is also progressively working. The corporation has realized that whilst
having anti-competitive practices maligns it’s reputation, publicity campaigns will only fix the
brand name – not their corporate reputation. With the exposure on computing world increasing,
people will buy less into these campaigns.When consumers discover the distance between the
corporate brand and its disreputable behaviour, there is likelihood that they choose other viable
options.
V
Values
P
Promise
B
Behaviour
VPB Analysis of Microsoft (adapted from Balmer (2004))
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Microsoft’s community investment efforts to provide tools and technology to under privileged
schools and to 250 million undeserved people by 2010, thus creating social and economic
opportunities in transforming communities is an effort towards being a social citizen. However,
Microsoft should administer great care towards proceeding that may tarnish reputation. Recently,
Microsoft’s tax evasion measures to shield billions of dollars from U.S taxation was debated
cynically by the public. Microsoft has set up Round Island One Ltd., in Ireland that has resulted in
reducing the tax rate based to 26% from 33% year before. The company pays $300 Million in taxes
to this small country and Round island pays under $17 million in taxes to other countries. Because
of “foreign earnings taxed at lower rates” filing Microsoft has successfully reduced corporate taxes
in Europe and the U.S.
4. THE MICROSOFT BRAND - RESOURCE BASED VIEW OF THE CORPORATION
_______________________________________________________________________________________________
4.5 Valuable
The economic theory of Resource based view is based on the proposition blah blah …
4.6 Rarity
Shrivatsa (2001) asserts the rarer a value generating resource, the more likely it will be the source of
a sustained competitive advantage.
4.7 Durability
The economic theory of Resource based view is based on the proposition blah blah …
4.8 Inappropriatability
Unlike resources such as employees, corporate brand is intangible and cannot be bargained or
spirited away, Balmer (2004). According to MediaSignal survey, Microsoft generated 398 million
high impact brand impressions in 2005.
Analysis of Key Brand Dimension, MediaSignal (2005)
Emotional brand Attractions
120 Million
Financial performance
230 Million
Vision & Leadership
90 Million
The Protection Microsoft has from it’s brand is highlighted by reputation studies conducted by
Harris Interactive, Wall Street Journal(2004), Microsoft and McDonlads are only two brands that
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have global reputation – the scores are high in term of awareness but neither is especially wellliked. However, in Microsoft’s case, irrespective of the mental perception – good or bad, being
virtually a monopoly and wielding enormous power with consumers, the brand cannot be definitely
spirited away.
4.9 Imperfect Imitability
Microsoft’s marketing campaigns contribute towards identifying and enhancing inimitability of it’s
Brand value. Bill Gates (2007) says the corporation will strive in augmenting customer value and
will continuously enhance and upgrade assets, capabilities and interaction. In terms of social
complexity, Microsoft’s interaction with it’s partners, stakeholder and consumers, given the
magnitude and diversity of the interactions across the world, will make the brand highly inimitable.
The Pervasive Brand recognition that the brand enjoys and it’s image as a “big” company has
helped the corporate brand maintain it’s popularity in spite of it’s large negative behaviour. A
company that was started in a hotel room by a couple of college dropouts with one compelling
vision: a computer on every desk and in every home, now employs 71,000 employees and sells
software across all countries in the world, with revenue of $44 billion, Annual Report (2006). The
history, heritage, scope of activities, assets, size and market position makes it virtually impossible
for others to copy this brand. The corporate identification of employees and their subcultures gives
a distinctiveness that makes the brand non-replicable. Balmer (2004), Causal ambiguity in resources
and employees, corporate communities, consumers and supply chains built around the brand and the
interdisciplinary interaction across communication channels makes the Microsoft brand perfectly
inimitable.
4.10
Imperfect Substitutability
The economic theory of Resource based view is based on the proposition blah blah …
4.11 Resilience
The economic theory of Resource based view is based on the proposition blah blah …
Consequently, Microsoft’s brand has provided an umbrella of trust for the company in extending
it’s product and service line and even diversifying into dissimilar products (such as gaming and
mobile software).
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Microsoft is committed to being a responsible industry partner by working with businesses, communities, and
governments to help advance social and economic well-being and to enable people around the world to realize
their full potential. Microsoft's commitment and responsibilities as a global corporate citizen are grounded in our
company mission and values, manifested through our business practices and operations, and carried out by
thousands of Microsoft employees and suppliers worldwide.
Corporate Citizenship
The Microsoft Global Citizenship Initiative is organized around three themes, or
strategic concepts, which form the foundation of our citizenship activities
worldwide: Responsible Business Practices, Security and Internet Safety, and
Building a Knowledge Economy. Each of these themes is fundamental to our
business. Our Global Citizenship Initiative is organized this way to help ensure
that our business strategies fully support our commitment to corporate
governance, business ethics, and global citizenship.
Microsoft Community Affairs administers all of Microsoft's community investment programs. Founded in 1983,
Microsoft Community Affairs was one of the first corporate community investment programs in the high-tech industry.
Today, Microsoft is the largest contributor in the high-tech industry and one of the largest among all businesses in the
United States. Microsoft employees give more per person than any other company's employees. Last year, Microsoft
donated more than US$68 million in cash and $331 million in software to nonprofit organizations throughout the
world.
Ultimately, Microsoft believes that by providing training and tools, we can partner to create social and economic
opportunities that can transform communities and help people realize their potential. Microsoft's community
investment efforts are focused on increasing digital inclusion and bringing the benefits of technology and technology
skills to 250 million underserved people worldwide by 2010.
Or consider Microsoft, a company that was started in a hotel room by a couple of college dropouts with one
compelling vision: a computer on every desk and in every home. It may have been a brazen idea 20 years
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ago, but it has guided Microsoft ever since, giving it uncontested dominance in the desktop software market
and making Bill Gates a very rich man. Microsoft today is hardly what you would call a simple company. It
employs more than 20,500 people and designs and sells a vast array of software programs in 60 countries;
last year it netted over $2 billion in income. But as much as it has grown, it has never lost sight of its original
vision.
Everything about Microsoft-its products, its marketing and, most important, its brand positioning-is still driven
by the idea of a computer on every desk and in every home. Microsoft products are for ordinary computer
users, not technogeeks. The Microsoft brand enables people to leverage the power of computing to work
better, have fun and fulfill their aspirations. Its advertising asks users, "Where do you want to go today?" The
company is a giant, but a friendly giant, one that puts a high priority on being simple, contemporary,
approachable, hip and even low-tech-as much as that attribute may seem counterintuitive in the context of a
technology business.
Microsoft CEO Steve Ballmer has hit back at claims that the company's dominance of the desktop PC
market is no longer in the best interests of consumers
Microsoft is currently embroiled in a long-running legal battle with the European Commission over
an antitrust ruling. The EC is seeking to force the software giant to open up its closely guarded
operating system code to rivals.
Ballmer acknowledged the role the company's employees play in Microsoft's success but said
organisations always need to be asking themselves if they "can do better".
He said: "A good programmer is 10 times more productive than an average programmer. You have
to hunt out and find the best around the world. We look for people who are incredibly bright and
hard working."
5. MICROSOFTs SCORECARD ON RBV
_______________________________________________________________________________________________
Refer to Appendix I
6. CONCLUSION
_______________________________________________________________________________________________
In many ways, the founding of Microsoft 30 years ago was a critical catalyst for the creation of the
software industry, the popularizations of personal computing and the rise of information
revolution.If Through bad public relations, poor customer service, or flaws in basic implementation,
a technology brand may build a perception around it that is disproportionate to reality. Microsoft is
a good example. Although to date the antitrust legal proceedings have had little or no impact on the
structure of the company, they have negatively impacted the Microsoft brand. While the case and its
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final outcomes are still being debated, the company remains intact with its business and products
untouched. However, if in its advertising Microsoft claimed to be open, enthusiastic to competition,
or a guardian to fair play in the marketplace, the majority of consumers would reject such a message
thanks to Microsoft's brand being tarnished. The products remain unaffected, the company remains
unaltered, but the connection between the organisation and the consumer has been damaged. Apart
from any legal ruling to date, Microsoft is perceived to have acted unfairly. This view appears to
have entered the consciousness around Microsoft's brand and is now part of what it represents in the
mind of the public. One of the best aspects of resolving this case is that we can provide much
needed resources to underprivileged schools,” said Rich Wallis, associate general counsel for
Microsoft. “We’re happy to have this matter behind us so we can focus on the future and build the
next generation of products and innovations that enrich the lives of people around the world.”
Classic positioning
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9. BIBILOGRAPHY
________________________________________________________________________________
9.1 Books
1. Balmer, John (2007), Corporate Marketing, Bradford MBA Study Notes.
Journal.
9.2 Magazines, Periodicals, Newspapers, News Services
1. Articles on Corporate Marketing -
9.3 Reports and Acknowledgments
1. Microsoft Corporation Annual Report 2005-06.
2. Barney, J. B., (1991). Firm resources and sustained competitive advantage. Journal of
Management,
3. Barney, J. B. (2001). Is the resource-based “view” a useful perspective for strategic
management research? Yes. Academy of Management Review,
4. Collis, D. J., & Montgomery, C. A. (1995). Competing on resources: Strategy in the
1990s. Harvard Business School,
5. Grant, R. M. (1991). The resource-based theory of competitive advantage: Implications
for strategy. California Management Review.
2. Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management
3. Lynch, Richard (1999). Resource-based view: paradigm or checklist?
9.4 Web Sites
1. www.economicswebinstitute.org/glossary/innovate.htm accessed on 30th Jan 2007.
2. www.sideroad.com/management/innovative.html - How do you Create an innovative
Culture
3. http://radio.weblogs.com/0133184/2005/09/19.html - Microsoft Behaviour
4. http://www.computerworld.com/action/article.do?command=viewArticleBasic&taxonomyName=s
ervers_and_data_center&articleId=9014063&taxonomyId=154&intsrc=kc_top
http://www.microsoft.com/presspass/press/2006/nov06/11-14ITForumPR.mspx
http://www.pcpro.co.uk/news/80922/sun-warns-caution-over-microsofts-standard-promise.html
http://www.microsoft.com/presspass/inside_ms.mspx#EDB
http://www.microsoft.com/about/corporatecitizenship/citizenship/giving/ - Microsoft Role to the
Community
9. http://www.microsoft.com/about/brandcampaigns/realizepotential/default.mspx
10. http://www.microsoft.com/presspass/exec/steve/default.mspx
11. http://news.bbc.co.uk/1/hi/programmes/worlds_most_powerful/3287513.stm?display=1 – Role of
the Founder and his influence
12. http://news.digitaltrends.com/article9959.html - Microsoft Brand Trust
13. http://software.silicon.com/os/0,39024651,39158410,00.htm - Microsoft Success Mantra (Rarity)
14. http://www.free-essays-free-essays.com/dbase/2b/bmu280.shtml
15. http://news.yahoo.com/s/nm/20070227/wr_nm/microsoft_ozzie_dc - Interbrand 2001 survey
5.
6.
7.
8.
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16.
17.
18.
19.
20.
http://www.ourfishbowl.com/images/surveys/IB_SV_BW_8_6_01.pdf - Interbrand 2002
http://www.ourfishbowl.com/images/surveys/IB_SV_BW_8_5_02.pdf
http://www.brandchannel.com-images-home-ranking_methodology.pdf
http://www.microsoft.com/about/brandcampaigns/innovation/default.mspx - Microsoft Innovation
http://www.msversus.org/ - Dissecting Microsoft
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Appendix I – Interview with Kevin Schofield, Microsoft- Top Ten Reasons Why I Love
Microsoft
1. The company is intensely self-critical. You may think that Microsoft's outside critics are
merciless in pounding on the company; it's nothing compared to the beatings we give ourselves
internally. We are absolutely our own harshest crtics. We want to know our weaknesses and
improve on them. Nothing is ever good enough.
2. The company is the closest I've ever seen to a true meritocracy. The company tries very, very
hard to give the best rewards to the best performers. Ideally, you'd love to have a perfectly objective
system to do that, and in the real world there is no such thing, so I've certainly seen mistakes made
and I think that's where a lot of complaints about the performance review system originate. But at
the same time (see point #1 above) I've seen a lot of sincere efforts in the company to try to make
the system better and better, and closer to that ideal.
3. You never have to be stuck in a boring job. If you get tired of the product you're working on, you
can find a job in a completely different one. Or you can change disciplines. Without leaving the
company. I started as a front-line developer; now I'm responsible for tech transfer and academic
relations for a world-class research lab. In between, I was a user interface designer and a project
manager.
4. Everyone has a voice. Good ideas can come from anywhere. Voices are respected. Anyone can
write a thinkweek paper and submit it to one of Bill Gates' "Thinkweek" sessions. And the company
has openly embraced employee blogging.
5. The company has always been willing to take huge risks and make enormous bets. I should
know; I've worked on many of them over my years at the company -- and not all of them were
successful. Failure has never discouraged the leadership of the company from making more big
bets. They've just made sure that we learned from our mistakes.
6. Bill. I'm very fortunate to have had more than my share of face-time with Bill Gates, both as an
observer and in direct conversations. I've seen the best of Bill, and the worst of him. He's
complimented me, and he's chewed me out on more than one occasion. But one thing is clear: Bill
is by far the smartest man I've ever met. He has a depth and breadth of knowledge that is absolutely
unbelievable, stretching beyond technology into economics, the life sciences, politics, international
finance, and many other topics. And this might surprise you: Bill is also by far the most passionate
advocate for our customers. While many people focus on how our products compare to the
competition, he's almost singularly focused on what the customer experience will be. That is where
I've most often seen him get upset at product groups: when they lose sight of building a great
customer experience. Bill has his share of character flaws, but his upside more than makes up for it.
7. Steve. To meet Steve Ballmer -- actually meet him in person -- is to truly appreciate the guy.
Steve hides nothing; he really is that guy you see running up and down the aisles at the company
meeting sweating up a storm, high-fiving people, and screaming until he loses his voice. It's who he
is, he knows it, and he has found his comfort zone with that. But Steve is also the brilliant strategist,
the capable diplomat, and the nimble account manager. Steve is an incredibly effective
communicator, in large crowds, small groups, or one-on-one; I envy him for that. He switches with
ease between different styles, and I think it's because he's a genius at reading people and intuiting
the right way to communicate with them. But he isn't fake; he finds a way to bring to the surface a
genuine interest in the person or group that he's talking to, and uses that to connect with people. But
Steve is also a numbers guy; everything people have said about his uncanny ability to memorize
The Consortium MBA, Cohort 7, Bradford University
Corporate Marketing Assignment, Prof. John M.T.Balmer
Scarborough Team
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sales figures and work out mental math is all absolutely true (I've witnessed it). Lately Steve has
been working on being a better "coach" -- on helping to grow the people around him. Steve is truly
a passionate guy (though I seriously doubt he threw a chair; that's not the Steve I know) but he's real
and he's a real leader who's more interested in the people around him than he is in himself.
8. You don't have to go up the management chain to have large responsibilities. Let's face it: some
people aren't cut out for management. There are a lot of them at Microsoft, and they can all take on
more technical responsibility without actually becoming managers. I've flipped back and forth in
my time at Microsoft between being an "individual contributor" and a manager. I've enjoyed both.
For as long as I've been at the company, both have been encouraged as paths to advancement.
9. You can have a life (even as a single parent). I do. I get in to work at 8:00. I work through lunch,
and leave at around 4:45 to go pick up my daughters from school, take them home and make them
dinner. I've always been of the belief that a well-rested employee can do more in an 8-9 hour day
than a poorly-rested one can do in a 10-12 hour day. And that menas resting your brain, not just
your body. My boss evaluates me on whether I'm getting my job done, not on how many hours it
takes me to do it.
10. The only limit is our imagination. People here really believe that software can do anything -- it's
fundamentally built into the culture, all the way up to Bill. Moore's Law is in our DNA; every year
that goes by, computers and software will be able to do more. We just have to figure out how to
make it do what we want. And that's what gets me, and many of my co-workers, up and in to work
every day.
Enough already.
I'm getting really tired of reading stories about how morale sucks at Microsoft, the company is big
and bloated, all the smart and senior people are leaving, Google is poised to kick Microsoft's butt,
and the whole house of cards is falling down. There are nuggets of truth, and Mini-Microsoft raises
some of them, but when they're reported more widely by the press, who actually understand very
little of how the company works but enjoy fabricating a sexy story, those nuggets get buried in layer
upon layer of crap.
I've been at Microsoft since 1988 -- over 17 years. And while I'm not Steve Ballmer, I do love this
company. Right around the time I started, everyone thought that Novell, Lotus and Wordperfect
were going to put Microsoft out of business. A few years later, it was IBM and OS/2. Then Lotus
again with Notes. Then the Internet and Netscape. Then AOL. Now it's Google.
The point here is not that Microsoft is invincible; it surely isn't. The point is that I've seen many
periods of time where there was very serious competition, and inside the company things got very
tense and hard questions were asked. Those times were almost always also times when the company
was in the middle of a long (and often painful) development cycle, as is the case now with almost
every major Microsoft product. While I'm in MSR now, before that I did over eight years in product
groups as both a developer and a program manager, and I lived through the hell of multiple grueling
product cycles. It's true that it's always darkest just before the dawn, and right now is the worst part
of the cycle: you've done a LOT of very hard work to get here, you're getting tired, and you can't
see the finish line yet. Yeah, morale always starts to suck right about now. Some people choose to
leave. Most people stay and stick it out -- and enjoy the feeling of finishing something as ambitious
as a piece of software that hundreds of millions of people will use. Few people in the world get to
do that, and it is indeed a joyous feeling.
The Consortium MBA, Cohort 7, Bradford University
Corporate Marketing Assignment, Prof. John M.T.Balmer
Scarborough Team
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Now, don't think for one minute that I believe I can explain away all the ills that are being attributed
to Microsoft. Yeah, there are problems, like with all companies. Our customers tell us that they like
the integration between all of our products, but that takes a LOT of communication and
coordination -- and meetings. Oh, so many meetings, to get it all worked out. Are there some bad
managers? Yup. Is the performance review system less than perfect? You betcha -- and that's a
complaint that I've heard (and voiced personally) for 17 years, even though it's been tweaked every
year. Did re-orging into 7 P&L's create a push toward "fiefdoms"? Probably -- but in part that was
the intent, because it brought a level of independence and ability to grow that simply couldn't exist
in a single monolithic organization. Either way, there are benefits and problems that ensue.
Are there people leaving that we would rather stay? Yup. You know what, though? That happened
10 years ago, too. It happens every time someone lights a fire under the industry. Some people want
to go do the startup thing. Some want to work for the rising star. Some just need fresh air. And
some just want out. Microsoft is not the only company dealing with this, and this is not the first
time for Microsoft either (or IBM, or Oracle, or any of the other big companies).
So I'm philosophical about most of this. It happens, it's natural, and it's a great wakeup call for a
company that I love. In all honesty, there are some things I don't like about Microsoft today; I try to
fix them. And I suspect that there are people who think I'm part of the problem; they may even be
right. But none of the problems I see make me lose faith in Microsoft and its ability to ship great
software to its customers.
By the way, I know Kentaro Toyama and Sean Blagsvedt, who work in MSR and wrote the "Ten
Crazy Ideas to Shake Up Microsoft." And they love Microsoft too -- among many reasons, because
anyone in the company can write a paper like that one, and get it in front of Bill.
Important Dates
Date
Event
1975
Microsoft founded
Jan. 1, 1979
Microsoft moves from Albuquerque, New Mexico to Bellevue, Washington
June 25, 1981
Microsoft incorporates
Aug. 12, 1981
IBM introduces its personal computer with Microsoft's 16-bit operating
system, MS-DOS 1.0
Feb. 26, 1986
Microsoft moves to corporate campus in Redmond, Washington
March 13, 1986
Microsoft stock goes public
Aug. 1, 1989
Microsoft introduces earliest version of Office suite of productivity
applications
May 22, 1990
Microsoft launches Windows 3.0
Aug. 24, 1995
Microsoft launches Windows 95
Dec. 7, 1995
Bill Gates outlines Microsoft's commitment to supporting and enhancing
the Internet
June 25, 1998
Microsoft launches Windows 98
The Consortium MBA, Cohort 7, Bradford University
Corporate Marketing Assignment, Prof. John M.T.Balmer
Scarborough Team
Page 20 of 22
Important Dates
Date
Event
Feb. 17, 2000
Microsoft launches Windows 2000
June 22, 2000
Bill Gates and Steve Ballmer outline Microsoft's .NET strategy for Web
services
May 31, 2001
Microsoft launches Office XP
Oct. 25, 2001
Microsoft launches Windows XP
Jan. 15, 2002
Bill Gates outlines Microsoft's commitment to Trustworthy Computing
Nov. 7, 2002
Microsoft and partners launch Tablet PC
Jan. 16, 2003
Microsoft declares annual dividend
April 24, 2003
Microsoft launches Windows Server 2003
Oct. 21, 2003
Microsoft launches Microsoft Office System
July 20, 2004
Microsoft announces plans to return up to $75 billion to shareholders in
dividends and stock buybacks
June 15, 2006
Microsoft announces that Bill Gates will transition out of a day-to-day role
in the company in July 2008, Ray Ozzie is named chief technology officer
and Craig Mundie chief research and strategy officer
July 20, 2006
Microsoft announces a new $20 billion tender offer and authorizes an
additional share-repurchase program of up to $20 billion over five years
Jan. 30, 2007
Microsoft launches Windows Vista and the 2007 Microsoft Office System to
consumers worldwide
The Consortium MBA, Cohort 7, Bradford University
Corporate Marketing Assignment, Prof. John M.T.Balmer
Scarborough Team
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Appendix II –
The Consortium MBA, Cohort 7, Bradford University
Corporate Marketing Assignment, Prof. John M.T.Balmer
Scarborough Team
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