Case Study
Microsoft has experienced a decline in reputation, influence and share value during the last decade, and it has been recognized by the Board of Directors that change is needed. At issue, is what
should be changed to increase company performance by improving Microsoft’s reputation, products, and practices?
This case study requires you to address key areas of concern about the company which include its structure, culture, and the use of power and influence. This case study requires you to evaluate
Microsoft’s current structure, culture and distribution of power and reach a conclusion about whether they are suited to fostering higher levels of performance and innovation.
Address the following issues:
1. Is Microsoft’s new structure well suited to fostering collaboration and innovation? If yes, why? If not, why not? What structures might be more effective in meeting these objectives?
2. Analyze Microsoft’s culture using concepts from the course. Is the culture compatible with the new structure? Is it well suited to fostering high performance and innovation? If yes, why? If not,
why not and what would you change?
3. Which coalitions have the most power at Microsoft? What are the sources of this greater power? Have the most powerful coalitions hampered or helped Microsoft meet its stated company goals?

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