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T11SI 2295 Leadership, Transformation and Organisational Change

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LEADERSHIP THROUGH CHANGE: THE CASE OF
MICROSOFT’S RESTRUCTURING

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Section 1:
1. Company Profile
Microsoft is one of the world’s leading technology companies that has been specializing in the
manufacturing, distribution and retailing of software and hardware products and services to both
individual and enterprise consumers around the globe. The company was founded on April 4
th
,
1975 by Bill Gates and Paul Allen, the former has been continuously listed as one of the 10 richest
people in the world. Currently being led by Satya Nadella, Microsoft has been following the
mission statement of: to empower every person and every organization on the planet to achieve
more”; such statement is grounded under the vision that: We believe a new technology paradigm
is emerging that manifests itself through an intelligent cloud and an intelligent edge where
computing is more distributed, AI drives insights and acts on the user’s behalf, and user
experiences span devices with a user’s available data and information” (Nesterov, 2015).
2. Market Overview
The cloud computing market has been experiencing rapid growth and expansion in recent years,
with annual growth being more than 14.9 percent throughout the period of 2020-2027, from 266
billion USD in 2019. Cloud computing has been predicted to become the most promising sector
within the future technology era, where attention towards continuous syncing, real-time data
monitoring and fast sharing through the Internet have been capturing both general and enterprise
consumers, amidst the rising expenses of physical storage and complicated physical configuring
procedures over time. Giant players within the cloud computing market in recent years have been
Amazon, Microsoft and Google, with Microsoft being on a strong track to become the largest cloud
providers within the industry (Grand View Research, 2020). This massive competitive position
jump is hugely thanked to the major restructuring occurred within the corporation, which was led
by Satya Nadella, that has significantly boosted the company’s profitability within the
aforementioned market to more than 31 percent in the first quarter of 2020 alone (Microsoft, 2020).
3. Microsoft’s Decision to Restructure
Satya made the decision to restructure Microsoft into a Cloud and AI-oriented corporation in
March 2018. In particular, the company’s structure was reconfigured to become lean like a startup,
with only three divisions being emphasized, including: Experiences and Devices, Cloud and AI

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LEADERSHIP THROUGH CHANGE: THE CASE OF MICROSOFT’S RESTRUCTURING Section 1: 1. Company Profile Microsoft is one of the world’s leading technology companies that has been specializing in the manufacturing, distribution and retailing of software and hardware products and services to both individual and enterprise consumers around the globe. The company was founded on April 4th, 1975 by Bill Gates and Paul Allen, the former has been continuously listed as one of the 10 richest people in the world. Currently being led by Satya Nadella, Microsoft has been following the mission statement of: “to empower every person and every organization on the planet to achieve more”; such statement is grounded under the vision that: “We believe a new technology paradigm is emerging that manifests itself through an intelligent cloud and an intelligent edge where computing is more distributed, AI drives insights and acts on the user’s behalf, and user experiences span devices with a user’s available data and information” (Nesterov, 2015). 2. Market Overview The cloud computing market has been experiencing rapid growth and expansion in recent years, with annual growth being more than 14.9 percent throughout the period of 2020-2027, from 266 billion USD in 2019. Cloud computing has been predicted to become the most promising sector within the future technology era, where attention towards continuous syncing, real-time data monitoring and fast sharing through the Internet have been ...
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