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Microsoft S Ballmer Said To Plan Broad Restructuring

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RUNNING HEAD: MICROSOFT’S RESTRUCTURE PROCESS 1
PLAN BROAD RESTRUCTURE.
Microsoft’s Ballmer Said.
Why does Microsoft need to change the way it organizes its functions and divisions?
The move by Microsoft to change the way it organizes its functions and divisions is
inspired by growing challenges it’s facing from its competitors. This move is intended to keep
Microsoft abreast as it struggles to maintain its lead of the likes of Google Inc., Linux makers
and other upcoming institutions. Microsoft intends to increase their rate of software development
and distribution by changing the way it organizes its functions and divisions. This idea is also
brought about with the need for Microsoft to make speedy decisions.
What changes is CEO Ballmer proposing to make? How will they affect the way the
company operates?
Ballmer is proposing creation of four divisions: an enterprise business headed by Nadella;
an applications and services division led by Lu; a hardware unit overseen by Mattrick; and an
operating system group led by Terry Myerson(windows phone chief), and Julie Larson(leader of
windows engineering).
The changes will bring about the reduction of the current eight divisions to four as
proposed. This move will enable a more aggressive and quick way of delivering software that is
service- based in order to keep up with the ever growing competition. The number of channel
followed in decision making proses will be reduced by this proposed changes hence speeding the
decision making process in the organization. The move is inspired by the fact that Microsoft

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RUNNING HEAD: MICROSOFT’S RESTRUCTURE PROCESS 2
being a dominant windows software and with a huge office division. These factors have given it
an important basis for funding new businesses, most of which are yet to yield profit.
Search the internet and outline the changes Microsoft has since made to its organizational
structure.
Microsoft being the world leading software has adopted the divisional structure in
developing and marketing its variety of products. Divisional structure has a number of strengths
that have been of benefit to Microsoft over the years. It is in principle in line with fast changing
trends in the market, the flexible market conditions and ensures visibility of products and
services in the market. Microsoft has been able to adopt various organizational structures through
their use of divisional structure as summarized herein.
On Jun. 17, 2015, the change was aimed at improving its building pace and engineering
alignment. Creation of a new unit called Windows and Device group- it combines Microsoft’s
windows work, and its hardware. This move was done to double down Microsoft’s plans and
shifting course as it may seem.
Jul. 11, 2013, Microsoft reorganized its wide company; the reorganization was altered
around the “devices and services” vision. There was a massive shift of executive roles’. The
reorganization included a creation of new operating systems engineering group, a new cloud and
enterprise engineering group was introduced on the enterprise side, creation of the business
development and evangelism group. The changes were aimed at focusing on a Microsoft that
works together rather than one which departments competed internally.

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RUNNING HEAD: MICROSOFT’S RESTRUCTURE PROCESS PLAN BROAD RESTRUCTURE. Microsoft’s Ballmer Said. Why does Microsoft need to change the way it organizes its functions and divisions? The move by Microsoft to change the way it organizes its functions and divisions is inspired by growing challenges it’s facing from its competitors. This move is intended to keep Microsoft abreast as it struggles to maintain its lead of the likes of Google Inc., Linux makers and other upcoming institutions. Microsoft intends to increase their rate of software development and distribution by changing the way it organizes its functions and divisions. This idea is also brought about with the need for Microsoft to make speedy decisions. What changes is CEO Ballmer proposing to make? How will they affect the way the company operates? Ballmer is proposing creation of four divisions: an enterprise business head ...
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