BUS6140 Module 5 Assignment: Strategic Pivot Plan

Bolu Balogun

Master of Business Administration,

Nexford University

MHY6750: Master of Business Administration Capstone

Professor Michael Rodriguez

November 27, 2024

INTRODUCTION

When the market, industry, or business environment changes, a company's strategy can be adjusted with the

help of a strategic pivot plan. It entails identifying areas that require adjustment, weighing possibilities and

risks, and implementing adjustments to meet goals. A strategic pivot plan should be regularly reviewed and

updated to keep up with changing conditions (Hanna et al., 2024). Companies use their strategic pivot plans to

identify new opportunities and new markets. Finally, it is essential to communicate the change to all

stakeholders.

Typical essential elements of a strategic pivot plan are:

 An assessment of the business environment.

 Finding the places that need to be adjusted.

 Defining objectives and key performance metrics (KPIs).

 Development of plans to accomplish goals.

 Strategy implementation.

 keeping track of KPIs and adjusting monitor progress.

The need to pivot may arise from a variety of reasons, such as shifting consumer demands, market trends,

technology breakthroughs, or unforeseen competition. A corporation may sustain competitiveness, encourage

innovation, and achieve long-term success with the support of a well-executed strategic pivot plan. In this post,

we'll examine Microsoft's strategic pivot plan.

STRATEGIC PIVOT PLAN DEVELOPMENT

1. OBJECTIVES OF THE PIVOT INITIATIVE

Microsoft's strategic pivot plan aims to change the company's organizational culture, technology, and

commercial approach to stay relevant in the rapidly evolving digital industry. To achieve this, Microsoft is

investing in new technologies, such as blockchain and artificial intelligence, as well as forming strategic
partnerships with other companies. They are also focusing on expanding their customer base and developing

new products to better meet their customers' needs. Its goal is to:

 Enhanced User Experience

 Expand Your Offerings

 Boost Scalability

 Boost security

 Foster innovation

The pivot strategy, which aims to position Microsoft as a leader in delivering exceptional service while

developing more practical products and services, is impacted by market dynamics, the competitive landscape,

and internal strengths. It also promotes growth, revenue generation, and customer engagement. Some market

dynamics to think about are listed below.

1. MARKET TRENDS

 Growth, beforehand Operating Software: Profit from the rising need for payment systems.

 Mobile application adoption: Take advantage of the growing number of devices being used for

transactions.

 Growth in E-Commerce: Encourage the growth of online business and shopping.

2. THE COMPETITIVE ENVIRONMENT

 Differentiate Microsoft from rivals such as Google Pay, Square, and Stripe.

 Market Dominance: Increase Microsoft's market share in payments.

 Innovation: Provide features and solutions to stay ahead of the competition.

3. INTERNAL ADVANTAGES

 Progress: Improve payment processing and security by leveraging Microsoft's technology know-how.

 Customer Base: Utilize Microsoft's current clientele and expand offerings to meet their evolving

requirements.

 Strategic Partnerships: Create alliances to expand your consumer base and enhance services.
SCOPE OF THE PIVOT

Impacted Areas.

 Creating new products

 Technological framework

 Customers satisfaction

 A marketing strategy

 Business acquisitions and partnerships

Possible Outcome

 Enhancement of user engagement

 Improved security protocols and fraud prevention

 A wider range of services and payment methods

 Increased reliability and scalability

 Increased trial projects and innovation

 Enhanced partnerships and purchases

TIMELINE

Microsoft Strategic Pivot Plan Development states that the deadline is set for one year.

1st Quarter (1 – 3 months)

 Analyze the market and research rivals.

 Establish objectives for the pivot and determine the key performance indicators (KPIs).

 Form teams that focus on marketing tactics, tech infrastructure, and product development.

2nd Quarter (4 – 6 months)

 Develop and assess fresh products.

 Implement improvements to the infrastructure of technology.

  Launch new marketing initiatives and establish collaborations

3rd Quarter (7 – 9 months)

 Evaluate progress on a regular basis and adjust the pivot approach as needed.

 Continuously improving product development and upgrading technology.

 Establish additional alliances and take acquisitions into consideration.

4th Quarter (10 – 12 months)

 Execute the entire pivot plan.

 Establish and implement KPIs to evaluate success.

 Create plans for future growth and innovation.

AVAILABLE RESOURCES

Microsoft's resource allocation may change based on the requirements of its pivot strategy. Microsoft is

focusing on areas of growth, such as cloud computing and artificial intelligence, and will adjust its resource

allocation accordingly. This shift will allow them to capitalize on new opportunities and remain competitive in

the market.

1. Monetary Support:

 Set aside $100 million for technological advancements and product development. • Set aside $65 million

for partnerships in promotional initiatives.

2. Human Resource Management:

 Put together a group of 25 professionals specializing in tech infrastructure, marketing tactics, and

product development.

 Employ ten more experts for joint ventures and acquisitions.

3. Technology Resources:

 Modernize the existing technology infrastructure

 Put in place stronger security measures to prevent fraud.

  Use cloud-based services to provide scalability and dependability.

CRITERIA FOR SELECTION

When evaluating the impact on various organizational components, take into account the following factors. This

includes assessing the impact of changes in technology, processes, and people. It is also important to consider

the ethical implications of the proposed change. it is important to consider the cost of implementing the

proposed change. The below are to be considered:

i. Consistency with Strategic Goals by giving priority to departments that directly support the direction

and growing operations to achieve the intended outcomes.

ii. Present Performance Evaluation through departmental reorganization or consolidation to increase

productivity and expand performance areas.

iii. The capacity for change and adaptability in divisions that have a history of adjusting to shifting priorities

and market conditions.

iv. Impact on Customer Engagement: Prioritize the divisions and positions that deal with customers or have

an impact on their experiences.

v. Adopting new technologies to boost operational efficiency and innovation.

vi. Pay attention to the needs for skills, expertise, and cost effectiveness.

ROLES AND DEPARTMENTS THAT MAY EXPERIENCE CHANGES

 Accounting and Financial Operations

 Administration of Human Resources

 IT Services and Technology

 Sales and Marketing Initiatives

 Logistics and Operations Management

 Route to Market & Product Development

POST THAT MAY BE IMPACTED

  Product Development Managers

 Sales and Marketing Team

 Customer Support Representatives

 Logistics and Operations Team

 IT and technology professionals

 Accounting and Finance Analysts

 Human Resources Experts

OPTIMAL SIZE AND STRUCTURE DETERMINATION

1. CURRENT ORGANISATIONAL STRUCTURE:

 A structured hierarchy with decision-making and authority lines.

 Because departments are organized according to their functions, there is some overlap and effort

duplication, which restricts communication and cooperation amongst them.

2. STRENGTHS:

 Functional knowledge and specialization, authority, and decision-making procedures.

3. WEAKNESSES

 Shifting consumer demands and market conditions.

 Ineffective departmental collaboration and innovation, as well as wasteful resource utilization brought

on by effort duplication.

POST-PIVOT OPTIMIZATION.

It is advised to go towards a flatter, more flexible setup that prioritizes cooperation and creativity to maximize

the structure after the pivot (Little, 2023). The creation of functional teams centered on customer journeys and

strategic goals, the establishment of transparent channels of communication and decision-making procedures,

and the empowerment of staff members through an ownership and accountability culture might all be part of

this.
  KEY CHANGES: Expanding spans of control and decreasing levels of management to create functional

teams with clear objectives.

 Putting in place a matrix management structure to promote a culture of ongoing learning and improve

cooperation and resource sharing.

 SIZE OPTIMISATION reduces the number of roles and layers in an organization. In order to foster

growth, this may entail investing in talent while lowering personnel in areas that are not in line with

goals.

 EFFICIENCY, including the removal of bureaucracy when practical, can increase efficiency.

Technology can be used for automation by putting improved approaches and principles into practice.

 The company may increase AGILITY by cultivating a culture that values experimentation and learning.

It will be advantageous to promote innovation and measured risk-taking. Agility will be enhanced via

the implementation of flexible process systems (Aghina et al., 2021).

 ALIGNMENT WITH OBJECTIVES: By setting goals that support the strategic pivot, it is important to

make sure that all department teams are in line with these objectives. Tracking alignment will be made

easier with the implementation of performance management systems for accountability and progress

measurement.

CONCLUSION

In summary, Microsoft must restructure their system if they hope to win the race and remain competitive.

Streamlining the hierarchy, encouraging collaboration across divisions, and granting staff autonomy are all part

of this. Productivity, flexibility, and improved goal alignment are possible outcomes of these adjustments.

Microsoft's size and structure will enable it to innovate, adapt to changes in the market, and serve customers.

Microsoft must recognize that change is necessary and embrace it. By doing so, they can stay ahead of the

competition and remain a leader in the industry.

 REFERENCE

Aghina, W., Handscomb, C., Salo, O., & Thaker, S. (2021, May 25). The impact of agility: How to shape your
organization to compete. McKinsey & Company. https://www.mckinsey.com/capabilities/people-and-
organizational-performance/our-insights/the-impact-of-agility-how-to-shape-your-organization-to-compete/

Little, A. (2023, December 7). 8 Reasons Why a Flat Organizational Structure Is Important. Built In.
https://builtin.com/articles/flat-culture/

Hanna, K. T., Bigelow, S. J., & Pratt, M. K. (2024, March 19). strategic planning. Search CIO.
https://www.techtarget.com/searchcio/definition/strategic-planning/