Microsoft Corporation (NASDAQ:MSFT) has just posted an extensive explanation of its reorganization strategy on its website. It was revealed earlier this week that the company would unveil the strategy today.
In the post, the company starts with what it sees as its three strengths: “high-value activities, powering devices and enterprise services.” The company also said that its focus will be “on creating a family of devices and services for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value most.”
At the end of last week, Bruce Greenwald, the founding director of the Heilbrunn Center for Graham and Dodd Investing at Columbia Business School, sat down for a Fireside Chat with Li Lu, the founder and chairman of Himalaya Capital as part of the 13th Columbia China Business Conference. The chat spanned many different topics, Read More
The ultimate goal for Microsoft Corporation (NASDAQ:MSFT) is a single experience for every device in life. In short, it’s aiming to create a family of devices which all function together through the Power of One.
Bringing Microsoft’s Many Parts Together
As expected, the tech giant’s reorganization plans are focused on taking the individual experiences which have essentially fragmented the company and combining them into one major experience. As expected, along with the strategy, some staff members have been reassigned. The company sets out 12 different divisions as it realigns each of their products in a more meaningful way.
The 12 divisions including the Operating Systems Engineering Group led by Terry Myerson, the Devices and Studios Engineering group led by Julie Larson-Green and the Applications and services Engineering Group led by Qi Lu. Satya Nadella will lead the Cloud and Enterprise Engineering Group. The other divisions are: Dynamics, Advanced Strategy and Research Group, Marketing Group, COO, Business Development and Evangelism, Finance, Legal and Corporate Affairs, and HR.
These changes are right in line with what was reported earlier this week. Analysts at Morgan Stanley already put their stamp of approval on the changes, saying that they see them to be good for the company in the long term.
Other Possible Changes To Microsoft
Microsoft Corporation (NASDAQ:MSFT) CEO Steve Ballmer plans to address the company as a whole later today. All Things D’s Kara Swisher reports that sources say there will also likely be changes in the company’s financial reporting structure. The result could be a more cohesive quarterly earnings report which doesn’t show the money-losing segments like Bing.
At least one analyst has suggested that Microsoft Corporation (NASDAQ:MSFT) should sell Bing and also the Xbox, but these parts are still integral to the company’s mission. Changing the way the company reports earnings will require the approval of regulators and might take time. It also might put an end to complaints about money-losing segments and reframe the way investors view the company—as one company rather than a bunch of little pieces.