Microsoft Corporation: Change in direction under Satya Nadella?

On February 4, 2014, Microsoft appointed Satya Nadella as its third CEO following the resignation of predecessor Steve Ballmer. This case study examines the changes and decisions made by the company under Nadella's rule and assesses the extent to which his appointment has driven Microsoft in a new direction.

Scope

Provides an overview and analysis of Satya Nadella's strategic vision for Microsoft.

Assesses the extent to which Microsoft's new CEO has changed the company and its future direction.

Reasons to buy

Why did Microsoft choose Nadella to take over from Steve Ballmer?

How is Satya Nadella attempting to change Microsoft's culture, and to what end?

What has Nadella's Microsoft's approach to hardware been since Ballmer's departure?

Companies mentioned

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Table of Contents

OVERVIEW

Catalyst

Summary

THE BIG SWITCH

Microsoft share price floundering pre-Ballmer exit

Growing financials not enough to bolster share price under Ballmer

Ballmer missed out on rapid growth in mobile devices

Failed transition to Microsoft as a 'devices and services company'

Satya Nadella takes over

Nadella's appearance and image marked a departure from the norm

Nadella's professional background also a boon

Instant boost in company's share price following Nadella's appointment

CHANGES TO STRATEGIC VISION AND CULTURE

The productivity and platform company for the mobile-first and cloud-first world

From 'devices and services' to 'mobile first, cloud first'

Focus on productivity suggests enterprise focus

Movement towards innovation and collaboration

Office free availability on rival mobile operating systems a landmark move

Strategic partnerships foster external collaboration

Attempts to foster internal collaboration and innovation

Streamlining and aligning through layoffs and management reshuffles

Nadella has made two major senior management shakeups in restructuring efforts

Large-scale layoffs to streamline the company's operations and bring teams together

NEW APPROACH TO DEVICES AND SERVICES

Continued investment in hardware

Microsoft continuing to invest in Surface

Surface hub represents movement to a new hardware category

Expansion into wearables marks further hardware investment

Renewed focus for mobile handsets; from Nokia to Microsoft Lumia

Windows 10 brings Microsoft together as one

Windows 10 as platform for 'mobile-first, cloud-first' ubiquitous world of computing

Windows 10 free to (almost) all for one year to increase engagement and enthusiasm for release

Software and apps critical to Microsoft's Windows 10 success

CONCLUSIONS

Nadella driving Microsoft to new areas of growth, but Ballmer's legacy continues

APPENDIX

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