Why Is Microsoft Ceo Steve Ballmer Stepping Down?

In: Business and Management

Submitted By rhena
Words 1713
Pages 7
| Why is Microsoft CEO Steve Ballmer stepping down? | Strategic Management BUS4040 Assignment 1 | | | 赵睿10302001432013/10/15 |


Two months ago (August 23, 2013), there was an announcement from Steve Ballmer, the CEO of Microsoft, declared that he would retire in the next 12 months, which had attracted much public attention because of its sudden.
It was neither planned nor as smooth as portrayed. The interview with many people inside and outside the company indicate that Ballmer had not aimed to leave this soon and especially after the recent restructuring of the company that he had intensely planned. However, Ballmer’s timeline had been moved up drastically. The nine-member board, including his longtime partner and Microsoft co-founder and chairman Bill Gates all agreed that it was best if he left sooner than later.
It seems that it was due to a number of increasingly problematic issues on the immediate horizon, including a potentially nasty proxy fight, continued business performance declines, and Ballmer’s leadership was becoming a very obvious problem.
In this report, I will analyze this issue by the following aspects, which includes the background of Steve Ballmer, the development of Microsoft these years and current situation about the company. Background of Steve Ballmer Ballmer, 57, who came to Microsoft in 1980 as its first business manager, was the first CEO after founder Bill Gates left the post in 2000.
Steve Ballmer was born in Detroit, and he grew up in the community of Farmington Hills, Michigan. In 1977, he graduated from Harvard University with an A.B. in applied mathematics and economics. Steve Ballmer joined Microsoft in 1980, the first business manager hired by Bill Gates.
During college, Ballmer had outstanding performance. He managed the football team, worked on The Harvard Crimson newspaper as…...

Similar Documents


...|Gates vs. Ballmer: Leadership at Microsoft | |Thought Exercise 6 | |HRM 601 | |Vickii Bacchetta | |April 5, 2009 | Broadly defined, a leader is someone who sets a direction for a company. This vision needs to be created and then fiercely believed and upheld. The leader must inspire others to work toward the vision. To do this well, a leader has to first be followed, trusted, and respected by their subordinates. Typically leaders have this vision because they also have a strong aspiration to make their mark on things. They aren’t happy with the way things are and believe they can make a substantial change. These characteristics may seem to make a person egotistical and arrogant but a good leader is still able to admit to and learn from faults or mistakes. What is Bill Gates’ leadership style? Bill Gates was great at setting direction for the company. He had a vision of the world and successfully moved Microsoft in that direction. That vision was “a computer on every desk and in every home”. Gates started the first major software company at a time when personal computing hardly existed – a radical change that has helped lead us into the Information Era. Gates believes, “it will...

Words: 3356 - Pages: 14

Steve Jobs

...Links http://www.strategy-business.com/article/00109?gko=d331b The Steve Jobs Way Leaders can learn a lot from the late Apple CEO, but not all of it should be emulated. Jobs the leader was at once dynamic and controversial, and his success relied heavily on the genius of Jobs the innovator. Steve Jobs was certainly a willful and driven leader, and the products and services he directed his companies to develop and commercialize changed the way many of us live, as well as the course of a diverse set of industries, including computing, publishing, movies, music, and mobile telephony. At the same time, Jobs’s leadership style was complex. He was intensely focused when committed, confident enough to take risky leaps, and charismatic enough to enlist legions of employees and customers in the relentless pursuit of his aspirations. He was also interpersonally immature well into his adult life: impatient, stubborn, and hypercritical, if not downright cruel at times. Jobs may have been, as Isaacson says, “the greatest business executive of our era,” but he was a mercurial, demanding, and tyrannical one. Jobs intuitively understood the power of cultural influence in sustaining the strategic capabilities implicit in his perpetual vision of creating, as he put it, “an enduring company where people were motivated to make great products...a company that will stand for something a generation or two from now.” It’s hard to argue with that aspiration; time will tell whether......

Words: 7825 - Pages: 32

Presentation Secret of Steve Jobs

... The Presentation Secrets of Steve Jobs How to Be Insanely Great in Front of Any Audience Carmine Gallo Columnist, Businessweek.com New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2010 by Carmine Gallo. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. ISBN: 978-0-07-163675-9 MHID: 0-07-163675-7 The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-163608-7, MHID: 0-07-163608-0. All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. To contact a representative please e-mail us at bulksales@mcgraw-hill.com. TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc. (“McGraw-Hill”) and its licensors reserve all rights in and to the work. Use of this......

Words: 72152 - Pages: 289

Microsoft Econmic Down Turn 2009

...Microsoft cuts jobs as profits fall US software giant Microsoft is to cut up to 5,000 jobs over the next 18 months - including 1,400 immediately - due to a slowing economy and weak spending on technology. Microsoft employs 1,200 people at Sandyford in Dublin, but a spokesperson said the cuts would have only 'a very minor impact' in Ireland. It is believed fewer than 20 jobs will go. Microsoft said net profit fell by 11% in the second quarter of its financial year compared with a year earlier to $4.17 billion. Revenue was $16.63 billion, 2% more than the same period a year ago. The world's biggest software firm said that 'in light of the further deterioration of global economic conditions', it was eliminating up to 5,000 jobs. The cuts will be in research and development, marketing, sales, finance, legal, human resources and IT over the next 18 months. Microsoft employs some 91,000 people and the job cuts announced today amount to a reduction of about 5.5%of its global workforce. Rumours of job cuts at the firm had been circulating for weeks. Microsoft is cutting 5,000 jobs over the next 18 months, nearly 5% of its workforce, following a deterioration in the PC market. The layoffs are thought to include 60 jobs from the firm's UK workforce of 2,900 in London, Reading, Manchester, Edinburgh, Cambridge, and Chertsey in Surrey. Around the world, Microsoft employs 95,000 people and today's announcement represents a 5% cut. Announcing the redundancies, Microsoft said it...

Words: 1515 - Pages: 7

The History of Microsoft

...Microsoft Microsoft Corporation is an American multinational software corporation headquartered in Redmond, Washington that develops, manufactures, licenses, and supports a wide range of products and services related to computing. The company was founded by Bill Gates and Paul Allen on April 4, 1975. Microsoft is the world's largest software maker measured by revenues. It is also one of the world's most valuable companies. Microsoft was established to develop and sell basic interpreters for the Altair 8800. It rose to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by the Microsoft Windows line of operating systems. The company's 1986 initial public offering, and subsequent rise in its share price, created an estimated three billionaires and 12,000 millionaires from Microsoft employees. Since the 1990s, it has increasingly diversified from the operating system market and has made a number of corporate acquisitions. In May 2011, Microsoft acquired Skype Technologies for $8.5 billion in its largest acquisition to date. As of 2013, Microsoft is market dominant in both the PC operating system and office suite markets. The company also produces a wide range of other software for desktops and servers, and is active in areas including internet search, the video game industry, the digital services market, and mobile phones. In June 2012, Microsoft announced that it would be entering the PC vendor market for the first time, with the......

Words: 4707 - Pages: 19


...William (Bill) H. Gates is chairman of Microsoft Corporation, the worldwide leader in software, services and solutions that help people and businesses realize their full potential. On June 27, 2008, Gates transitioned out of a day-to-day role in the company to spend more time on his global health and education work at the Bill & Melinda Gates Foundation. He shares his thoughts about the foundation and other topics on Gates Notes, a Web site launched in January 2010. Gates continues to serve as Microsoft's chairman and as an advisor on key development projects. In June 2006, Craig Mundie assumed the new title of chief research and strategy officer at Microsoft and is responsible for the company's research and incubation efforts. 1. Bill Gates’ early life 1.1 Family Born on Oct. 28, 1955, Gates grew up in Seattle with his two sisters. Their father, William H. Gates II, is a Seattle attorney. Their late mother, Mary Gates, was a schoolteacher, University of Washington regent, and chairwoman of United Way International. 1.2 Education Gates attended public elementary school and the private Lakeside School. There, he discovered his interest in software and began programming computers at age 13. In 1973, Gates entered Harvard University as a freshman, where he lived down the hall from Steve Ballmer, now Microsoft's chief executive officer. While at Harvard, Gates developed a version of the programming language BASIC for the first microcomputer - the MITS Altair. 1.3 ......

Words: 7316 - Pages: 30

A Look at Microsoft

...in through the assignment section on Blackboard. 5. See the syllabus for additional instructions and grading criteria. Your name: | |Company Studied | |Name of company studied |Microsoft | |Articles you read about each company |http://www.forbes.com/feeds/afx/2005/07/01/afx2120303.html | |(online or print) | | | |http://rcpmag.com/articles/2010/08/01/the-5-biggest-challenges-for-the-new-microsoft-channel-chief.aspx | | | | | |http://www.foxnews.com/scitech/2011/06/28/microsoft-challenges-google-embraces-cloud-computing/ | | | | | |http://jobsearchtech.about.com/od/companyprofiles/p/MSProfile.htm ......

Words: 1103 - Pages: 5

Why Target Shut Down

...distributors because customers constantly complained about Target shelfs often being out of stock Citation: Dahlhoff, Denise. "Why Target’s Canadian Expansion Failed." Harvard Business Review, January 20, 2015. Accessed January 6, 2015. http://hbr.org/2015/01/why-targets-canadian-expansion-failed. Target had higher prices then other stores in Canada Target opened more stores then they were able to manage effectively. Citation: Sturgeon, Jamie. "Here’s Why Target Failed in Canada." Global News. January 15, 2015. Accessed January 15, 2015. http://globalnews.ca/news/1774769/heres-why-target-failed-in-canada/. Target had a non-functioning website, Target didn't have online shopping in Canada and when rivals like wal-mart and amazon have expanded their online offerings.Citation: McMahon, Tamsin. "Missing the Mark: Five Reasons Why Target Failed in Canada." The Globe and Mail. January 15, 2015. Accessed January 15, 2015. http://www.theglobeandmail.com/report-on-business/missing-the-mark-5-reasons-why-target-failed-in-canad/article22459819/. Canadians along the border find it cheaper to buy Target products across the broder. Citation: Peterson, Hayley. "5 Reasons Target Failed In Canada." Business Insider. January 15, 2015. Accessed January 15, 2015. http://www.businessinsider.com/why-target-canada-failed-2015-1#ixzz3R5fwxqzJ. Business management have many responsibilities, they can single handily lead to......

Words: 374 - Pages: 2

Bill Gates and Steve Jobs

...Entrepreneurial Case Profiles of Two Visionaries: Bill Gates and Steve Jobs Two men who gave their hearts and souls to developing their visions have driven the personal computer (PC) revolution. However, the way in which either of these men went about this quest has been different. Steve Jobs and Bill Gates have changed the way the world does business, but the story of their leadership styles is even more compelling than the success and innovation spawned by Apple and Microsoft. Bill Gates versus Steve Jobs: The Early Years Bill Gates started developing his computer skills with his childhood friend Paul Allen at Lakeside School in Seattle. At the- age of 14, the two had formed their first computer company. After high school, AIlen and Gates left Seattle for Boston. Gates went off to Harvard and Allen began working for Honeywell. After only two years at Harvard, Gates and Allen left Boston for Albuquerque to develop language, for the new Altair 8080 PC. This computer language would become BASIC and the foundation for Microsoft, which was created as a partnership in 1975. After five years in New Mexico, Microsoft relocated to Bellevue, Washington, in 1990 with BASIC and two other computer languages (COBOL and FORTRAN) in its arsenal. Later that year, IBM began developing its first PC and was in need of an operating system. Microsoft developed the Microsoft disk operating system (MS-DOS) for IBM while two other companies created competing systems. Gate’s determination......

Words: 1158 - Pages: 5

Microsoft: Competing on Talent (a)

...Microsoft: Competing on Talent (A) In the summer of 1999, a front page Wall Street Journal article was attracting attention on the Redmond campus. Under the headline “As Microsoft Matures, Some Top Talent Chooses to Go Off Line,” the article reported: “Tired of grueling deadlines, frustrated by the bureaucracy that has accompanied Microsoft’s explosive growth, or lured away by the boom in high-tech start-ups, dozens of the company’s most capable leaders, all around 40, have opted out—at least temporarily . . .”i (See Exhibit 1 for the article’s list of senior level departures.) Steve Ballmer, the company’s recently appointed president and COO, was quoted as saying that some of the departures were voluntary and some were not, opening opportunities for fresher, smarter replacements. “We have a bench that is very deep,” he said. “We have people who are fired up—driven—to lead the next generation.”ii Yet despite the positive outlook, Ballmer clearly recognized that Microsoft had to change or adapt some of the human resource practices that had allowed it to assemble and retain what CEO Bill Gates proudly called “the best team of software professionals the world has ever seen.” Just six weeks before the WSJ article was published, Ballmer had announced a package of changes that sweetened salaries, allowed more frequent promotions, and softened some of the pressures that had long been part of the ”hard-core” Microsoft culture. Still, there were some who wondered if the......

Words: 8943 - Pages: 36

Microsoft Stories

...Microsoft case Since it was established, Microsoft has never needed other people's money. When Bill Gate and Paul Allen founded the company, they borrowed a little, but it's been pay-as-you-go ever since: $60 billion in market capitalization, all generated by internal cash flow; the company has never had a dime in long-term debt. Yet, Gate and Allen decided to incorporate in 1981, and to take the company public in 1986. Why did they do so? Call in rich When working stiffs need a break, they “call in sick” for a few days. When Microsoft need a break, they “call in rich.” Forever. Roughly a third of Microsoft’s 30,000 employees are already millionaires, thanks to a 764-fold rise in Microsoft’s stock value since it went public in 1986, and the company just released yet another round of better-than-anticipated earnings yesterday. But now the company that made them wealthy is paying a steep price: More than half a dozen of its high-level executives have resigned or taken leaves since the beginning of the year. Some of the recent key execs to call in rich: Chris Peters. Was: VP of Office division. Now: On leave of absence to train for new career as a pro bowler. Nathan Myhrvold. Was: Chief technology officer. Now: On leave to pursue interest in scientific research and to travel. John Ludwig. Was: VP of Microsoft’s Consumer and Commerce Group. Now: On indefinite leave. Steve Perlman. Was: President of Microsoft’s WebTV unit. Now: Quit to explore new......

Words: 1058 - Pages: 5

Microsoft Beginnings

...Microsoft Microsoft started from humble beginnings in 1975, and soon rose to become one of the biggest companies in modern history. Today, Microsoft is having record revenues, making a total of $18.06 billion dollars last quarter (Forbes). Microsoft affects almost everyone’s life in the US daily, whether it is kids on their Xbox, to desk workers using Windows Office each day to accomplish their work, people use Windows every day. From Microsoft’s early beginnings to its multibillion-dollar company today, Windows has had success from the start, and will continue to for the coming decades. Two men in 1975; Bill Gates and Paul Allen founded Microsoft. (History of Windows) They started out with MS-DOS, their first operating system. The companies’ first headquarters was in Albuquerque, New Mexico, but after signing some pivotal contracts with IBM, they moved to their headquarters in Bellevue, Washington in 1979.(History of Windows) Working side by side with IBM to develop OS/2, Microsoft released their new product, Microsoft Windows. It was a graphical extension of MS-DOS. On March 13th, 1986, Microsoft went public, which would result in 4 billionaires and an estimated 12,000 millionaires being created from the ensuing rise in stock. (Forbes) Along with its partnership with IBM came allegations that they were trying to monopolize the computer industry. The Federal Trade Commission set its sights on Microsoft and began almost a decade of legal battles between Microsoft and......

Words: 1366 - Pages: 6

Why Was Microsoft Investigated for Antitrust

...| Why was Microsoft Investigated for Antitrust Behavior? Karen Elmore ECON 312 Professor Guerman Kormilov Devry University Microsoft is a very large and diverse computer software company. It was investigated for antitrust behavior after there were reports that Microsoft was abusing their position as the leading supplier of computer operating systems. Lawmakers investigated to see if Microsoft was trying to create a monopoly of the computer software market. They found that Microsoft was trying to cause a monopoly in the computer industry. Here are the facts that support their findings. Microsoft developed Microsoft Office products that catered to the needs of professional in all types of fields, these products will only operate in a Windows operating system, which is a Microsoft system. When the early stages of the internet stared, Microsoft tried to push out and eliminate their competitors when it came to web browsing. It provided Internet Explore free of charge in all of their operating systems. This was at a time where people were being charged for AOL or Netscape Navigator. Microsoft was guilty of “exclusive dealing”. This is a regulation that gives them sole rights to a certain product. This prevented their competition from entering the market with their products. Microsoft used a pricing schedule which was a benefit for Windows users, but if you were on a different operating system products or services would cost more. This was......

Words: 500 - Pages: 2

Microsoft Analysis

...ABSTRACT: This assignment tries to assess the current market status of Microsoft Corporation. As well this assignment will try to assess its current market position as per its business units, functionality, and also its different operations sectors as well its strategies for its rivals. Also this assignment will do financial comparative analysis study and benchmarking with nearest rivals like apple Inc., Google Corporation and Oracle Inc. and will applied to discover key factors for proposed area of developments and further improvements. Here the analysis tools like Porter 8-force analysis, PESTEL-analysis will be applied and the expected outcomes of analysis and benchmarking with nearest rivals will be incorporated in an analysis of Microsoft followed by the recommendation for better improvements and future business benefits and betterment of company strategy. INTRODUCTION: Overview of Microsoft Corporation: Microsoft gave new direction to new age computing in every aspect. It is the largest software corporation in the world measured by revenues. The company was founded by Bill Gates and Paul Allen on April 4, 1975. The Company generates revenue by developing, manufacturing, licensing, and supporting a wide range of software products and services for many different types of computing devices. The Company’s software products and services include operating systems for personal computers, servers, and intelligent devices; server applications for distributed computing......

Words: 1412 - Pages: 6


...Microsoft Corporation Thesis Statement : Microsoft is a giant multinational organization that deals mainly in software products for computing devices. In this thesis, we shall examine how Microsoft has implemented the organizational concepts of Organizational Structure, Organizational Culture and Human Resources Practices in achieving its mega-success. Introduction to Microsoft Microsoft Corporation is a large American multinational company that develops, licenses, markets and supports software products for different computing devices especially the Personal Computer. Bill Gates and Paul Allen founded it in 1975 in Albuquerque, New Mexico. It is presently headquartered in Redmond, Washington. It has over 76,000 employees in 102 countries. Its best-selling products at present are Microsoft Windows Operating System and the Microsoft Office Suite consisting of Word (for word processing), Excel (for spreadsheets), Powerpoint (for presentations), Outlook (email client), Access (database management system). These two products enjoy 90% of the market share in their categories. An original Windows advertising blurb says "Windows will instantly deliver you a more productive present. And a leap into the future." (Microsoft timeline). History of Microsoft : In 1975, Bill Gates and Paul Allen set to work to adapt the BASIC (Beginner’s All-Purpose Symbolic Instruction Code) computer programming language to the first Personal Computer named “Altair 8800”, launched by MITS......

Words: 2249 - Pages: 9