There are many methods of analysing strategic management, such as the PESTLE analysis and SWOT analysis. This essay will demonstrate the Porter's five-force analysis by focusing on the strategic management of Microsoft.

The first 200 words of this essay...

IB 2180

International Environment of Business

Assignment 2

Student Number: 0300072

In general, strategy provides a company the direction over long-term and the goal to achieve by allocating resources efficiently. It maybe varied during different periods of the business operation and for different products or locations. However, the key question in strategic management is always that "how firms can gain and sustain competitive advantages that differentiates them from their competitors". (Baum, J. & McGahan, A. 2004, P.255) There are many methods of analysing strategic management, such as the PESTLE analysis and SWOT analysis. This essay will demonstrate the Porter's five-force analysis by focusing on the strategic management of Microsoft.

Microsoft's mission statement says that "we work to help people and businesses throughout the world realize their full potential". (www.microsoft.com) This clearly shows the company's intention to develop convenient computer soft-wares that would meet customers' various requirements, which corresponds with its key values including its market orientation, passion for technology, and the willingness of taking on responsibilities and risks. The statement points out the direction that the strategic management needs to focus on.

Porter's five-force analysis examines the following elements: the competitive rivalry; the threats from