Microsoft 5Cs of Situational Analysis

End of Open Licensing Program
Microsoft, an electronics and technology company, based in the United States, has recently closed the open licensing program for online services (Matus & Veale, 2022). Instead, the firm has introduced a perpetual software program that allows limitless use and subscription to its online services by customers. The initial open licensing program permitted customers to buy multiple perpetual software licenses at specific volume prices. Fortunately, the new perpetual program benefits the subscribers since it is a one-time payment and non-subscription service that does not expire. Therefore, online users enjoy unlimited cloud and other services by Microsoft Corporation.

5Cs Situational Analysis

Impact on Organization Change
The five Cs of organizational change significantly impacted the firm’s decision to abolish regular subscriptions and adopt the one-time payment method or service. The decision guided the company’s objective of enhancing service delivery and remaining more relevant in the market. The collaborators would provide vast resources for the financial losses that would be incurred and fund the new system hence the decision was rationalized to enhance collaboration.
The need to gain and retain more customers and clients guided the decision. The customers would pay less for the company’s services and spend less on regular subscriptions. They would also enjoy unlimited services. That places the firm at a better chance to gain and retain customers. The level of competition also influenced the decision. The firm was engaged in pricing competition by altering the price of cloud services. It would gain a larger market share because customers tend to demand more cheap services. The business climate of digital transformation and integration of business activities also influenced the decision. Individuals and companies are opting for online to transform its service system. service systems hence the need for Microsoft

Most Significant 5C
The most significant 5C was the customers. The firm wishes to establish a stronger network of customers. Lowering the charges for online services would attract more customers and gain more from the competitors (Jing, 2018). Microsoft sought to increase its customer volume by introducing a one-time payment service without expiry. Therefore, customers guided the decision.

Nature of Decision
The company made the right decision. The firm would benefit from a higher volume or number of customers, and the customers would also purchase other services. Additionally, the firm would maintain its profit margins due to economies of scale. Therefore, Microsoft decided to abolish the regular subscription system and introduce the one-time payment method.

Submit your report. Use the template provided to create your report, making sure to incorporate a minimum of four scholarly sources, properly formatted, as references.

Part 1: Situational Analysis
In this part of the report, you will perform a situational analysis relevant to the particular state or region you selected. Be sure to include the following:
A brief introduction in which you identify the components of a situational analysis (75–150 words, or 1–2 paragraphs)
An appraisal of the organization’s environment, including a description of how each of the five Cs pertain to the selected region or state (150–300 words, or 2–4 paragraphs)
Specifically, provide a detailed description for each C regarding the challenges that Tasty Snack Foods is facing for that component.
An analysis of how each of the Cs affects decision making for the company (150–225 words, or 2–3 paragraphs)

Part 2: SWOT Analysis
For the second part of the report, you will perform a SWOT analysis on the Tasty Snack Foods gourmet potato chips expansion project. This should include the following:
An analysis of the organization’s internal and external environmental factors (150–300 words, or 2–4 paragraphs)

  • Strengths
  • Weaknesses
  • Opportunities
  • Threats

A breakdown of the potential traditional and digital marketing strategies based on the SWOT findings (75–150 words, or 1–2 paragraphs)
What suggestions related to the expansion do you have for Tasty Snack Foods based on this analysis?