Microsoft: A Case Study in Strategy Transformation

This episode of HBR On Strategy features a conversation between host Brian Kenney and Harvard Business School Professor Fritz Foley, discussing Foley's case study on the transformation of Microsoft. The discussion centers on the challenges Microsoft faced in the early 2010s, particularly the choice between pursuing higher margins versus prioritizing growth. Foley explains how Microsoft, under CFO Amy Hood's leadership, shifted its focus towards growth by embracing new opportunities like subscription sales and cloud services. The conversation also explores the cultural changes within Microsoft, the company's need to innovate, and how it communicated its new strategy to investors, along with the broader implications for other companies facing similar strategic decisions.