Samuel A.

Ferguson
Sun Microsystems Case Analysis
Management 301
11 February 2004
The major issue that I can clearly ienti!y in this case "as Scott Mc#ealy$s
original resistance to e%iate !rom the &ath he "ante to ta'e to reach Sun$s goals in the
mi an late 1((0$s. As illustrate !rom the case) Mc#ealy really trie to create a
com&uter net"or'ing system built e*clusi%ely !rom Sun Microsystems com&onents. In
contrast) many o! their com&etitors) mainly Microso!t) I+M) an Intel) !ocuse on
creating a s&eci!ic &art o! the com&uter,net"or'ing system. For e*am&le) Microso!t
!ocuse mainly on o&erating systems an so!t"are "hile Intel &re!erre to !ocus on
com&uter &rocessor technology. -ith their %ery broa !ocus on essentially running the
com&uter technology inustry) Sun isco%ere their bol mar'eting strategy ha come
bac' to haunt them.
.%er the course o! Sun$s li!es&an) Mc#ealy has really ha to rein%ent an
reorgani/e his com&any. As the t"enty !irst century a"ne) so i a ne" era o!
technology. The brash an stubborn o"ner !inally reali/e that !or a com&any the si/e o!
Sun Microsystems to succee) it neee o"nsi/e its !ocus an target a s&eci!ic inustry
in the com&uter net"or'ing technology. The major &roblem !acing Mc#ealy "as that he
still belie%e the net"or'e com&uter system "as better than the &ersonal com&uter. As
o! 2002) Mc#ealy$s conce&ts in%ol%ing the net"or'e com&uter ha !aile to catch on
"ith consumers. 0i'e"ise) the Microso!t 1C "as becoming more &o&ular than e%er
because o! cost an ca&ability le%els.
+ut) Sun Microsystems "as ma'ing a%ances in another) &robably more unli'ely
mar'et. In the !irst 2uarter o! 2001) Sun ha mae !antastic a%ances in the internet
ser%er inustry. The com&any &rogresse because o! their consumer,s&eci!ic mar'eting
attitue. Sun !ocuse much energy in the health,care) retail) an go%ernment mar'ets.
These are %ery com&uter,intensi%e inustries) an Sun "or'e closely "ith their
costomers to hel& sol%e &roblems "ithin their integrate net"or's. In this "ay) I belie%e
Sun has mae %ery concentrate e!!orts to change their mar'eting an management
schemes to be better tailore to toay$s changing inustries.
Sun Microsystems an Scott Mc#ealy ha%e "or'e %ery har in the recent years
to rein%ent their image in the com&uter technology inustry. -ithin major cor&orations)
Sun$s high,en ser%er technology is more &o&ular than a similar &rouct o!!ere by
Microso!t. Another major aition to the Sun !amily is their 3Sun .#4$ "eb ser%ice !or
cor&orations an ine&enent so!t"are ma'ers. This has been a bit o! a struggle !or Sun)
because it e%ote so little 567 an interest to this technology in the &ast. +ecause o!
their history in the "eb ser%ice inustry) Microso!t$s 3.#4T$ sales e*cee the sales o!
Sun$s 3.#4$ "eb ser%ice. 5egarless) Sun has more im&ortantly mae a name !or itsel!
"ithin the internet technology inustry. This is a rastic e%iation !rom the broaer an
more s&rea out Sun Microsystems o! ten years ago.
I! I "ere at the helm o! Sun Microsystems) it "oul be my &riority to create a
&remier high &er!ormance organi/ation. Sun has 3abble$ in creating an 81.) but their
recent struggles ha%e &rom&te me to belie%e they can still ma'e %ast im&ro%ements.
-ith nearly thirty thousan em&loyees an a massi%e %ariety o! assets) I really on$t see
any reason "hy Sun is not the mar'et leaer in their inustry. -ith the ultimate !ailure o!
their net"or' com&uter) Mc#ealy nees to reorgani/e an rethin' Sun$s goals an let the
intellectual ca&ital o! his em&loyees &ull the com&any through these trying times. It$s
ob%ious to me that Sun built its original !ounations u&on the eicate) organi/e) an
intelligent engineers that !uel the com&any toay. I thin' that "ith em&loyee
in%ol%ement in com&any goal setting) Sun "ill be able to ma'e the em&loyees an
engineers !eel li'e they are truste by the com&any. -ith the !amily care) &ri%ate
"or'&lace) an !le*ible hour &olicies alreay installe "ithin the Sun 81. system)
em&loyees "ill nee just a little more &ushing to !eel li'e a close !amily. Mc#ealy nees
to !in just a !e" more incenti%es) "hether it be stoc' o&tions) &ay raises) or em&loyee
in%ol%ement "ithin the com&any to !ully moti%ate his "or'ers. Furthermore) I thin' "ith
that moti%ation) there "ill be no sto&&ing Sun !rom mo%ing to the to& o! their inustry.
I! Sun can achie%e a 81. similar to "hat I$%e just &rojecte) their internal
systems shoul !lourish. +ut) the only "ay to measure the success o! their changes is to
obser%e the e*ternal conitions surrouning the com&any9 the consumer grou&s. To me)
success!ul changes in management &ractices shoul be re!lecte by increase customer
satis!action) an ho&e!ully by increase sales o%er the long run. I mean) ho" e!!ecti%e
can management changes be i! the consumer isn$t any !urther satis!ie or i! sales are still
stalle: So) "ith this iea in min) it "oul a&&ear necessary !or Sun to etermine the
satis!action o! the customers. -hen %ening to e%eryay consumers ;me) you< in the
small mar'ets) I "oul suggest Sun o!!er rebate incenti%es !or those &urchasers "ho
!ille out an in!ormati%e satis!action sur%ey. 1ertaining to those larger cor&orations
transacting on larger,2uantity scales ;A.0<) I "oul e%elo& Sun em&loyees to "or'
&ersonally "ith these !irms to measure their satis!action an listen to their suggestions !or
&rouct im&ro%ement. Sun absolutely has the resources) moti%ation) an ca&ability to
become a moel high &er!ormance organi/ation. I! they can e%elo& into a lubricate an
oile 81. machine) Sun "ill e!!ecti%ely use all their assets) an they "ill become the
&remier internet technology !irm.