All, I am using Parallels 12 on a Retina MacBook Pro 13". Turns out that on v. 12 if you select "Retina Resolution: Best for Retina Display" the toolbars on MS Office 2007 are tiny. Changing the resolution to "Scaled" brings things back to normal. Hope this helps
Hi PetrosP1, Thank you for posting the suggestion. This issue has been also addressed at this link in detail. Thanks.