- 1. Project on MicrosoftMade By: Dhruv Modi Higher Diploma in
International Management Student ID: 35954
2. Abstract: Microsofts mission is to provide people and
businesses with the power of computing anytime, anywhere, and on
any device and to given extent today it is the biggest giant in the
industry. In the following project the information related to
Microsoft Company, its origin and history, various products and
services offered by it are studied. Also the study aims to
understand the market position of Microsoft by keenly observing its
foreign direct investment, key competitors and identifying its
weaknesses and strengths. Microsoft in itself has earned a huge
name in the ITES industry and its name has become synonymous with
computers today. The project has strived to encompass the various
core competencies of Microsoft and some suggestions and
recommendations for future. 3. Introduction: Microsoft Microsoft
Corporation is an American multinational software corporation
headquartered in Redmond, Washington that develops, manufactures,
licenses, and supports a wide range of products and services
related to computing. The company was founded by Bill Gates and
Paul Allen on April 4, 1975. Microsoft Corporation, incorporated on
September 22, 1993, their mission is to enable people and
businesses throughout the world to realize their full potential by
creating technology that transforms the way people work, play, and
communicate. 3Microsoft Annual Report 2012, Business description 4.
Product & Services 1.) Windows & Windows Live Division:
This division develops and markets PC operating systems, related
software and online services, and PC hardware products. This
collection of software, hardware, and services is designed to
empower individuals, companies, and organizations and simplify
everyday tasks 2.) Server and Tools: This division develops and
markets server software, software developer tools, services, and
solutions that are designed to make information technology
professionals and developers and their systems more productive and
efficient 3.) Online Services Division: This division develops and
markets information and content designed to help people simplify
tasks and make more informed decisions online, and help advertisers
connect with audiences. OSD offerings include Bing, MSN, adCenter,
and advertiser tools. 4Microsoft Annual Report 2012 5. Product
& Services (Contd.) 4.) Entertainment and Devices Division:
This division develops and markets products and services designed
to entertain and connect people. The Xbox 360 entertainment
platform, including Kinect, is designed to provide a unique variety
of entertainment choices through the use of our devices,
peripherals, content, and online services. Skype and Windows phone
are also developed under this segment.5.) Microsoft Business
Division: This division offerings consist of the Microsoft Office
system (comprising mainly Office, Office 365, SharePoint, Exchange,
and Lync) and Microsoft Dynamics business solutions, which may be
delivered either on premise or as a cloud-based service.5Microsoft
Annual Report 2012 6. Revenue Under Different Business Structure
BUSINESS STRUCTURE Windows and Windows
Live$19.49B$19.03B$18.37BServer and
Tools$15.38B$17.10B$18.67BOnline
Services$2.2B$2.53B$2.87BEntertainment and
Devices$6.17B$8.91B$9.59BMicrosoft
Business6FY10$22.19B$19.08B$23.99BMicrosoft Citizenship Report
2012, Page No. 9FY11FY12 7. Market Analysis of Microsoft Direct
Competitor Comparison Microsoft Apple GoogleMarket Cap Employees
Qtrly Rev Growth (yoy) Revenue (ttm) Gross Margin (ttm) EBITDA
(ttm) Operating Margin (ttm) Net Income (ttm) EPS (ttm) P/E (ttm)
PEG (5 yr expected) P/S (ttm) 7283.44B 97,000 0.18 76.01B 0.75
30.37B 0.36 16.41B 1.94 17.51 1.42 3.73Yahoo! Finance, Microsoft
Citizenship report 2012392.81B 72,800 0.11 169.10B 0.40 57.38B 0.31
39.67B 41.90 9.99 0.51 2.32292.72B 53,891 0.31 53.50B 0.58 16.81B
0.25 11.22B 33.42 26.40 1.29 5.47Oracle139.39B N/A 0.00 37.18B 0.81
17.36B 0.39 10.92B 2.26 13.32 0.98 3.75TTM : Trailing Twelve Months
YOY :Year Over Year 8. Research & Development: Key propellant
of Microsoft`s Growth In FY12, Microsoft have invested $9.8 billion
in research and development equal to 13 percent of revenuefocused
primarily on product development. To stay competitive, they make
strategic, long-term investments in research and development across
a broad array of technologies, tools, and platforms spanning
communication and collaboration, information access and
organization, entertainment, business and e-commerce, advertising,
and devices. R&DFY11FY12Spending$8.71B$9.04B$9.8BSpending as %
of Revenue 8FY1014%13%13%Micorsoft Citizenship report 2012, Page
No. 13 9. Microsoft : Acquisitions(From
2012)DateBusinessCountryJune 25, 2012YammerSocial networkingUnited
StatesJuly 9, 2012Perceptive PixelMulti touch hardwareUnited
StatesOctober 4, 2012PhoneFactorTwo-factor authentication
systemUnited StatesOctober 16, 2012StorSimpleCloud-storage
appliance vendorUnited StatesOctober 17,
2012MarketingPilotMarketing automation firmUnited StatesJanuary 3,
2013id8 Group R2 Studios Home automationUnited StatesMarch 4,
2013MetricsHubCloud monitoringUnited StatesMarch 19, 2013
9CompanyNetbreezeSocial analyticsSwitzerlandMicrosoft Investor
Relation Acquisition History 10. Microsoft : Investments Year 2012
2009 2007 2003 2002 2001 2001 2001 2001 2001 2001 2001 2001 10Press
Release February 12, 2012 January 12, 2009 October 24, 2007 July
28, 2003 March 25, 2002 Dec. 21, 2001 Dec. 12, 2001 Nov. 20, 2001
Oct. 10, 2001 Oct. 10, 2001 July 23, 2001 May 10, 2001 April 24,
2001Microsoft Investor Relation Investment History(From
2001)Company 24/7 Inc. N-trig Facebook Immersion Corp. SmartPipes
KT Infolibria i-Deal Amicore Groove Networks Sendo Telecom New
Zealand Commerce One 11. 1.) Poor acquisitions and investments
2.)Criticism over security flaws 3.) Mature PC markets 4.) Slow to
innovateOportunities11Weakness1. Brand loyalty 2. Brand reputation
3. Easy to use software 4. Strong distribution channels 5.
Acquisition of SkypeSWOTStrenghtsThreats1.) Cloud based services
2.) Mobile advertising 3.) Mobile device industry 4.) Growth
through Charaka Danansooriya 2012 acquisitions1.) Intense
competition in software products 2.) Changing consumer needs and
habits 3.) Open source projects 4.) Potential lawsuits 12. PESTLE
PoliticalEconomicSocial12 political intervention in new deals IPR
Anti trust law Fluctuation and Unpredictable behaviour of foreign
currency Tax and Import/Export barriers Microsoft affecting
Investors in US after 4th Quarter results (30th June 2013)
Accessibility of technology to different capable people (Disabled
people, poor people) Empowering Youth Donating software to
nonprofits worldwide Realizing potential with new skills in
studentsCharaka Danansooriya 22-04-2012 13. PESTLE
TechnologicalLegalEnvironmental13(Contd.) Fostering Innovation
Microsoft put 13 - 14% of their revenue in Research &
Development Infrastructure Intellectual Property Rights Employee
working hours, and Employement enrichment Laws on business
regulation (Against Monopoly and forced competitor acqusitions)
Saving Energy & Green IT Carbon Neutral Cloud Computing
Requesting all Customer to recycle their product after using 14.
Recommendations 1. Divestiture At a minimum, Microsoft's Windows
operating system monopoly should be split off into a separate
company from the application and Internet divisions. This would end
the inherent opportunities for abuse of one company competing in
application markets while controlling the "field" of competition as
well. It may also prove necessary to separate Microsoft's
application and Internet divisions. 2. The mobile market14The
mobile space could be one of the biggest issues facing Microsoft.
The company's Windows Mobile platform is still toiling away in a
market that's being dominated by innovative, touch-screen
platforms, like Apple's iOS and Google's Android operating system.
Microsoft plans to release Windows Phone 7 later this year to
compete with those providers, but it's debatable just how viable
the company's platform will be. By being late to the new mobile
market, and forgetting what consumers really wanted, Microsoft has
some serious explaining www.eweek.comto do when it finally delivers
Windows Phone 7. 15. Recommendations 3. Tablets Although Steve
Ballmer talked about tablets at his company's Worldwide Partners
Conference, it's quickly becoming clear that Microsoft doesn't have
a tablet strategy in place that can even come close to rivalling
Apple's iPad. Part of the fault for that can be attributed to HP,
which originally planned to offer a Windows-based HP Slate but
recently announced that its tablet will run WebOS instead. Some
might believe that HP's decision to go with WebOS has more to do
with its recent acquisition of Palm. But it might also tell the
market that Windows isn't as ready for tablets as Microsoft wants
everyone to believe. After all, HP would have gone with the best
platform it could. It may be saying that the best platform isn't
Windows. 4. Security Security continues to be one space where
Microsoft misses the mark both in the consumer market and the
enterprise. With each Patch Tuesday, the company is forced to
deliver several updates to protect Windows users from potential
harm. It has even been forced to patch Office, Internet Explorer
and other software products. That's not a good thing. And it hurts
its chances of fully appealing to consumers and enterprise
customers that are deeply concerned with losing important data.
Security means the difference between success and failure in
today's marketplace. And so far, Microsoft isn't doing well enough.
16. Recommendations 5. InnovationInnovation has always been a
problem for Microsoft. Although Windows was an extremely innovative
product when it first launched, Microsoft has failed to deliver
anything that even comes close to matching the innovation its
competitors have developed since. As much as the company wants to
be considered a major player in the tech space, it will not achieve
that if it continues to deliver iterative updates to products that
customers don't want. Innovation reigns supreme in today's tech
market. And it's on Microsoft to start innovating to meet those
demands. 17. Bibliography Agrawal, R., 2012. Graphic Designer.
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