Microsoft Analysis
Business Analysis Part I
Daniel Wallace
Management 521
May 28, 2012
Business Analysis Part I
Microsoft is ranked 37 in the Fortune 500 list of companies (CNN, 2012). It is the world’s largest software company (Turits & Wesman, 2012), and is composed of five separate divisions: Windows, Business, Servers and Tools, Entertainment and Devices, and Online. Investors should look at how a company meets the needs of its stakeholders and perform a strength, weakness, opportunity, and threat (SWOT) analysis. By looking at how Microsoft meets the needs of its stakeholders, investors can determine if the company can sustain a positive image with everyone involved, both internally and externally. Analyzing the strengths, weaknesses, opportunities, and threats facing Microsoft allows investors to weigh the good against the bad.
Internal and External Stakeholders Microsoft’s internal stakeholders are its employees across all divisions. Its external stakeholders are hardware manufacturing partners (PC, phone, and console), game developers, investors, vendors, and users including businesses, governments, schools, and consumers.
Internal Stakeholders Microsoft’s employees want what most employees want, to work for a company that recognizes and rewards hard work, offers stability, and provides opportunities for growth. Microsoft offers competitive pay, bonuses, and stock awards to eligible employees based on individual performance (Microsoft, 2012). Microsoft also provides many onsite perks for its employees. It provides grocery delivery from Safeway, childcare services, and dinners by Wolfgang Puck (New York Times, 2006). These perks were added as an effort to improve employee morale and loyalty. Microsoft recognized the need to retain its employees, and the importance of making them happy.
External Stakeholders Microsoft’s PC manufacturing partners want an operating system (OS) that is user friendly, well received by consumers, and will drive PC sales. Microsoft’s
Daniel Wallace
Management 521
May 28, 2012
Business Analysis Part I
Microsoft is ranked 37 in the Fortune 500 list of companies (CNN, 2012). It is the world’s largest software company (Turits & Wesman, 2012), and is composed of five separate divisions: Windows, Business, Servers and Tools, Entertainment and Devices, and Online. Investors should look at how a company meets the needs of its stakeholders and perform a strength, weakness, opportunity, and threat (SWOT) analysis. By looking at how Microsoft meets the needs of its stakeholders, investors can determine if the company can sustain a positive image with everyone involved, both internally and externally. Analyzing the strengths, weaknesses, opportunities, and threats facing Microsoft allows investors to weigh the good against the bad.
Internal and External Stakeholders Microsoft’s internal stakeholders are its employees across all divisions. Its external stakeholders are hardware manufacturing partners (PC, phone, and console), game developers, investors, vendors, and users including businesses, governments, schools, and consumers.
Internal Stakeholders Microsoft’s employees want what most employees want, to work for a company that recognizes and rewards hard work, offers stability, and provides opportunities for growth. Microsoft offers competitive pay, bonuses, and stock awards to eligible employees based on individual performance (Microsoft, 2012). Microsoft also provides many onsite perks for its employees. It provides grocery delivery from Safeway, childcare services, and dinners by Wolfgang Puck (New York Times, 2006). These perks were added as an effort to improve employee morale and loyalty. Microsoft recognized the need to retain its employees, and the importance of making them happy.
External Stakeholders Microsoft’s PC manufacturing partners want an operating system (OS) that is user friendly, well received by consumers, and will drive PC sales. Microsoft’s
References: CNN. (2012). Microsoft - Fortune 500. Retrieved from http://money.cnn.com/magazines/fortune/fortune500/2012/snapshots/3063.html CNN Money. (2009). PC sales spike with Windows 7 debut. Retrieved from http://tech.fortune.cnn.com/2009/11/03/pc-sales-spike-with-windows-7-debut/ Forbes. (2012). Bing-Yahoo lose Net U.S. search market share in January. Retrieved from http://www.forbes.com/sites/greatspeculations/2012/02/15/bing-yahoo-lose-net-u-s- Gizmodo. (2012). Mobile Monday: Windows Phone 7 to beat iPhone by 2015?. Retrieved from http://www.gizmodo.com.au/2012/01/windows-phone-7-to-beat-iphone-by-2015/ Microsoft. (2012, January). Customer and partner experience: increasing the satisfaction of Microsoft customers and partners. Microsoft Investor Relations. (2012). Frequently asked questions. Retrieved from http://www.microsoft.com/investor/InvestorServices/FAQ/default.aspx Microsoft. (2006). Microsoft expands small-business alliance with Best Buy. Retrieved from http://www.microsoft.com/en-us/news/press/2006/mar06/03- PC Magazine. (2012). Lumia sales top 2M as Nokia offers $100 credit to Lumia 900 buyers. Retrieved from http://www.pcmag.com/article2/0,2817,2402869,00.asp PC World. (2011). Windows Phone 7 marketplace hits 50,000 apps, still lags. Retrieved from http://www.pcworld.com/article/247076/windows_phone_7_marketplace_hits_50000_app Turits, M., & Wesman, J. (2012, April). Microsoft. U.S. Research. Winslow, P., Panigrahi, S., & Morrison, D. (2012, April). Microsoft Corp.. Credit Suisse Equity Research.