Microsoft’s and AT&T’s Diversity Management

Introduction

Diversity entails the application of different ideas and perspectives in running an organization. It is based on the management of people from different races and cultural backgrounds. Diversity management is the acknowledgment of individual differences. As a concept, it is traced back to the mid-1980s. A diverse organization is identified by the profile of its employees and the just treatment of the labor force (Tchibozo & UNESCO, 2013).

There are many diverse companies in the world today. However, the author of this paper will focus on Microsoft Corporation and AT&T as examples of firms that have adopted diversity in terms of knowledge and perspective to shape their operations and strategies. The author will analyze the strengths and weaknesses of diversity policies in these entities. Diversity initiatives and outcomes, leadership commitment to the policy, as well as the incorporation of the framework into the main operations of the firms, will also be reviewed. In section two of this paper, a comparison will be made between Microsoft and AT&T, on the one hand, and Sinclair Group on the other as far as diversity is concerned.

Diversity Policies at Microsoft

The management at Microsoft acknowledges that diversity occurs in different forms. It is not limited to gender, age, or ethnicity. A diverse business organization is aware of the benefits of this policy. Such benefits include, among others, improved financial performance.

According to Syed and Ozbilgin state (2010), in Microsoft, a number of principles reinforce the firm’s tactical approach to diversity. For example, barriers that may impede the implementation of these policies have been removed. A number of development programs have also been established. The programs ensure that the appropriate level of diversity is achieved. In addition, the company recruits develops and retains talent to sustain a motivated workforce.

The board establishes the diversity principles after laying out the objectives. It also reviews the different mechanisms used in assessing the effectiveness of the policies. Development and implementation of diversity plans and participation of female employees in leadership positions are some of the duties carried out by this organ. In addition, the board reviews recruitment procedures to ensure diversity is upheld (Syed & Ozbilgin, 2010).

Diversity Policies at AT&T

AT&T has a history of innovation brought about by people from different walks of life. A major policy governing the firm entails the provision of equal opportunities. The management intends to create an environment that will encourage everyone to make use of their skills. Job applicants have equal chances of being employed regardless of their ethnicity or gender (Martin, 2005).

The company has put in place programs to ensure diversity is achieved at all levels. One is the training and career development program. AT&T invests in employee training to improve their careers and maximize outputs. Another approach entails talent development programs. Workers are encouraged to develop their talents and use their skills to achieve success. The organization believes that ‘the people are the company’ (Martin, 2005).

Diversity Recruitment, Initiatives, Outcomes, and Leadership Commitment at Microsoft

The success of Microsoft is dependent on the skills and experience that employees bring to the company. A diverse workforce is based on the nature of enrolment procedures. At Microsoft, recruitment of talent is conducted from a variety of backgrounds (Syed & Ozbilgin, 2010). The multicultural workforce is made up of highly qualified employees serving a wide range of customers. A number of programs help the firm to retain talent. Minorities are able to raise their opinions through such channels as DAC (Diversity Advisory Council). The group mentors employees and creates cultural awareness in the firm.

Gender equality is observed too. The company intends to recruit more women in the future through its recruitment and selection policy. Workers can choose their preferred workplace based on their life patterns. They are free to work either from home or from the office. The outcomes of these policies are evident in the success of Microsoft. Leaders are committed to making sure that diversity is attained at all levels. To this end, diversity and inclusion are viewed as long term business strategies that will retain Microsoft’s leadership position in the industry (Syed & Ozbilgin, 2010). The objective is made clear in the company’s vision and mission statements.

Through diversity management, Microsoft has enhanced its success. A number of programs and effective leadership have played major roles in this effect. Not all firms that employ diversity management prosper in business. What this means is that Microsoft’s approach is unique and clear (Martin, 2005).

Diversity Recruitment, Initiatives, Outcomes, and Leadership Commitment at AT&T

Just like Microsoft, AT&T believes in the recruitment and retention of a diverse workforce. For example, the company provides career opportunities for students with disabilities (Martin, 2005). In addition, people from different backgrounds have equal chances of being employed based on their qualifications. In terms of workforce inclusion, the firm is fully committed to its employees. By acknowledging that a diverse labor force is crucial to its success, AT&T does its best to give everyone a chance to grow.

Diversity initiatives determine the actions taken by managers to create a positive working environment. Workers are provided with the necessary tools and resources to enhance their success. The success of the company proves that the outcomes of the initiative are positive. AT&T’s communication policy respects and protects the customers’ freedom of expression (Martin, 2005). In addition, underage users are protected from inappropriate content.

Effective leadership translates to working relationships with workers. The management is committed to improving diversity at AT&T. A development program has been designed to improve leadership. In a recent recruitment program, 56% of successful graduates were colored, while 53% were women (Syed & Ozbilgin, 2010). To this end, it is apparent that diversity management should be implemented correctly to enhance success.

An Organizational Diversity Plan for Sinclair Broadcast Group (Television Station)

Sinclair Broadcasting Group’s Current Diversity Plan: A Critique

Sinclair Broadcasting Group (SBG) is one of the most successful companies in the telecommunications industry. A critical analysis of this film reveals that it has adopted a number of diversity policies. The company may not rank at the top with regards to diversity when compared with other similar firms. However, it is obvious that these programs are observed and promoted in the organization (Sinclair, 1997). In Sinclair, diversity is defined as the social differences existing among the various individuals working for the firm. The concept is based on inclusiveness and mutual respect for everyone in the firm (Tchibozo & UNESCO, 2013).

Any functional plan is based on a set of clear goals and objectives. Diversity policies are no different. Diversity at the workplace acknowledges the fact that people have different skills and qualifications, experience, and attitudes. For these plans to flourish, a number of principles must be put in place. One of the most important policies entails treating each other with respect and dignity. Providing a safe and healthy working environment is another principle (Myrtle, 2012). Decision making should be based on equity and justice (Harvey & Allard, 2014). Finally, actions to eliminate discrimination should be put in place. The diverse nature of the workforce must be valued for the firm to succeed.

Sinclair Broadcasting Group plans to be one of the best telecommunication networks in the world. Diversification of the company is one of the plans formulated to achieve this growth objective. The wide range of employees provides the company with a variety of ideas. Together, the diverse opinions of the workforce improve the production and delivery of services in the firm (Tchibozo & UNESCO, 2013).

A number of organizations have tried to implement diversity management policies. However, in most cases, these frameworks lead to confusion and chaos. It takes time and energy to succeed in diversity. The experience of Microsoft and AT&T attests to this. The management team at SBG is still exploring strategies that can be used to make sure that diversity increases the success of the firm (Harvey & Allard, 2014). More needs to be done to realize the full potential of this policy at SBG.

One of the benefits of diversity can be realized by increasing the number of women. According to Dobbin (2009), increasing the number of female employees has the potential of improving the financial performance of a firm. By exploiting the unique attributes of its employees, Sinclair has been able to produce a diverse range of services for the customers.

Expanding, Implementing, Training, and Auditing Diversity within Sinclair Group

Overview

Based on the company’s mission and vision statements, it is possible to establish the goals and objectives of diversity. Such a move will help to develop a solid plan for the firm. To start with, the management should ensure that everyone is given a fair chance during recruitment. The process should go beyond age and experience. After this is done, training opportunities should be provided to all employees. Once nurtured, the talent should be retained in the company. A good way to retain employees is to treat them fairly, which SBG already does. In addition, their opinions should be sought and taken into consideration when making decisions. Leaders should take part in development programs to enhance their capabilities in promoting diversity. With a talented and diverse workforce, SBG will be able to achieve its goals (Dobbin, 2009). A diversity website is also a good idea. It will help in educating and promoting diversity among the entire community.

Auditing Sinclair’s diversity program

The management should develop reasonable diversity goals. A varied board of administration means the availability of different perspectives and ideas during policy development. To enhance diversity, SBG should balance its existing panel of governors in terms of gender and ethnicity (Syed & Ozbilgin, 2010). The leaders should set an example for the employees. They have to be committed to knowing what is best for the organization.

At Sinclair, leadership has yielded results with regard to diversity. However, with improved plans, the company can achieve more. Defining a target market is crucial before laying out a plan. To this end, SBG has been able to offer high-quality services to clients. Around 40% of American homes subscribe to services from this company. Diversity in service delivery has played a major role in this. The chief executive officer makes the overall decisions. However, it is the work of the board to advise them accordingly. All the different approaches used in achieving a diverse community have been successful. Creating a multicultural center has played a significant role in this end (Dobbin, 2009). The creation of a task force specializing in the definition of mission and vision statements will promote diversity.

Other strategies can be employed to achieve these objectives at Sinclair. One of them includes hiring a Chief Diversity Officer. The work of this officer will be to oversee the formulation and implementation of all initiatives aimed at enhancing diversity. In addition, they will be responsible for the attainment of the firm’s various objectives.

A major limitation of SBG’s existing diversity plan is gender balance (Syed & Ozbilgin, 2010). A plan to increase the number of women in the workforce is necessary. The plan will entail special recruitment programs for female candidates. Retaining them will also be made a priority. In addition, efforts should be made to treat them like other members of the workforce.

The Benefits of the Proposed Diversity Program for Sinclair Group

The proposed plan offers a stronger diversity policy compared to the existing framework. For example, under the new arrangement, any work associated with diversity is overseen by one chief officer. Work will be simplified into smaller tasks handled by specialized personnel. In addition, increasing the number of women will improve the performance of the organization. The issue of sex will be adequately addressed using the proposed diversity website. Regardless of whether one is gay or transsexual, all employees will be treated equally since everyone has their strong areas (Dobbin, 2009)

Specific Courses of Action

Embarking on the plans outlined above and improving on the current policies will improve organizational diversity at Sinclair. One specific course of action will entail reviewing the company’s recruitment and retention strategies on an annual basis. According to Myrtle (2012), such a move helps in making sure that the diversity plan in a given entity is up to date. Another approach involves setting up a diverse management board. The board will be responsible for decision making. According to Harvey and Allard (2014), diverse ideas provide a wide range of options as far as operating a firm is concerned. As such, the plans outlined in this paper are appropriate.

Conclusion

Diversity management entails the acknowledgment of individual skills and uniqueness in a workforce. Based on the experience evidenced in Microsoft and AT&T, it is apparent that diversity is a necessity in every business organization. However, the implementation of these policies should be carried out in an informed manner. The reason is that diversity strategies may lead to chaos and disorganization in a firm. According to Martin (2005), a competent management team is needed to implement these plans. First, the team determines the goals and objectives of the undertaking and then comes up with policies that can benefit the entire firm. The developed rules may touch on recruitment and communication policies. Sinclair Broadcasting Group is a diverse entity. However, gender is one of the limiting factors with regard to diversity at Sinclair. By employing the plans recommended in this paper, the company will establish a multicultural workforce that will help it to achieve its objectives.

References

Dobbin, F. (2009). Inventing equal opportunity. Princeton, N.J: Princeton University Press.

Harvey, C., & Allard, J. (2014). Understanding and managing diversity (6th ed.). Hoboken: Prentice Hall.

Martin, D. (2005). Tough calls: AT&T and the hard lessons learned from the telecom wars. New York: AMACOM.

Myrtle, P. (2012). Diversity in organizations (2nd ed.). New York: South-Western Cengage Learning.

Sinclair, J. (1997). The business of international broadcasting: Cultural bridges and barriers. Asian Journal of Communication, 7(1), 137-155.

Syed, J., & Ozbilgin, M. (2010). Managing cultural diversity in Asia: A research companion. Cheltenham: Edward Elgar.

Tchibozo, G., & UNESCO. (2013). Cultural and social diversity and the transition from education to work. Dordrecht: Springer.

Steve Ballmer: “The Future of Microsoft, the Future of Technology”

In the talk at Stanford University, Steve Ballmer, Microsoft CEO, shares his professional experience and his expert ideas on entrepreneurship. For over thirty years, Microsoft was one of the leaders in forming the physical world, mode of life, and worldviews by introducing new technology and promoting innovative devices which nowadays are integrated into the daily life of billions of people. The talk reveals that the most important aspects of success in business and bringing positive change to the world are high-quality ideas, patience, skills, innovation, and business thinking.

A good idea is the basis of business performance – it gives inspiration and can influence the development of any industry. In the talk, it was mentioned that even in the worst environmental conditions, it is possible to start an enterprise but the quality of the idea is the decisive factor for the attraction of investments and organizational longevity.

Ballmer says that although the severe economic context is the reason for “a more critical screen” and a more cautious economic behavior of consumers, it provides good opportunities to make the world and people better (Ballmer 2). Excellent ideas are always in demand, and an entrepreneur should not be concerned with mere profitability but should consider the quality of his/her intentions. A good idea nurtures the inspiration of entrepreneurs, and it also inspires others: investors, potential business partners, communities, and individuals. Thus, the generation of an idea that is worth actualization is the initial and the most crucial phase.

The realization of a good idea always takes time. As mentioned by Ballmer, “some things that wind up being important take more than 10 years to get popular” (Ballmer 3). Based on this, it is wrong to believe that the promotion of an idea can be effortless and does not require significant intellectual contribution and time investment in its development. Time is as well required to gain sufficient experience and expertise in the field of own performance. Thus, time can be regarded as an important resource and, when used wisely, it allows organizations to build competitive advantages, develop competence and refine skills.

Skills may be regarded as the driving force in introducing changes and innovations. No matter how great the idea is, one needs the knowledge and skills to bring it to life. Knowledge and skills development endow a person with an ability to conduct a comprehensive and multidimensional analysis of different situations, risks, opportunities and to select adequate and innovative methods for the stimulation of business development.

Innovation is one of the major qualities of a successful entrepreneurship and is a necessary aspect of modeling the world. While the majority of people only follow the course of development, an innovative entrepreneur thinks a step ahead. A dynamically changing environment prompts the needs for change, and the main task is to forecast these needs for the improvement and strive to achieve desired changes.

Finally, it is almost impossible to achieve goals and objectives without strategies and efficient management of different resources. Therefore, business thinking is a necessity. In the talk, Steve Ballmer says that when he joined the company, no one could be regarded as a businessman but over some time he understood the importance of being a “business person” (Ballmer 2). Business knowledge and strategic management facilitate the arrangement of a work process and help to maintain inspiration in an organized way. Business thinking and management help to hold skills, ideas, innovation, and the use of time in a way that increases the chances for success and efficient transition to desired change.

Works Cited

Ballmer, Steve. “The Future of Microsoft, the Future of Technology (Entire Talk).” Stanford eCorner, 6 May, 2009.

Microsoft’s Challenges in Office Product Development

Introduction

Microsoft is one of the most successful companies in the world today. It is among the few companies that have reported profits year after year since their foundation [1]. However, the company faced many challenges in designing and developing its flagship products Office 4.0, Office 95, Office 97, and Office 2000 [1]. Microsoft had to address these challenges to guarantee better products according to the customers’ tastes and preferences. The subsequent products had to be on schedule unlike the first products [1].

Analysis

The major challenge Microsoft faced when working on office 4.0 was the failure to keep schedules. The developers worked to attain certain features and functions of the software without considering the time factor and schedule [1]. In addition, the different teams had various goals. This complicated the entire company vision. It is theoretically and practically impossible for a company with diverging visions within to achieve its corporate vision [1].

In the case of office 95, the teams working on the application disagreed frequently slowing the development process [1]. Microsoft came head-on with a potential competitor as well. In 1992, Lotus Corporation introduced the Smart Suite that was a plausible threat to Microsoft office applications [1]. In addition, windows shifted its bit architecture to 32-bit from 16-bit bringing up a possible compatibility challenge to development teams. Microsoft office 97 faced the same predicament in addition to the relatively larger size [1]. The office 97 application was 30 megabytes larger than its predecessor, office 95 was [1]. The application took a lot of hard drive space. For Office 2000, the major challenge Microsoft had to bypass was the internet [1]. Microsoft felt that the internet was a threat to its products.

Customers Satisfaction

Microsoft had to address the above challenges to keep the customers satisfied [1]. The company worked on several strategies. For office 4.0, Microsoft upgraded customers’ old application versions free of charge when new versions were launched [1]. Microsoft emphasized keeping the set schedules for application development and launch [1]. To achieve this, Microsoft developers decided to re-architecture previous versions of the applications. In this case, the developers just added new features and functions to the previous programs [1].

In addition, Microsoft did surveys to understand the customers’ tastes and preferences. This assisted the company to make drastic changes during office 97 development [1]. The design and development of all applications were done in one place. In addition, Microsoft introduced well-defined common goals, applicable to all design and development teams [1]. Microsoft also changed the design and development process to meet specific schedules for the design, development, and launch of the applications.

Quality Development

Microsoft introduced the milestone concept to develop quality applications on schedule [1]. Developers were to write codes and compare them with the master code every day. The developers did simple tests on the codes to confirm each part was okay [1]. It was now possible for the developers to work within the stipulated deadline [1]. The disadvantage of the milestone concept is that it was possible to waste because of the many checks.

Office 2000

The milestone concept was a good idea for Microsoft to manage the design and development of office 2000 [1]. This guaranteed better design and development of the application. However, it seems that all the preparation in design and development was faulty. The office 2000 failed to meet the client expectations and the set schedule [1]. It is therefore certain office 2000 failed. If the milestone strategy was well planned and rolled out, office 2000 would be more successful.

References

[1] Harvard Business School, Microsoft Office 2000, Harvard University, Cambridge, Massachusetts, June 20, 2000.

Microsoft and NFL Collaboration: Opportunities and Challenges

Background

The idea of creating a partnership is getting increasingly more attractive to a range of organizations operating in the context of the global economy. Indeed, due to the need to develop a strong competitive advantage and expand in the target market acquiring new customers, an organization needs substantial support from another entrepreneurship. Even corporate giants form collaborations to attract a new audience and create product awareness after recent rebranding, as the case of Microsoft and National Football League (NFL) has shown. Despite the fact that the organizations are having significant troubles with the issues related to brand awareness, as well as the faults in technology, the partnership is likely to result in positive outcomes as soon as the PR issues are addressed.

Benefits and Disadvantages of Alliance

Benefits

Promotion

Although both brands became household names a while ago, it will be a sensible step to carry out a new promotion campaign that will shake the dust off of the companies’ marketing department. By using the devices created by the Microsoft Corporation, the members of the NFL will advertize the products to the football fans. Similarly, with a clever marketing campaign, the NFL organization will be able to attract the attention of Microsoft users to its products. Thus, the collaboration is likely to have a mutual positive effect on the companies’ PR processes.

Customer Satisfaction

The innovative solutions that Microsoft is able to deliver to its target audience are bound to increase customer satisfaction rates significantly. Specifically, the needs of fans will be met once the IT tools will provide them with an opportunity to experience the game “from the comfort of their living rooms” (Chansanchai, 2014). Thus, the NFL organization will be able to attract an increasingly larger fan base, therefore, expanding further into the target market.

As far as the Microsoft Organization is concerned, the chances that it will offer for both fans and coaches will make people appreciate its brand devices even more. The firm will provide its customers an opportunity to participate in the fantasy football (FF) more actively. For instance, it is expected that 74.7 people will engage in FF in 2016, which is 130% compared to the 2014 data (57 million participants) (Bregsler, 2015).

New Products

The cooperation between the organizations has also allowed MS to brand its new product known as HoloLens. Although immediately marked as a rip-off of Google Glass and Oculus, it proved to have its own unique flavor (O’Connor, 2015), and it is currently expected to generate a $150-profit by 2020 (Gaudiosi, 2015).

Although promoting its products in the same way is going to be rather problematic for NFL, the organization will still be capable of keeping the focus on some of its recent goods, such as clothes and sports inventory (T-shirts, helmets, and collectibles). As a result, it is quite possible that sales are going to increase for NFL as well. In fact, Microsoft’s global revenue has increased impressively since the excitement for HoloLens peaked (see Fig. 1).

Disadvantages

PR issues

Unfortunately, the cooperation between the companies has brought not only benefits to the parties involved but also significant problems. For instance, the members of the NFL seem to have a poor concept of Microsoft’s products as they often refer to the devices as iPads. Which is even worse, the announcers also refer to the company’s products a to the devices designed by Apple (Gaines, 2014).

Though NFL does not have as many issues in the Public Relations department at present, the lack of focus on the new products, including sportswear, is quite noticeable. As a result, the firm may face the threat of remaining unrecognized by new customers, even though the promotion process might return positive results with the old ones.

Technology

Microsoft has also been failing to meet the NFL standards, though obviously due to a string of misfortunes rather than poor service quality. For instance, the MS surface tablets used to display the score went off for 20 minutes during a match once (Rains, 2016).

Discussion

A closer look at the subject matter, however, will show that the effects that the collaboration between Microsoft and NFL has had on both organizations are going to be quite positive in the long run. First and most obvious, the fact that both organizations have gained a significant weight in the environment of the global economic community needs to be brought up.

In addition, the technology provided by the Microsoft Company helps not only players but also spectators. For instance, the people that come to watch the show can enjoy a much better view. As a result, the participants are likely to enjoy the show better and, therefore, are going to appreciate the technological advances that Microsoft offers to them. Consequently, they may become the company’s customers after they are introduced to the plethora of technological opportunities that the entrepreneurship has to offer them.

The process of attracting a new audience to the NFL products, though being more complicated, is bound to be successful as well. In a similar way, the firm will engage more people into watching football and, therefore, being interested in the corresponding sports products.

Analysis

To identify the current trends and locate the opportunities for Microsoft and NFL, one will have to consider the recent changes in the revenues retrieved by both organizations. As the chart below shows, Microsoft has been enjoying a rather consistent growth since its partnership with NFL began.

Microsoft: Global Sales, 2010-2015, USD Billion.
Figure 1. Microsoft: Global Sales, 2010-2015, USD Billion (Microsoft’s annual revenue worldwide, from FY 2002 to FY 2015 (in billion U.S. dollars, 2016).

Similarly, the global sales of NFL have gone up after it formed a partnership with Microsoft (see Fig. 2). As the chart below suggests, there has been a consistent increase in the company’s total annual revenues from $8.35 billion to $10.58 billion. Which is even more peculiar, a sharp rise in the revenue streak that could be observed from 2013 to 2014 follows the beginning of the partnership between Microsoft and NFL.

NFL Global Sales, 2010-2014.
Figure 2. NFL Global Sales, 2010-2014 (Total revenue of all National Football League teams from 2001 to 2014 (in billion U.S. dollars), 2015).

The charts also make it quite clear that the increase in the revenues of both organizations amount can be tracked down to the point when the partnership was created. Based on the graphs provided above, one may assume that the cooperation between the organizations is likely to return positive outcomes for both companies. Nevertheless, it is essential to make sure that the PR and technology issues mentioned above should be acknowledged and addressed by both organizations. Otherwise, a sharp rise in the customer dissatisfaction rates is likely to trigger impressive losses for both firms.

Reference List

Bregsler, G. (2015). . New York Post. Web.

Chansanchai, A. (2014). . Microsoft. Web.

Gaines, C. (2014). . Business Insider. Web.

Gaudiosi, J. (2015). . Fortune. Web.

. (2016). Web.

O’Connor, F. (2015). . PC World. Web.

Rains, B. (2016). Checking in with Microsoft’s $400 million NFL sponsorship at year three of five. Sport Techie. Web.

. (2015). Web.

Antitrust Claims: Microsoft Corporation Case

Antitrust law as highlighted in section 2 of the Sherman Act seeks to safeguard small companies from any company that has monopoly power and can use its position to fix prices and exclude competition (Jones, 2000). Microsoft Corporation, a computer software manufacturing giant based in the United States has been accused severally for the violation of the antitrust law. One such civil suit was initiated in the year 2002 where Microsoft faced a civil suit by the United States for monopolization, which is against the antitrust law.

In this civil case, Microsoft was found guilty of monopolization where it was found to use its financial power to fix prices in the market so as to exclude competition. In this civil suit against Microsoft, the company was found to occupy more than 80% of the total market share as many computers in the market use Intel chips which in turn use operating systems that are Intel compatible. This has made Microsoft Company to dominate the market as it is the main distributor of Windows Operating Systems that are Intel compatible.

Another civil case against Microsoft was initiated by 19 states in the year 2007 where it was accused of violating the antitrust law. In this case, the software giant was accused of using anti-competitive means to lock out its competitors out of the market by using application barriers. The company was accused of blocking the use of middle-ware products that act as platforms to facilitate users to use any operating system of their choice.

Microsoft was also accused of threatening other software developers to terminate the manufacture of middle-ware products. Microsoft Company was also under another investigation by the U.S. Department of Justice for violation of the antitrust laws. In this investigation, Microsoft was found to be unlawfully integrating windows and its browser program Internet explorer. The company was also found to be in an attempt to monopole the internet (Hepburn & Lopatka, 2007).

The charges levied against Microsoft in all the above cases were valid. According to Hepburn and Lopatka (2007), Microsoft Company is not the leader in software manufacturing because of its innovative capability, but due to its prowess in taming competitors by use of unethical means. The company’s ability to block middle-ware products is a clear indication that the company fears competition especially in operating systems which is the company’s area of dominance.

The company has also entered into agreements with other companies especially the ones that manufacture computer hardware such as Intel and IBM to make sure that most of the hardware produced in the market is customized to only use Microsoft products at the expense of its competitors.

Another clear indication that Microsoft is going against the Sherman Act in the name of innovation is the integration of various products to its windows operating systems. For instance, Microsoft tied its internet browser, Internet Explorer only to use its operating systems with the aim of dominating the internet. The company inclusion of Java run time environment on its windows and writing programs that are windows-specific java version made the java programs not to function across other platforms.

All this was done by the software giant with the aim of countering java software that was available across other platforms. The introduction of internet browser program Netscape navigator is another area of interest that brands Microsoft as a violator of Sherman Act. The introduction of Netscape navigator in 1994 made Microsoft to respond by introducing its own browser Internet explorer and distributing it free of charge which made Netscape navigator to give up its browser program.

In conclusion, it is apparent that Microsoft Corporation has continued to violate antitrust laws commonly referred to as Sherman Act thus denying other businesses in the same market an opportunity to establish their products. It will be beneficial for the consumer and the general economy if the antitrust laws are enforced to enhance competition in the software manufacturing industry.

References

Hepburn, W. & Lopatka, E., J (2007). The Microsoft Case: Antitrust, High Technology, and Consumer Welfare. New York: University of Chicago Press.

Jones, K. (2000). Microsoft Anti-Trust Case. Time Line. Web.

“Ballmer’s New Mission for Microsoft” by S. Ovide

Key Points of the Article

Significance of organization culture imbued in mission and vision statements

Microsoft has been in existence for almost half a century and its mission is one that inspires workers to change the world. Organizational culture is an aspect imbued in the perpetual character of a company and it determines the originality of an organization, which sets it apart from similar players in the market.

Diversity as a profits regulator

Maintaining originality and all the ethical and other principles that form an organization is not easy. However, despite the need to change to adapt to market forces of the tie, it is necessary to retain some originality that consumers can associate with the company.

Analysis of the Article

Speaking in an interview with WSJ, Ballmer, the CEO for Microsoft, opined that whereas the initial mission that Bill Gates-co founder’s mission was to have a computer on every desk in every home, the new Microsoft is now more concerned with giving all its users the ability to achieve their full potential. A case in point here would be in reference to the power outages mentioned in the first systemic review and the ability of those CEOs to continue working as long as they had a smartphone with a running battery.

Microsoft has launched a new Smartphone-Windows Phone 8, which was created with the idea of a touch screen, yet incorporating a windows operating system therein including the office. This practically makes the phone a small computer, which justifies the discussion of the Microsoft tab that is not too far removed from that of Apple and Android. What sets Microsoft apart despite the almost obsolete state of PCs, which are still dominated by Microsoft throughout the world, is that Microsoft maintains its organizational culture in its never-changing, but constantly updated operating system. Additionally, although Mr. Ballmer posits that the mission statement has changed, it has not done so in an overly dramatic fashion but has instead matured into its present form.

Secondly, the unique or original nature of Microsoft has ensured that the company still derives profits from old projects, manages to keep clients loyal and confident in the brand, and impress them with innovations that serve to build upon the older ones. The reasoning behind Windows Smartphones was that the user was already accustomed to using the OS in a PC and so s/he could easily convert skills and apply them in the phone. However, the company has been faring poorly in view of competition within the mobile technology department. In a bid to prevent a recurrence of this scenario, the windows phones are different from other iPhones and thus uniquely Microsoft. Secondly, the retail stores are stocked with educated salespersons that move the products and thirdly, the company has just undertaken to revitalize its advertisements for the phones produced

Conclusion

Microsoft is a major player in the technological industry. If anything, it was the founding father for PCs all over the world. However, technology has since evolved, and apparently, Microsoft has remained behind. However, the communication giant is back on its feet with the launching of a Smartphone and a tablet fully rigged with the windows operating system. This trend is promising and if Microsoft stays on track by maintaining the uniqueness and fully-fledged advertisement, it might yet again raise above all its rivals in the technology industry.

Works Cited

Ovide, Shira. The Wall Street Journal, 2012, Web.

Mechanism of Strategizing: Microsoft Case

Introduction

Strategy is a mechanism that a company or organization uses to defeat rivals. For instance someone can strategize to achieve his personal goals and wishes, someone else can also strategize to achieve his or her dreams in life. Both cases they are what strategizing is about.

One must strategize to do things in a way different from what his rival is doing. You strategize in order to outsmart your rival in all ways possible. Strategic management involves total management and quality management, continuous improvement, and over coming cultural barriers. It involves having a strategic vision. Strategy should be seen as a marketing slogan, which will not withstand competition. (Porter, 2004,p.54).

Strategies in operation

A company has to strategize on prices, pressure on costs, technology, competition from rivals and many more. In this case of mine as a company like Microsoft, which deals with computers, it is good example of what strategy is all about. Microsoft has kept itself in the leading position for a long time because of what it does as its strategies (Porter, 2004, 60-66)

As a company, Microsoft aims at innovation, price and minimizes its costs as much as possible, it uses technology. It has remained at the top of it rivals because of good strategic planning. It has a strategic vision, which is almost perfect or is perfect. And since strategies require hard choices then Microsoft as a company has overcome the strategic dilemma, which many company has not overcome. (Porter, 2004, p.20)

Continuous improvement

It is a company that has continuous improvement and plans more on it is part. It invest more on technology and innovations, as such, it is ahead of other rivals companies in those two areas as well. Other than letting innovations coming by themselves, they have invested a lot of money and manpower in this area.

For a company to be strategically well positioned it has to look on the prices of its products, Microsoft is very much aware of this and this is why it remains above its competitors and it has remained there for along time now

Strategic management

Strategic management is one utmost factor that any company should put into consideration before it throws itself in the race to compete with any other rival company. It has to strategize plan and employ the best manpower possible.

Any company should ensure, it has a better manpower in its decision-making organ. It has to ensure that it is well equipped with a better man-power possible which is to give it the vision it requires and should be best placed in competing with other rival companies. A management, which will steer the company through continuous improvement, quality work, better pricing policies, better costs management and also better strategic planning. The management, which creates a conducive atmosphere for competition and instills discipline in the whole workforce.

A Choice

Strategy is a choice and like any other choice is more of a personal affair. You have to be ready to face it is consequences. I think this is why Japanese companies are known not to strategize. It is something that they have been contented to live with without any problem. Because they know that to strategize is a choice like any other, and in fact it is a hard choice.

One must strategize to ensure he maintains his customers through price advantage. One must strategize to ensure he attracts more potential customers. And more so he knows that a strategy is a way of life. If live a life without strategy is to live a life without a plan. (Porter, 2004, p. 104-106).

I believe a company like Microsoft has a decentralized decision-making organ. Something, which can only be achieved through good strategizing. A company that has not overcome its cultural barriers it is hard for it to strategize because strategizing is more modern in the global market. (Porter, 2004, p.80).

Microsoft as a company goes along way in strategizing in order to keep on beating other competitors. It ensures that it holds exhibitions and promotions for its products,, which are valid and more attractive, as such gaining an upper hand as compared to other companies. It also donates some computers to schools, institutions, colleges and universities.

It is a company with its strategies in place in the face of declining prices in the world market. It always ensures quality software for its customers. It is a company with more strengths that weakness. If it would have more weaknesses than strengths then it would not be where it is now. For sure it is a company with the best managerial skills, which involves best strategies for the company. It is a company that has come face to face or rather has experienced more success than failures. (Porter, 2004, p. 130).

In most cases companies that strategize they just venture in their endeavors to meet success in their work. Venturing is about risking, as such it is the only way of being on the safe side since nothing ventured, nothing have. A well-ventured mission ensures better vision for the company and also cong improvement. Lack of strategic vision in a company must overcome cultural barriers and instead strategize for its own good. (Porter, 2004,p. 92).

Bibliography

Porter. (2004); Michael Porter; New York Press.

Microsoft in Europe: The Real Stakes

Introduction

Almost everybody is familiar with the company Microsoft Corporation; its headquarters are situated in Redmond, Washington, USA. It is one of the largest multinational in the technology business. Microsoft designs and manufactures a vast range of software products for computers.

Analysis

Microsoft, despite being one of the huge giants in the world, has had several allegations against it. The accused, that is Microsoft, also presents it plea and then the decision lies in the hands of the Court of First Instance. A decision against Microsoft can harm its image and public trust greatly and can also cause some customers to lose confidence on their products. The case has been filed against its competitors such as Nokia, IBM and Oracle due to their loss of market share with Microsoft producing the products that the former companies are responsible for. Microsoft presents its products in combos and pairs because of which the customers buy from them only and do not bother going to the competitor stores. For example, Microsoft always included Media Player in its software for computers, therefore, the RealNetworks were facing a huge loss; this has reduced competition in the market to a great extent (BusinessWeek, 2007).

Alternatives

Microsoft needs a way out; to save not only its image but also its profits and production license, therefore, it needs to think strategically. The Microsoft management needs to review all the products that are being produced at the moment by them; along with that, they should make a flow chart that shows how different products are connecting Microsoft to different companies (Music/Audio programs for the operating system of Windows leads them to the Media Player production). It should then reduce the production of their own secondary products and sign a temporary testing contract for that with other companies (sign a contract with RealNetworks for the Audio/Music program in their operating system). Another alternative that Microsoft has is to conduct a survey of customer satisfaction; it the customers are content with the Microsoft production, the company could get them to sign a petition that would add weight to their plea.

Evaluation of Alternatives

There is a good chance that the customers might be dissatisfied with this act and if so, Microsoft can use that as an evidence for the fact that they made right decisions by producing the products jointly on their own. For that, again a survey needs to be carried out after the production processes and products have been changed a bit. The other alternative seems a little unpredictable; the customers might react negatively and refuse to associate themselves with a company which has been accused and has a case filed against it.

Best Alternative

The best choice is the first one; Microsoft should try signing a temporary testing contract with the company because that would result in extremely solid evidence. Also, the other company will get a chance to reap profits on the way when customers try out the new products so even the linking company will agree.

Weakness

If Microsoft wins and they continue producing on their own, the market will soon be flooded with Microsoft with no other company getting a share. However, it the decision is not in favor of Microsoft, even then Microsoft will not discard all its production and sell all of it first and sell the new production; that would again mean that the rival companies have to face losses.

Recommendations and Conclusions

I believe that the decision should not be in favor of Microsoft because it is just exploiting the customers by providing combos and joint products and it is clearly unfair to the other companies who are working hard to produce equally admirable products. However, the decision is to be taken by the court and it needs to be very strategically thought out as it is critical for all the computer technology market.

References

2007, “Microsoft in Europe: The Real Stakes,” BusinessWeek, The McGraw-Hill Companies.

John A. Pearce, II, Villanova University & Richard B. Robinson, Jr., University of South Carolina; ISBN: 0-07-338136-7

Microsoft 2017 Annual Report and Financial Statements

Introduction

The four financial statements that are used by companies from various business sectors are the balance sheet, income statement, statement of cash flows, and statement of retained earnings. Each of these statements provides different information about the company’s financial performance. The present assignment seeks to explain the four types of financial statements using the Microsoft 2017 annual report.

Income Statement

An income statement is perhaps, the key part of the annual report, as it defines the company’s overall profitability. As explained by Bragg (2017), the income statement presents basic information about revenues, sales, and costs incurred by the company, which allows establishing the net income. In addition, the income statement presents information about taxes paid by the company (Bragg, 2017). This is especially important to international corporations like Microsoft that are subject to different levels of taxation in different parts of the world.

Microsoft’s income statement contains information about revenue, cost of revenue, operating income, taxes, net income, as well as earnings per share (Microsoft, 2017). The company also presents a horizontal analysis of information, which means that it includes data from previous years. This allows determining the overall trends, thus providing shareholders with substantial information about the company’s performance and development.

For instance, although Microsoft’s product revenue decreased in 2017 compared to 2016, the service revenue increased, which means that the company has been working on expanding its services sector (Microsoft, 2017). The net income of the company has grown substantially in the past two years, which means that the company was able to manage its expenses effectively to account for the reduction of product revenue (Microsoft, 2017). Overall, the income statement offers basic information about the company and its financial performance.

Balance Sheet

A balance sheet is a statement that explains the company’s assets, liabilities, and owner’s equity (Ward, 2017). It can be used to determine if the company has any liquidity issues or if it will have enough assets to cover its liabilities. It can also include information for several consecutive years. For instance, Microsoft’s balance sheet shows that the company’s total assets have grown in the past year, mainly due to the steep growth in current assets, property, and equipment (Microsoft, 2017). However, the company’s liabilities have also increased, especially in long-term debt, which might become an issue in the future (Microsoft, 2017). On the whole, however, the company’s balance sheet creates no significant concerns, as it is clear that the company’s assets far surpass its total liabilities.

Cash Flow Statement

A cash flow statement represents the amounts of cash generated and used in a given period of time, such as a fiscal year (Averkamp, 2017). A cash statement provides information about the company’s profitability. For example, if the net income of the company is smaller than the cash gained from operating activities, it means that the company is profitable for its stockholders (Averkamp, 2017). This is the case with Microsoft (2017), as the company has managed to achieve a net income of $21,204 million while receiving $39,507 net cash from operations. Thus, the company is profitable for its stockholders and presents no concerns regarding turning income into cash.

Statement of Retained Earnings

In a statement of retained earnings, the company presents its total earnings for the period, after accounting for possible costs, taxes, and dividends paid to shareholders (“Statement of retained earnings,” n.d.). For instance, in the case of Microsoft (2017), the amount of retained earnings was rather small, which means that the company pays most of its income to its shareholders.

Conclusion

Overall, each of the four types of financial statements offers different information about the company. When considered together, the four financial statements help to build a comprehensive profile of the company, which will be useful for investors, shareholders, and the general public. Microsoft has achieved good results in all the various aspects of financial performance in 2017, which is represented in its financial statements.

References

Averkamp, H. (2017). . Web.

Bragg. S. (2017). . Web.

Microsoft. (2017). . Web.

. (n.d.). Web.

Ward, S. (2017). . Web.

Microsoft Practices in Corporate America

Introduction

With its Windows operating system, Microsoft has managed to monopolize the software industry in a way that few would have envisioned. Bear in mind that the inception of windows came at a time when the average guy on the street could not easily operate a personal computer or navigate the internet. With its easy graphical user interface, even your grandma could use it. However its monopoly in the market especially in the sale of computers with pre-installed windows operating system and its software copyright enforcement policy has raised a few eyebrows (Bjorn 2).

A look at the company’s practices in corporate America might give an insight into what has set them poles apart from its competitors or whether the complaints and law suits they have received over the years justify the criticism they get when looking at their products and business practices. (Kotler et al.22)

Environment

With the climatic changes taking place in the world being linked to human behavior especially the large multi-national companies; innovative ways are being pursued to reduce energy consumption and emission of greenhouse gases to the atmosphere. Microsoft through its partnership with US Building Council tries to adapt policies such as energy efficiency, recycling of products and use of non-toxic materials when constructing new buildings or renovating the old ones. Even though Microsoft is not a construction company, it still aspires to attain at least a Silver certification level in the LEED Green Building Rating System whenever it’s constructing new premises. This is evident in its new buildings at Bellevue, Washington and Hyderabad, India which consume 10-15 percent less energy than previously constructed companies.

With its recycling and conservation program at Microsoft Digital Campus, they have eliminated departmental and individual printers and gone for a public print program which hopes to sustain a high employee to printer ratio and minimize energy consumption. Furthermore, the program at Puget Sound facilities recycles (refills) its toner cartridges instead of replacing them. Adding to this, the printers at this facility are set to print double- sided to minimize the use of paper. Microsoft has put recycling bins at print stations inside the buildings in order to collect unused paper.

Community Relations

With its massive expansion program, Microsoft has partnered with various colleges and learning institutions around the world to familiarize people with the various products available. Even though the company has received extensive coverage for its products, it has also created employment in these countries (Davies 99) from the various colleges that spring up to teach the latest versions of windows and offer scholarships to needy students.

Through its partnership with community and non-profit organizations, Microsoft has offered learning Community Grants to various organizations. It offered Hayes Valley Computer Learning Center, San Francisco $15,000 to purchase ten multimedia computers for the newly constructed Computer Learning Center. It also offered Scottdale Child Development and Family Resource Center $15,000 to increase the number of computers in its Family Technology Resource Center. (www.microsoft.com/presspass/features/1999/02-03grantlist.mspx ) The above two examples are just a fraction of the total number of grants it has offered through its Community affairs initiative.

Employee Relations

Founder, Bill Gates, has been accredited for turning Microsoft from a nondescript company to a market force that has earned both respect and contempt amongst his peers like Apple. Employees who invested in the company during the market rally of the late 90s became overnight millionaires. However various lawsuits by former employees against the company has shown that things aren’t so rosy at Microsoft. Its labor policy of employing people on a temporary basis for years hence saving costs on medical benefits has been widely criticized. Also, lawsuits against departing employees have been brought forward by the company and this prevents them from leaving.

Former and current employees have complained of being overworked to the point that it has created dire health consequences. Further cutting of medical benefits hasn’t helped the situation either. The company came under stern criticism for developing software that was able to analyze the output of worker by using various parameters like the number of words they type per minute or even monitoring the emails they send or receive while they are working (Enderle. 48).

Diversity

Most companies try as much as possible to employ across all sexes and races in order to get public appeal (and boost the sale of their products) or win favor just in case they are ever sued. Even though Microsoft supports the Universal Declaration of Human Rights, which advocates for fair employment practices and a discrimination-free workplace, lawsuits brought up against the company beg to differ. Microsoft was sued by seven African Americans who alleged racism and a “plantation mentality” at their workplace. Furthermore, former and current employees also sued the company a record $5 Billion complained that they were more than once passed over for promotions and their salaries were less than their equivalent white workmates. Further complaints were met with “harassments and retaliations” by the company. Statistics also showed that only 2.6% of the company’s 21429 strong staff and 1.6% of the company’s 5155 managers were black. The existence of such cases is quite common in corporate America. To avoid bad publicity, most companies prefer to settle such cases outside the courtroom (Brenkert 29).

Customer Relations

Microsoft has introduced a string of awards to reward its partners for their sterling performance. This includes Microsoft Worldwide Partner of the Year and Most valuable Microsoft Certified Partner for Learning Solutions, just to name a few.Through huge contribution to various think tanks like the Heritage Foundation, Microsoft has been accused by its competitors of having an edge over what information makes it to the public domain. It could be such campaigns that have enabled windows to be the number one operating system for most users. However, some of their unfair business practices haven’t gone unnoticed. In February 1999, Microsoft was ordered to pay $1.1Billion by a California judge to settle a class action suite after overcharging its customers who purchased Windows 95 and 98 operating systems. There have been further payments by the company in consumer class action suits to various states because of overcharging its customers. The price discrepancy in the sale of its products could be attributed to the monopoly they have in which over 95% of the world’s computers run on windows; a trend that will take quite a while to reverse.

There have been allegations that Microsoft does provide technical support to the Chinese Government in implementing a system of internet restriction. The communist Government tries to restrict as much as possible the flow of information from the western media which is very critical of its human rights record. Together with companies like Cisco, Microsoft has sold censorship software to the Chinese enabling them to have a stranglehold on almost every charter in the Chinese network. Its premier gaming console, Xbox Live, inability to recognize the string “gay” has earned the company unwanted publicity.

Summary

The profits and revenues generated by today’s multinational companies has become such an integral part of any country’s financial stability (Wärneryd et al.24). This has made it quite difficult for the various state institutions to assert their influence on the unethical practices that some of these companies engage in. (Rickmond.139) Even though the rulings in some court cases might suggest otherwise, the power sway of these companies hold is so great as it was demonstrated by the current financial crisis. Hoping that principle rather legislation will guide some of their practices (Houck et al. 32) is too much an ask as was demonstrated by Microsoft’s huge fine imposed by the European Union due to abuse of its Monopoly power.

Works Cited

Anderson Bjorn: Bringing Business Ethics to life: Achieving Corporate Social Responsibility: 2004.1-6.

Bennett Arnold: “The Price of Justice is Eternal Publicity” Brenkert George B: Corporate Integrity and Accountability: Sage, 2004.29-31.

Davies Peter F. W: Business and Ecocnomics: Routledge, 1997.99-101.

Enderle Georges: Business Ethics: Concepts and Cases:Pearson Prentice Hall, 2005.

Houck John W and Williams Oliver F: Is The Good Corporation Dead? Social Responsibility in Global Economy: Rowman and Littlefield, 1996. 32-33. Web.

Kotler Philip and Lee Nancy: Corporate Social Responsibility: John Wiley and Sons, 2005. 18 24.

Multimillion Dollar Fines and Settlements Paid by Corporations” Web.

Richmond Andrews Kenneth: Ethics in Practice: Managing the moral Corporation: Harvard Business Press, 1989. 138-142.

Wärneryd Karl Erik and Lewis Alan: Ethics and Economic Affairs: Routledge 1994. 24-28.