Category: Microsoft

MasterIT is a leading performance company in IT solutions that provides businesses with proactive security and protection against critical data loss, threats and malicious software damage.

The hardware based capabilities allow secure and remote access to the PC for repairs, upgrades and diagnostics and can be applied to both small and medium-sized businesses, offering lower cost and better business support that gives businesses a competitive advantage. It offers interactive online program for Accelerated Learning System that teaches learners how to access their own preferred learning style.

Owing to the fact that online education is constantly gaining recognition among students, our company has decided to create a specialized department that will work on IT software for improving the work with Microsoft Office Publisher at home and offering a framework that will benefit any size IT department (MasterIT 2009).

MasterIT (2009) design Inc. promises to offer its customers “a state-of-art network operations centre keeping your systems functioning optimally and efficiently” (p.1). The company also promises greater reliability and minimise business interruptions helping eliminate major interruptions like fire, tornado, earthquake and other natural disasters and ensures recovery of lost data more effectively and easily.

Back up and offsite storage that provides clients with storage solutions & allowing users extending the set of the operations. Master IT design Inc. offers a wide range of software, IT training courses throughout the United Arabian Emirates. Master IT Design specializes in bespoke software production, information systems, web applications. Conducting the business for over a decade, the company has acquired a respectable segment at the market both at home and abroad.

Master IT Design is located in Dubai, one of the biggest cities in UEA, and, therefore, it has a great success in installation of target customers whose demand is mostly oriented on specialized software production.

The customers have chosen this company due to high-quality production and services. To effectively discuss how entrepreneurship contribute to social cohesion and sustainability development, the essay will candidly discuss how their initiatives address market failures, transform innovations and financial their sustainability.

To arrive at this conclusive analysis, the essay was based on literature review, interviews with top entrepreneurs, consultations as well as popular and academic resources from both profit and non profit organizations, public polices and scholarships from reputable entrepreneurs- MasterIT for this case.

History of Entrepreneurship

Entrepreneurs are characterized by their ethical skills that help them identify market failures and commit their resources to affect to the neediest in the society. These sectors come into play when the government is unable to generate enough profits to respond to these problems, these sectors bridge the gap by finding market opportunities and maximizing their potential. Their innovations provide viable options for addressing market failures by seeking opportunities to create valuable solutions.

Entrepreneurs are also known to provide transformational benefit that targets sensitive activities as well as the marginalized areas that would have never been considered by the government. They exhibit characteristics of innovation, risk taking and large-scale transformation and provided fertile ground for young and upcoming entrepreneurship growth by identifying present change in social economic environment (Ashoka 2010).

Entrepreneurs have been identified to present change in social economic environment by engaging businesses in their activities. They introduce new ideas and persuading others to adopt, changing social patterns that create social problems through breaking patterns.

Transformative ideas can be seen through the invention of new technologies, methods of production, supply sources and distribution outlets and social entrepreneurs have for this case taken these innovative approaches further by devising strategies that have benefited the whole society. They combine their own innovative skills, research obtained from public sources and political influence in attaining their goals.

Their ability to involve major players in the entrepreneurship activities character sets them apart from the traditional charitable organizations. They help in testing and developing promising solutions and compliment governments role in addressing market failures that benefit citizens (Ashoka 2010).

We can guarantee that MasterIT will deliver a high-quality product, as it has been at bespoke production market for more than 10 years. The main purpose of this essay is to provide a solution to the company is to meet the needs of constant and new customers and to provide them with best quality services.

MasterIT CEO lamented that “You can be sure that our training packages will take a competitive advantage in future, as they will be made according to the latest researches in the technological field” (p.1). It’s been evidenced that for any business to operate in the UAE, an emirate sponsor must be obtained. This therefore provides as an opportunity to obtain sponsor money and to be part of the business.

Management team

The members of our team work on tracking the supply & demand in the market, study the development of the Master IT Design competitors, develop the sales & marketing strategies for the company & thus allow it to achieve its marketing & strategic objectives.

IT department members reporting to Chief Executive Officer have taken the most of responsibilities for the training program project. However, the project team is also supported by the R&D department that informs the IT department about the latest innovation in this sphere.

They consult forums and official online sites that may contain some useful data on the development of distant training programs. As a whole, the team project consists of computer administrator and coordinator, software programmer, computer engineer, system programmer, web developers, and R&D manager. All project members report to CEO who monitoring the decision making process and scheduling.

David Hussein, computer administrator and coordinator will coordinate and inform other members about the best services and equipment that could be provided for training package design. He is also in charge of the design of the latest communication devices required for a well-coordinated work.

Software programmer will immediately deal with the training program design for Microsoft Publishers, as he knows all the nuances of work and program operation. He will also keep pace with recent modifications of the considered program in order to make correspondent amendments to it. Additionally, our programmer will take care of the security issues and provide the software package with protection programs.

More importantly, he will prepare a detailed description of the training package with help screens and adapt the program to particular users, which are IT department students. Computer engineer will be working on the program design and implementation, which is not of minor importance. He will also develop integrating software options and the hardware that will upload the applications. Finally, our highly qualified computer engineer will be responsible for the functionality of the established applications.

Out systems analyst use computer will be liable for incorporation and fulfillment of the project plan and operations involved. He will be also obliged to stay current in the computer field development for the training program to meet the students’ needs. He is the first person who should report to CEO, as his task also involves consulting the project team members, modifying hardware and software and searching for resources conforming to company’s strategies.

Finally, out systems analyst will define the costs-efficiency of each stage of the training program project and can prepare a financial plan. Once the program will be ready for implementation, our R&D manager will evaluate the results and develop the method of software package evaluation. He will be responsible for checking this program effectiveness for Microsoft Office Publisher and conduct a comparative analysis of other similar educational programs for students to define the advantages and drawbacks.

The CEO will be in charge of project budgeting and scheduling. He will coordinate with the project advisor (sponsor) who should track the effectiveness of the work process, if necessary. Web developers will create the different sites for students to acquire additional information about different options and functionality of Microsoft Office Publisher. The hyper-links will be mentioned in each step of practical part serving as hints for a successful adaptation of Microsoft Office Publisher.

Organization strategy & objectives

Marketing plan

Marketing plan will include the creation of the specific educational Microsoft Publisher software is going to be the information analysis. Being the company that is specialized in the multimedia, it will be easy to create a multimedia approach to learning. Still, as the main purpose of the software is the college curriculum direction, our marketing plan should be integrated in the college programs.

It is significant to create educational Microsoft Publisher software that will not just reflect the topics of the program, but also will be structured according to the curriculum. This will help students follow the educational process and not get frustrated by the program when they see it for the first time.

Furthermore, it is significant to know the main steps of the work with Microsoft Publisher software. The thorough research of the main opportunities of the Microsoft Publisher software should be conducted. We should know the simplest functions the software can do and the most complicated. This information is extremely important as to design educational software for Microsoft Publisher we should organize the project according to induction rules.

The basic educational methods should be considered. We are going to conduct a literature review on the information of how new material should be presented to students and what steps should be followed. This research is crucial as creating educational Microsoft Publisher software, we should not just insert the information. Students should be taught and the basic educational rules should be followed while Microsoft Publisher software for learning creation for your college.

Promotion and brand development

First of all, we shall take the Microsoft Office Publisher as it is the focus of our design. It is crucial to accomplish students with the images they will have to work with while educational processes. The Microsoft Office Publisher 2007 is the latest version that is used in most colleges, so we are sure to use it as well.

Furthermore, on the assumption of the educational stages that are going to be presented in the educational package, the Microsoft PowerPoint 2007 is going to be discussed. Working with the multimedia products, we are free to use some additional equipment and templates that can be helpful. Furthermore, the sound and voice along with video are going to be the main technologies for educational package design.

The format of the package is the most important part of this proposal. We are going to represent you with some specific information that we plan to insert in the package. First of all, let us consider the steps for the program with your specific curriculum implementation and the multimedia elements we are going to use. Morley and Parker separate out the following multimedia elements, text, sound, graphics, video, and animation (Morley and Parker 456). Designing the best educational package, all these elements will be used.

The first lesson students will consider is the general information about Microsoft Office and the opportunities it offers. This information is important as while working with Microsoft Office Publisher, students are sure to use the other options offered by Microsoft Office. The presentation will be supported with visual pictures, animation, text, and voice messages. We suppose that it is crucial to duplicate the text with voice messages. It helps work different kinds of students’ memory.

When the general information is considered, students will be given an opportunity to choose the topic they want to review. Each topic comprises a number of sections that refer students to the lesson they want to train.

Such structural decision is extremely convenient as students are given an opportunity to choose the task they want to complete without coming through the whole training program from the very beginning. The topics and sections will be located according to the curriculum structure. The introductory lesson is going to start the training. Students will be shown the main opportunities of the Microsoft Office Publisher via pictures, text and voice messages.

Operational Plan

It is impossible to turn to practice without theory. The second part is the knowledge test that allows considering the level of your understanding of the material via practice. Students will be given a task and will have to follow the steps they remember from the previous section.

The check and analysis of the results is the last part of any lesson. With the help of different multimedia elements such as graphs, visualization, and animation, students will be able to see the mistakes they made. Except for the lessons, students will be offered an examination section. Choosing this option, students will have an opportunity to check their knowledge and skills in Microsoft Publisher and get a mark for their work.

Organizational learning plan

The Microsoft Publisher is the software that is studied on the Information Technologies classes. Representing the educational Microsoft Publisher software in the class (while checking the pilot for the first time), we are going to use the lessons of the information and technology. On the basis of the college curriculum and the use of the pilot package, the following outcomes are going to be achieved.

First of all, students will get general knowledge of the Microsoft Office structure. Second, the structure of the Microsoft Publisher 2007 will be considered, the pilot package will show students the main opportunities of the program. Furthermore, students will get to know where they can implement their theoretical knowledge and practical skills of the Microsoft Publisher. Still, the main purpose of the pilot package we are going to design is to teach students to use it in practice.

On the basis of the main functions of the software, the educational program we shall design will help students in creating documents of all publication types, such as brochures, business cards or calendars. Furthermore, students will be able to format these documents and change according to personal desires and needs. Students will be taught to assist, combine and edit targeted mailing lists within the program form different sources, such as Excel, Assess, and Outlook.

The individual lessons will help students pay more attention to the options they like. Turning to the more complicated functions of the Microsoft Publisher, the pilot package will be aimed to teach students manage marketing campaigns by means of Microsoft Publisher 2007 use. Also, the distribution of marketing materials will be an important skill obtained via pilot educational Microsoft Publisher package.

Financial Sustainability

Market analysts urge private organizations and business to should try and find a model that responds to their unique characters of their organizational problems. Wolk (2004) statements stressed organization to obtain their own financial sustainability that will cushion them through the hard economic times and engage in social reality projects that prefer productivity and efficient management of their resources.

He argues that businesses that adopt this approach often report good report results on organizational performance and cost benefit returns on investment. These organizations are also required to integrated financial and programmatic initiatives into business activities to effectively capture organization problems and maximize their profits (Wolk 170).

Taking into consideration the existed problems, the company will provide pilot software package in a DVD format, as it is the most widely spread multimedia platform that can store MPEG-2 audio and video information (Kipphan 1993). Therefore, ADWC students should be provided with computer with DVD drives.

DVD players cannot applied in this case, as it enables student to look through the training package for using Microsoft Publisher rather then working on different assignment designed within the program frames. However, it is possible to use some DVD carrier for the software packages in order to be able to use it at any place. In case the students are going to work at home that should also be provided with software security programs in order to roll them in random-assess memory.

Apart from hardware carriers, ADWC students should be familiar with all common Microsoft Office programs (Excel, Access, and Word) and other known formats of data storage. They should also be able to transform the information from one format to another.

As student of IT department will work at home, they should have online connection to be able to consult their professors and other web applications for fostering the learning process. Besides, they can also exchange information with each other online to share the experience and difficulties occurring during the training program implementation.

Testing and Evaluation

First of all, the pilot package will be tested in class in order to check the students learn the basics of the program. For the testing, students will be invited to the computer classes where a teacher will explain the theoretical material and will track the way student accept the information from the pilot training program.

Then, the students will be proposed to fulfill the assignment established by the program creators to check how they understand the theoretical material. Once the practical assignment is completed, students will be offered to look through other options of the program. Finally, a teacher will provide with other helpful hyper-links that might be helpful for students when working at home. The evaluation of the results will be based on the validity and reliability verification.

Project Location And Duration

The pilot implementation will be conducted with the help of ICT facilities for the project managers to accurately test and evaluate the effectiveness of the Microsoft Publisher training package. More importantly, as Master IT Design deals with exclusive production, it has the correct training software that can work out a consistent plan of publishing program implementation.

The project results are planned to be delivered in three weeks, as the training software should be properly tested and evaluated. The operation will be defied into three stages. First, the department should study the main difficulties in handling Microsoft Publishers that may appear among the students dealing with this program.

Second, the project team should conduct a research in the field and define what software platforms and technologies will fit best. This stage will take the most of the time allocated for the scheme. Finally, it is necessary to conduct pilot implementation in order to eliminate all possible drawbacks of the training program.

SWOT Analysis

I will formulate company strategies based on this analysis.

The SWOT Analysis of the Master IT Design position in the market is necessary for the development of the marketing plan presented below

In the marketing mix, product is the strongest point of Master IT Design as far as the variety of products is rather wide, constantly updated, & accessible to the customers all over the world. Prices need to become more flexible which would allow larger numbers of people to afford translation or text-processing solutions by Master IT Design Place is also at the proper level of development, meaning that distribution facilities of the company are situated all around the globe.

At the same time, promotion is another component that needs improvements, especially in respect of customer involvement & better company-customer communication. The following marketing plan is set up to make those improvements.

Cash flow

INCOME STATEMENT FORM MasterIT Design FOR THE PAST FIVE YEARS
(Amounts are in $’000)

Its Income statement displays a negative cash flow in the first years of business. This business was in the habit of short term planning, with simple budgets that projected only into the immediate future. This could not enable them develop new markets and extend credit facilities to their clients due to the cash flow crunches they faced as result of overtrading as the case of Master IT Design.

Master IT Design experienced overtrading within its first two years of trading since it had incurred large capital expenditure in purchasing production facility that made it difficult to meet orders it had already taken due to lack of funds.

Also, the business was not in a position to extend credit facilities to the customers and did not have enough buffers in case of such emergencies. However, Master IT Design credit availability improved over the years as the Company was able to build up on its profit base as owed to effective management of production and selling cycles.

Risk analysis

All the information presented in this analysis, other than the factual matters, are future plans projected in accordance with Master IT present plans, outlooks and strategies based on the information currently available. Risks and uncertainties experienced by the company and likely to cause changes in the application of the software include events such as;

1. Difficulties in the adaptation of the software due to the current economic downturn as well as instability in the capital markets
2. Fluctuations in exchange rates between its country’s currency and the adopting country’s
3. Numerous trade restrictions in adopting countries markets and;
4. The company’s ability to provide new technologies amidst rapid technological innovations increases competition in the markets.

Conclusion

To conclude, it should be stated that the activities of every business company should be customer-oriented, & Master IT Design is not an exception. Having the product-led structure, the company currently demands a marketing plan that would facilitate its relations with the customers, make its production more available & promotion policies more customer-oriented. The offered marketing plan should be a consideration by the management of the sales & marketing department proved.

Organizations on the other hand should integrated financial and programmatic initiatives into business activities to effectively capture organization problems and maximize their profits. Incorporating new ideas from experts in the field of social entrepreneurship provides a fertile ground for young and upcoming entrepreneurship growth by identifying present change in a social economic environment.

Works Cited

Ashoka. What is a social entrepreneur? Available at; https://www.ashoka.org/en/focus/social-entrepreneurship.

Kipphan, Helmut. Handbook of print media: technologies and production methods. New York: Springer, 2001.

MasterIT. Technology working for business, 2009. Web.

Morley, Deborah and Charles, Parker. Understanding Computers: Today and Tomorrow, Comprehensive. Stamford: Cengage Learning, 2009. Print

Wolk, Andrew. “Social entrepreneurship and government: A new breed of entrepreneurs developing solutions to social problems” Social Entrepreneurship and Government 59 (2004): 151-221.

Concepts and Theories

Majority of companies employs both consumer-oriented approaches and organization-oriented approaches to increase sales and promote customer loyalty. Information obtained through market research enables an organization to introduce a new type of product popular among consumers or improve an existing product to make it more useful.

Additionally, the information from market research enables a company to focus on promotional activities and pricing to increase sales. Companies dealing in technology products engage in product-orientation approach to attract more customers than the other players in the market. This involves innovative products that are high-tech and with more user-friendly applications. Other companies establish relationships with retail shops to help in distribution of their products.

Evidence and Analysis

The competition between the three companies dealing in video game consoles i.e. Microsoft, Nintendo, and Sony is stiff with each employing different marketing strategies to generate more revenue and build a competitive advantage. The focus on younger generation customers who form the bulk of the customers contributed to the increase in competition.

Microsoft went a notch higher in 2001 by introducing the online gaming; Ethernet, which allows users to play video games online. The next generation video game technology has led to introduction of mobile gaming by Nintendo and Sony’s play Station Portable (PSP) device which are more user-friendly; a move enhanced by the availability of Wi-Fi and broadband in most residential homes.

Microsoft’s strategy involves cutting down the cost of production by moving its console manufacturing department to Asia. Microsoft also strategized to release its Xbox 360 earlier before the other competitors, thus ensuring market dominance in next-generation consoles. Microsoft’s product promotions and advertising involving cooperation with partners created consumer awareness and usefulness of the Xbox 360.

Implications

Competition in the console technology has led to establishment of partnerships with retail stores like Wal-Mart and Target to promote distribution of their products. The competition has also led to companies increasing their production line to include a wide range of products. Microsoft in 2006, developed PC models with features that provide a unique online gaming experience to the users.

Nintendo resorted to mobile gaming by introducing the Gaming boy Advance in 2001, selling more than 75 million units. Sony on the other hand, entered the mobile gaming market segment with the introduction of Play station portable (PSP); another hit in the market.

Competition between the three companies also focused on innovative approaches to win over customers. Microsoft’s introduction of Xbox 360 in 2005 was followed by an advanced Xbox live that improved the gaming experience. The improved version coupled with strong marketing strategies allowed Microsoft to record sales of 10.4 million units of X-box lives 360.

Sony’s lapse in marketing its liquid crystal display (LCD) led to shrinking market share in 2006. In addition, the production costs for the PS3’s were high and the soft ware developers did not get sufficient time to make compatible software. Nintendo focused on producing unique and cheap products as opposed to expensive products sold by the other competitors. Such cheap products include Nintendo’s Wii that is low-tech but appealing to majority of the users.

Conclusion and Recommendation

Microsoft employed cooperation with partners to successfully market its products and ensuring that the products are innovative and high-tech enhanced its market dominance in console technology. Sony relied on high-tech products including the PS3 to increase its market and gain more revenue.

Nintendo opted for strategies that involve innovative but cost-cutting approaches through production of low-tech Wii consoles. For a company to get a competitive advantage and gain more revenue, it should focus on producing high-tech products that meet consumer needs through innovation and reduction of production costs.

Summary of the Case

In May 1998, the Department of Justice, 20 states’ Attorneys, and the District of Columbia sued Microsoft for anti-competitive and exclusionary tactics (Economides, 2001, p.1). They claimed that, Microsoft schemed to control the personal computer operating systems market.

The company had sought to extend control to the Internet browsing software. To attain this monopoly status, Microsoft engaged in acts that violated the antitrust law (Economides, 2001, p.2). The cases focused on claims presented mainly by Netscape Communications Corporation.

Netscape alleged that Microsoft had excluded its Navigator Web Browser from fair competition in the market. Moreover, Netscape moaned that Microsoft used its dominance windows to hamper Netscape’s entry into the Internet explorer browser market (Klein, 1999, p. 218).

Events and Arguments

The government’s arguments were that Microsoft had engaged in a number of anticompetitive acts to remain a dominant player in the Operating System business. They were-

1. Microsoft monopolized the market for the PC operating system and used anticompetitive acts to dominate and own the market illegitimately (Brinkley, & Lohr, 2001, p.21).
2. That it tried to monopolize the internet browser market since it believed that these types of browsers would bring competition for various operating systems.
3. That it bundled its browser (explorer function) with windows. It also entered into agreements with some companies to implement its anti-competitiveness. It entered into exclusionary arrangements with internet service providers, PC manufacturers and content products to frustrate Netscape’s browser (Brinkley, & Lohr, 2001, p.21).

Microsoft’s counter arguments were that it did not have monopoly powers since competitors’ products were already on the market. Besides, the law allowed addition new features and functions to products hence making adding internet explorer function was legal (Klein, 1999, p. 219). Microsoft claimed it was merely competing hard against its rival and not violating anticompetitive laws (Economides, 2001, p.11).

Canadian Competition Law

It addresses unfair business practices. The statute prohibits criminal offences like price fixing, price discrimination, and non-criminal practices that reduce competition. For this case, the provision on abuse of dominant position applied – the misuse of market power (Competition Bureau, 2011).

Monopolies are legal. The government regulated them more because of their powers. They could easily harm clients and competitors (Hatch, 1999, p.21). The law prohibited companies in dominant positions from engaging in anticompetitive practices that substantially decreases competition (Competition Bureau, 2011).

Opinion

Less Convincing Arguments

The Government versus Microsoft case was plagued with controversies including questions of why the charges opened in the first place. The government purported that Microsoft was at as a defiant monopoly. Microsoft supporters viewed it as non-coercive monopoly.

Essentially, clients chose to use windows on their PCs amid options like Linux, UNIX, and Macintosh. Therefore, customers exercised their right of choice of windows for its convenience. It may not have been a superior OS, but it could run on Chinese clones and Toshiba laptops.

The government’s arguments are less convincing because, if Microsoft sought to exclude Netscape, then lowering prices and offering free software was ridiculous. The government claimed that, Microsoft actions proved that it had sufficient monopoly powers to bar others from entering the market, as it exercised exclusionary actions in its pricing policy.

Economists counter argue that, it would be more profitable for Microsoft to exercise monopolistic powers by increasing prices rather than raising those of its rival. Selling at lower prices or paying other firms to distribute its software was making losses (Klein, 1999, p. 218).

It is difficult to make a convincing argument that Microsoft sacrificed profits merely to exclude Netscape, which posed a potential threat in the future. After all, even if competition entered the market, it could only affect Microsoft’s future profits, an issue not relevant currently.

Economic theory

The main question in the case was whether Microsoft, being a monopoly in Computer OS, competed against Netscape in Server OS and how that excluded Netscape from the market.

Modern economic theory provides reasons why this critique was not convincing. The assumption that a monopoly had a permanent unchallenged position with no future entry threats was absurd. Even though some short-term barriers to entry of competitors protected Microsoft, there were numerous threats already.

Software developers designed programs that could work on most popular platforms. Windows was simply a popular platform with a wide range of applications.

The Microsoft’s main argument was that it did do not have economic incentives to monopolize Netscape. In fact, Netscape was more of a complementary firm. Besides, it had the option of increasing prices. Degrading the interoperability of Microsoft would cause it to lose revenue since clients would not want to pay more for windows OS.

However, it was less performing with non-Microsoft servers. Rather than monopolizing the market by reducing the rival’s quality, Microsoft could have simply charged higher prices and maximize profits from server market.

The Court Ruling

Based on economic theory, the companies needed protection from competition before they could bear the cost and risks of invention. Monopolies form ideal platforms for fighting the speedily and aggressively growing targets of new technology. Recent theories purport that some industries in certain conditions, the dominating company, and technology could end in a ‘virtuous cycle’ where companies support themselves to drive the economy.

The competition law is insufficient to deal with such cases. Microsoft was asked to disclose interoperability information, yet that could have caused severe negative consequences on innovation as intellectual property. With difficulty in bringing empirical and theoretical evidence to bear, analyzing innovation, and foreclosure was inevitable in making a convincing economic case.

Modern economists hence face the challenge of developing guidelines on the form of empirical evidence to use such cases. The evidence needed would be economic incentives to foreclosure.

Reference List

Brinkley, J., & Lohr, S. (2001). U.S. v. Microsoft. New York: McGraw Hill.

Competition Bureau. (2011). Abuse of Market Power. Retrieved from http://www.ic.gc.ca/eic/site/cb-bc.nsf/eng/04258.html

Economides, N. (2001). United States v. Microsoft: A Failure of Antitrust in the New Economy. UWLA Law Review, 32, 1-38.

Hatch, O. (1999). Antitrust in the Digital Age. In J. A. Eisenach &T. M. Lenard (Eds.), Competition, Innovation, and the Microsoft Monopoly: Antitrust in the Digital Marketplace. Boston: Kluwer Academic Publishers.

Klein, B. (1999). Microsoft’s Use of Zero Price Bundling to fight The ‘Browser Wars’. In J. A. Eisenach &T. M. Lenard (Eds.), Competition, Innovation, and the Microsoft Monopoly: Antitrust in the Digital Marketplace (pp. 210-222). Boston: Kluwer Academic Publishers.

International (Business related) Current Event

According to a letter jointly issued by Microsoft’s CEO Steve Ballmer and Nokia’s CEO Stephen Elop and the Microsoft News Center, the board of directors of both companies have agreed that Microsoft purchases Nokia’s devices, services, mapping devices, and issue the company’s licenses and patents.

To achieve the sales and purchase agreement, Nokia and Microsoft entered into an agreement detailing the terms and conditions of the transaction. According to the agreement, Microsoft is required to pay Nokia a sum of EUR 3.79 billion for the services and devices. In addition, the company will pay Nokia a sum of EUR 1.65 billion for the patents. When the transaction is completed, it is projected to cost Microsoft a total of 5.44 billion Euros.

Microsoft’s goal of building a partnership with Nokia was to create a new momentum in the growth of its market shares in mobile devices and services, and to issue Nokia’s patents. The strategy is designed to enable Microsoft rebrand and build a unified market by investing in Nokia’s skilled and innovative workforce to gain from the synergy of a unified marketing approach. The ultimate goal for Microsoft is to strengthen its financial position and create an environment that provides a strong and solid financial position in its future business strategies.

Typically, the sale of Nokia’s devices, patents, and services to Microsoft provides Microsoft with a competitive advantage over rival companies, a strong share growth, improved advertising, rebranding, and an increase in earnings per share.

Global/Regional Economic Implications

The sale of Nokia’s devices, services, and patents could create negative financial implications on Finland’s economy. In the past, Nokia has successively suffered financial setbacks causing a reduction in its market value to 300 billion Euros. However, the market reacted positively to the news of the sale agreement by registering a sharp rise in the value of Nokia’s trading shares.

At the announcement, the company’s shares rose to 48%, it was an indication that Nokia could not collapse in the near future. However, the announcement caused an insignificant effect on the Asian market, while it remained uncertain whether Microsoft could gain a competitive edge by purchasing Nokia’s services, patents, and devices or not.

Your Judgment: Opportunity or Threat for Region/Corporation? Why?

According to my own judgment, the sale of Nokia’s devices, services, and patents could provide Microsoft with a competitive edge in the market, while Nokia, a company which has suffered risks and uncertainties, could relief itself of the risks and difficulties. It is possible for a negative effect to have adverse implications on the performance of Nokia’s devices.

On the other hand, it could provide Microsoft with a competitive edge in the market. Here, Microsoft could be a threat to rival firms, such as Apple, because of its strong position in the current global market. In addition, Microsoft could further threaten Nokia’s existence because of the announcement despite the temporary increase in the value of its shares at the proclamation of the new announcement.

However, Microsoft cannot be a global threat, especially in the Asian market, which is Samsung based. On the other hand, the North American market could provide a space for competition because of the market share Nokia sustainably enjoyed. However, Microsoft should prepare to brush shoulders with Google and Apple.

Introduction

The rise in the use of the internet has created the need to use search engines. This has led to a development of new products such as Bing, Yahoo, and Google search engines to suit the growing demand. The profitability of the search engine market has greatly increased to a tune of more than $40 billion.

The search engine market is highly dominated by three players. As at 2012, the search engine market was dominated by Google at 85.2% of the global market share, Yahoo had 6.2% while Bing for Microsoft had 5.2%. Pie chart one illustrates the proportion of market share occupied by the various companies.

In as much as Microsoft Corporation has been successful in the hardware and software industry, Bing has faced a number of problems in gaining market share as a new product in the search engine market.

This can be majorly attributed to aggressive competition from Google. This treatise discusses whether on not Microsoft should stay in the search market.

Pie chart one – illustration of market share

Arguments for

Introduction of a new product in a market which seems over dominated by a single player can be challenging. Porters five forces explains the attractiveness and the concentration of competition in a market.

Based on the five forces, the bargaining power of the customer is of most importance since it can help a company decide on whether to stay in the market or not (Roy 24) In the search engine market, a substantial amount of revenue is generated from the advertisement.

Microsoft has been able to attract a large number of customers by trying to allure small companies through free advertisements. This project has been fruitful especially in attracting small companies. Therefore, Microsoft should remain in the business to as to grow with the customers and increase further the market share.

Arguments against

The financial statements reveal that the Bing has been reporting losses since its formation in 2009. The company has not been able to recover the cost of developing and maintaining the product. The cost of running the search engine exceeds the revenue earned.

Thus, the fact that the product cannot recover the cost of operation gives a reason why it should be withdrawn from the market. Besides, the losses earned from Bing reduces the profits attributed to shareholder and the value of the company. Thus, bing should be removed from the market.

Further, based on the Porter’s five forces, the intensity of the competition may not allow Bing to penetrate and gain a profitable market share in the search engine industry (Roy 25). Further, since the product replaced Microsoft search network, there has been growth in the performance of the product.

It is noticeable that the market share of the product has been declining at a high rate. Another, reason why Bing cannot survive in the search engine market is that the main competitor offers high quality services with a large number of add on to the customers.

This creates a slim chance for Bing to attract new customer to switch from their competitors’ products. Thus, the buyers propensity to substitute is negligible (The New York Times Company 2011).

Conclusion

In summary, the discussions above show that the reasons against outweighs the reasons that support the stay of the product in the market. The main tool for analysis is the Porter’s five forces. Thus, the management should consider selling the product at a profit.

Works Cited

Roy, Daniel. Strategic Foresight and Porter’s Five Forces: Towards a Synthesis, GRIN Verlag: Germany, 2011. Print.

The New York Times Company 2011, Can Microsoft Make You ‘Bing’? 04 Mar. 2013. <https://www.nytimes.com/2011/07/31/technology/with-the-bing-search-engine-microsoft-plays-the-underdog.html?pagewanted=all&_r=0>.

There is no use denying the fact that modern age could be characterized by blistering development of corporations which managed to seize various markets and introduce its products or services to people who reside in different parts of the world. Additionally, blistering development of globalization and various means of transport made cooperation between departments of a company, which are situated in a great number of countries, easier.

That is why, nowadays, we can observe several huge international companies that struggle with each other in order to grasp the market and obtain extra benefits. It is obvious that usually the most perspective directions of development and regions are chosen. Traditionally, Europe and the USA had been taken as such regions. Thus, nowadays, the shift of priorities could be observed as countries which were comparatively weak in the past start to develop and attract attention.

It should be said that the UAE has become one of these states. Having great oil deposits and developed oil extraction industry, the state can boast one of the greatest incomes in the world. That is why, blistering development of the economy of the UAE coincided with the growth of the number of offices that represent various international companies.

With this in mind, the main aim of the given paper is the analysis of the main peculiarities of the functioning of Microsoft Gulf department, that is the part of a great Microsoft corporation and now functions within the territory of the UAE. It is obvious that the given company tries to introduce its products and services to new and perspective market and that is why, its functioning is organized in the most beneficial and efficient way.

First of all, it should be said that Microsoft corporation is one of the most famous and beneficial companies in the world which annual income is bigger than the budget of many states (Microsoft Corporation (MSFT), 2015). Though, it is obvious that any company has to evolve and promote its further development in order to remain topical and beneficial.

Under these conditions, Microsoft Company realized the necessity of new markets that will be able to increase the demand for its products and result in the significant increase of the level of incomes. However, one should mind that the process of introducing products to the new market is rather complicated and consists of a great number of various peculiarities that should be taken into account while trying to take on the market.

Peculiarities of language, culture and demands of customers should be given great attention while analyzing the state of the new market and creating the strategic plan. With this in mind, along with the decision to introduce its services to the Gulf region, Microsoft company also organized the department which main task is to align efficient and beneficial functioning of the company in the region.

Microsoft Gulf nowadays is one of the most beneficial international companies that function all over the world and in the Gulf region, trying to provide qualified services to its customers in terms of peculiarities of local demands that could be taken as the reflection of customs, traditions and the state of the economy of the country. In other words, it is possible to say that Microsoft Gulf tries to spread its influence in the UAE, creating new departments and organizing new ways to work and improve the quality of services.

Having outlined the background for the development and introduction of the products of Microsoft corporation to the UAE market, it is also possible to start the analysis of the given company from the determination of its shareholder structure and the role which shareholders play in the functioning of a company.

First of all, it should be said that being a giant international company with great incomes, Microsoft is obviously organized according to rather popular pattern that is able to guarantee its efficient functioning. The company is ruled by the shareholders council which consists of people who possess companys shares.

They do not perform managerial functions, thought, they accept some very important strategic decisions and determine the way in which company will develop.

It should also be said that the shareholder structure is quite simple though efficient. The shares of the company are distributed between the main shareholders who now are Steven Ballmer with 333 million shares, then comes Bill Gates with 330 million and other important shareholders who own shares which comprise not more than 1% of the total number (Microsoft Corporation (MSFT), 2015).

However, due to the peculiarities of the shareholder structure, there are shares which could be bought by anyone who wants to become the shareholder of the Microsoft company (Sheridan, 2014). The shares of the company could be bought on the broker’s board or directly from the shareholder.

However, one should mind that Microsoft is a giant international corporation with the great level of incomes, that is why its shares cost a lot and if a person wants to become not just a common shareholder, but to have the right to participate in the shareholders council, he/she has to by at least one percent of shares. However, Microsoft organizes annual shareholders meetings in order to inform people about the strategic steps performed by the company and keep in contact with them.

These meetings are organized with the help of various web technologies so the shareholders do not have to go to the main office. With this in mind, it is possible to conclude that the shareholder structure of Microsoft company is organized according to the traditional pattern as the main shareholders are able to manage the company and accept some important strategic decisions, while the rest of shareholders could just collect dividends from owning shares of the company.

Nevertheless, it is impossible but mention the way in which the process of the company is organized and how the main tasks are accomplished. With this in mind, it is possible to say that being the international company which centers on the production and distribution of various IT technologies, Microsoft tries to guarantee the efficient and clear process of delivery of a product and payment because its image depends on it.

Thus, having a great number of plants and factories all over the world. the company organizes its functioning in the way that could guarantee that the needed device or hardware will be delivered to the needed place in time. Moreover, it has to be of a good quality in order to meet the standards of the company, that is why the main principles of TQM are also implemented in the functioning of the company.

Besides, one of the main peculiarities of the company’s process is the great attention given to the credibility of partners and methods they use to pay for their products. That is why, Microsoft declares the standardization of its procurement practices. In other words “before payment can be approved, every Microsoft supplier has to be approved by the Microsoft Procurement group, have signed an agreement with Microsoft, and have a purchase order in hand” (Our Process, 2003, para. 2).

This procedure helps to avoid a great number of various problems connected with the payment methods and trust between partners. Moreover, the given practice makes the control over the spending of a company easier and Microsoft could manage its finances, deciding what sphere or project to invest. Additionally, it helps to make the process of communication with some potential customers easier as this mechanism can prevent the appearance of various problems.

Nevertheless, being one of the most beneficial companies in the world, Microsoft deals with great money flows. It is obvious that this process is also controlled and monitored. The company works mainly with cashless transfers. Customers payments, which come from the purchase of a product or some service, are transferred to the banking account of the company.

This account serves for the further distribution of costs. It is also obvious that relevant authorities control all money flows in order to get rid of mistakes of currency violations. The given model turns out to be rather efficient and productive.

It should also be said that such a great company as Microsoft should obviously have a certain insurance strategy which main aim is to get rid of some unexpected and unpleasant cases and guarantee the stable functioning of a company and security for its workers. That is why the company pays about $20 million annually for commercial insurance (Wojcik, 2009).

This insurance includes property coverage, crime, ransom, kidnap employment practices liability and a great number of other points (Wojcik, 2009). Additionally, there are some other nontraditional risk-finacning solutions that could provide about $2 billion dollars for the company in case of some complications or unexpected situations (Wojcik, 2009).

It should be said that the main aim of buying insurance of the company nowadays is the attempt to guarantee security for all top managers and common workers in case of some catastrophic losses. Officials of the company do not eliminate the possibility of some natural catastrophe and want to be prepared for it. That is why, great sums of money are spent on it. However, Microsoft does not spend money on some issues which are taken as not important or expected.

Some intellectual losses are not covered by the insurance as Microsoft has other remedies and tools to protect it. With this in mind, it is possible to state the fact that the company wants to protect itself in case of emergency and buys insurance only if it could be taken as cost effective. Thus, having a great number of various assets like DirectX, Nokia, Xbox and many others, the company also provides insurance for them in order to be ready to compensate losses for staff that works at various departments.

It should also be said that the Microsoft company cares not only about its facilities and products. though, it provides various kinds of services and bonuses for its staff. First of all, it is possible to say that work at this very company can be beneficial because of the high level of salary.

However, it is not the only advantage. The thing is that Microsoft provides complete and beneficial insurance for all its workers. First of all, one can admit 100% paid healthcare, including the dental one (Microsoft Careers, n.d). It means that if a worker of a company gets sick he/she can count on good treatment that will be provided in various hospitals of the UAE or the state that will be chosen by a worker. Moreover, there is the practice of maternity leave, when mothers receive eight weeks of paid maternity disability leave.

Additionally, there is a paternal leave that provides benefits for new families in order to establish relations within the family. Thus, it should be said that there is a developed system of bonuses that could help to increase the level of performance of a worker and stimulate his/her better functioning.

Workers, who can be described as very precise and efficient, receive some bonuses which show them that their efforts are appreciated. Moreover, there are some extra benefits, such as gyms, discounts and social clubs that serve to create the beneficial atmosphere for a worker and help him/her to become the part of a collective (Microsoft Careers, n.d). With this in mind, it is possible to state the fact that high insurance rate of the company helps to make its workers feel secure and appreciated.

With this in mind, it is possible to state the fact that the insurance provided for workers of the Microsoft company could be taken as one of the best in the world. However, it should also be said that workers also have to pay for this insurance. Usually, money is kept back from wages during the year that is why the sum is not so great for a worker. For example, it should be said that “employees will be required to pay out-of-pocket maximums of $1,000 to $2,500 for catastrophic coverage” (Eaton, 2010, para. 4).

Thus, the given sum could be taken as quite fair in terms of existing insurance practice. The thing is that workers, who pay this money, are supplied with the 100% free health care that could be much more expensive. That is why, these payments are taken by the company only for the purchase of the insurance connected with some severe complications or conditions, while the rest is paid by the company. That is why, existing insurance practice could be taken as a quite efficient one.

Resting on these facts, having analyzed the main information connected with the activity of Microsoft corporation in the Gulf region, it is possible to make a certain conclusion. It should be said that realizing the great importance of the new and developing market, the company tries to organize it functioning in the most efficient way.

Being ruled by the shareholders council, it tries to create clear and efficient pattern according to which the company will function and evolve. Microsoft already has great incomes in the given regions and, moreover, want to increase them.

Additionally, wise and outstanding insurance policy, which main aim is to protect the top managers and workers of the company from various unexpected complications, also leads to the improvement of the image of Microsoft and attraction of new workers and customers. That is why, it is possible to conclude that Microsoft has good perspectives for its development in the Gulf region.

References

Eaton, N. (2010). Microsoft employees must contribute to health care in 2013. Web.

Microsoft Careers. Web.

Microsoft Corporation (MSFT). (2015). Web.

Our Process. (2003). Web.

Sheridan, P. (2014). Bill Gates no longer Microsoft’s biggest shareholder. Web.

Wojcik, J. (2009). Microsoft relies on self-insurance for most exposures. Web.

Microsoft Kinect is a hardware that has changed the face of information technology development and application in the dynamic information age. Developed by the Microsoft Company, this hardware comes with sensor program software capable of detecting sound, movement, tacking information, and delivering the same at the convenience of a customer.

Therefore, it can be customized by a user to suit his or her needs depending on the environment, the role, and even position in the industry. Thus, the conceptual aspect of reflective treatise is an explicit analysis of the alternative use of Microsoft Kinect outside the gaming industry from a marketing angle.

Specifically, the treatise attempts to explore the use of Microsoft Kinect in the Hospital environmental especially in the operation room.

Positioning statement

In order to attract potential users who are health care providers, the marketing strategy narrow down to doctors who perform operations. This application will ensure that patient information is correctly reflected besides saving time which is of essence in the surgery theatre.

Value Proportion

This application is capable of tracking past records which have been fed in the computer system. Since the application comes with a information application sensor, physical perusal of data will become obsolete and saves the precious time in the surgical environment. In addition, the product has direct value for money spent.

As a matter of fact, hospital can customize the application to fit into their data system and fully control flow of information on patient records. Thus, this will go a long way to reduce the number of those employed in the records room and in the process save resources in form of wages and salaries to such hospital. The technology is simple and training cost is affordable compared to other application (Kotler 45).

Placement

Kinplace application is essential and may be of ready demand in the hospital environment. The expenditure budget on health care applications across the globe has been on an upward surge. This is due to the fact that many hospitals are slowly but steadily accepting the dynamics in information technology.

In the last decade, it was considered impossible but it has proven possible with the help of three dimensional technological transformations in the hospital environment as being piloted in Italy. Kinplace application, an innovation from Kinect, comes in hand to change this position.

The application promises to integrate the older data entry applications and merge them with the sensory and customized application which can go a long way in controlling record keeping and simplify retrieval (Koufaris 207).

Current and future perceptual Map

The current projections are sales across the major surgical hospital in America. Specifically, the targeted sale is as a result of research and thorough review of the existing applications offered by hospitals. Interestingly, Kinplace application promises to offer the best alternative at a cost effective price to rival competition and maintain acquired customers.

Besides, the current projections target to offer training application for free to hospitals that are ready to try the application. Since the application has been piloted in Italy with success, it would present minimal challenges in implementation and large scale roll out plan. Besides, the application is strategically placed to embrace cost efficient technological application as desired by potential customers who are out to cut cost of doing business.

The long term conceptual map is to roll the application out to other regions and make sales to a tune of over six times the current projections. Since the product is self selling and self explanatory, there will be no need of employing so many sales persons. Inspired by the need for proper data storage and use, the product is likely to win confidence of many customers across the globe that is in the hospital industry.

Pricing

For a start, the application will sell at a discount of twenty percent for the first a thousand customers. Besides this, it offers the most competitive price than any other product with less quality. In addition, we shall offer free training on use and application up to a team of 50 persons.

To tap into private hospitals industry, the marketing strategy will adopt pricing experimentation which calls for offering trials before actual payment (Aekar 22). The recommendations from these clients shall be incorporated in the marketing schedule to make modifications if necessary.

To scheme in this expansive market, it would be in order to embrace antagonistic value addition strategy by offering other after sales services such as free extra application and customary request. Since the application comes with an interesting packaging and maintenance schedule, it will easy penetrate the hospital industry that is looking for a professional but secure product for their sensitive data.

Placement

The distribution channel will encompass a flexible sales team and series of public and private demonstration shows for potential customers. From a central position, the sales coordinator will be n a position to monitor sales and report figures to the right authority.

Since the invention embraces cost efficient technology, it will be easy to make sales and convince customers to clear out obsolete information systems for the state of art sensor enabled data monitoring unit.

Reference List

Aaker, D. Building strong brands. New York: The Free Press, 1996.

Kotler, P. Marketing management: Analysis, planning, implementation and control. New Jersey: Prentice-Hall, Englewood Cliffs, 1997.

Koufaris, M. “Applying the technology acceptance model and flow theory to Online consumer behavior.” Information System Research Journal 3.2 (2002): 205-223.

In the US, the businesses are regulated by the antitrust law, which promotes and maintains healthy competition as well as controlling anti-competitive business tactics by other companies. Microsoft has fallen victim of antitrust claims in several occasions. As the United States software giant, the company has settled several antitrust claims with competitors, yet others still crop up.

However, the validity of the claims elicits streams of arguments from various concerned and affected groups. This comes at a time when the federal appeals court declined to restrain the power of national attorneys general to sue companies (Mallor et al. 2010). Such injunction comes in place of the public for unproven antitrust defilement devoid of raising class action on court case limitations.

The question of Antitrust claims against Microsoft software runs back to mid-1990. The software giant had been allegedly charged by the United States Justice Department’s antitrust suit for subjecting its competitor, IBM, under discriminatory pricing as well as overcharging practices.

The situation presented a stiff competitive niche to IBM. Ultimately, the settlement of the case resulted in payment of over $700 million to IBM. On the other hand, $75 was paid to the software giant as credit (Masnick 2010).

It seems everyone is on Microsoft with regard to antitrust claims. The long antitrust accusation against the software giant has a significant impression to the company’s reputation irrespective of the fact that they result in remarkably little impact. Of course, the little impacts may offer the expiation why Microsoft has attachments to the recent antitrust claims against both Google and IBM.

According to Masnick (2010), antitrust claims against Google and IBM reveal that Microsoft had a significant contribution in it, although it played it underground. However, Microsoft has made steps inform its employees of the antitrust laws. According to Microsoft Watch, eweeks newsbreak (2009) will again be charged $2.5 million for coming in breach to the European Union due to its failure to give documentation on Windows’ inner workings.

The validity of these claims falls in either side of justice. Of course, the law and demands by the authorities ought to be followed to the latter. However, the fact that such actions strive to create standardized competition will make it possible for all players of the industry to compete on one level.

Every company wants to have a competitive edge, which pushes many companies, to come up with effective mechanisms to survive in the market. As such, it becomes fair that every business should strive to survive in the market (Mallor et al. 2010).

A company should also endeavor to reach its objectives, which include, profit maximization, cost minimization, as well as expanding the market. Therefore, I fall to the admission that such advances are just since the companies they are pushed by the market. However, the extent to which such companies put out their mechanisms is not known.

As such, companies may advance to put up mechanisms that will exit other companies from the market. Ultimately, unlike private litigants, the lawyers overall reserve the power of statutory authority to sue in place of state citizens and may not require to make evident they had damages as well as to the public (DeCarlo 2003). It is worthwhile to note that some decisions are necessary to manage circumstances.

References

DeCarlo, D. (2003, January). Exclusive remedy in a nutshell. CBS Interactive, Inc. Web.

Mallor, J., Barnes, A., Bowers, T. & Langvardt, A. (2010). Business law: The ethical, global and e-commerce environment. (14th ed.). New York: McGraw Hill/Irwin.

Masnick M, (2010). Is Microsoft Behind Antitrust Claims Against Pretty Much Everyone Else Now? Retrieved from https://www.techdirt.com/articles/20100801/18221910441.shtml

Microsoft Watch, eweek Newsbreak (2006). Microsoft Warns Employees of Likely Antitrust Fine. Retrieved from https://www.eweek.com/news/microsoft-warns-employees-of-likely-antitrust-fine

On May 18, 1998, Microsoft, the largest computer software manufacturer in the world was sued on a number of antitrust allegations. The allegations ranged from violation of various sections of the Sherman Antitrust Act to Microsoft illegally attempting to monopolize the internet browser market.

It was also alleged that Microsoft had illegally monopolized the operating systems market for personal computers whereby it had anti-competitively bundled its windows operating system with its Internet browser, Internet Explorer. These allegations arose due to Microsoft which had monopoly power misusing the market influence it possessed in order to dominate the market.

It was also alleged that Microsoft had made some anti-competitive and illegal contractual arrangements with various internet service providers and computer manufacturers and was also involved with other illegal actions and also discouraged its competitors to penetrate into the market through the utilization of application barriers hence creating a monopoly in a bid to strengthen its grip on monopolizing the market (U.S. Department of Labor n.d.).

The United States department of justice petitioned the District court to find in civil contempt the Microsoft Corporation. Judge Thomas Penfield Jackson issued an injunction that stopped the putting together of windows and internet explorer. This preliminary injunction was however overruled by DC Circuit Court of Appeals on May 12, 1998 citing that the 1995 consent decree did not apply to windows 98.

“The argument for this course of action was that, the limited competence of courts to evaluate high-tech product design and the high cost of error should make them wary of second-guessing the claimed benefits of a particular design decision’’ (DeCarlo, 2003).

On issuing his ‘conclusions of law’ Judge Jackson on April 3, stated that Microsoft was guilty of an anti-competitive tying of Internet Explorer with windows and also liable for monopolization but also found that Microsoft did not hinder the distribution of Netscape through its contracts.

Judge Jackson on June 2000 found that, Microsoft enjoys the largest and most stable market share thus having a monopoly; it also used its power as a monopoly to eliminate its competitors from accessing personal computers’ operating systems, Microsoft’s actions were also deemed to have harmed consumers.

The judge also found that the antitrust market is the personal computer operating systems market for the computers that are compatible with Intel. The judge also noted that the ‘applications barrier to entry,’ is what protected Microsoft’s monopoly.

Judge Jackson also observed that despite the fact that its contracts had various anti-competitive implications, Microsoft was however not guilty of any anti-competitive contracts that would hinder Netscape’s distribution (Mallor et al 2010).

In my opinion, should Microsoft windows split with internet explorer, the company would be at a disadvantage since it would suffer a hefty loss which they had previously enjoyed good sales from.

This would in turn give a fighting chance to the other players in the field to gather up a market share from Microsoft which would hurt their profits and control of the market and should the ruling on bundling not be reversed, Microsoft could easily loose grip of their customers. Due to antitrust uncertainty, Microsoft has also had a 40% drop in their stock price.

The other issue at hand is the continuous antitrust lawsuits that Microsoft is about to face in the near future should the ruling be withheld and this is a key factor that spells a series of other antitrust lawsuits against other key players in the computer industry.

References

DeCarlo, D. (2003). Exclusive remedy in a nutshell. CBS Interactive, Inc. Web.

Mallor, J., Barnes, A., Bowers, T. & Langvardt, A. (2010). Business law: The ethical, global and e-commerce environment. New York:, NY: McGraw Hill/Irwin.

U.S. Department of Labor. (n.d.). Occupational safety & health administration. Web.

Most successful firms that we see nowadays started as small business entities. Microsoft is such a company that started from humble background and expanded into a multinational corporation. Microsoft is considered as the biggest software producer with a current market share of approximately 88%. In order to extend its operation, Microsoft can consider a merger with other software producing companies such as Apple, Google or Linux.

A merger involves a combination of two or more firms to form a single bigger entity. A merger helps a company in growing rapidly in its market niche, or new markets without creating subsidiary companies. When two or more firms merge, the new entity formed is management as a single entity.

When two companies merge, the less significant company losses its identity and the new firm formed opt to use the name of the larger firm in branding. There are three types of mergers. Horizontal mergers which are formed when two or more companies that sell similar or identical products/services in the same geographical area combines.

This type of merger is mainly done in order to eliminate competition between the merging companies. Vertical mergers are formed when a customer joins with a supply and vice versa. Conglomerates mergers occur where two companies producing similar products, but operating in different regions merges (Ginsburg & Levin, 1989).

In United States of America, the Federal government plays a significant part in the merger process. Federal government is interested in mergers because mergers eliminate competition between the merging companies. Federal government is even more interested if the merging firms happen to be direct rivals.

The Federal government is more interested in such mergers because it considers them as strategies that companies use to restrict output in order to raise prices. It is known that firms have a propensity of merging in order to reduce competition between competing firms. Competition is healthy in an economy as it helps in regulating demand and supply in an open market. Shortage of supply and high demand are associated with high prices.

Therefore, the Federal government carefully evaluates any proposed mergers in order to avoid any merger whose benefits are outweighed by resulting consequences on the external stakeholders. It is observed that monopoly in businesses result in deliberate reduction in outputs in order to escalate prices. Federal government is keenly interested in scrutinizing proposed mergers to avoid monopoly of trade that can lead to inflation of prices.

It is noted that some mergers can greatly influence future prices and mainly when the merging entities command a great market share and happen to be direct business rivals. However, Federal government does not prevent any merger that is aimed at increasing the market share of a company in order to enjoy the volume of scale (Lee, 2003).

Mergers are associated with some social benefits. Mergers are noted in improving performances of companies through acquisitions of extra technical skills that support exploitation of underused resources. A merger between Microsoft and Apple can help Microsoft to enhance its technology of producing mobile software which is currently the competing factor. Mergers augment economies of scale and scope that reduce operation costs, increase output as well as quality.

A merger between Apple and Microsoft will help the company in regaining its former market share in order to enjoy the economy of scale. However, despite many benefits associated with mergers, some companies that are aspiring to merge may fail to agree on the way forward and mainly because of lack of appropriate disclose which ends the proposed merger process. In such cases, the companies opt to undertake the expansion process on their own.

Because of the weak financial status of the business entities, the owners can opt for various strategies to raise money for expanding the business. One strategy they can employ to raise the fund needed to expand the business is to borrow money from commercial banks. In order for the bank to grant them a loan, the bank will require the loan to be collateralized with the owners’ properties such as their investment accounts or houses.

If the management opts to raise the money through this process, the loan will be paid back over a fixed period of time together with some interests. Alternatively, the owners can decide to reinvest the profits generated in the business instead of sharing it among themselves. Though this is a good idea the challenge with this process of raising capital is that the business may take a very long time to realize a significant growth.

Similarly, the owners can decide to incorporate more partners in the business who will contribute the money that is required for expansion of the business. Through this process the new partners will join the company with cash investments and assume equal partnership and the firm will raise the money it requires for the anticipated growth.

The complexity that will arise from these new methods of expansion is that the firm may take a very long period to expand and especially if it opts to expand from the profits generated by the business.

On the other hand, if the shareholders take a loan from a bank for expansion and later there occurs an economic recession that greatly affects the performance of the business, the profits realized from the business sales may not be enough to service the loan and thus, the owners may loss their properties if the bank decides to sell their properties to recover its money (Bierman & Smidt, 2006).

The best solution to converge the interest of the shareholders as well as those of the managers in this scenario is by incorporating the senior managers as shareholders. The shareholders should request senior managers to buy some shares at a discounted rate in order to be incorporated as equal partners.

In addition, the senior managers should agree to be paid lower salaries in order for the business to realize greater profits it can use for expansion. Through this strategy, the company will be in a position to cater for both the interests of shareholders as well as those of managers.

The initial aim of any business is to concentrate on a business growth and expansion strategy in order to maximize business profits. Currently, Microsoft is losing its market share. Previously, it commanded a market share of over 90%, but its current market share has reduced to 88%. In order for Microsoft to reduce the loss of its market share, its goal should be based on enhancing its profits through expansion. However, after regaining its former market share, the management can embark on the goal of maximizing shareholders wealth.

Reference List

Bierman, H. & Smidt, S. (2006). The Capital Budgeting Decision: Economic Analysis of Investment Projects. 9^th ed. New York: Rutledge.

Ginsburg, D. and Levin, J. (1989). Mergers, Acquisitions and Leveraged Buyouts. Chicago: Commerce Clearing House.

Lee, M. (2003). Charging Back up the Hill: Workplace Recovery after Mergers, Acquisitions, and Downsizings. San Francisco: Jossey-Bass.