Overview of the Microsoft Corporation - Report Example

1. BRIEF HISTORY AND OVERVIEW OF THE CHOSEN COMPANY My chosen company is Microsoft Corporation. Microsoft, a multinational computer technology corporation, was established in 1975 and is currently the leader in software, services, and solutions (Microsoft.com). Its owner and current Chairman, Bill Gates, is constantly ranked the richest person of world. He is enjoying the first positions among the richest person of the world with a net worth of $40 billion(The 400 Richest Americans, 2009). Gates is a Harvard dropout. He took a leave of absence from its university and started a partnership with Paul Allen, his old friend with the name “Micro-Soft”. The hyphen was later removed. Their first office was located in Albuquerque(History of Microsoft ). The turning point for Microsoft came when it introduced its Graphical User Interface (GUI) based operating system. The first version of its GUI based operating system, namely Windows 1.0, was launched in 20th November, 1985. From there onward, Microsoft continuously improved its operating system, adding new capabilities and functions, the latest being Windows 7. It also started its web based services later. “Microsoft became the top software vendor in 1988 and never looked back” Microsoft Corporation. The Net Income of Microsoft was $14.57B as of June 30, 2009. It employees about 91,005 people, among which 75.4% are male and 24.6% are female. An astonishing number of 36,875 employees work in Sales & Marketing Support Group (Microsoft.com). Microsoft invests more than $9 billion US dollar a year in its R&D. About 91% of world’s computers have Microsoft Operating System installed in them (CITATION). Gates considers “innovation” as the main factor of their success. He thinks their decision of creating a software industry around the personal computer was the most innovative thing(Corcoran, 2008). 2. MISSION AND VISION OF THE COMPANY There is always a reason for the establishment of an organization. These reasons are expressed through vision and mission statements. A company may have a clear purpose or mission initially, but as it grows, its mission may become unclear as the organization adds new products or markets in its portfolio(Philip & Gary, 2003). Same happened with Microsoft. Initially, Microsoft was only a software provider, so it had a simple mission statement of: A computer on every desk and in every home, running Microsoft software Later, when it grew and started providing other services and products, it changed its Mission Statement to: “At Microsoft, our mission and values are to help people and businesses throughout the world realize their full potential.” (Microsoft.com). Microsoft initially had a product oriented Mission Statement. A product or technology oriented mission statement do not last forever because they become obsolete. On the other hand, market oriented mission statement lasts for ever because it considers the basic market needs (Philip & Gary, 2003). Microsoft’s current mission statement includes most of the qualities of a good mission statement such as it is market oriented, realistic, achievable, inspirational and motivational; and it fits the market environment. Microsoft is successfully following the path of its mission. There are hundreds of thousands of businesses that are using Microsoft’s product for fulfilling various functions. On the other hand, Microsoft’s products are very common among the home users. Microsoft Value “As a company, and as individuals, we value integrity, honesty, openness, personal excellence, constructive self-criticism, continual self-improvement, and mutual respect. We are committed to our customers and partners and have a passion for technology. We take on big challenges, and pride ourselves on seeing them through. We hold ourselves accountable to our customers, shareholders, partners, and employees by honoring our commitments, providing results, and striving for the highest quality.” (Microsoft.com) 3. AN OUTLINE OF THE KEY PRODUCT OR PRODUCT AREA WHICH THE COMPANY MARKETS Microsoft has five business segments which are as followed: Client: In this category, its entire Windows product and other consumer software comes. Server and Tools: This category includes all the server products, services and solutions. For example Windows Server OS, SQL, Enterprise Services and Visual Studio etcetera. Online Services Business: It includes Microsoft online advertising platform for publishers and advertisers. It also includes online communication services such as hotmail.com (e-mail service) and Windows Live (Instant Messenger) and other online services such as Bing (Search Engine), Bing Map, MSN portals, news updates, video service and etcetera. Microsoft Business Division: This category includes MS Office suites; desktop programs such as Internet Explorer; Microsoft Amalga, Microsoft Dynamics (Business Management Solution), Microsoft Forefront (Security Solution) and Office Live (Webhosting) etcetera. Entertainment and Devices Division: It includes home entertainment such as Xbox video game system, Xbox live operations, Zune Digital Music, MSN Games, PC games, Direct X, Windows Media Centre, computer accessories such as keyboard, mouse, headsets, webcams and windows automotives etcetera. 4. HOW MARKETING COMMUNICATION AFFECTS THE COMPANYS MISSION, VISION AND OBJECTIVES? The main purpose of Marketing Communication, also known as Marcom, is providing awareness about the business and its product through various elements. Marketing has four main components i.e. Price, Place, Promotion and Product. Marketing Communication is the tool or technique through which promotion is materialized (Marketing Communication). There are a number of elements or tools applied in marketing communication. Some of these tools are product-specific such as sales promotion tools, personal selling, direct marketing, e-marketing, etcetera. A number of other marketing communication tools are not specific to the product but are aimed to develop and maintain the overall marketing image of the company(MC As A Strategic Function). Marketing Communication is the responsibility of top level manager’s as it requires crucial thinking and long-term planning. Marketing Communication is actually the art of conveying information about product and service to each of the target market in the most appropriate manner. It is the art of relating your selling process with your customer’s buying process. In order to communicate appropriately with the target market, it is very crucial that a marketer should gain knowledge about its target market. These knowledge may include their demographics, psychographics, taste, culture, believes, income etcetera. Questions such as “Who are your potential customers?” should be answered. Finally, knowing what communications best facilitate them. The most effective tool is sponsorship. By sponsoring the various types of events such as TV shows, sports, socio-cultural programs etcetera, the company aims to develop its overall image involving the vision, mission and objectives of the company. The other marketing communication techniques affecting vision, mission and objectives of these include the following: Advertisements: Advertisement both in the press and electronic media are very effective measure to develop the overall image of the company as well as these could be made specific to some product or services. For example, Microsoft usually advertises its product through various channels including electronic media, print media etcetera. Conferences and Seminars: The Company can arrange conferences and seminars through which it can develop a positive image of its entity and familiarize the main customers or other relevant people about their objectives and visions/mission. For example, Microsoft CEO Steve Ballmer has recently introduced their new search engine, Bing, at the D conference (Burrows, 2009). Trade Fairs: Trade fairs and exhibitions are other means to achieve the same purpose. These can also be utilized to introduce and develop new products or the existing products in new markets. Logo: Answer.com defines logo as, “A name, symbol, or trademark designed for easy and definite recognition, especially one borne on a single printing plate or piece of type.”(Answer.com). Logos helps in identifying organizations. Companies have different logos usually with different colors, styles, shape etc. Promotion through Internet: Internet has become a very effective tool for developing the overall image of the company as well as to market specific products or services. For example, Microsoft maintains a website to showcase its products. It also advertises its products through various websites. On the other hand, it is managing accounts with social networking websites such as facebook.com and twitter.com. Press Releases: This is a good tool to inform the public about the organization’s objectives and activities and can be very effective at very nominal cost or even without any cost. For example, Microsoft maintains a website for its press release, viewable at http://www.microsoft.com/Presspass. Generally a company may utilize a blend of all the above tools to communicate to the prospective customers and the general public at large about the vision and mission of the company as well its objectives. REFERENCES: Answer.com. (n.d.). Retrieved November 28, 2009, from http://www.answers.com/topic/logo Burrows, P. (2009, June 1). BusinessWeek.com. Retrieved November 28, 2009, from http://www.businessweek.com/the_thread/techbeat/archives/2009/06/the_marketing_o.html Corcoran, E. (2008, June 23). Forbes.com. Retrieved November 28, 2009, from http://www.forbes.com/2008/06/23/gates-technology-innovation-microsoft-gates08-cx_ec_0623gates.html Forbes.com. (2009, October 9). Retrieved November 28, 2009, from http://www.forbes.com/lists/2009/54/rich-list-09_William-Gates-III_BH69.html Marketing Teacher. (n.d.). Retrieved November 28, 2009, from http://www.marketingteacher.com/Lessons/lesson_marketing_communications.htm Microsoft.com. (n.d.). Retrieved November 28, 2009, from http://www.microsoft.com/ MC As A Strategic Function Retrieved November 28, 2009, from The Open University: http://openlearn.open.ac.uk/mod/resource/view.php?id=213114&direct=1 Philip, K., & Gary, A. (2003). Principles of Marketing (10th Edition ed.). New Dehli, India: Prentice Hall of INdia. thocp.net (The History of Computer Project). (n.d.). Retrieved November 28, 2009, from http://www.thocp.net/companies/microsoft/microsoft_company.htm Read More