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Microsoft in Japan - Term Paper Example

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The essay explores the pathway to starting a business including the challenges and opportunities that are encountered along the way. The company on the limelight is Microsoft as it sought to expand its business to Japan…
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Microsoft in Japan
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Download file to see previous pages This paper illustrates that Bill Gates and Paul Allen founded Microsoft Company in 1975. The company’s headquarters is in the US and they develop, sell, support, manufacture, as well as license computer soft wares. The company has over one hundred thousand employees and the computer soft wares they sell include the Microsoft office, windows operating software and internet explorer browser. The multinational company also sells hardwares such as phones, tablets, and the X-box games console. The company estimated its revenue to be around $77b by 2013. The Knowledge Assessment method is used to analyze challenges and opportunities that the company encounters following investment in a foreign company. Like in the case of a clothing line company that expanded its market globally, it faced many challenges. Being a small business, it should have first invested in its educating the employees on possible challenges and how to deal with them. The government policies were very different from their home country, and they had difficulties adjusting to the forms of taxes as well as importation policies. The company was also not aware of taxes and quotas that the foreign government had imposed on the sale of imported clothes and they ended up making a loss instead of expected profits. In analyzing the industry, organization, as well as investment analysis in Japan, the costs of starting a business in Japan have reduced drastically since the domestic recession and resulting price deflation of the past 8 - 10 years. Office rents and the values of land have also declined since the bursting of Japans property bubble toward the end of the 1980s. After the domestic recession, many companies in Japan reduced the summer and winter bonuses that they had traditionally paid to their employees. ...Download file to see next pagesRead More
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