Microsoft Corporation - Corporate Structure, Products & Services - Research Paper Example

The mission of Microsoft is to create technology that will transform the way people perform their work, play, and communicate with each other. Currently, Microsoft is the leader in software, services, hardware, and other solutions as it has provided greater convenience and better value to customers. The company board of directors team comprises ten individuals and it is headed by Steve Ballmer (Chief Executive Officer). The executive team consists of sixteen competent members managing the company operations over the globe.

Products & Services
The company operates in a globally competitive environment by developing, manufacturing, licensing, and supporting a wide array of software products and services for different computing devices. Microsoft businesses have been divided into five segments; Client, Server & Tools, Online Services Business, Microsoft Business Division, and Entertainment and Devices Division. The Client segment focuses on Windows Product Family and is recognized as its flagship product since they are globally recognized all over the world (Windows XP, Vista, 7, etc.). The Server and Tools segment sells server products and related services and solutions and its major product in this division include Windows Server, Microsoft SQL Server, Visual Video, and Microsoft Enterprise Services. The third segment of Online Service Businesses provides offerings such as email, and online information offerings such as Hotmail and MSN Portals. The revenue generated from this segment mainly comes through advertising. Microsoft Business Division includes Microsoft Office Suites and Desktop Programs. The final segment of the Entertainment and Devices Division sells hardware and among the most prominent include; Xbox 360 video game console, Zune digital music, and entertainment device. The online services and offerings include Hotmail, Bing, and MSN Portals.

Innovation has remained the cornerstone of Microsoft’s success. It has not only sustained itself in stiff competition throughout the globe but has also shown tremendous growth and eventually became a market leader in technological solutions. Their growth model has been based on their exceptional ability to pioneer and embrace technology and enter new geographical markets with relevant products. The corporation has shown unwavering commitment to conduct research and development across a wide array of technologies and platform

Recent History:
Among the company’s recent developments, Microsoft Vista’s launch has gained great appreciation from the customer. It had sold 300 million record copies within one year of its launch. Microsoft Office 2007 with its “Ribbon” interface which is strikingly different from its predecessor has also received widespread recognition from the audience. The massive sales of both products generated record profits for Microsoft in the Year 2007.
The severe recession which brought a wave of distress in all the economies also led Microsoft to make appropriate adjustments. Given that, Microsoft laid off approximately 5000 employees due to sluggish demand in the economy. Microsoft also opened a small chain of Microsoft-branded retail stores for the first time since its inception.

Revenues of Microsoft Corporation declined by 3.28% in fiscal year 2009 due to a stagnant economy. Revenues from the Clients segment declined due to the weak PC market and the company also suffered in the Entertainment and Devices division as PC game and Xbox 360 platform revenue declined. The company also suffered from heavy foreign exchange losses due to the depreciating dollar value. The online Service segment did not perform up to the mark primarily because of decreased online advertising and access revenue. EPS stood at $ 1.62, a decline of 13.37% from the past year. The Debt to Equity ratio also increased as the company become much more leveraged and repurchased its equity.

Core Competencies of Microsoft
• Ability to develop innovative products and refine their existing products. They have not achieved this from thin air but rather there is a developed network of research facilities with a diverse and competent human capital contributing to research and development.
• Microsoft has gained significant brand recognition in such a short period. Its reported operating systems are used most widely with a reported market share of 89% over the globe.
• Microsoft has another competency in acquiring new talent. It has the most diversified workforce which supports its goal of being creative and innovative. Microsoft was deemed the 86th best place to work by Fortune Magazine.

Future Outlook
The research facilities and capital of Microsoft are aiming to develop a new generation of software products through breakthrough technologies. The upcoming years will observe a wave of technological transformation pioneered by Microsoft through Natural user interfaces that will bring profound changes in the way people communicate with technology such as sensory devices, handwriting, and speech recognition. The company is also focusing on bringing technology that will focus on natural language processing; which has the capability and intelligence to respond to the queries posed by the user in a very simple way. All of these competitive edges will allow Microsoft to outperform its competitors and boost its sales in all business segments.