Premium Essay

Case Analysis: Microsoft: Competing on Talent

In: Business and Management

Submitted By bmwz8
Words 1207
Pages 5
Microsoft greatly impacted the way people around the world used computers, and created the goal for every desk in every home to have a computer. A large part of their plan to accomplish this goal was through hiring the smartest and most motivated employees. Steve Ballmer, the company’s COO, was quoted as saying “We want smart people, who work hard, and who get things done.#” To get the best employees, you have to offer the candidate something enticing. Microsoft saw their benefit as giving employees the opportunity to change the way people live and do business, and in turn, change the world. They recruited from the top schools, and when they saw a candidate they liked, they got them. Microsoft was an intense culture, who pushed their employees to be the best. However, as Microsoft matured and experience changes in their company due to explosive growth, they found it increasingly hard to and retain and motivate the extraordinary people that had worked their way up to senior levels within the company.

In Microsoft’s early days, they experienced the benefits of being one of the leaders in technology advancement. One of their best attributes was their reputation that made it appealing to top new developer candidates. Microsoft preferred creative, smart and motivated individuals to experienced and knowledgeable candidates when recruiting for new hires. They therefore recruited the top talent of top universities like Harvard, MIT and Yale. They looked for individuals that were not afraid of working long hours and under demanding constraints. They pushed their employees to the limit. Their “n minus 1” philosophy was an example of this by having one less employee than the work really required. Developers were also given stretch assignments that tested their ability to “sink or swim” in situations that were beyond what they may have been ready to handle at…...

Similar Documents

Premium Essay

The Microsoft Case

...The Microsoft Case Microsoft was investigated for antitrust behavior after a U.S. court of appeals upheld a lower court’s finding that Microsoft used a series of illegal actions to maintain its monopoly in Intel-compatible PC operating systems (95 percent market share). (McConnell, 2012). US District Judge Thomas Penfield Jackson against Microsoft Corporation is a major blow to the largest US software company. Jackson upheld virtually all the contentions of the antitrust division of the Department of Justice, which brought suit against Microsoft for anti-competitive and predatory practices. Judge Jackson's finding of fact is unequivocal about Microsoft's crude and deliberate efforts to use its monopoly position in PC operating systems to gain control over other areas of the lucrative software industry, especially those related to the Internet and e-commerce. As the Wall Street Journal noted in its news report, "the judge came away convinced that the software company has behaved more like a thug in its dealings with competitors and customers." (McLaughlin, 2011). I do agree that Microsoft was trying to gain monopoly power in the computer software industry. Evidence that supports this are supported by the following facts: 1) During that time, Microsoft developed an entire range of products under the Microsoft Office that would cater to the various requirements of professionals in every field - Microsoft Excel, Microsoft Word, Internet Explorer, Windows Media Player,......

Words: 870 - Pages: 4

Premium Essay

Case Study Analysis: Ge’s Talent Machine

...Case Study Analysis: GE’s Talent Machine Brandie Buffins Grand Canyon University HRM – 635 Acquiring, Developing, and Leveraging Human Capital September 19, 2012 Case Study Analysis: GE’s Talent Machine General Electric (GE) has been well known and valued for embracing quantifying talent as well as rising talent when it comes to leadership. This organization makes sure that this is a key factor when it comes to their business planning. GE requires learning sessions all year long, which entails outside organizations along with GE leaders to allocate amongst one another the best ideas out there for staff enhancement opportunities. Staff receives support in attending such training programs, spending at least 1billion dollars a year. Such cost is seen as an investment from GE on their staff as it is seen development of skills and qualities essential to growing into a good successful leader which ultimately benefits GE. GE has been polishing a succession planning processes at a level unmatched by any other organization to keep performance levels far above the ground. We all have known about GE’s infamous yearly, “‘Session C’ leadership and organizational talent reviews, which are designed to identify individuals suited for bigger roles or individuals who can be groomed to take on higher positions. The annual intensive review has enabled GE to announce successors the same day leave notifications are delivered. Constantly reviewing the talent pool on a variety of......

Words: 1487 - Pages: 6

Free Essay

The Microsoft Case

...The Microsoft Case November 17, 2011 Week 3 Paper Introduction…………………………………………………………………………...02 The Case...……......................………….………………….………………………… 02 Conclusion………………………………………………………………………....... 03 References………………………………………………………………………....... 04 Introduction The purpose of this paper is to discuss the Microsoft Monopoly case and how it relates to what we have been learning in our Economics class. The Case In 1999 Microsoft was accused of violating the Sherman Act, which was passed in 1890 with the purpose of maintaining competition in the marketplace by opposing the combination of entities. Microsoft was positioned as the largest publisher of operating systems in the world and this was their third anti-trust trial in the United States. The charges of the alleged monopoly were whether Microsoft were allowed to bundle Internet Explorer with their Operating Systems. The major theory was that they were going to turn into the sole internet browser supplier because it came bundled with every new personal computer and every Microsoft operating system, causing a monopoly. By definition this simply is not the case as Microsoft were not the only producers and sellers of internet browsers, nor was there any blocking of new entries to the market. There were also plenty of close substitutes back in 1999, with the internet browser Netscape actually far more popular than Microsoft's Internet Explorer. There was a perception by Microsoft's......

Words: 646 - Pages: 3

Free Essay

Microsoft Analysis

...Microsoft Industry Trends Microsoft One Microsoft Way Redmond, Washington 98052 +1-(425)-882-8080 9/19/2012 Microsoft One Microsoft Way Redmond, Washington 98052 +1-(425)-882-8080 9/19/2012 Contents List of Figures 2 Executive Summary 3 Purpose Statement 4 Business Highlights 4 Microsoft Divisions 5 Windows Marketplace 5 Competitive Marketplace 5 Findings 7 Recommendations 7 Conclusion 8 Appendix 1: Microsoft’s Revenue Change by Division from 2010 - 2012 9 Appendix 2: Duration to Reach Milestone of 100,000 Apps 10 References 11 List of Figures Figure 1. The figure displays the number of apps in Apple, Google, and Microsoft’s individual app stores over a two-year period. Executive Summary Microsoft is self-aware of the gradual decrease of overall PC sales as the market heads toward mobile devices such as smartphones and tablets. While not an imperative concern today, this trend is worthy of attention when looking at the future of the company. Senior Management sees an opportunity for growth under the Entertainment & Devices division, since it has steadily increased its revenue output over the course of its inception. With the release of the Lumia smartphones and Surface tablet coming in Q2 of this year, Senior Management looks to gain ground in each device’s respective market share. In order to increase sales, management proposes that Microsoft conduct a feasibility study on its Windows App......

Words: 1818 - Pages: 8

Premium Essay

The Microsoft Case

...The Microsoft Case Microsoft was being investigated for antitrust behavior because the company was suspect of violating the Sherman Act and obtaining monopoly power in the PC market. By doing this accusation the court had established that Microsoft Windows system was used on over 80% of the PCs that were Intel-based. To have such a higher percentage the pure monopoly was created by controlling the entire market of the product. This situation had been occurred because the firm had the patent of the product and the exclusive license to sell it. Windows was created to be an individual system of operation, and by integrated it with internet explorer, it created high barriers of entry into the PC market, by blocking their competitors Netscape to become a platform that will compete with Windows. Microsoft was also accused of anticompetitive practices by limitation the use of other companies’ products in their system of operation that were on the market. The Court also took in consideration if Microsoft acted like a monopolist. Microsoft argued that its behavior proves that it didn't act like a monopolist, but the Appellate Court disagreed. "Tellingly, the District Court found that some aspects of Microsoft's behavior are hard to explain unless Windows is a monopoly product," the decision reads. "For example, the company set the price of Windows without considering rivals' prices, something a firm without a monopoly would be unable to do." The ruling cited more examples, but the...

Words: 513 - Pages: 3

Premium Essay

Microsoft Case

...The Microsoft Case Investigation into Microsoft began in 1991 by the Federal Trade Commission under suspicion that the company broke anti-trust laws and engaged in coercive activities prohibiting competitors from entering or participating equally in the market. “The plaintiffs alleged that Microsoft abused monopoly power and monopoly market structure on Intel-based personal computers in its handling of operating system sales and web browser sales “(The Microsoft Monopoly, 1998). The primary concern of the Federal Trade Commission and eventually, the Department of Justice, was whether Microsoft should be able to bundle its own web browser, Internet Explorer with the Microsoft Windows operating system. In 1998, The Department of Justice brought an antitrust suit against Microsoft. The suit included “twenty U.S. states suing Microsoft for illegally thwarting competition in order to protect and extend its software monopoly” (United States v Microsoft). In the end, “Judge Thomas Penfield Jackson ruled that Microsoft, with its Windows program, possessed monopoly power over a particular kind of operating system” (Rothstein, 2001). Later, the ruling was over-turned in the D.C. Circuit Court of Appeals and in September 2001, the DOJ announced that it was no longer seeking to break up Microsoft as previously ordered by Judge Jackson. It would instead impose less of a penalty. I agree that this bundling allowed Microsoft monopolized success over other browsers attempting to compete...

Words: 1431 - Pages: 6

Premium Essay

Team 4 Microsoft Analysis

...Microsoft Corporation Future Business and Economic Prospects Analysis by Team 4 Group Members: Lewis Bullock Daniel Fuller Erica Jaume Tim Trenkle Rebekah Vandegrift Date of Submission: April 21, 2013 Table of Contents 1. Executive Summary 5 2. Company Introduction 6 3. Financial Analysis 7 3.1. Statement of Cash Flow Analysis 7 3.2. Liquidity Ratios 12 3.3. Asset Management Ratios 13 3.4. Debt Management Ratio 14 3.5. Profitability Ratios 15 3.6. Market Value Ratios 17 3.7. Du Pont Equation 18 3.8. Microsoft to Industry Analysis 18 4. Weighted Average Cost of Capital (WACC) 19 5. Future Cash Flows 22 Net Income before Extraordinaries 25 Net Income Growth 25 Depreciation, Depletion & Amortization 25 Depreciation and Depletion 25 Deferred Taxes & Investment Tax Credit 25 Deferred Taxes 25 Other Funds 25 Funds from Operations 25 Extraordinaries 25 Changes in Working Capital 25 Receivables 25 Accounts Payable 25 Other Assets/Liabilities 25 Net Operating Cash Flow 26 Net Operating Cash Flow Growth 26 Net Operating Cash Flow / Sales 26 2010 – 2012 Investing Activities 26 Capital Expenditures 26 Capital Expenditures (Fixed Assets) 26 Capital Expenditures (Other Assets) 26 Capital Expenditures Growth 26 Capital Expenditures / Sales 26 Net Assets from Acquisitions 26 Sale of Fixed Assets & Businesses 26 Purchase/Sale of Investments 26 Purchase of......

Words: 18731 - Pages: 75

Premium Essay

Microsoft Case

...Proft 516 1054 1516 656 1118 -462 Microsoft Revenue Recognition Policy Effects Without considering the tax effect, the unearned revenues are down to 0 every quarter and the unearned revenues are transferred to retained earnings. 1996 Q1 Q2 Q3 Q4 Q1 Q2 1997 Q3 Q4 Q1 Q2 1998 Q3 Q4 Q1 Q2 1999 Q3 Q4 Revenue Uneared Allocation of Uneared Revenue 2085 307 2287 495 38 2311 545 38 62 2367 560 38 62 68 2405 651 38 62 68 70 2808 1013 38 62 68 70 81 3365 1285 38 62 68 70 81 127 3358 1418 38 62 68 70 81 127 161 3334 1671 38 62 68 70 81 127 161 177 3792 2038 3984 2463 4152 2888 4193 3133 5195 3552 4595 4195 5764 4239 62 68 70 81 127 161 177 209 68 70 81 127 161 177 209 255 70 81 127 161 177 209 255 308 81 127 161 177 209 255 308 361 127 161 177 209 255 308 361 392 161 177 209 255 308 361 392 444 177 209 255 308 361 392 444 524 2670 1569 7333 1569 Total Allocation Missing Uneared Revenue Total Revenue Impact Pre-Tax Profit 0 2085 0 38 457 2744 457 100 445 2756 445 168 392 2759 392 238 413 2818 413 320 693 3501 693 446 839 4204 839 607 811 4169 811 784 887 4221 887 955 1083 4875 1083 1148 1315 5299 1315 1387 1501 5653 1501 1678 1455 5648 1455 1989 1563 6758 1563 2306 1889 6484 1889 Q3-4: The financial reporting strategy of Microsoft consists in lessening their results through two main means. First of all, Microsoft decided not to capitalize their research......

Words: 710 - Pages: 3

Free Essay

Strategy for Competing with Microsoft: Fight or Flight?

...--------------------- Lecturer, MBA Program, BRAC University Submitted By: S. N. S. Date of Submission: 14/08/2013 Case 2.1: Strategy for Competing with Microsoft: Fight or Flight? Question-1: Was it ethical for Microsoft to force users of its Windows operating system to use its internet browsers as well by bundling the programs together and preventing PC manufacturers from making other software available to computer buyers? Was Microsoft’s behavior toward its rivals ethical? Why or why not? Answer: By bundling its internet browser and other programs together Microsoft was forcing its buyers to use their browser Internet Explorer and other programs like Windows Media Player. It was also preventing other PC manufacturers from making similar software which the users could have used as a better alternative to the Microsoft software. As the programs were bundled together, the users were forced to pay for the software they didn’t want to use and they were not allowed to choose other software though they were better alternative than the Microsoft programs, some of these programs were open source and free of cost.As we know that consumers have four types of right and under “The Right to Choose” users should have the right to choose any program they want, not the internet browser of Windows operating system. So it was unethical for Microsoft to force users of its Windows operating system to use its internet browsers as well by bundling the programs together and......

Words: 970 - Pages: 4

Premium Essay

Microsoft Case Analysis

...Microsoft Displays The objective of this marketing research study is to investigate whether the displays of Neolux Corporation are as effective as they claim. This study will determine whether or not the displays are capable of increasing sales. This study will also determine if the displays are appealing for retailers as well as consumers. This study will show conclusive evidence of the displays sales capability. The study will show conclusive evidence of appeal to retailers. * Market Research steps Marketing Research Steps: 1. Establish the need for marketing research: * Determine whether or not the displays are capable of increasing sales. * Determine if the displays will be appealing for retailers as well as consumers 2. Define the research problem: * Conduct the required research to determine the sales capability of the displays * Microsoft needs to assess the amount of appeal the displays provide for consumers * Microsoft needs to assess the amount of appeal the displays provide for retailers 3. Establish research objectives: * Determine who would purchase a Segway and what they would pay for a Segway from regular consumers, workers, and industrial venues through various forms of media. These forms of media include telephone interviews, email, and direct response questionnaires. 4. Determine the research design: Descriptive * Identify which retailers find the display appealing * Among the identified retailers select......

Words: 364 - Pages: 2

Premium Essay

Talent Gap Analysis

...Identifying Talent Gap in Organization Njoku Judith C. The war for talent continues as baby boomers retire. This has brought about an increased talent demand that exceeds talent supply. As new technologies and business needs emerge, organizations have recognized that their existing individual employee competencies is not enough to see them through currently and in years to come, hence the need to fill the skill gaps and remain an employer of choice. Identifying Talent Gaps in Organization The aftermath of downsizing or restructuring an organization due to economic crisis has challenged business executives and leaders on how to solve the puzzle of bridging skill gaps in order to meet up with the fierce market. This requires the ability to attract, hire, develop and retain a qualified and agile workforce using Human Resource analytics and metrics (Pace, 2010). It involves having the right capabilities, with the right competencies in the right position and at the right time (Silzer & Dowell, 2010). Talent management analytics help organizations to uncover the performance gap between high potentials and other workforce by identifying individual strengths and weaknesses in alignment with business strategy (Davenport, Harris & Shapiro, 2010). Techniques for Identifying Talent Gaps The various talent gaps identification techniques......

Words: 931 - Pages: 4

Premium Essay

Microsoft Case

...Management Preparatory Assignment Case Study 2 1. As Steve Ballmer, you are faced with managing consumer perceptions of Windows 7 in the wake of the public relations failure of Vista. In devising the advertising campaign, what would the ad message focus on during the launch of Windows 7? Consider the following questions as you formulate an answer. Should special consideration be given to restoring negative perceptions of the Microsoft brand? Should marketing focus on the features and qualities of Windows 7, or address its improvements over Vista and it's superiority to a Mac OS in the advertising campaign? Should Microsoft highlight Windows 7's new features or its usability? 2. In terms of pricing, should Microsoft vary the price for those upgrading their current operating system from XP or Vista versus those purchasing the operating system on a brand new computer? 1. As it is described in the case, Microsoft was facing major difficulties in the wake of the launch of Windows 7. The main problem was that the previous Operating System, Windows Vista, was a commercial and critical failure, causing Microsoft to constantly losing Market shares. Microsoft had to understand what made Vista such a failure in order to recover from the previous debacle. One of the main mistakes made by Microsoft was thinking that innovation (numerous new features such as highly-hyped Aero) brought by the new system would easily outweigh the potential losses XP system. Only, Microsoft did not......

Words: 1106 - Pages: 5

Premium Essay

Microsoft: Competing on Talent (a)

...Microsoft: Competing on Talent (A) In the summer of 1999, a front page Wall Street Journal article was attracting attention on the Redmond campus. Under the headline “As Microsoft Matures, Some Top Talent Chooses to Go Off Line,” the article reported: “Tired of grueling deadlines, frustrated by the bureaucracy that has accompanied Microsoft’s explosive growth, or lured away by the boom in high-tech start-ups, dozens of the company’s most capable leaders, all around 40, have opted out—at least temporarily . . .”i (See Exhibit 1 for the article’s list of senior level departures.) Steve Ballmer, the company’s recently appointed president and COO, was quoted as saying that some of the departures were voluntary and some were not, opening opportunities for fresher, smarter replacements. “We have a bench that is very deep,” he said. “We have people who are fired up—driven—to lead the next generation.”ii Yet despite the positive outlook, Ballmer clearly recognized that Microsoft had to change or adapt some of the human resource practices that had allowed it to assemble and retain what CEO Bill Gates proudly called “the best team of software professionals the world has ever seen.” Just six weeks before the WSJ article was published, Ballmer had announced a package of changes that sweetened salaries, allowed more frequent promotions, and softened some of the pressures that had long been part of the ”hard-core” Microsoft culture. Still, there were some who wondered if the......

Words: 8943 - Pages: 36

Premium Essay

Microsoft Case

...Teaching Notes: Strategies Used by Microsoft to Leverage its Monopoly Position in Operating Systems to Internet Browser Markets Case Summary Microsoft is the world’s largest supplier of computer software. It has dominant market share of PC operating systems with its Windows system. High barriers to entry prevent significant competition in the operating systems market. The primary barrier is that a large number of software programs must be able to interface with any operating system to make it attractive to end users. It would be extremely difficult for any competitor to create a new operating system and create or encourage the creation of completely new software to compete with Windows. However, the development of Internet Browser programs, specifically Netscape, threatened this barrier, by allowing software developers to create software that could run using the browser software as a platform for the program. Therefore, software could be created that could still be used with Microsoft Windows, but would not have to be. Microsoft recognized this development as a threat to its operating system monopoly. Initially Microsoft attempted to divide the market with Netscape, but Netscape refused. To defend its operating system, it set about to overtake Netscape with its own internet browser, Internet Explorer. To defeat Netscape, Microsoft leveraged its operating system monopoly to gain market share in the internet browser market. Microsoft forced computer......

Words: 1216 - Pages: 5

Premium Essay

Microsoft Analysis

...ABSTRACT: This assignment tries to assess the current market status of Microsoft Corporation. As well this assignment will try to assess its current market position as per its business units, functionality, and also its different operations sectors as well its strategies for its rivals. Also this assignment will do financial comparative analysis study and benchmarking with nearest rivals like apple Inc., Google Corporation and Oracle Inc. and will applied to discover key factors for proposed area of developments and further improvements. Here the analysis tools like Porter 8-force analysis, PESTEL-analysis will be applied and the expected outcomes of analysis and benchmarking with nearest rivals will be incorporated in an analysis of Microsoft followed by the recommendation for better improvements and future business benefits and betterment of company strategy. INTRODUCTION: Overview of Microsoft Corporation: Microsoft gave new direction to new age computing in every aspect. It is the largest software corporation in the world measured by revenues. The company was founded by Bill Gates and Paul Allen on April 4, 1975. The Company generates revenue by developing, manufacturing, licensing, and supporting a wide range of software products and services for many different types of computing devices. The Company’s software products and services include operating systems for personal computers, servers, and intelligent devices; server applications for distributed computing......

Words: 1412 - Pages: 6