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Financial Management: Comparing Google’s Business Model/ Financial Management with Microsoft

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Running head: FINANCIAL MANAGEMENT

Financial Management: Comparing Google’s Business Model/ Financial Management with Microsoft
By: Zanthe Gillison
Strayer University Financial Management: Comparing Google’s Business Model/ Financial Management with Bing Google is doing bigger and better things in the world of internet media searching. Despite the challenges with other big names in Internet technology, Google and Microsoft have still remained to be leaders. In this paper, I will show comparison views of Google’s business model and financial management with Microsoft’s launch with Bing. Taking a look into Google and Microsoft core business, leading products and services, management and leadership styles, and innovation track record we will have the opportunity to compare the two businesses in and appendix.
Google is known to be the leading internet media website’s in the world. Google and Microsoft are well-known internet information websites. Although, Microsoft is in business for more than searching the internet, Microsoft is known to be the world’s leading producer and marketer of computer software.
Google’s product line and services are for Google products only. Google’s products include services that will enhance your desktop features such as Google Chrome and Google desktop which is an organizational tool that gives the customer the option to design and edit photos, organize personal and business information, search, and communicate with others. Google offers a toolbar that can be added to makes web browsing with Internet Explorer and Firefox easy to use. Google products are compatible with mobile phones such as Nexus One and Droid that runs the Android operating system. (Google Inc., 2012)
Now let’s take a look at the income statement and balance sheet for Microsoft and Google for the last 52 weeks and 12 months.

Google Inc. Microsoft Income statement for Google and Microsoft for 2011-2012
Liquidity measurement ratio:
-Current Ratio
5.9
2.9
Profitability indicator ratios:
-Return on assets
-Return on equity
14.6%
17.3% (5 yr. average)
21.6%
42.0% (5 yr. average)
Debt ratio:
-Debt ratio
0.04
.11
Operating performance ratio:
-Fixed asset turnover ratio
.6
.7
Cash Flow indicator ratio:
-Dividend payout
22.0
23.8
Investment valuation ratio:
-Price/ Earnings ratio
21.3
10.6

http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=MSFT, http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=GOOG

According to Missouri State University, (Microsoft case studies, 2007) the personal level of response to service with Google was difficult to determine, however Microsoft insured that you could always receive an immediate response considering they are looking for that longtime partner, and personal relationship with their customers. Google Chrome is a one of the leading and fast growing web browser in the world. Google has made it to be fast-efficient, fresh, balanced with the aspects of easy start-ups and easy browsing. (http://www.slideshare.net/abail019/productservice-analysis-and-strategies-of-google-inc, 2012) Google Inc. is on the rise, steadily pushing its competitors out the way. Attempting to sweep the internet media market off it feet, Google has simply decided to sit back watch.
In conclusion, we compared the income and balance statement of the two companies a see that NASDAQ:MSFT is not doing well in the stock market and on the other hand NASDAQ:GOOG is doing well. Google and Microsoft are similar businesses in internet technology. Google is into being the largest search engine in the world while Microsoft/Bing is also the largest internet producer of computer software. In my personal opinion there is no comparison with the two companies.

References
"GOOGLE INC (NASDAQ: GOOG) | Ratios and Returns." GOOG. Web. 19 Mar. 2012. .
"MICROSOFT CORP (NASDAQ: MSFT) | Ratios and Returns." MSFT. Dec. 2011. Web. 19 Mar. 2012. .
Missouri Southern State University Students Use Online Collaboration to Improve Study Habits and Learning Outcomes." Microsoft Case Study: Microsoft Office Outlook 2007. Web. 19 Mar. 2012. .
"Product/Service Analysis and Strategies of Google Inc." SlideShare. Web. 19 Mar. 2012. .

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