...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...
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...Financial Management Financial Management Valerie Cazeau Professor Roy Viar Contemporary Business Strayer University Abstract This assignment examines Google as one of the leaders in the information searching industry and its main competitor Microsoft with its introduction of Bing. The examination of these two organizations stem around their business models and their most recent financial statements which include, specific financial ratios, core business ideas, leading services, management styles and their innovation tracks. In addition, this assignment will analyze which company would better survive a major recession, which organization is better to invest in and provide the guidelines for doing so. Introduction To start, the financial ratios of Google and Microsoft will be listed. By doing this, it will create a great platform to analyze the companies’ differences and ultimately conclude which company shows the best resistance to a major recession and ultimately which company may be best to invest in. Here are the six main financial ratios that will be analyzed for Microsoft and Google. Microsoft Google Current Ratio 2.9 5.6 Return on Assets 21.9% 13.9% Return on Equity 39.5% 17.5% Debt Ratio .20 .08 Fixed Asset Turn Over Ratio .7 .6 Dividend Payout Ratio/Cash Flow Per Share $3.12 $34.90 Price/Earnings Ratio 3.64 18.0 (Google Inc. and Microsoft Corporation, 2011. Forbes) Microsoft started...
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...Financial Management Financial Management June 4, 2012 Brenda A. Pitts Professor: Dr. Andrea Banto Abstract The following research is a look at Google, a leader in internet information searching, and its comparison to another big name in Internet technology, Microsoft, which launched Bing. The contents will provide a comparison and contrast of each company’s business model and financial management including an explanation of their financial ratio analysis, which will include a comparison and identification of both company’s most recent annual report with six specific financial ratios and of three (3) primary financial-based guidelines that should be used when selecting one of these two companies to invest in. This report will, also, give an explanation of what the profitability ratios can tell about Google and Microsoft’s performance and how that information would influence investing decisions. Financial Management What are the calculation / identification of Google and Microsoft’s most recent annual report for the six (6) financial ratios listed below? Liquidity Measurement Ratio (Current Ratio) Starting with the liquidity measurement ratio, which is also know as the current ratio, shows how each company is able to take its short-term assets and pay off its short-term liabilities. Short-term assets are classified as cash, marketable securities, accounts receivable, and inventory. Short-term debts consist of...
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...A Comparison of Business Models and Financial Management of Google and Microsoft Anitra Williams-Bender Jackson State University Abstract Google and Microsoft are two of the world’s leading providers for technological services and products. Both companies offer superior services such as search engines, e-mail, and other services designed to connect users with the rest of the world. Although these organizations may have similar products and services, there are limitless factors that set them apart from one another. The business models and financial management strategies for Google and Microsoft differ, directly correlating with the success of the company. Financial ratios help to indicate the success or failure of a company’s attempt to gain profit by selling products and recruiting investors. Annual reports track the expenditures, assets, and net income for Microsoft and Google. Leadership styles, new products and services, and company goals are influenced by annual reports. The technological competition continues, as both of these companies attempt to increase and retain revenue, beat out their competitors, and attract more and more customers. The core business of an organization outlines the most important and essential activities to the company. This sector of business activity fulfills the purpose for the organization, and it is needed for the organization to function properly. The core business can be viewed as the foundation for the organization; aspects of the...
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...Financial Management: Microsoft and Google BUS508 Contemporary Business December 12, 2011 The purpose of this paper is to compare and contrast Microsoft’s and Google’s business model and financial management. Microsoft and Google don't share a stage often, being increasingly fierce competitors in areas such as Web search, mobile, and cloud computing, but both are big names in internet technology. Since 1975, when Bill Gates left college to start Microsoft with his friend Steve Ballmer, the company has been responsible for some of the biggest changes in the world of software and technology. Over nearly four decades, Microsoft has developed a broad range of products and services, and the company continues to focus on growing markets for its most popular creations, as well as the new products it launches. Microsoft is perhaps best known for its popular operating system, Windows. It was revolutionary when it was launched, and the many developments and improvements that have been provided by all the subsequent versions have cemented it’s position as the number 1 operating system in the world. Windows 7 is the latest offering, and looks set maintain the software’s popularity, even in an increasingly competitive market. Windows isn’t the only product designed by Microsoft that significantly improved the productivity of the personal computer; their Office suit of products has also become one of the most popular pieces of software in the world. Individually, or as a complete...
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...Calculate or identify from each company’s most recent annual report the six (6) specific financial ratios listed and provide as an appendix to the paper. Liquidity measurement ratio: Current ratio The current ratio is a popular financial ratio used to test a company's liquidity by deriving the proportion of current assets available to cover current liabilities. The concept behind this ratio is to ascertain whether a company's short-term assets are readily available to pay off its short-term liabilities Profitability indicator ratios: Return on assets This ratio indicates how profitable a company is relative to its total assets. The return on assets (ROA) ratio illustrates how well management is employing the company's total assets to make a profit. The ROA ratio is calculated by comparing net income to average total assets, and is expressed as a percentage. Profitability indicator ratios: Return on equity This ratio indicates how profitable a company is by comparing its net income to its average shareholders' equity. The return on equity ratio (ROE) measures how much the shareholders earned for their investment in the company. Operating performance ratio: Fixed asset turnover ratio This ratio is a rough measure of the productivity of a company's fixed assets with respect to generating sales. This annual turnover ratio is designed to reflect a company's efficiency in managing these significant assets. Cash flow indicator ratio: Dividend payout ratio This...
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...Financial Management ------------------------------------------------- BUS508 Dr. Etido Akpan, Professor Financial Management Financial Statements and annual reports are crucial tools for evaluating a business and deciding whether or not to invest in that company. Google and Microsoft are two major corporations that lead Internet technology and information retrieval. Both corporations list their financial information on their respective websites (www.google.com and www.microsoft.com) on their Investor Relations pages for easy access. Google Incorporated (Google) was founded in 1998 by Larry Page and Sergey Brin and was incorporated on September 04, 2008. It was named as a play on the term “googol” which is the mathematical word for the number 10 followed by 100 zeros or 10 100. Google started primarily as a search engine, which is a website that searches the Internet for other websites based on terms entered by the user. Other lines of business include advertising, apps (such as Google Docs, Calendar, and email which Google calls Gmail), mobile and the Android operating system, Chrome (Google’s answer to the internet browser), along with various other products. There are approximately 32,400 full time employees with the majority split between research & development and sales & marketing, the remainder being in general or admin and operations ("Company," n.d.). Advertising is Google’s primary source of income, generating 96% of their 2011 revenue, with the...
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...In contrast, Microsoft is widely centered in the software support for businesses worldwide. In addition, Microsoft has successfully launched other products and services such as their search engine Bing, mobile phone, and Windows Phone software support, and social media- Skype. Google focuses on innovation practices, most recently, the addition of “Search plus your world” that will enable users to integrate their Google+ account and find friends in their social network. (Google Annual Report 2011) Google is also focusing on innovating practices to enlarge its dormant market share and incorporate “semantic search” a better way to match queries through word association, helping the site better understand the users query. Google also launched Google+ a social network comparative to Facebook. Finally, the Company recently acquired Android under its “Google Mobile”, a base of its mobile operating system. Currently the Android growth has been “impressive. Over 250 Million Android devices have been activated globally” (Google Annual Report 2012) By Contrast, Microsoft has continued to diversify its products for businesses to increase their efficiency and productivity including Windows 7, Office 2010 and Sharepoint. (Microsoft Annual Report 2011) Microsoft also recently launched “Office 365”, a subscription based offering of their cloud services and “Kinect” that increased the gaming features and Xbox 360. To stay in competition with Google, Microsoft launched “Bing” as their search...
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...| Office 365 vs. Google Apps | | Nowadays, traditional official environment is not enough for people doing works. People need more flexible time and sites in order to have communication with their colleagues instead of just sitting in the office. With the Informational Technology boost, Microsoft and Google provide their products that change our thinking about working in the corporation, such as new types of handing up work report, updating meeting information and communication with co-workers. Microsoft Office 365, introduced on 2010, is a kind of office software based on cloud and desktop application. It provides anywhere access to emails and calendars, Office Web Apps, instant messaging, conferencing, and file sharing. Its products include Microsoft Exchange Online, Microsoft SharePoint Online, Microsoft Lync Online, Office Professional Plus and Office Web Apps. Google Apps, developed in 2006, is a service from Google providing independently customizable versions of several Google products. It has six years history when started by creating Gmail in 2006. Through six years developing, Google Apps has quite strong features by following products: Gmail, Google Apps Sync, Google Calendar, Google Contacts, Google Drive, Google Groups, Google Tasks, Google Voice, and Google+. * Feature Review: Since most of the features are similar in Office 365 and Google Apps, there are still some differences which could affect users experiencing those two...
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...Comparing Microsoft and Goggle Vershawn Kirksey Professor: Hines Business 508 June 8, 2012 In today’s society many people are using the internet more and more to shop online, handle business transactions and surf the web for what interests them. Microsoft and Google are known to many people as internet giants. The two companies compete for business in the internet world by offering similar online business services. Microsoft also offers an array of computer products to consumers and businesses such as Windows 7, Microsoft office and MSN. Google’s main focus of business is its search engine that many people use today to surf the internet. This paper will compare and contrast Microsoft’s and Google’s business model, financial management system and explain which company could better withstand a major recession and at the same time, compare their financial ratios and decide which two companies that would be better to invest in. Microsoft was started in 1975 by Bill Gates and Paul Allen who developed an interpreter for basics programming language systems that has contributed to Microsoft’s being so successful. Microsoft is one of the largest technology companies in the world which specializes in developing and licensing computer software products such as Windows 7, Microsoft office, MSN and Bing. Microsoft’s management team is led by chief executive officer Steve Ballmer who also serves on the executive board, chairman Bill Gates, seven directors, and one...
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...Financial Management 1. Google, a leader in Internet information searching, is being challenged by other big names in Internet technology. Compare and contrast Google’s business model and financial management with Microsoft’s, which launched Bing. Access Google and Microsoft’s annual reports and financial statements at their Websites. In addition to the text, you may access some other sites and or sources to understand the how to analyze an income statement and a balance sheet. For example, the following sites can provide guidance: 1. Calculate or identify from each company’s most recent annual report the six (6) specific financial ratios listed and provide as an appendix to the paper. 1. Liquidity measurement ratio: * Current ratio Google: 5.6 times Microsoft: 2.9 times 1. Profitability indicator ratios: * Return on assets Google: 15.6% Microsoft: 23.6% * Return on equity * Google: 19.5% * * Microsoft: 44.2% 1. Debt ratio: * Debt Equity ratio Google: 0.08 Microsoft: 0.2 1. Operating performance ratio: Asset turnover ratio Google: 0.6 Microsoft: 0.7 1. Cash flow indicator ratio: * Dividend payout ratio Google – Nil Microsoft- 0.64/2.69 =23.7% 1. Investment valuation ratio: * Price / Earnings ratio Google: 20.3 times Microsoft: 9.5 times 2. Compare and contrast each company’s business model:...
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...Financial Management Enid K Bukambu Dr. Figiel Contemporary Business 03/11/2012 Businesses have many areas to manage to keep things working smoothly. Finance is just one of these areas. Because finances impact virtually everything else the company does, it's probably the most important thing a manager must address. This paper discusses two companies, Google and Microsoft and their financial performance and how recession has affected them. Google is one of the leaders in internet information searching and the main services the company provides are search advertising, display advertising, mobile advertising and providing tools for publishers. Not only are these programs the backbone of the company but they’ve also enabled entrepreneurs and publishers around the world to grow their businesses and become successful. Google succeeds when the tools that it has built are useful to the users, their advertisers and other partners. And of course, the root of their business is to provide useful and relevant information to the millions of people around the world who rely on Google search to provide the answers they are seeking (Business overview, 2011). The company’s free easy-to-use tools help local business owners manage their presence on the web and grow their services. Any business can use Google’s online local database called Google Places to add a new listing or edit an existing one (Business overview, 2011) . One of Google’s leadership styles is to let your followers...
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...GOOGLE VERSUS MICROSOFT: CLASH OF THE TECHNOLOGY TITANS The growth and advancement in technology has continued to create competitions among its users. This case study between Google and Microsoft, two of the most prominent companies clearly illustrates this fact. The struggle continues to increase and fierce too as each day passes by. While Google has dominated the internet, Microsoft has dominated the desktop. Comparing the business strategies and business models of Google and Microsoft, one can clearly see the sharp dichotomy and why this conflict will shape our technological future. “Google began as one Search Company among many. But the effectiveness of its PageRank search algorithm and online advertising services, along with its ability to attract the best and brightest minds in the industry, have catapulted Google to global prominence. The company’s extensive infrastructure allows them to offer the fastest search speeds and a variety of Web-based products” (cf Lauderion MIS Pg 253). Google simply put has pioneered cloud computing. Microsoft on other hand, through its Windows operating system and office desktop productivity applications which are used by millions of people has achieved unimaginable success. Basically, Google is a multinational public cloud computing, internet search and advertising technologies corporation. Google hosts and develops a number of internet-based service and product, and generates profits primarily from advertising through its Ad Words...
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...MICROSOFT’S SEARCH | STRATEGIC MANAGEMENT | ASSIGNMENT # 04 | Submitted by: 1. Sheheryaar Mahmood 2. Amna Aslam 3. Madeeha Tahir Class: MBA-IV (F) Submitted to: Sir Suhaib Baluch Date: 12.03.2012 MICROSOFT’S SEARCH SUMMARY * In September 2008 the executives at Microsoft looked at alternatives to improve the company’s position. * The company got serious about search five years back, made great progress, but still lacks behind Google. The division leader is looking for a new ‘game changer’ move which helps then catch and pass Google. Microsoft in 2008: * Since its origin, Microsoft has grown to sell a complex line of software, services, and hardware. * The historical heart of the company was its line of operating systems for PCs, which was introduced in 1980. IBM had come to Bill Gates looking for someone to build a PC operating system. Gates purchased an OS and modified it to meet IBM’s needs, and named it MS-DOS. Rights to use this system were sold to IBM. * During the 1980’s this system dominated a rapidly growing market for PCs. * By 1990, clone makers (Compaq, Dell, etc.) were licensing MS-DOS for $15 per PC. Microsoft’s OS ran 90% of the worlds PCs, while Apple had a 7% share. * Apple launched Macintosh in 1984, and Microsoft introduced Windows 1.0. In 1990 Windows 3.0 was introduced, then Windows 95, 98, XP and finally Vista in 2007. * Development costs rose from $500 million for Windows 95 to $10 billon...
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...SWOT ANALYSIS OF GOOGLE [pic] GOOGLE’S BUSINESS STRATEGY: AN EMPIRICAL ANALYSIS OF THE STRENGTHS; WEAKNESSES; OPPORTUNITIES; AND THREATS (SWOT) OF GOOGLE BY: KWAKU F. DARKWAH (MBA; B.ED; CTLLS; ASSOCIATE-CIPD; MInstLM) CEO/FOUNDER: ADESUA GLOBAL, GHANA LECTURER-MANAGEMENT DEPARTMENT, LONDON SCHOOL OF MANAGEMENT EDUCATION (LSME) FEBRUARY, 2010 IF YOU NEED A FREE UPDATED COPY OF THIS ARTICLE IN PDF FORMAT, JUST SEND YOUR REQUEST TO: [pic]adesuaglobal@gmail.com [pic]This e-mail address is being protected from spambots. You need JavaScript enabled to view it [pic] THIS ARTICLE IS DEDICATED TO ALL ASPIRING BUSINESS ENTREPRENEURS 1:1 INTRODUCTION Arguably, in the last 10 years since the expansion of information technology as a result of the internet; one astounding firm that has impacted on our lives is Google. All age groups; different ethnic backgrounds; different religious backgrounds; different political backgrounds and affiliations all have been influenced by the impact of this organisation. Debatably, Google is one of the most powerful search engines in the world. Arguably, it can be said that Google is the most visited website in the world. It is now worth in excess of $94billion, although its value has more than halved since December 2007 (Time, 2008). Google attracts about 61.9 per cent of all internet searches online. According to Clark (2007) Google accounts for 56% of all searches on the internet according to the online research firm Comscore...
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