Microsoft Analysis

2459 Words Jun 13th, 2012 10 Pages
Business Analysis Part I
Daniel Wallace
Management 521
May 28, 2012

Business Analysis Part I
Microsoft is ranked 37 in the Fortune 500 list of companies (CNN, 2012). It is the world’s largest software company (Turits & Wesman, 2012), and is composed of five separate divisions: Windows, Business, Servers and Tools, Entertainment and Devices, and Online. Investors should look at how a company meets the needs of its stakeholders and perform a strength, weakness, opportunity, and threat (SWOT) analysis. By looking at how Microsoft meets the needs of its stakeholders, investors can determine if the company can sustain a positive image with everyone involved, both internally and externally. Analyzing the strengths, weaknesses,
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Microsoft analyzes these errors, and includes solutions in system updates that users can download. Finally, Microsoft’s investors want a positive return on any money put into Microsoft. Microsoft currently offers a $.20 dividend on its shares (Turits & Wesman, 2012). Investors can purchase Microsoft issued bonds. Depending on the terms, these bonds offer returns ranging from 0.875% to 5.3% (Microsoft Investor Relations, 2012). Microsoft offers investors detailed quarterly reports outlining all expenses and incomes.
SWOT Analysis
Strengths
A look at Microsoft’s internal factors reveals several strengths and weaknesses. One of the greatest strengths Microsoft has is its name brand recognition. Microsoft is the world’s largest software developer with almost $70 billion in revenue for 2011 (Turits & Wesman, 2012). Most consumers in the United States know or use Microsoft’s PC OS, giving it 86% of the OS market share, compared to 5% for Linux and 9% for Mac ("OS Statistics", 2012). Microsoft’s Entertainment and Devices division leads the gaming market with the X-box 360 holding 40% (Forbes, 2012) of the market share for the current generation of consoles. Microsoft is continuing its development of its subscription services that include X-Box Live, Windows Live, and Zune Music Pass. Most PC users are familiar with Microsoft’s business tools, specifically MS Office.
Microsoft currently has over $59 billion in cash on hand (Turits &
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