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Microsoft Corporation

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  • December 30, 2012
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Introduction
Microsoft Corporation is a multinational company based in Redmond Washington. The company manufactures computer products and offer computer services. The company also licenses and supports various types of computer products and services. Microsoft Corporation was founded in 1975 by Bill Gates and Paul Allen. The company is the largest software manufacturer globally in terms of revenue. It is also the most valuable organization in the world. Bill Gates and Paul Allen founded the company to manufacture basic interpreters for Altair 8800 and sell them. The company was the leader in the personal computer operating market in mid 1980s with MS DOS. The development of the Microsoft windows operating system gave the organization a competitive edge in the market. The organization has diversified its target markets since 1990 by acquiring various companies. Microsoft Corporation acquired Skype technologies at $8.5 billion in 2001. This was the largest acquisition that the company has ever made. The company is the leader in the PC operating system market and office suite market today. The organization has expanded into other sectors such as internet search using the Bing search engine. In addition, it has ventured into the videogame sector using the Xbox console and X box. The company also operates in the digital service sector and mobile phone industry by providing MSN services and Windows phone operating system (Microsoft, 2012). The company has performed excellently financially since its establishment in 1975. The organization recorded $73.72 billion as revenue in 2012. It also recorded $21.76 billion and $16.97 billion as operating income and net income respectively in 2012 (Hildebrand, 2007). The internal and external environment of the organization has an impact on the organizational performance. For instance, technology and organizational culture have an effect on the organization as they affect its performance. Understanding the internal and...