Microsoft - Strategic Management

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Company --Microsoft

SM Assignment


Kuldeep Singh – 930, Lalit Kumar Vimal – 931, Harsh Nigam – 924, Arpan Jain - 913 , Ashish Sharma - 915


Analysis of Microsoft Annual Report – 20098
Industry Analysis for Software Industry10
Internal Analysis12
Microsoft Corporate Governance:14

Microsoft Corporation is a public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions. Established on April 4, 1975 to develop and sell BASIC interpreters for the Altair 8800, Microsoft rose to dominate the home computer operating system (OS) market with MS-DOS in the mid-1980s, followed by the Microsoft Windows line of OSs. The ensuing rise of stock in the company's 1986 initial public offering (IPO) made an estimated four billionaires and 12,000 millionaires from Microsoft employees. Microsoft would come to dominate other markets as well, notably the office suite market with Microsoft Office. Primarily in the 1990s, critics contend the company used monopolistic business practices and anti-competitive strategies including refusal to deal and tying, put unreasonable restrictions in the use of its software, and used misrepresentative marketing tactics; both the U.S. Department of Justice and European Commission found the company in violation of antitrust laws. Known for its interviewing process with obscure questions, various studies and ratings were generally favorable to Microsoft's diversity within the company as well as its overall environmental impact with the exception of the electronics portion of the business. History

Paul Allen and Bill Gates, childhood friends with a passion in computer programming, officially established Microsoft on April 4, 1975, with Gates as the CEO. In August 1977 the company formed an agreement with ASCII Magazine in Japan, resulting in its first international office, "ASCII Microsoft". The company moved to a new home in Bellevue, Washington in January 1979. Microsoft entered the OS business in 1980 with its own version of Unix, called Xenix. However, it was DOS (Disk Operating System) that solidified the company's dominance. After negotiations with Digital Research failed, IBM awarded a contract to Microsoft to provide a version of the CP/M OS, which was set to be used in the upcoming IBM Personal Computer (IBM PC). For this deal, Microsoft purchased a CP/M clone called 86-DOS from Seattle Computer Products, branding it as MS-DOS, which IBM rebranded to PC-DOS. Following the release of the IBM PC in August 1981, Microsoft retained ownership of MS-DOS. Due to various factors, such as MS-DOS's available software selection, Microsoft eventually became the leading PC OS vendor. The company expanded into new markets with the release of the Microsoft Mouse in 1983, as well as a publishing division named Microsoft Press. Paul Allen resigned from Microsoft in February after developing Hodgkin's disease. While jointly developing a new OS with IBM in 1985, OS/2, Microsoft released Microsoft Windows, a graphical extension for MS-DOS, on November 20. Microsoft announced the release of its version of OS/2 to original equipment manufacturers (OEMs) on April 2, 1987; meanwhile, the company was at work on a 32-bit OS, Microsoft Windows NT, using ideas from OS/2; it shipped on July 21, 1993 with a new modular kernel and the Win32 application programming interface (API), making porting from 16-bit (MS-DOS-based) Windows easier. Once Microsoft informed IBM of NT, the OS/2 partnership deteriorated. Microsoft introduced its office suite, Microsoft Office, in 1990. The software bundled separate office productivity applications, such as Microsoft Word and Microsoft Excel. On May...
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