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Introduction

 

       Microsoft is an
American technological multinational company founded by Bill Gates and Paul
Allen on April 4, 1975 with its headquarters in Redmond Washington. It
develops, license, produce, supports and sells computer software, personal
computer, electronics and services. Its best-known selling software products
are the Microsoft windows and its hardware products are the Xbox gaming
consoles and the Microsoft surface tablets. It is one of the largest software
maker and also the most valuable company. Both of them started
their business as a very small firm to sell applications they had created for
customers.

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Microsoft first released the Microsoft windows as a
graphical MS-DOS on November 20, 1985 and released their first Microsoft office
on 1990.

Operation management is an area of management which refers
to the administration of business practices concerned with planning, designing
and controlling the process of production in order to create the highest level
of efficiency.

 

Performance objectives of Microsoft

    Performance
objectives refers to the goals of operations performance. It consists of five
objectives:

         1) Quality

         2) Speed 

         3) Relatability

         4)  Flexibility &

         5) 
Cost

 

1) Quality

            Quality controls
involve the business working towards improving and maintaining the quality of
goods and services and can satisfy the customers for a long term

            The
quality for Microsoft products are no longer a significant issue as all of
their programs works well as they keep improving the speed, productivity and
performance of their services and helps to troubleshoots any errors the user
come across and also provide good services in order to help and satisfy their
customers

2) Speed

Speed refers to the time taken to manufacture one or more
products and the time needed to research and develop new products              

 

3)  Reliability

         Neely refers
to a company’s operations as dependable if the company produces and delivers
products to its customers on time and according to agree to costs and prices. A
company also measures dependability by the product’s ability to function as
designed and as expected and to perform consistently over a reasonable amount
of time.

4)  Flexibility

        operations are
flexible, Neely says, if the company can configure the product lines to deal
with various product requirements and if operations can adjust to new
requirements quickly. Flexibility requires that a company can produce products
of different levels of quality and with various design modifications. According
to Neely, flexibility also requires a company to adapt operations to meet new
or changing delivery schedules and production volumes

5) Cost

       Costs
performance objectives refer to the variation in unit cost due to changes in
the volume a manufacturer produces and the variety of products produced,
according to the authors of “Operations Management.” In most cases, the
higher the variety of products produced, the lower the volume produced and the
higher the unit cost, and vice versa. Equally important, the cost of each
product will vary, which affects the product prices, running costs and profits

 

 

 

 

Swot Analysis (Internal and external factors)

       

       Swot Analysis is a study or a strategic
designing tool employed by the corporate so as to search out the interior and
external weakness, strength, opportunities and threat of the corporate.

Strength:

Microsoft’s biggest strength area unit is the Microsoft
Windows software system that is being in more than 80% Personal Computers and
its other Microsoft workplace suite programs.

The company has additionally perpetually beat account
expectations in terms of revenues and profit.

Microsoft encompasses a policy of internal promotion. The
managers in Microsoft are operating within the company for a protracted time
and have a transparent understanding of company’s values and vision. These
managers became no-hit within the company’s distinctive work atmosphere by
victimization the obtainable resources and facing several external
difficulties, therefore they need proved the directors, leaders and specialists
in numerous elements within which Microsoft operates.

 

 

Weakness:

        The Microsoft OS has dominated the market
in 80’s and therefore the 90’s, However, Microsoft has not been able to bring a
replacement product within the market within the last decade that dominated the
market place. the most weakness of Microsoft was that they failing within the
rise of internet as they need not anticipated the increase of internet as a
development worldwide. The Microsoft net human were slower to responds that
gave rise to different net browser like google chrome.

Microsoft has additionally incomprehensible the wave in line
of good phones because the Late Steve Jobs and his Apple Company has utterly
blindsided Microsoft most that Microsoft has failing in arising compelling good
phone devices or OS.

Opportunities:

        Even though
the company may have failed to read the emergence of internet and in the line
of mobile phones, they had the opportunity to introduce the cloud-computing paradigm.

        Also in the
past Microsoft relied on periodic upgrades of windows and office to generate
revenue, Microsoft found that only a few percentage were using windows 8/8.1
operating system in their computers, so the company decided to reduce that
fragmentation by introducing the windows 10 also known as “One Windows”
strategy which was offered as a free upgrade to most mainstream windows 7 and
windows 8 users in order to unify all the PCs, tablets, smartphones into one common
Operating system. Microsoft also moved away from the periodic updates of
Microsoft office to Office 365 which is subscription based.

The company also has a huge cash in deposit which they can
use for the growth of the company

Threats:

     Microsoft threat
is that it’s very own size which is an asset which is preventing them from
being quick and nimble and seize market opportunities.

Google is and was the biggest long-term threat to the
Microsoft as Google relies on advertising revenues as it constantly launches
alternatives which are free to Microsoft paid products. The chrome OS and
google docs has a steady growth in the market which forced Microsoft to reduce
its prices.

Microsoft face threats against the distribution of pirated windows
operating system which are usually sold in parts of Asia.

 

PESTEL Analysis

PESTEL analysis is tool employed by marketers to analysis
the macro-environmental factors that affects an organisation.PESTEL stands for
Political, Economic, Social, Technological and Legal.

In the case of Microsoft, these external factors mirror the
performance of the pc hardware and software systemmarket. Such factors
represent the problems relevant to the company’s business. Through the
inclusion of thoseproblems determined through the PESTEL/PESTLE analysis,
Microsoft will develop appropriate methods that makebusiness fight and
resilience.

Political factors:

olitical factors embrace government policy, political
stability or instability, tax policy, labour law, environmental law etc.

Microsoft will improve their sales and promoting investments
to realize a gentle increase in revenues. On the opposite hand, the govt area
unit increasing their support for automation opportunities for Microsoft to
extend the sale of technology through governmental shoppers. This external
issue is important, considering large-scale purchases involving governmental
organizations. the corporate also can like business deals in overseas markets.
However, if trade agreements increase then it’s a threat against Microsoft. In
these agreements, foreign companies will increase their fight in developed
countries just like the us. supported this space of the PESTEL analysis of
Microsoft Co. the political factors will offer major boost to the chance of the
corporate

Economic factors:

Economic factors will have an effect on on however a
business will and additionally however profitable they will be. This issue
includes economic process, interest rates, exchange rates, inflation, income of
shoppers etc.

Microsoft should have the subsequent economic external
factors in methods for the pc hardware and software system business:

Economic factors:

Economic factors will have an effect on on however a
business will and additionally however profitable they will be. This issue
includes economic process, interest rates, exchange rates, inflation, income of
shoppers etc.

Microsoft should have the subsequent economic external
factors in methods for the pc hardware and software system business:

 

Economic stability of the bulk of developed countries

Growing middle-class consumers income

High growth of developing countries

Microsoft will like the economic stability of the bulk of
developed countries. for instance, there is also stable performance within the
market and therefore the company will cash in of it. Microsoft have potential
boosts in sales revenues in speedy developing countries. this chance interprets
to steady growth in Microsoft’s international sales. Moreover, if the bourgeois
consumers’ income will increase it will produce a lot of chance for the
corporate to earn higher revenue. This condition is thus as a result of
bourgeois customers area unit one in all the foremost important sources of
revenues for Microsoft. Thus, the corporate will exploit growth opportunities in
external environment.

Social factors:

Also referred to as socio-cultural factors, area unit the
areas that involve the shared belief and attitudes of the population. These
factors embrace – increase, age distribution, health consciousness, career
attitudes then on. These factors area unit of explicit interest as they need an
on the spot impact on however marketers perceive customers and what drives
them.

In the technology market, the subsequent content external
factors influence Microsoft:

 

Stable attitudes concerning leisure (opportunity)

Increasing cultural diversity (opportunity & threat)

Stable demand for prime quality client service (opportunity)

The stable attitudes concerning leisure gift opportunities
for Microsoft to develop merchandise which will satisfy customers’ leisure
preferences. for instance, the corporate will increase its investment in
innovating laptop diversion merchandise for this purpose. additionally, increasing
cultural diversity could be a potential threat against Microsoft in terms of
product-customer twin within the remote or macro-environment. as an example,
client satisfaction might decrease because the company’s merchandise satisfy
solely the largest cultural teams. withal, Microsoft has a chance to enhance
its merchandise and services to deal with this issue. On the opposite hand, the
stable demand for prime quality client service creates opportunities for the
corporate to enhance its client support activities.

 

Technological factors:

We all know that how quick the technological landscape
changes and affects the way we tend to market our merchandise. Technology keeps
ever-changing day by day and if the corporate don’t maintain with the new
technology they will get left behind in innovation and development like finding
new ways in which of manufacturing merchandise and services, distributing
merchandise and services, human activity with target markets.

Microsoft Corporation will improve its performance through a
quick innovation of its mobile devices. this chance relies on the faster
adoption of and rising demand for mobile technology. However, this
technological external issue is additionally a threat that facilitates
competition against Microsoft. a lot of technology companies might exploit such
chance to enter the market. On the opposite hand, the increasing volume of
on-line group actions provides opportunities for Microsoft to develop a lot of
merchandise that support secure on-line transaction process. However, such
increasing volume of on-line transactions threatens the corporate in terms of a
corresponding increase of crime attacks, that is one in all the threats known
in Microsoft’s SWOT Analysis. Moreover, the corporate has a chance to grow
through merchandise that alter businesses to modify a lot of of their
processes.

 

Environment factors:

 

These factors have only come to forefront within the last
fifteen years roughly. They need to become important due to the increasing
scarceness of raw materials, doing business as associate moral and property
company, carbon footprint targets set by governments (this could be an ideal
were one issue might be categories as political and environmental at constant
time). These area unit some of the problems marketers face at intervals this
issue. More consumers are demanding that the products they buy are sourced
ethically, and if possible  from a good
source.

Based on the increasing preference for inexperienced
merchandise, Microsoft Corporation has the chance to boost its sustainibilty. For
instance, the corporate will develop a lot of environmentally friendly
merchandise, and increase the use of green energy in its business operations.
In relation, Microsoft’s efforts to enhance its sustainibilty directly
addresses the chance supported by the increasing focus of societies on business
property. Also, the increasing accessibility of useful materials is associate
ecological external issue that the corporate will use as basis for increasing
the employment of recycled materials in its constituent and software system products
and packaging

Legal factors:

Legal factors includes health and safety, equal
opportunities, consumer rights and laws, advertising standards, product safety
etc. it’s clear that the businesses got to recognize whether or not it’s legal
or not so as to trade with success. If associate organisation trades globally
this becomes a challenge to urge right as every country has their own set of
law rules and rules.

Increasing electronic waste disposal regulation created an
opportunity for Microsoft Corporation to implement simpler usage and disposal
programs which will facilitate to the improve brand image. However, this legal
external issue also can be a threat that might impose further challenges or
difficulties for the corporate in addressing the environmental impact of its
business. On the opposite hand, the rising patent laws facilitate Microsoft’s
international growth by bit by bit reducing problems, like laptop software
system piracy. the corporate additionally has a chance to boost its merchandise
to assist consumer organizations scale back their consumption of energy through
a lot of energy-efficient computing technologies.

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