1 Business Plan By Parker McLaughlin
Jan 23, 2016
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Business Plan
By Parker McLaughlin
www.microsoft.com 2
Mission Statement
Our Values“As a company, and as individuals, we value integrity, honesty, openness,
personal excellence, constructive self-criticism, continual self-improvement, and mutual respect. We are committed to our customers and partners and have a passion for technology. We take on big challenges, and pride ourselves on seeing them through. We hold ourselves accountable to our customers, shareholders, partners, and employees by honoring our commitments, providing results, and striving for the highest quality.”
www.microsoft.com 3
The Team
Steve Ballmer – CEO (Net worth: $14.5Billion US. Salary: $665,833
Peter Klein – CFO
B. Kevin Turner - COO
http://www.google.com/finance?hl=en&q=microsoft&um=1&ie=UTF-8&sa=N&tab=we
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Market Summary
Market:
www.microsoft.com 5
Opportunities
Problems and opportunities:– Users updating to vista felt like the update was bad, and not
worth the large amount of money spent on it• Solution: Create a new, less buggy OS: Windows 7.
– Xbox 360 users want a system update from the 5 year old system
• Solution: Software update, making the Xbox a home media center as well as a gaming console. • Solution 2: A new, slimmer Xbox 360.
– Phone Operating systems such as Android and Apple OS are beating Windows Mobile
• Create a major update for Windows Mobile, scheduled to be released late 2010.
http://en.wikipedia.org/wiki/Microsoft
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Business Concept
The leading supplier in software, operating systems, and office suite applications such as Word, Excel, and
PowerPointA player in the home
video gaming market with
the Xbox 360
http://en.wikipedia.org/wiki/Microsoft
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Competition
Microsoft has two major operating system competitors; OSX (Apple), and Linux (Canonical Ltd, Red Hat Enterprise, CodeWeavers, Fluendo, Geeknet, Loki Software.)
Advantages over competitors:• Windows is 80% of the desktop market.• Compatible with 68% of all software.
Disadvantages over competitors:• There are more than 3 times more viruses on Windows than on OSX and
Linux combined.• Software updates are not always free, as opposed to OSX and Linux updates.
www.microsoft.com 8
Goals & Objectives
Five-year goals– Create a new, polished, virus-proof Operating
System. – Corner the Tablet and Netbook market.– Increase in overall revenue by 1.89 billion more
than last year.
Forbes.com 9
Financial Plan
Gross Revenue: $18.9 billion– Spent $8 million on research and development
in 2009– Gained $8 billion so far in sales in 2010
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Resource RequirementsResource Requirements
Technology requirementsTechnology requirementsPersonnel requirementsPersonnel requirementsResource requirementsResource requirements
– Financial, distribution, promotion, etc.Financial, distribution, promotion, etc.
External requirementsExternal requirements– Products/services/technology required to be Products/services/technology required to be
purchased outside company purchased outside company
Microsoft.com 11
Risks & Rewards
Risks– Major Recalls in company products,
causing loss of profit– Labor costs increasing, causing price
to increase as well Addressing risks
– Both of the risks can be solved by creating an emergency fund to be added to the gross funds if the problems occur.
Rewards– Losing minimal revenue and funds
Gallup.com 12
Key Issues
Near term– Recent Apple products have been beating
Microsoft products.Long term
– Apple has become 42% of the computer market and is slowly gaining more (was 24% in 2005)