...Microsoft/Intuit Synergies There is a great deal of synergy between the Microsoft and Intuit that would be beneficial for Microsoft if an acquisition were to take place. Intuit’s position in the personal finance market would lend a considerable benefit to Microsoft given their difficulty in that market. Microsoft would also be able to take advantage of the similarity in their products and use their considerable marketing advantages to enhance the revenue created by Intuit. In 1994, Bill Gates envisioned an emerging future market as an online marketplace to handle consumer needs. In order for Microsoft to develop its capability to control its own destiny in online entertainment and commerce, it needed to acquire additional core competencies of “cable and/or telephone networks, on-line networks, electronic shopping networks, video on demand, and business networks.” Microsoft needed to evaluate what competencies would be developed in house and which would be acquired in an effort to most efficiently use its human resources and financial assets. With Gate’s vision of the future online consumer, Intuit’s product line could be a great benefit to Microsoft being able to position them as a leader in that market. In terms of market share in the personal finance/checkbook software market, Intuit had a 69% share in units and an 85% share in value. This is in comparison to a 22% and 7% share for Microsoft respectively. Bill Gate’s vision of the future relies heavily on personal financial...
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...Microsoft/Intuit Case Study Team 7 Garric Zhang Ling Liao Eric Wang 1. What factors have contributed to Microsoft’s large cash hoard? | 1985 | 1986 | 1987 | 1988 | 1989 | Cash and Marketable Securities | 18.9 | 102.7 | 132.5 | 183.2 | 300.8 | Stockholders' Equity | 54.5 | 139.3 | 239.1 | 375.5 | 561.7 | Net Profit | 24.1 | 39.3 | 71.8 | 123.9 | 170.5 | ROE | 44.22% | 28.21% | 30.03% | 33.00% | 30.35% | New Cash and Marketable Securities | 2.8 | 4.1 | 9.3 | 18.6 | 25.2 | New Stockholders' Equity | 38.4 | 40.7 | 115.9 | 210.9 | 286.1 | New Net Profit | 23.5 | 37.4 | 67.5 | 118 | 157.7 | ROE (after adjusted) | 61.20% | 91.89% | 58.24% | 55.95% | 55.12% | Increased ratio | 38.39% | 225.71% | 93.94% | 69.57% | 81.59% | | 1990 | 1991 | 1992 | 1993 | 1994 | Cash and Marketable Securities | 449 | 686 | 1345 | 2290 | 3614 | Stockholders' Equity | 919 | 1351 | 2193 | 3242 | 4450 | Net Profit | 279 | 463 | 708 | 953 | 1146 | ROE | 30.36% | 34.27% | 32.28% | 29.40% | 25.75% | New Cash and Marketable Securities | 39 | 57 | 78 | 91 | 105 | New Stockholders' Equity | 509 | 722 | 926 | 1043 | 941 | New Net Profit | 256 | 434 | 669 | 897 | 1077 | ROE (after adjusted) | 50.29% | 60.11% | 72.25% | 86.00% | 114.45% | Increased ratio | 65.67% | 75.40% | 123.78% | 192.57% | 344.43% | From the case, we can know that Microsoft outsold its nearest competitor several time to be the most profitable large public corporation in the world, and...
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...COURSE PROJECT CLASS TM505ON SUBMITTED June 9, 2012 OVERVIEW eTronicsweb.com turned a little project into a professional business called eTronics LLC. This business is to sell new and refurbished products over the Internet through their website (www.etronicsweb.com) and through other 3rd party resellers such as EBay, Amazon, Sell.com and Wholesale Liquidators. They partner up with supplier/vendors and buy new and used products to sell through these sites and make profit from the markup. They also further the business by offering services to the customer like computer repair, computer clean outs, IT help desk, helping people setup their computer or speed up their system, show them how to do things with their mobile phones, repair electronics and any other services in the electronics and computer industry that a customer may need help with. From a business standpoint, they would like to become a major online dealer and service provider but they also rent a brick and mortar shop for local commerce, a place to do repairs, mail deliveries, postage address, hold tools, and to stock inventory. This is located in Huntingdon Valley PA and is close to all major areas of the greater Northeast Philadelphia City and Suburbs that have and will continue to have heavy advertising for eTronics LLC. It is the vision of eTronics LLC to become the biggest provider of consumer electronics and services, in the next 50 years to be well known and recognized as a...
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...Over the years we have seen technology change the way each individual does business. Each year companies are introducing new software that allows business owners and accounting firms to create balance sheet, payroll, and bookkeeping in matter of minutes. Business has seen account software like QuickBooks, turbo tax and peach tree to makes the necessary credit and debit for business. One of the new technologies that an individual is introduced to in accounting firms are Intuits quick book and cloud system. Cloud system is a web hosting application located off site. The advantage of cloud system is that we never have to install any account software in the firm’s computer; instead companies install software and store data in a server that is in a different locating. These servers will be in a data center facility. With the cloud service available accountant will never have to worry about buying an extra hardware to store the extra data, and this information can be accessed any of the days from anywhere. Intuits QuickBooks is one of advance account technology available in the world and more than 92.4% individuals are using this software. This software allow small...
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...BTM101: Chapter 1 Assignment Carlos Hernandez April 2, 2014 Professor: Leon Guendoo Q1. Which five companies did you select and what is the key product or service of each? The five companies I selected from the top 100 list were Google, General Mills, Intuit, Boston Consulting Group, and Wegmans. Google, Inc. is one of the world’s largest software companies and is considered the king of all Internet search engines. Based in Mountain View, California, Google employs about 47,500 employees in 40 countries around the world. Its key product is its powerful search engine, Google. The company also provide Gmail and recently launched the Chrome Netbook which runs on the ChromeOS operating system. General Mills is one of the world’s largest food companies and leading brands. Well known for its wide variety of cereals (Cheerios, Trix, Lucky Charms), the company also markets many other well-known North American food brands, such as Bettyrocker, Yoplait, Colombo, Totino's, Jeno's, Green Giant, Old El Paso, and Häagen-Dazs. Intuit is software company that produces personal finance and tax software. It most popular products are Quicken and QuickBooks, both of which are easy to use small business accounting software. The company also produces TurboTax tax-filing software, and offers loans (Quicken Loans) and online payroll services. The Boston Consulting Group (BCG) is a global management consulting firm with 81 offices in 45 countries. It is one of the Big Three management...
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...New Accounting System Justin Taylor BSA/310 February 9, 2012 Sanford Schram New Accounting System Kudler Fine Foods is known as a store dedicated to bringing classy foods to quality clients (Apollo Group, 2011). Although Kudler Fine Foods has gotten by with the old accounting system it is high time for an update. The original approach to this endeavor was to hire a consulting firm to assist in the systems selection and execution (Apollo Group, 2011). The Kudler Fine Foods budget for the new accounting system is $50,000 dollars. A few of the key features are the same, but some have changed with this upgrade (Apollo Group, 2011). To start with this new system allows Kudler Fine Foods to keep a record of purchases made by each of its customers (Apollo Group, 2011). When a customer purchases a product it will be entered in a database detailing what was purchased, the amount of the products purchased, and the total cost. As a bonus the feature of online banking joins Kudler Fine Foods to the new millennium, which makes banking simpler (Apollo Group, 2011). Basically the Kudler Fine Foods will be able to pay its bills immediately, and track the amount of money in the account. This particular feature has been enjoy by the common man for years adding it puts Kudler Fine Foods in touch with technology (Apollo Group, 2011). The new system also displays the accounts that Kudler Fine Foods receives from its customers. Moreover, accounts receivable tracks incoming, and outgoing...
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...of integrating with other personnel or accounting systems, users have the ability to create business rules and reconcile their data monthly. The Financial Accounting Hub is transparent and validates the Sarbanes-Oxley Compliance. Another Oracle software, the JD Edwards EnterpriseOne Accounts Receivable, streamlines the process for real-time accounts receivable information. It has the ability to handle complex transactions automatically at the most expeditious manner, enabling the organization to respond to credit and collection issues. Because of Financial Accounting Hub’s and Enterprise One’s capabilities, both systems are marketed to financial institutions. Oracle is one of the pioneers for developing accounting systems (behind Microsoft) and its products evolved into a user-friendly and cost-efficient system; thus, Wall Street’s view of the firm is positive. Further, Wall Street’s positive view is justified by at net gain of its stock valuation of $1 or 2.6% of its stock price after 90 days. 2. Systems Applications and Products (SAP) - SAP Enterprise Resource Planning (ERP) application enables the open communication within and between all company functions. SAP ERP is part of SAP’s Business Suite enterprise application package, which includes the modules for Customer Relationship Management (CRM), Product Lifecycle Management (PLM), Supply Chain Management (SCM), and Supplier Resource Management (SRM). The drawback for SAP ERP is that the licensing and maintenance...
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...With the plethora of entry-level accounting software available on the market Intuit’s QuickBooks Pro and Sage’s Peachtree Pro are still two of the most popular accounting software specially designed for the needs of small businesses. Both provide excellent solutions to many of the accounting challenges faced by small businesses that use double entry accounting. QuickBooks Pro and Peachtree Pro are promoted as software designed for users with little or no accounting knowledge. Although very similar, there are key elements that differentiate one from the other. For the small business owner ease-of-use, efficiency, security, systems compatibility and operability, vendor support, options to expand and upgrade, and cost feasibility are essential criteria that need to be met. Software Comparison QuickBooks Pro is easy to use and offers the user help in setting up the company, selecting a chart of accounts, and recording transactions in the proper place. Functions are grouped to help direct the user to what is available in a particular category. The menus are simple to understand and offer the user representational icons for what they want to do. For example, a check looks like a check and so on. The homepage offers the user easy navigation through shortcuts allowing information to be pulled in different ways. Like QuickBooks Pro, Peachtree Pro has a user-friendly interface. Peachtree Pro, on the other hand, is slightly more complicated to use and may require some knowledge...
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...Microsoft Case Team 7: Executive Summary Microsoft (MS) is a multinational computer technology corporation that develops, manufactures, licenses, and supports a wide range of software products for computing devices. In the mid 1990’s, Microsoft held the monopoly in the production of Operating Systems (OS) for personal computers (PC). When their monopoly was threatened by Netscape, MS began bundling the Internet Explorer (IE) web browser with Windows, using cross-promotional deals with internet service providers (ISP), and prevented PC makers from customizing the opening screen showing Microsoft. These actions, which some view as illegal and unethical, dissolved any competition, raised the barriers of entry and inhibited innovation. 1. What is the primary barrier to entry in the operating systems market? How does Netscape’s product threaten to remove this barrier? The primary barrier to entry in the operating systems market is the scarcity of various operating systems compatible (including but not limited to Windows) software applications. Due to Microsoft’s monopoly power in operating system for Intel-based personal computers (more than 90% of the market), the high demand for the on Windows operating system attracts software application developers to write code for Window PC compatible products rather than a vertical integration of software and hardware. Since software applications written to Windows is not compatible to alternative operating systems, and...
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...software, workgroup application software, and enterprise application software. Personal Application Software’s 1) Word processing; helps create, edit and print text documents. I.e., Microsoft word, Corel WordPerfect, Google Docs, Apple Pages and Sun Writer. 2) Spreadsheet; provides a wide range of built-in functions for statistical, financial, logical, database, graphics, and date and time calculations. I.e., Microsoft Excel, IBM Lotus 1-2-3, Google Spreadsheet, Apple Numbers and Sun Calc. 3) Database; stores, manipulate, and retrieve data. I.e., Microsoft Access, IBM Lotus Approach, Borland dBASE, and Sun Base. 4) Graphics; develop graphs, illustrations, and drawings. I.e., Adobe Illustrator and Adobe FreeHand. 5) Project management; plans, schedule, allocate, and control people and resources needed to complete a project according to schedule. 6) Financial management; provides income and expense tracking and reporting to monitor and plan budgets. I.e., Intuit Quicken. 7) Desktop publishing; use with personal computers and high-resolution printers to create high-quality printed output, including text and graphics, various styles of pages can be laid out; art and text files from other programs can also be integrated into published pages. I.e., Quark Xpress, Microsoft Publisher, Adobe PageMaker, Corel Ventura Publisher, and Apple Pages. Workgroup Application Software Support local and international teamwork and utilizes groupware; software that...
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...consultant. After seeing how much time and effort must go into preparing a requirements definition and depending on how much time you have available and your technical resources, you may decide now that the project is beyond your capability. Last and not least the final steps talk with your current vendor. Unless you're unhappy with your current accounting software vendor, now's the time to see whether your current software product, or an update of it, plus some well-focused training, can spare you from having to go through the expensive and arduous task of buying and installing new software. Here are a few different kinds of software that would be helpful for the business and some have prices, ACCPAC International, Best Software, Intuit, and Microsoft Business Solutions as well as many more. Here are some of the prices for some of the different software, Entry $100-$2,500, SMB $5,000-$40,000, SME $10,000-$250,000, and ERP $250,000-$50...
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... 2001 Microsoft/Intuit The Decision In the fall of 1994 William Gates, chairman and CEO of Microsoft Corp., was considering the possible acquisition of Intuit Corp. Intuit marketed the leading personal finance software product called Quicken. Two years earlier Gates had met with Scott Cook, chairman of Intuit, to discuss the possibility of completing an acquisition. In the interim, Cook had further consolidated Intuit’s domination of the personal financial software market with the acquisition of a firm which marketed the best-selling personal income tax preparation software called Turbo Tax, and the acquisition of a firm which provided electronic bill-payment services. Intuit was known in the software applications industry as one of the few firms that had met a challenge from Microsoft in its own market niche and won. Other firms that had once dominated their market niches in word processing programs (WordPerfect) and spreadsheet programs (Lotus), for example, had been shouldered aside by Microsoft (Exhibit 1). Many firms were being acquired as the industry consolidated. Indeed, in March 1994 Novell announced that it was acquiring privately owned WordPerfect Corp.1 (which held the second-largest share of the word processing software market), and the spreadsheet business of Borland International (Quattro Pro held the thirdlargest position in spreadsheet software) in order to put together a suite of common applications to compete more effectively against Microsoft and Lotus...
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...Microsoft corporation I.history History Main articles: History of Microsoft and History of Microsoft Windows Paul Allen and Bill Gates (respectively) on October 19, 1981 in a sea of PCs after signing a pivotal contract. IBM called Microsoft in July 1980 inquiring about programming languages for its upcoming PC line;[1] after failed negotiations with another company, IBM gave Microsoft a contract to develop the OS for the new line of PCs.[2] Paul Allen and Bill Gates, childhood friends with a passion in computer programming, were seeking to make a successful business utilizing their shared skills. The January 1975 issue of Popular Electronics featured Micro Instrumentation and Telemetry Systems's (MITS) Altair 8800 microcomputer. Allen noticed that they could program a BASIC interpreter for the device; after a call from Gates claiming to have a working interpreter, MITS requested a demonstration. Since they didn't actually have one, Allen worked on a simulator for the Altair while Gates developed the interpreter. Although they developed the interpreter on a simulator and not the actual device, the interpreter worked flawlessly when they demonstrated the interpreter to MITS in Albuquerque, New Mexico in March 1975; MITS agreed to distribute it, marketing it as Altair BASIC.[3] They officially established Microsoft on April 4, 1975, with Gates as the CEO.[4] In August 1977 the company formed an agreement with ASCII Magazine in Japan, resulting in its first international office...
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...manager use. The hardware of the workstation includes; the system unit, 18.5” flat screen monitor, keyboard, mouse, and printer. The two POS/Cash Registers each have a 15” monitor, compact keyboard and mouse, cash drawer, receipt printer, customer display, and credit/debit card reader. The software used in the office includes Intuit QuickBooks Pro, QuickBooks Basic Payroll, Roadrunner High Speed Internet, and Microsoft Office 2007. QuickBooks Pro is used to manage the finances of the cleaners; it is used in conjunction with QuickBooks Basic Payroll. QuickBooks Basic Payroll calculates employee’s paychecks and calculates taxes making payroll quick and simple for the owner and manager. Roadrunner is used to place and track orders sent to distributors over the internet. Cash register express software by pcAmerica is used on the cash registers. This software allows custom pricing, process credit/debit cards, customer loyalty plan and gift card processing, and employee time clock. Microsoft Excel spreadsheets keep track of all customers, inventory, and invoices. The spreadsheets are updated once a week, either by the manager or owner. Microsoft Word is mainly used to type memos to the employees. Paul Reid has successfully operated the cleaners for 5 years, with plans of opening a second location. The current manager will operate the second store and...
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...the number of firms, barriers to entry, pricing decisions, output decisions, interdependence, LR profit, and P and MC. Microsoft is a great example of a Monopoly with the vast amount of products that they offer and no other firms to compete with for most of their products. However since they do have so many different products they can only classify as a Monopoly for some. Products such as X-box would not classify as a Monopoly product since there is competition in that market. Even though X-box would not classify as a Monopoly the vast majority of the products that Microsoft produces are. This makes it virtually impossible for any other firm to come along and enter this market. Microsoft is the undisputed leader in the market for operating systems (Sheremata 1997). The Microsoft Corporation has produced the vast majority of operating systems for all personal computers (PCs); moreover, operating systems that Microsoft has created are Windows95, Windows 3.1, and DOS. They also have produced the leading spreadsheet and word processors for both Windows and Macintosh operating systems. They own 85% of the market share with their office software Word, Excel, Powerpoint, Microsoft Exchange, and Microsoft Access. Not surprisingly, most of us have used some if not all of these products and/ or services provided by the Microsoft Corporation. How did the Microsoft Corporation develop into a software monopoly? For the most part, one or several combinations of the following forge monopolies:...
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