...Financial Management Enid K Bukambu Dr. Figiel Contemporary Business 03/11/2012 Businesses have many areas to manage to keep things working smoothly. Finance is just one of these areas. Because finances impact virtually everything else the company does, it's probably the most important thing a manager must address. This paper discusses two companies, Google and Microsoft and their financial performance and how recession has affected them. Google is one of the leaders in internet information searching and the main services the company provides are search advertising, display advertising, mobile advertising and providing tools for publishers. Not only are these programs the backbone of the company but they’ve also enabled entrepreneurs and publishers around the world to grow their businesses and become successful. Google succeeds when the tools that it has built are useful to the users, their advertisers and other partners. And of course, the root of their business is to provide useful and relevant information to the millions of people around the world who rely on Google search to provide the answers they are seeking (Business overview, 2011). The company’s free easy-to-use tools help local business owners manage their presence on the web and grow their services. Any business can use Google’s online local database called Google Places to add a new listing or edit an existing one (Business overview, 2011) . One of Google’s leadership styles is to let your followers...
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...1. How attractive is the video game console industry in 2008? In 2008 the video game industry is dominated by three major players and their respective gaming consoles. First of all there's Sony with its PlayStation 3 launched by the end of 2006. Then there's Microsoft with its Xbox 360, launched in the end of 2005; and finally Nintendo with the "Wii" in late 2006. These three players are struggling to gain market leadership in the game console industry. The video game industry, off from an uncertain start in 1972 has been marked by quick and frequent changes of fortune amongst the various players in the market. The market was characterized by rapid growth as well as unexpected down turns such as the one in 1983 where the industry lost 97% of annual sales volume in 3yrs. The industry appears to exhibit five to six year cycles of competition which concur with advancement of underlying technology. Nearly all-technological leaps from one generation to the next were marked by a change in leadership. Currently, the market is lead by Nintendo with 60% operating margin, compared to Sony's -9.7% and Microsoft's even worse -33.7%. In recent years, Nintendo has managed to overthrow both Sony and Microsoft despite having a console which is significantly less technologically advanced. There is a low risk of potential entrants due to high sunk costs (as demonstrated by Atari's "ET" flop), large capital requirements and very high economies of scale needed especially since product is sold...
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...Technology Atari (from a Japanese verb meaning “to hit the target”) is a brand name owned by several different entities since its inception in 1972. Founded by Nolan Bushnell and Ted Dabney in 1972 Atari, Inc. was pioneer in arcade games, home video game consoles, and computers. The products such as Pong and the Atari 2600 assisted defining the electronic entertainment industry from the 1970’s to the mid-1980. In 1984, Atari Inc. was split, and the arcade division was turned into Atari Games Inc. Atari Games receive the rights to the original 1972-1984 arcade hardware properties, as well as the rights to use the logo and brand name with appended text “Games” on arcade games. Atari Consumer Electronic Division properties were in turn sold to Jack Tramiel’s Tramel Technology Ltd., which renames itself to Atari Corporation. On June 27, 1972 Atari, Inc. hired Al Alcorn as their first design engineer. Al Alcorn produces an arcade version of the Magnavox Odyssey’s Tennis game, which became Pong. In Japanese when a prediction comes true or when someone wins the lottery the word “Atari” is used. A project came up to design a successor to the 2600 started as soon as the system shipped. The original development team estimated that the 2600 had a lifespan of about 3 years, so they decided to build the most powerful machine they could, given that time frame. Mid-way through that time-frame, the home computer revolution was taking off, so the new machines were adapted, with the addition...
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...simulations we have today, video games have changed the world as we know it. The video game industry is at an all time high. Video games are no longer a form of entertainment for few, but a world-wide phenomenon for people of all ages joining in on the fun. Consoles have a very long history; from the very start passionate people have been hard at work to make the industry what it is today. There are also guidelines that all video game companies must abide by as well, so it’s not all fun and games. A video game is defined as a game that involves direct input from a user to generate visual feedback on a device. The systems used to play video games are commonly known as platforms. These devices range from home consoles such as the PlayStation 3, Xbox 360, Wii to the personal computer, and all the way to the arcade system, where the video game was born. Video games were first made as a form of entertainment but have since evolved into a worldwide cult following. They are now used for entertainment, learning tools, and even training. The video game industry was first introduced as a commercial entertainment medium in 1971. This is where it all started. After the collapse of video games in 1983, there was a rebirth 2 years later which set in motion the events leading to a $10 billion industry, which rivals the motion picture industry as the most profitable form of entertainment in the world (Herman, 2008). Many people credit William Higinbotham for the creation of the very first video game...
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...Name: Pankaj S. Vyas Roll No: P 60 MMS 2nd year Submitted To: Prof. Pallavi Chandawaskar Marketing Assignment- Case Study-“Microsoft Unveils Surface” Q1) With a launch of surface, what difficulties Microsoft will be facing in challenging Apples dominance of Ipad being market leader? Ans: The following are the difficulties Microsoft will be facing in challenging Apples dominance of Ipad being market leader: 1) The first difficulty is that they are moving totally from their core business to tablet market. So it might harm their core business. 2) The second difficulty is that the position Microsoft as a company that can provide a quality Hardware product as it has till date positioned itself as a software provider. 3) Microsoft will compete with Hewlett-Packard (HPQ), Dell (DELL), and others who sell its Windows operating system on their computers. Surface devices will compete with products made by Microsoft’s OEM (original equipment manufacturers) partners, which may affect their commitment to Microsoft’s platform. So difficulties with partner’s may hamper relationships with partners following Surface launch. 4) Price: consumer-targeted Windows RT Surface tablet needs to be affordable, and cheaper than an iPad; or, better for the same price, if that can be accomplished. The Windows 8 Surface tablet has two challenges: Competition with the iPad, and with Ultrabooks. Many Windows ultrabooks cost as little as US$799. Can the Surface compete at a reasonable...
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...revenue of US$44.28 billion and 71,553 employees in 102 countries as of July 2006. It develops, manufactures, licenses, and supports a wide range of software products for computing devices. Headquartered in Redmond, Washington, USA, its best selling products are the Microsoft Windows operating system and the Microsoft Office suite of productivity software, each of which has achieved near-ubiquity in the desktop computer market. Microsoft possesses footholds in other markets, with assets such as the MSNBC cable television network, the MSN Internet portal, and the Microsoft Encarta multimedia encyclopedia. The company also markets both computer hardware products such as the Microsoft mouse as well as home entertainment products such as the Xbox, Xbox 360 and MSN TV" ("Microsoft"). By law a monopoly is not allowed to exist in the US. It has been long debated whether Microsoft is a monopoly or not? Among other charges Microsoft was charged with "monopolizing the computer operating system market, integrating the Internet Explorer web browser into the operating system in an attempt to eliminate competition from Netscape, and using its market power to form anticompetitive agreements with producers of related goods" (SWLearning). Firstly, with the operating system market there are no actual barriers to entry. Any one firm can enter into the market and introduce their operating system. A number of powerful firms have indeed done so. Firms like Apple, IBM, Sun Microsystems and Oracle all...
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...Financial Management: Microsoft and Google BUS508 Contemporary Business December 12, 2011 The purpose of this paper is to compare and contrast Microsoft’s and Google’s business model and financial management. Microsoft and Google don't share a stage often, being increasingly fierce competitors in areas such as Web search, mobile, and cloud computing, but both are big names in internet technology. Since 1975, when Bill Gates left college to start Microsoft with his friend Steve Ballmer, the company has been responsible for some of the biggest changes in the world of software and technology. Over nearly four decades, Microsoft has developed a broad range of products and services, and the company continues to focus on growing markets for its most popular creations, as well as the new products it launches. Microsoft is perhaps best known for its popular operating system, Windows. It was revolutionary when it was launched, and the many developments and improvements that have been provided by all the subsequent versions have cemented it’s position as the number 1 operating system in the world. Windows 7 is the latest offering, and looks set maintain the software’s popularity, even in an increasingly competitive market. Windows isn’t the only product designed by Microsoft that significantly improved the productivity of the personal computer; their Office suit of products has also become one of the most popular pieces of software in the world. Individually, or as a complete...
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...| Why is Microsoft CEO Steve Ballmer stepping down? | Strategic Management BUS4040 Assignment 1 | | | 赵睿10302001432013/10/15 | | Introduction Two months ago (August 23, 2013), there was an announcement from Steve Ballmer, the CEO of Microsoft, declared that he would retire in the next 12 months, which had attracted much public attention because of its sudden. It was neither planned nor as smooth as portrayed. The interview with many people inside and outside the company indicate that Ballmer had not aimed to leave this soon and especially after the recent restructuring of the company that he had intensely planned. However, Ballmer’s timeline had been moved up drastically. The nine-member board, including his longtime partner and Microsoft co-founder and chairman Bill Gates all agreed that it was best if he left sooner than later. It seems that it was due to a number of increasingly problematic issues on the immediate horizon, including a potentially nasty proxy fight, continued business performance declines, and Ballmer’s leadership was becoming a very obvious problem. In this report, I will analyze this issue by the following aspects, which includes the background of Steve Ballmer, the development of Microsoft these years and current situation about the company. Background of Steve Ballmer Ballmer, 57, who came to Microsoft in 1980 as its first business manager, was the first CEO after founder Bill Gates left the post in 2000. Steve Ballmer...
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...Gregory Passani Economics 106T Professor Board December 2, 2010 Nintendo: Horizontal Differentiation in an Oligopoly “The game has changed, ... and the way the game is played has to be changed.” —Satoru Iwata, president of Nintendo Co. Ltd (Malstrom) Nintendo has been a major player in the technology and gaming industry ever since entering into electronics in 1970. While for years it dominated the market for virtual gaming, a rise in competition within the industry presented serious challenges for the company. After struggling for the first five years of the new millennia, Nintendo made an exceptional comeback with its innovative products, the Wii and the DS, that shook the market and brought in a whole new set of customers. Their new strategy was so successful it allowed the company to be ranked the second most valuable Japanese firm after Toyota in 2007 (Farhoomand 6 ). Despite its recent success, Nintendo must look ahead and act strategically as its competitors begin to adapt to the new market trends. Market Background The Birth of Gaming The electronic gaming industry began with a few very basic games in the 1970s. At first, they appeared in the form of coin-operated machines in public places, with games like Pac Man and Donkey Kong before moving to home entertainment with hits like Atari’s Pong (Vaughan 13). A major shift in the quality of in-home gaming came with Nintendo’s release of Famicon in Japan and the Nintendo Entertainment System (NES) in the United States...
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...Microsoft Corporation Future Business and Economic Prospects Analysis by Team 4 Group Members: Lewis Bullock Daniel Fuller Erica Jaume Tim Trenkle Rebekah Vandegrift Date of Submission: April 21, 2013 Table of Contents 1. Executive Summary 5 2. Company Introduction 6 3. Financial Analysis 7 3.1. Statement of Cash Flow Analysis 7 3.2. Liquidity Ratios 12 3.3. Asset Management Ratios 13 3.4. Debt Management Ratio 14 3.5. Profitability Ratios 15 3.6. Market Value Ratios 17 3.7. Du Pont Equation 18 3.8. Microsoft to Industry Analysis 18 4. Weighted Average Cost of Capital (WACC) 19 5. Future Cash Flows 22 Net Income before Extraordinaries 25 Net Income Growth 25 Depreciation, Depletion & Amortization 25 Depreciation and Depletion 25 Deferred Taxes & Investment Tax Credit 25 Deferred Taxes 25 Other Funds 25 Funds from Operations 25 Extraordinaries 25 Changes in Working Capital 25 Receivables 25 Accounts Payable 25 Other Assets/Liabilities 25 Net Operating Cash Flow 26 Net Operating Cash Flow Growth 26 Net Operating Cash Flow / Sales 26 2010 – 2012 Investing Activities 26 Capital Expenditures 26 Capital Expenditures (Fixed Assets) 26 Capital Expenditures (Other Assets) 26 Capital Expenditures Growth 26 Capital Expenditures / Sales 26 Net Assets from Acquisitions 26 Sale of Fixed Assets & Businesses 26 Purchase/Sale of Investments 26 Purchase of Investments 26 Sale/Maturity...
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...9-508-076 REV: APRIL 14, 2008 ELIE OFEK Sony PlayStation 3: Game Over? [W]hen you look at the history of the video game industry since the PlayStation was launched back in 1995, we were able to take the leadership position very quickly with the PlayStation. With PlayStation 2 we have more than 110 million gamers and consumers enjoying the PlayStation 2 on a worldwide basis. And I think we have a very loyal following for the PlayStation family of products. So with the PlayStation 3, I believe that we are going to be able to quickly take the leadership position once again and maintain that position for a very long time. — Kaz Hirai, President and CEO, Sony Computer Entertainment of America, November 17 20061 It was a picture that was reminiscent of the launch of the original PlayStation nearly a dozen years before. Some eager customers had arrived as early as 6am and from as far as New Jersey to a video game store in Manhattan with the hope of purchasing one of the newest and most sought after video game consoles. By 9am, the number of customers waiting for entrance to the store exceeded 100 and the line extended down the block. One customer in line had been searching stores across the region for two weeks in order to find a console for her brother’s twenty-fifth birthday. A twelve-year-old and his grandmother were visiting their third store in search of the new console. “I just hate what you have to do just to get one,” the boy said.2 In one sense, long...
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...operating systems. The company's 1986 initial public offering, and subsequent rise in its share price, created an estimated three billionaires and 12,000 millionaires from Microsoft employees. Since the 1990s, it has increasingly diversified from the operating system market and has made a number of corporate acquisitions. In May 2011, Microsoft acquired Skype Technologies for $8.5 billion in its largest acquisition to date.[5] As of 2012, Microsoft is market dominant in both the PC operating system and office suite markets (the latter with Microsoft Office). The company also produces a wide range of other software for desktops and servers, and is active in areas including internet search (with Bing), the video game industry (with the Xbox and Xbox 360 consoles), the digital services market (through MSN), and mobile phones (via the Windows Phone OS). In June 2012, Microsoft announced that it would be entering the PC vendor market for the first time, with the launch of the Microsoft Surface tablet computer. In the 1990s, critics began to contend that Microsoft used monopolistic business practices and anti-competitive strategies including refusal to deal and tying, put unreasonable restrictions in the use of its...
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...07-046 Rev: December 8, 2011 Sony's Battle for Video Game Supremacy John Sterman, Khan Jekarl, Cate Reavis As Sir Howard Stringer, CEO of Sony Corporation, settled in for his flight back to Japan from New York, a number of pressing issues occupied his mind about Sony’s future. At the forefront, Sony’s next generation video game console, the PlayStation 3 (PS3), was set to launch worldwide on November 17, 2006, a mere week away. Despite PlayStation 2’s (PS2) dominance in the last generation of gaming consoles, Stringer understood that past successes were no guarantee of future success in the intensely competitive game industry. Microsoft had launched the first volley in the last console war by releasing the Xbox 360 in the fall of 2005. Within one year, almost 4 million Xbox 360s had been sold worldwide, giving Microsoft a significant head-start in the race for market dominance. Meanwhile, Nintendo, a competitor thought to be dead due to the lackluster sales of its previous console, the Nintendo Gamecube, had generated significant “buzz” around its new entry, the Nintendo Wii (pronounced “we”). Targeting more of a mainstream audience than Sony and Microsoft, the Wii, scheduled to launch just two days after the PS3, posed a serious threat to Sony’s market share, particularly due to its $249.99 retail price, half the price of the PS3. Stringer also knew that there was much more at stake than winning the console war. The next generation of the DVD market was at stake as well...
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...Sony Corporation and the Video Game Console Market: 1 A Competitive Analysis By Ryan Bogner, Peter Hung, Guan Wang, and Steven Wang This report evaluates Sony Corporation’s strategy in the console gaming market from the top-down perspective of the entire corporation. 1 Executive Summary Sony’s current strategy in the video game console market is simple: use the technologically superior Playstation 3 as a loss leader to introduce the Blu-ray optical drive2 into consumers’ homes and leverage that market penetration to drive content sales once Blu-ray is established as the de facto standard for optical storage. It is therefore in Sony’s interest to reach the tipping point for market adoption of Blu-ray as soon as possible. To increase the rate of Blu-ray adoption in the market, we recommend that Sony adopt a “good-better-best” strategy, whereby Sony produces discounted and premium versions of the current Playstation 3 for sale to consumers. This strategy will encourage price-sensitive customers to purchase Playstation 3 consoles without marginalizing power gamers. Nintendo and Microsoft will most likely respond to this strategy with differentiation rather than price competition. If Sony reinforces this strategy with coherent marketing and intellectual property strategies, it can increase Blu-ray adoption rates and make it more likely that the format will be adopted as a standard. The Market for Video Game Consoles is Growing, but Competition is Fierce The market for...
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...Sony Corporation and the Video Game Console Market: 1 A Competitive Analysis By Ryan Bogner, Peter Hung, Guan Wang, and Steven Wang This report evaluates Sony Corporation’s strategy in the console gaming market from the top-down perspective of the entire corporation. 1 Executive Summary Sony’s current strategy in the video game console market is simple: use the technologically superior Playstation 3 as a loss leader to introduce the Blu-ray optical drive2 into consumers’ homes and leverage that market penetration to drive content sales once Blu-ray is established as the de facto standard for optical storage. It is therefore in Sony’s interest to reach the tipping point for market adoption of Blu-ray as soon as possible. To increase the rate of Blu-ray adoption in the market, we recommend that Sony adopt a “good-better-best” strategy, whereby Sony produces discounted and premium versions of the current Playstation 3 for sale to consumers. This strategy will encourage price-sensitive customers to purchase Playstation 3 consoles without marginalizing power gamers. Nintendo and Microsoft will most likely respond to this strategy with differentiation rather than price competition. If Sony reinforces this strategy with coherent marketing and intellectual property strategies, it can increase Blu-ray adoption rates and make it more likely that the format will be adopted as a standard. The Market for Video Game Consoles is Growing, but Competition is Fierce The market for...
Words: 5489 - Pages: 22