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Business Case study- A Case Study of Microsoft

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Microsoft pestle analysis + swot analysis case study

Microsoft Corporation is a multinational technology company based at Redmond, Washington. This company develops, manufactures, supports, licenses and sells computer software, personal computers and consumer electronics along with its related services. The name of company “Microsoft” has been named after by merging the two words “microcomputer” and “software”. According to Ricky, a senior consultant at My Assignment Help, During the year 2016, it has been ranked as the largest software maker of the world as per revenue”. It was basically formed to dominate the operating system of the personal computer with MS-DOS during the period of 1980s, followed by Microsoft Windows.

Background of the Microsoft

Name of company: Microsoft CorporationYear of Formation: 1975CEO: Steve BallmerProducts of the company: Windows, Servers, Office, Skype, Dynamics, Visual Studio, Surface Mobile, Xbox and list of softwareAnnual revenue: US$ 125.8 billionCountries in which it operate: Operates in 210 countries like in India, Canada, China, Australia, Germany, Japan, UK, Singapore, Ireland, Netherlands.Net operating cost: US$ 43.0 billionAd Expenditure: US$ 13.7 billionNet Sales volume: US$ 125.8 billionMain competitors: Apple, Google, Facebook, Oracle, IBM, SAP, Salesforce, Okta, Proofpoint

Background of Microsoft product

            The products of software can be segregated into different categories. These categories are explained with the help of a chart below-

WindowsOfficeBusinessDevices & MoreDeveloper & ITAppsMore
Internet ExplorerExcel  Skype for Business ServerXboxHardware DevelopmentSkypeMicrosoft store
Windows 7WordSkype for Business OnlineMobile DevicesVisual StudioYammerMicrosoft Account
Windows 8.1PowerPointSurface for BusinessSurfaceMicrosoft Exchange ServerSkype for BusinessSecurity
Windows RT 8.1Office for HomeMicrosoft IntuneDevice Service and RepairMicrosoft Sharepoint ServerSwayPrivacy
Windows 10OutlookMicrosoft AzureMicrosoft keyboards, mouse, LifeCam, LifeChatMicrosoft SQL ServerMicrosoft Edge for iOS and AndroidBing
Windows 10 MobileOffice 365 for BusinessMicrosoft Dynamics GP Microsoft .NET FrameworkDelvePC Gaming
Windows ServerOffice for AndroidMicrosoft Dynamics AX System CenterYour PhoneMicrosoft Ads
Windows UpdateOffice for iPhone & iPadMicrosoft Partner Centre Support  SwayMSN.com and Apps
Windows Insider ProgramOneNotePower BI   Microsoft Lifecycle Policy
Windows Mixed RealityAccessOther Microsoft Dynamics Business Solution    
Windows AccessibilityMicrosoft Teams     
Windows IT AdministratorOutlook 2016 for Mac     
 Publisher     
 OneDrive     

SWOT analysis of Microsoft

Strengths- The Internal Strategic Factors

It is the leading software company. It is the market leader of the technology of software especially in cloud computing. It has been considered as the largest developer of the Windows Operating System as well as the largest cloud player. According to Ana, a financial advisor at Myassignmenthelp, “During the year 2018 its annual revenue was $23.2 billion. It also ranks fourth in the list of world’s largest company in the year 2018 with market value of $750.6 billion”. This company has shown constant and strong growth in the cloud business. At the same time, it has the base of greatest loyal customer and it has been ranked 4th as the world’s most valuable brand. It is basically known for its hi-tech quality products.

Weaknesses- The internal Strategic Factors

            There has been often fall in the PC shipments due to the rising prices of the vendors and fluctuations of currency and therefore it has landed Microsoft in a vulnerable position. The increasing rate of cybercrime have also left Microsoft in a vulnerable state. There is lack of innovation and advanced technology in the hardware products of Microsoft in the products like computers, phones and surface pro. On the other hand, Google, Apple and Amazon are rapidly innovating their advanced technologies.

Opportunities- The External Strategic Factors

            During the recent years the cloud-based services of Microsoft has gained immense growth as well as success and hence the opportunity has been expanded to the cloud business of Microsoft. There are various innovative areas like AI and game technology where the Microsoft has massive opportunity and therefore, investing in such areas will give positive results in future. The company is able to gain high market share if it enters into new partnerships and acquisitions. Microsoft can go for acquiring hi-tech firms as this will provide a profitable opportunity for Microsoft. At the same time, the rapid growing market for the smartphones and tablets offer a wonderful opportunity for this company.

Threats- The External Strategic Factors

            There has been an imbalance in the recruited workforce during the time period of 2018 as shown by the Microsoft workforce diversity statistics with a low number of women employees. On the other hand, it has faced many criticism for its Xbox Live- the gaming service and the companies like Google and Apple stand as threats for Microsoft. It has a market of modest market shares in terms of smartphones, notepads and laptops.

PESTLE Analysis of Microsoft

Political

            The company of Microsoft has been running into several political issues during the last couple of years. China has an issue with the sales and distributions of Microsoft products and there was an amicable relationship between China and the United States and still U.S heavily relies on China and any sort of disturbance can affect Microsoft. During the year 2013, the European Union had also hit Microsoft for the violation of trust regulations. There will be shift in the laws in the international countries which may benefit the company as the political environment largely affects the business and profitability of any active businesses. During this recent times, the Microsoft is in a favorable position politically and the company has provided more than $10 million for the formation of the political environments in the last 2 years. Thus, it clearly indicates that Microsoft wants to be on the good side of the environment.

Economic

            The current state of the economy has largely affected Microsoft and there has been imbalances in the profit with taxation rates and change in the labor law and also because of poor and unfriendly relationship with the internal companies. All these have also affected the import and export of Microsoft. During the time of recession in the year 2017 the company was forced to lay off employees of over 5000 and it is still recovering from such mishap. Furthermore, during the year 2015 the revenues and expenses of Microsoft have been reduced in the international operations. Thus, it is needed for Microsoft to act accordingly for getting accustomed with the changes which are likely to impact the operations of the company.

Social

            The social factors along with the economic factors affect the revenues and profits of Microsoft. It is important for every business to understand the social as well as cultural factors of the business. These can be challenging for the businesses which has operations in the multiple countries. They need to study several customs and cultural changes but Microsoft has not put much effort for doing the same. There has been massive increase in the use of mobile devices but Microsoft is mostly concerned for the products of computers and put little focus on the mobile users. Therefore, for acquiring more success in the business it needs to shift their thinking and include smartphones as a big part of their campaigns.

Technological

            Microsoft is basically a technology based company which is engaged with the developing and distributing of digital software as a result any changes in the industry of technology is bound to affect the corporation. It is important to keep a pace with the technological breakthroughs as a new technology is developed the old one is thrown away. It has two major rivals- Apple and Google which keep Microsoft on their toes. It can result into business loss if Microsoft do not put much attention in the funding of innovation, investments and research. Similarly, it has experienced growth and success after adopting the cloud based services. The only loophole is that it does not keep pace with the mobile phones as mentioned earlier and buying of Nokia was not profitable for Microsoft.

Problems Microsoft is facing

            The recent economic meltdown has hit the world had a severe implication on the economies as well as most of the companies worldwide and Microsoft is not an exceptional but it has still managed to be among the big players of the market even after the financial crisis. However, there are some key challenges which are being faced by Microsoft and it has been unidentified after conducting SWOT and PEST analysis. One of those key challenges has been explained below-

Lack of Innovation

            It has been already identified in the SWOT analysis that Microsoft lacks in innovation and most of the products which have been launched by Microsoft are influenced by the existing products of other competitors. Therefore, for instances the very own browser of Microsoft, the Internet Explorer is similar to the Netscape. According to some employees of the company, since Microsoft lacks in innovation their employees are busy upgrading their products.

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Finance

What You Need To know About Gold Finance

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gold finance

A gold loan is one of the types of secured loan that you can get as collateral with a lender by pledging gold ornaments or NBFCs. In exchange, the lender will give you a loan sum depending upon your gold’s market value. And your gold is returned after you have finished repaying the loan sum and interest post your chosen term.

Let us understand the various aspects of gold loans and how it can help you meet your financial requirements.

Type of gold forms you can pledge:

You can pledge gold ornaments in both banks & NBFCs, and the purity of gold or gold value will decide the principal loan amount. Remember that banks do not allow gold finance for gold bars, coins, or bullions and opt for jewellery instead. 

How to avail a loan for gold?

The financial institutions will measure the gold’s purity when you take the gold to a lender and inform you of the loan sum you can borrow. The amount can be up to 75 per cent of the gold value, as per RBI guidelines. Additionally, as per the bank’s rules, the borrower must pay a transaction fee to avail the gold loan. A borrower can also use the gold loan calculator to know the loan amount, tenure, interest rate, etc.

Gold safety:

With an unlicensed bank or NBFC, there is a high risk of misplacing or swapping your gold jewellery. That is why applying for gold finance from a reputable lender is advisable and preferred. You don’t have to think about protecting your gold with a popular and trustworthy lender, as it’s locked in a vault. 

Documentation:

As a borrower, you need to submit the below documents to avail gold finance:

  1. Passport photo
  2. Identity proof(passport, driver’s license, Aadhar card)
  3. Address proof(electricity bills, phone bills, smart card etc.)

Qualification:

Any Indian national above eighteen years of age can apply for a gold loan with a bank/NBFC. One of the prerequisites would be to visit the lender’s website and understand the terms and conditions before applying for a gold loan. By that way, you can also use the gold loan calculator available on the website to know the details of the loan. 

Processing time:

The digital age had made the loan processing more comfortable for the gold lenders to disburse the loan amount directly to the borrower once the lender assesses the gold purity and verifies the documents. 

Rate of interest:

Note that the interest rate on gold loans is comparatively lower than those of credit card loans, mutual fund loans, personal loans, etc. NBFCs are in particular flexible with interest rates on gold finance to the borrowers with better qualifying criteria. Usually, the interest rates on gold loans will increase with the increase in the principal amount. 

Tenure/repayment phase:

Bullet schemes allow you the right to repay any amount at any point during the tenure of the loan. You can also opt to repay the principal sum and interest in several instalments. It gives the facility to repay monthly interest and repay the principal balance amount during closure according to your convenience. There are also part payment and part withdrawal facilities by paying the appropriate sum. There are multiple variants of bullet systems designed to suit the cash cycles and needs of different consumer groups, and you can select one that suits you the best. 

Additional charges/fees:

Some of the costs you might incur would be the extra charges like processing fees, pre-closure charges and valuation fees. To look fair on the surface, some lenders may not report these costs. Hence while you use the gold loan calculator to know the loan details, you also might want to know about such additional charges.

Missing the repayment phase:

As a borrower, you must consider your repayment potential before applying for a gold loan. In the unfortunate circumstances of default, the lender has the right to sell your gold to recover the remaining loan sum.

Conclusion:

Gold loans are one of the most common forms of lending instruments that can help the borrowers meet their urgent financial requirements. However, the borrower must look out for the best lenders in the market before finalizing the lending partner. 

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Benefits Of Personal Loan To Repay Debt

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A personal loan is one of the most user-friendly financial products available in the market. The main advantage of a personal loan is that you can use it for any purpose. Unlike other loans, which have a specifically defined end-use, personal loans give you the freedom to use the funds in whichever way you deem fit.

The personal loans segment has also steadily increased in India. Owing to this, many banks and NBFCs have entered the segment. The healthy competition among them has ensured that the customers get lower interest rates and attractive deals. It has even led to simpler documentation and faster disbursal.

Personal loans now even have a higher approval rate as the financial institutions have improved their processes and relaxed their rules. The advancement in technology has also ensured that consumers can apply for a personal loan online.

If you are caught in debt, a personal loan may relieve you of your financial stress. Generally, we approach and borrow from our friends or family to settle our debt. However, that may not be the best practice. A personal loan gives you higher financial freedom without hampering your relationship with them.

Below are a few advantages of using a personal loan to pay off your debt

  • Convenience

    A. When you apply for a personal loan, you can decide on your monthly payout. Based on your eligibility, you can decide on the principal amount you wish to borrow. Scourge the market for the lowest interest rate on offer. This way you can decide on an affordable and low EMI.

    B. There is no collateral involved while applying for a personal loan. In the present digital era, you can even apply for a loan online without having to step out of your home.

  • Obligation
    A. Further, in case you miss out on paying any monthly installment, it will just add up to your loan amount. Compared to an embarrassing situation of explaining your default to a friend or family, this is a more convenient option.

    B. The obligation of a personal loan is fixed. Your monthly EMI, which is convenient, and affordable to you, is chosen by you. Unlike borrowing from a person wherein you have to work out a deal keeping in mind their relationship with you.

  • Consolidated debt

    A. If you have too many high-interest loans, opting for a personal loan with lower interest will be economically more beneficial. It will help consolidate all your debt. Thus, you will only have a single loan outstanding with a comparatively cheaper rate.

You can pay off your entire debt, and you will be left with only a personal loan. As you have decided on your EMI, it will not be a strain for you.

B. It will also help improve your credit score. Further, it will help you manage your monthly expenses and leave you with enough cash regularly.

  • Credit Card Debts
    A. A credit card is a form of unsecured loan. Hence, they will have a high-interest component. Credit cards are an extremely useful and attractive option. However, they need to be used with certain discipline and care. Further, failing to pay your outstanding on the due date of your bill may even lead to extra charges such as late payment and processing fees.

    B. In case you are caught up in a credit card bill outstanding, it will keep piling on more interest. To avoid this situation, you can apply for a personal loan and pay off your credit card bill outstanding. This way you would have a low-interest debt that will take care of any high-interest loans and additional fees.

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Why Accounting is Important for Students

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Accounting-Important-For-the-Students

What is Accounting?

Accounting helps students to determine how much money they plan to save for the unpredictable costs of the study and how money can be produced for certain types of expenses. Accounting allows students to solve their financial difficulties in this way. The Accounting course may be seen as learning-to-learn practice and as a key part of business education. Accounting methods are vital as a key part of the data processing device, Managerial Accounting Assignment Help, offering deeply important data about an enterprise’s prior knowledge. The purpose of accounting is to offer insight into the key consequences of effective management decisions.

Accounting is, therefore, the key process of recording financial transactions intended for a business. The key objective of accounting education is to help the students to develop highly professional accountants. The teacher must often mix philosophy with the key practice and show the course contact with non-accounting courses. One of the easiest ways of investing in education may be to try a career as an accountant. Graduate students have all too frequently celebrated their achievements of achieving their bachelors, masters, or even Ph.D. degrees without understanding either or not the degree for which they have worked so hard would return their investment.

Why Accounting Is Important?

Accounting is the basis of business in many respects. Its purpose is to monitor a business’s finances, from debits, credits, and profitability to payroll and tax filing, in their various forms. It is a field guided by empirical and analytical perceptions and offers a company with a record of its financial success and wellbeing with the knowledge obtained from such functions. In both the long and short term, financial results from this information may guide an organization’s strategies. In the accounting industry, there are main occupations that work together to drive an organization towards long-term constancy.

For instance, accountants are generally charged with studying financial reports to confirm consistency and to recognize financial inadequacies, and they are often usually tasked with monitoring the research of corporate taxes. Controllers frequently manage the accounting department, from the key departments to business expenses like accounts payable to secondary accounts such as payroll. Henceforth, Chief Financial Officer (or CFO) is an executive responsible for monitoring the financial health of an organization and using the data to plan current and potential growth strategies.

Accounting obtains the details needed at a high level to make critical economic choices. To see what is going on for the business, what requires improvement, and whether they are on track to profit, corporate executives can look at many different financial reports. Using this data, managers will determine the places to prioritize and where to use extra money in the future. Accountants also inspect and supervise internal problems such as fraud and excessive spending and are eligible to save money for corporations while being in accordance with regulatory regulations.

Accountants Have a Better Understanding of Finances

Accounting is an effective course to study for various reasons. Accounting offers students with knowledge and skills that are applied to many industries. In addition, accountants will thus be needed as long as there are many corporations in the world. Accountants obtain the sort of experience many individuals can pay for after years of learning the art of controlling money. Having an accounting degree provides a wide variety of expertise to students beyond financial management and reporting; the accounting programme also involves fiscal and monetary policy, market and tax law, financial analysis, the study of spreadsheets, management, banking and finance supervisory skills. Such skills are important to every job career, and this suggests that employers will benefit greatly from job applicants who have these skill sets. Other occupations, like fund managers, financial planners, banking professionals, and others, may also apply accounting skills.

The Growing Demand for Accountants

There are no assurances that anyone can land a job after they have completed their degree, as previously described, but it is worth mentioning that the demand for accountants is incredibly consistent. It is thus considered to be a major driving force of the economy because accounting involves handling capital. To control its finances, any organization requires at least one accounting professional; in some instances, large companies will hire accounting departments with lots of staff at companies around the country. It is fair to say that the market for accountants will grow in the 21st century and even beyond.

The Ability to Start Your Own Business

It is not unusual for accounting professionals to become businessmen; this often happens after many years of on-the-job experience while accountants have created a good amount of key business contacts. After many years of networking, accountants often feel more comfortable using the connections they’ve established to begin their own company. The options are limitless when it comes to financial services, consulting or specializing in tax accounting and representation.

Create Budget and Future Projections

In running a business effectively, accounting plays an essential role as it helps you to regulate expenses and sales, ensure statutory execution, as well as offer quantitative financial data to management, investors, and government that is being used in the entire business decision-making. Budgeting and key future predictions may create or break a business, and while it comes to it, the financial records may play an essential role. To keep the business activities profitable, market forecasts and patterns are focused on ancient financial data. When given by well-structured accounting systems, thus this financial information is most suitable.

Conclusion

In conclusion, accounting is a good career option for students. Accountants play a stable rate of employment rather than fluctuations in the economy. Although accounting professionals gain decent compensation for their better services. Due to many reasons, accounting is the perfect key course in the study. Accounting provides key expertise and information for students that may often be applied to a variety of industries. In reality, finance essay writing service, accountants will thus be vital as long as there are companies throughout the globe. The easiest way to kick-start the profession is to get an accounting degree, but before students decide to start training, it’s worth noting the main.

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