Answer To: Company: Microsoft Corporation (MSFT) Group Project Source:...
David answered on Dec 23 2021
Ans1. If we look at today’s landscape in the information technology then we would be able to
gauge the kind of competition that the industry is witnessing. The only way for Microsoft to
tackle its competition is to enable its employees to provide superior levels of knowledge and
service to their customers who could not be provided by its employees. Further on it needs to
develop its service capabilities by reducing cost in order to counter the threats of price rise. They
would require to not only completely exploiting their operation capabilities and more over
building on their core competencies.
Further on they also need to build healthy relationship with its distributors, customers and most
importantly with their employees. This relationship would help them to counter their competitors
on three fronts. On one hand they would be able to prohibit their distributors from shifting their
loyalty to their competitors; on the other hand they would be able to stop their customers from
buying other products. Further by maintaining good relationship with their employees they
would stop their attrition level.
Further on technology tools are increasingly becoming important differentiators in today’s
competitive market. In order to become the industry leader it continuously needs to harness their
technology and thereby provide with a differentiated products. Further integration of all levels in
their organization and managing their value chain is increasingly becoming important, thus they
need to do the needful in order to tackle their competitors.
How can Microsoft handle debt?
Ans2. Microsoft has a good debt/equity ratio, about 0.19. Further it also has a good quick and
current ratio both around being 2.80. All of this means that Microsoft can handle its current debt
and may be even absorb more debt. Thus neither it needs to restructure or renegotiate. Further on
it should also not go for merger as it is a cash rich company with over$50 billion cash in its
coffers.
Ratio and Altaman Z-Score Model
PERIOD ENDING 06/2011 06/2010 06/2009 06/2008
Balance Sheet – Assets
Cash and Equivalents 9,610,000 5,505,000 6,076,000 10,339,000
Marketable Securities 43,162,000 31,283,000 25,371,000 13,323,000
Accounts Receivable 14,987,000 13,014,000 11,192,000 13,589,000
Receivables 14,987,000 13,014,000 11,192,000 13,589,000
Raw Materials 232,000 172,000 170,000 417,000
Work in Progress 56,000 16,000 45,000 31,000
Finished Goods...