ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

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TABLE OF CONTENTS
LISH OF FIGURES:..................................................................................................................................................................... 4
LISH OF TABLES:....................................................................................................................................................................... 4
I. INTRODUCTION:...............................................................................................................................................................5
Company profile:...................................................................................................................................................................... 5
II. THE EXTENAL ANALYSIS:...................................................................................................................................................6
1. Five-forces model:........................................................................................................................................................6
2. Pestle:........................................................................................................................................................................... 9
III. THE INTERNAL ANALYSIS:...........................................................................................................................................11
1. Vision, Mission, and Core values of Microsoft:...........................................................................................................11
2. Organizational structure:............................................................................................................................................12
 Advantages and disadvantages of the organizational structure:.........................................................................13
 The relationships between these departments:...................................................................................................13
3. Human resource:........................................................................................................................................................13
4. Brand equity:..............................................................................................................................................................14
5. Financial strength:......................................................................................................................................................15
6. Physical assets:...........................................................................................................................................................17
7. Market resources:......................................................................................................................................................18
8. Technology base:........................................................................................................................................................18
IV. SWOT ANALYSIS:........................................................................................................................................................20
1. Strengths:...................................................................................................................................................................20
2. Weakness:.................................................................................................................................................................. 21
3. Opportunities:............................................................................................................................................................21
4. Threats:...................................................................................................................................................................... 22
V. EXTERNAL IMPACT ON COMPANY’S DECISION:..............................................................................................................22
VI. RECOMENDATION:.....................................................................................................................................................23
1. Recommendations on production development direction:........................................................................................23
2. Recommendations to solve weaknesses and threats:................................................................................................23
VII. CONCLUSION:.............................................................................................................................................................23
References.............................................................................................................................................................................24
LIST OF FIGURES:
Figure 1: Five Forces Model.....................................................................................................................................................6
Figure 2: Microsoft's substitutes..............................................................................................................................................8
Figure 3: PESTLE Model............................................................................................................................................................9
Figure 4: Microsoft's core values............................................................................................................................................12
Figure 5 - Microsoft Corporation's structure (Microsoft, 2020).............................................................................................12
Figure 6 - Brand value of Microsoft from 2006 to 2020 (Microsoft, 2020).............................................................................14
Figure 7: Outstanding achievement of Microsoft (Cuenco, 2020)..........................................................................................15
Figure 8 – Comparison of 5 year cumulative total return (Microsoft, 2020)..........................................................................16
Figure 9 - Current assets, Property, Long - term assets and Total assets (Microsoft, 2020)...................................................17
Figure 10: Auto production line of Microsoft (microsoft, 2020).............................................................................................19
Figure 11: SWOT of Microsoft Corporation (Business Strategy Hub, 2020)............................................................................20
Figure 12 - Cybercrime theft through Microsoft....................................................................................................................21

LIST OF TABLES:
Table 1 - Company profile........................................................................................................................................................5
Table 2: Microsoft's consolidated financial statements (Microsoft, 2020).............................................................................15
Table 3: Microsoft Corp., consolidated balance sheet: assets 2020 (Microsoft, 2020)..........................................................17
 I. INTRODUCTION:

Microsoft Corporation is an American multinational technology company that develops, manufactures, licenses supports,
and sells computer software, consumer electronics, personal computers, and related services. Surely everyone knows the
line of Microsoft Windows operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web
browsers. Microsoft ranks 21st in the Fortune 500 2020 rankings for the largest US corporations by total revenue and is
considered one of the Big Five technology companies in the country. Therefore, many investors have put their trust in
Microsoft. In the following, this report analyzes the internal and external environments of Microsoft Corporation.
[ CITATION Mic201 \l 1033 ]

COMPANY PROFILE:

Company name Microsoft Corporation

Type Public
Traded as NASDAQ: MSFT
NASDAQ-100 component
DJIA component
S&P 100 component
S&P 500 component
ISIN US5949181045
Founded April 4, 1975 in Albuquerque, New Mexico, U.S.
Founders Bill Gates
Paul Allen
Headquarter One Microsoft Way Readmond, Washington, U.S.
Key people Chairman: John W. Thompson
CEO: Satya Nadella
President: Brad Smith
Technical advisor: Bill Gates
Website https://www.microsoft.com/
Table 1 - Company profile

II. THE EXTENAL ANALYSIS:

1. Five-forces model:
 Figure 1: Five Forces Model

In order to resolve the impacts of outside variables distinguished in this Five Forces review, Microsoft must build
sufficient reactions. The ability to intentionally resolve these issues impacts the flexibility of the organization. In
Microsoft's industry climate, the Five Forces analysis can be set up as follows:

 Competitive rivalry or competition (strong force)

 Bargaining power of buyers or customers (moderate force)
 Bargaining power of suppliers (moderate force)
 Threat of substitutes or substitution (weak force)
 Threat of new entrants or new entry (moderate force)

a. Competitive rivalry or completion:

Microsoft has to effectively debate to stay successful. This angle of the Five Forces analysis decides the impacts of
companies on each other and the related conditions of the industry environment. Within the case of Microsoft, the
taking after outside variables and their power apply the solid drive of competition against the company:
 Moderate switching costs: have an analogous balanced impact on Microsoft’s trade. For instance, clients have
a direct propensity to move to other firms’ items. Whereas such moving isn't simple, companies overhauling
their frameworks might select to utilize computer hardware and software items from Microsoft’s competitors
(Moderate force).
 The high aggressiveness of firms: causes to a solid drive that essentially influences the company’s industry
environment. These innovation firms are forceful in terms of their rate of development and their showcasing
campaigns (Strong force).
  The high diversity of firms: Microsoft must moreover consider the solid constrain based on the high diversity
of firms. In this viewpoint of the Five Forces analysis of Microsoft, outside components bolster the solid drive
of competitive competition, which may be a need issue in vital decision-making (Strong force).
b. Bargaining power of buyers or customers:
Microsoft must react to the direct constrain of the haggling control of clients, based on the taking after outside
components and their power:
 The low substitute availability: speaks to the trouble of get to successful substitutes to Microsoft’s items. For
illustration, buyers confront troubles in finding non-computer-network arrangements that are as successful
and productive as the company’s items. This outside figure applies a powerless drive on Microsoft and its
industry environment (Weak force).
 The moderate switching costs: make a significant constrain on Microsoft’s trade. Since of this escalated of
exchanging costs, buyers have a considerable trend to move from the company’s items and begin utilizing
other firms’ items (Moderate force).
 The high quality of information: The outside factor of the high quality of information advance engages
customers in terms of satisfactory data that they can utilize to compare Microsoft’s hardware and computer
program items to competitors (Strong force).
c. Bargaining power of suppliers:
Microsoft’s commerce depends on supply conditions. This viewpoint of the Five Forces analysis diagrams the impact of
providers on the computer hardware and software industry environment. The taking after outside components and their
power keep up the powerless constrain of the haggling control of providers on Microsoft Corporation:
 The moderate size and population of suppliers: facilitates them to force a critical but constrained impact on
Microsoft’s trade. For illustration, a few modestly measured providers of computer equipment components
can alter their estimating, which swells to a potential alteration within the company’s costs (Moderate force).
 The moderate overall supply: moreover makes a noteworthy but constrained constrain on Microsoft. The
concentrated of this constrain may increment in case the by and large supply diminished. Hence, the outside
components in this perspective of the Five Forces analysis of Microsoft focuses on the direct drive of the
bartering control of providers as a critical vital thought within the computer innovation industry environment
(Moderate force).
d. Threat of substitutes or substitution:
 Substitutes can cut down Microsoft’s market share. The impacts of substitutes on firms and their industry
environment are decided in this perspective of the Five Forces analysis. In Microsoft’s case, the taking after
outside components and their power force the frail drive of substitution on the commerce:
  Substitutes, such as non-online or manual-mechanical forms, tend to have lower execution compared to
Microsoft’s current items. This outside figure debilitates the danger of substitution against the company
(Weak force).
 In connection, the worldwide appropriation of progressively progressed innovations decreases the
accessibility of substitutes and assist debilitates the danger of substitution that Microsoft encounters (Weak
force).
 Whereas moderate switching costs enable assistance encourage substitution, this outside figure isn't sufficient
to altogether fortify substitutes. Based on this angle of the Five Forces analysis, the powerless drive of the
threat of substitution may be a minor issue in Microsoft Corporation’s industry environment (Moderate
force).

Figure 2: Microsoft's substitutes

e. Threat of new entrants or new entry:

In this perspective of the Five Forces analysis, the center is on the impact of modern participants on the computer
equipment and program industry environment. The force of outside components that leads to the moderate force of the
risk of unused passage against Microsoft are as takes after:
 The high cost of developing the brand of innovation commerce debilitates the impacts of unused participants
on companies like Microsoft Corporation (Weak force).
 The moderate cost of creating such commerce presents a significant chance for modern participants to
discover victory in competing within the computer hardware and software market (Moderate force).
 The moderate switching costs also incompletely contribute to the potential victory of unused participants in
competing against companies like Microsoft. These outside variables have a direct commitment to the
potential competitive concerns of the company (Moderate force).
2. Pestle:

Figure 3: PESTLE Model

a. Political factor:

Positive:
 The political solidity of the majority share of markets around the world opens up possibilities for Microsoft
to expand its businesses and compare execution.
 Increasing government funding for automation offers Microsoft opportunities to broaden its tech
innovation deals by legislative clients.
 Increasing international trade agreements create a remote or macro-environment that underpins an
increment in Microsoft’s worldwide deals. This facilitates the company to benefit from simpler commerce
bargains in abroad markets.
Negative:
 Increasing international trade agreements are also a risk against Microsoft. In these understandings,
outside firms can increment their competitiveness in developed countries such as US, UK and so on.

b. Economics factor:

Positive:
 Microsoft benefits from the considerable economic stability of the majority of developed countries.
 Microsoft moreover has potential increases in deals incomes in high-growth developing countries. This
opportunity enables Microsoft’s global sales to boost stably.
 The economic external factor of the overall global rise of middle class disposable income makes chances
for the company for higher incomes.
Negative:
 Economic factors impact businesses directly. After the recession, the situation has been a bit trouble
because the dollar has grown stronger.

c. Social factor:

Positive:
 The stable attitudes about leisure create openings for Microsoft to develop items that can satisfy buyers.
 The stable demand for high quality customer service makes openings for the firm to make strides its client
support activities.
 Microsoft has a chance to improve its goods and services through increasing cultural diversity.
Negative:
 Increasing cultural diversity could be a potential risk that Microsoft has to face because of the disparity
between buyers and products in the remote or macro-environment.

d. Technological factor:

Positive:
 Through the quick production of its portable devices, Microsoft Corporation will advance its
implementation. This potential is founded on the rapid appropriation of and growing demands for
portable innovation.
 The growing volume of online exchanges provides Microsoft with opportunities to build more products
that improve the safe handling of online exchanges.
 The organization offers an opportunity to expand through goods. This facilitates businesses to quickly
simplify their processes.
Negative:
 Rapid adoption of mobile technology is also a risk that causes competition to Microsoft. More technology
brands may be take advantages opportunity to enter the market.
 Increasing volume of online transactions threatens the company about a corresponding increase of cyber-
criminals. This is one of the dangers distinguished in Microsoft’s SWOT Analysis.

e. Legal factor:

Positive:
 Increasing regulations on electronic waste disposal are an opportunity for Microsoft Enterprise to conduct
more effective programs of reuse and transition that move forward with the brand image.
 Improving patent laws promote the worldwide development of Microsoft by increasingly reducing
problems such as piracy of computer software.
  The business offers an opportunity to update their products to assist client organizations with more
energy-efficient computing technologies to minimize their use of vitality.
Negative:
• Rising legislation on the disposal of electronic waste is also a risk that could cause the organization
additional challenges in coping with the natural impact of its trade.

f. Environmental factor:

Positive:
 Based on the increasing preference for green products, Microsoft Corporation has the chance to improve
its sustainability status.
 Microsoft's attempts to strengthen its sustainability explicitly address the opportunity based on the
increasing focus of society on business sustainability.
 An additional ecological factor that can be used by the organization as a basis for increasing the use of
recycled materials in its computer hardware, software, and packaging products is the increasing
availability of recyclable materials.
Negative:
 The electronics companies that manufacture computers, PCs, and smartphones are not easy to dispose of
and contain toxic materials that can have a substantial negative impact on the environment if they are not
properly disposed of. Therefore, the environmental influence of the entire brand is also a major concern
for any technical enterprise..

III. THE INTERNAL ANALYSIS:

1. Vision, Mission, and Core values of Microsoft:

Vision and Mission:

Figure 4 - Vision and Mission of Microsoft

On: https://www.microsoft.com/en-us/

Core values:
 Figure 5: Microsoft's core values

2. Organizational structure:
 As of publication, the board of directors of Microsoft has 10 members, including company founder and software
consultant Bill Gates, CEO Satya Nadella, former CEO Steve Ballmer, and seven independent directors. Four
committees are overseen by the board: Audit, Compensation, Governance, and Nominating, Legislative and Public
Policy. The leadership team of Nadella is composed of 12 executive vice presidents and a chief operating officer.
 Besides, the company separated into divisions pursuant to engineering groups and business functions. Specifically,
engineering groups have four divisions and business functions have 9 divisions.
 Microsoft has a functional structure. This arrangement is focused on the division of an entity into smaller units
with unique assignments or functions.

Figure 6 - Microsoft Corporation's structure [ CITATION Mic201 \l 1033 ]

 On: https://www.microsoft.com/en-us/

Advantages and disadvantages of the organizational structure:

 Advantages:
 Understanding clearly
 They can add or divest divisions flexibly
 The company can monitor by performances of their staff members according to this chart.
 Education of strategic opinions
 Disadvantages:
 In a management capacity, they must ensure that if they lose central control in service, it can be a risk.
 Short of divisional contact

The relationships between these departments:

Each worker from each division can collaborate with each other, and the incentives are higher than ever to work towards
single objectives. The connection is enhanced. There will be one leader of a single division to administrate, their leader's
direct influence has a significant effect on the company's operating system consistency. As a result, the relationship
between these divisions will be better and they will collaborate successfully in many ways and different goals of the
business.

 Divisions under the supervision of the CEO will have roles and duties according to the names of each division, such
as marketing group, PR, corporate strategy & planning, finance group, and so on.
 Each department is responsible for its own assigned management team. This works between each functional
region as a cross-point of contact.
 The department's progress plans will be admitted by the CEO and executed under committees' approval and
supervision.
Consequently, all aspects of the organizational structure of Microsoft are connected to each other. This makes the firm
simpler for the company to function more efficiently, helping departments deal directly with each other to establish a
successful corporation.

3. Human resource:
o The firm claims that its five Windows and Windows Live Division, Server & Tools, Online Service Division,
Microsoft Business Division & Entertainment & Computer Division business divisions provide the greatest
potential for customer satisfaction. The corporate strategy of the organization is therefore determined on
the basis of the company's mission and principles, and its strategic objectives have been cascaded down
into the above five business units.
 o Accordingly, when selecting methods for human resources, such as hiring and selection, motivation,
retention, training & development, etc. In providing the service to the client, they often remember what
the company's needs are.
o A more thorough review of the roles of human resources will be explored later in this article. We may also
conclude that the organization maintains a clear link in its activity between business strategy and human
resource strategies.

4. Brand equity:
According to a ranking of brands based on their valuation, with a result of US$ 326.5 billion, Microsoft ranked third on the
2020 list. Microsoft's brand value grew by 30 percent compared to the previous year.

Figure 7 - Brand value of Microsoft from 2006 to 2020[ CITATION Mic202 \l 1033 ]

On: https://www.statista.com/statistics/326058/microsoft-brand-value/
 Figure 8: Outstanding achievement of Microsoft [ CITATION She20 \l 1033 ]

On: https://www.slideshare.net/sjcuenco/ms-certificate-of-achievement-13905957

5. Financial strength:

Table 2: Microsoft's consolidated financial statements [ CITATION Mic203 \l 1033 ]

 Figure 9 – Comparison of 5 year cumulative total return [ CITATION Mic203 \l 1033 ]

On: https://www.microsoft.com/investor/reports/ar20/index.html

 According to the 2020 Annual Report of Microsoft Corporation: (compared with 2019)
 Revenue increased by $17.2 billion (14%), driven by growth.
 Gross margin, driven by growth across each of our divisions, improved by $14.0 billion (17%). The
percentage of commercial cloud gross margin increased 4 points to 67% mainly powered by Azure
enhancement.
 Operating profits, powered by growth across each of our divisions so increased $10.0 billion (23%).
 Therefore:
 Microsoft is a corporation has a financial position which can develop strongly, high liquidity and future
prospects for good growth.
 The company's sales and profit are sufficient to satisfy investors' requirements.
 There is a very low chance of default on the debt of the company.
 6. Physical assets:

Figure 10 - Current assets, Property, Long - term assets and Total assets [ CITATION Mic203 \l 1033 ]

Table 3: Microsoft Corp., consolidated balance sheet: assets 2020 [ CITATION Mic204 \l 1033 ]

On: https://www.stock-analysis-on.net/NASDAQ/Company/Microsoft-Corp/Financial-Statement/Assets

In recent years, total assets of Microsoft Corporation increased stably.

  The current assets amount to $181,915 million, which always accounts for a significant proportion of over
50% of the company's total assets.
 The total asset is $301,311 million by the end of 2020 (a rise of 0.1 percent relative to 2019).

With regard to the long-term assets of the company's investment and growth, the key explanation is that
the overall assets of the company have risen significantly.

7. Market resources:
 The initial public offering of the firm was held on March 14, 1986. Shortly after the market opened for trading, the
stock, which ultimately closed at $27.75 a share, peaked at $29.25 a share. Microsoft had a $519.777 million
market capitalization after the offering. Subsequently, Microsoft purchased over 225 businesses, bought shares in
64 businesses, and made 25 divestments. Of the businesses purchased by Microsoft, 107 were based in the United
States.
 Since the first acquisition of Microsoft in 1987, it has acquired an average of six businesses a year. Between 2005
and 2008, the company bought more than ten firms a year, and in 2006 it purchased 18 firms, the most in a single
year, including Onfolio, Lionhead Studios, Massive Incorporated, ProClarity, Winternals Software, and Colloquis.
Twelve acquisitions worth over one billion dollars have been made by Microsoft: Skype (2011), aQuantive (2007),
Fast Search & Transfer (2008), Navision (2002), Visio Corporation (2000), Yammer (2012), Nokia's mobile and
devices division (2013), Mojang (2014), LinkedIn (2016), GitHub (2018), Affirmed Networks (2020) and ZeniMax
Media (2020).
 Thus, it can be inferred that the market resources of Microsoft Corporation are strong.

8. Technology base:
 Bill Gates and Paul Allen, childhood friends, discovered Microsoft, a corporation that produces computer
applications, on April 4, 1975, at a period when most Americans used typewriters. Microsoft, initially based in
Albuquerque, New Mexico, moved to Washington State in 1979 and gradually formed into a large multinational
technology firm. The 31-year-old Gates became the youngest billionaire in the world in 1987, the year after
Microsoft went public.
 A new operating system, Windows, was introduced by Microsoft in 1985 with a graphical user interface that
included drop-down menus, scroll bars and other features. The company relocated its headquarters to Redmond,
Washington, the next year and went public at $21 a share, earning $61 million. By the late 1980s, Microsoft had
become, based on revenue, the world's largest personal computer software company.
 Microsoft revealed that it was purchasing Zenimax Media for around $7.5 billion on September 21, 2020.
 "Microsoft revealed on September 22, 2020 that it had an exclusive license to use the GPT-3 artificial intelligence
language generator from Open AI. The previous version of GPT-3, called GPT-2, made headlines for being" too
 risky to release "and had various capabilities, including website design, prescribing medicine, answering questions,
and penning posts.

Figure 11: Auto production line of Microsoft[ CITATION mic20 \l 1033 ]

On: https://blogs.microsoft.com/transform/2016/04/24/how-manufacturers-are-creating-the-digital-intelligent-and-
predictive-factory/
IV. SWOT ANALYSIS:

Figure 12: SWOT of Microsoft Corporation [ CITATION Bus20 \l 1033 ]

On: https://bstrategyhub.com/swot-analysis-of-microsoft/

1. Strengths:
 The leading software company, Microsoft, is the undisputed world leader in software technology, especially in
cloud computing. It's the world's largest developer of Windows OS and is the leading cloud player. The commercial
cloud (Azure, Office 365 commercial, dynamic 365) reported annual revenue of $23.2 billion in 2018.
 In the world's biggest companies in 2018, Microsoft ranks 4th with a market cap of $750.6 billion. It's the biggest
company in the world with a commanding share of the market. It also holds the largest market share with a 3
percentage point rise among the five largest cloud service providers (Microsoft, AWS, IBM, Oracle, Google).
 With operations in more than 190 countries, Microsoft has vast market coverage. Since the introduction of the
promoted edition of Windows 10, it has had over 700 million installations worldwide.
 Microsoft's recent earnings result clearly illustrates its solid cloud business growth. According to analysts,
Microsoft would be worth $ 1 trillion in the near future.
 Microsoft has recently added new SKUs to its portfolio of products. This means merging Office 365 and Windows
10 with Microsoft 365. M365 is a multi-billion dollar business.
 Microsoft has 1.2 billion Office users and 60 million Office 365 commercial clients, a reputed brand with superior
buyer loyalty. It certainly has the highest loyal client base. Clients trust and stay loyal to the company.
 Microsoft is one of the world's largest hi-tech companies with 776 billion US dollars of market capitalization. It has
a steady presence and was also listed in PriceWaterhouseCoopers' revised report on 31 March 2018 in the Top 10
Global Companies.

2. Weakness:
 Due to rising prices and currency fluctuations of suppliers, PC shipments are also subject to regular falls. It landed
in a vulnerable spot for Microsoft.
 Microsoft has been left in a fragile state with rising cybercrime cases. Hackers have reportedly attacked the
Windows Operating System's cyber security several times.
 Microsoft has not improved its sales of hardware products such as surface-pro computers and phones. Innovation
and new technologies have lagged behind, while trails are increasingly blazing for Apple, Google, and Amazon.
 Microsoft is losing the market, while Google, Safari, and Firefox have been gaining market share in the internet
browser segment. Microsoft IE & Edge did not even build a list of the most popular web browsers in 2018.
 Fewer acquisitions by Microsoft, such as WebTV, LinkExchange, Huge, and Risk, led to failures and divestitures.
Such unprofitable investments are Microsoft's greatest flaws.

Figure 13 - Cybercrime theft through Microsoft

3. Opportunities:
 In recent years, its cloud-based services have gained tremendous growth and popularity. So, there's a chance for
Microsoft to develop its cloud business.
 In many innovative fields, such as AI and game technology, Microsoft has a big opportunity. Investing in these
areas can give Microsoft the upper hand.
 Microsoft will concentrate on entering into new strategic partnerships and alliances. This will help the
organization to gain significant market share. Acquiring big hi-tech firms would also be a lucrative prospect for
Microsoft.
 Microsoft's fast-growing demand for smartphones and tablets provides an excellent opportunity. It can capitalize
on these products' growing demands.
 By selling its goods at low prices, Microsoft will gain the ability to boost its sales and revenue. It can also deter
hackers from inappropriately using their apps.

4. Threats:
 The workforce diversity figures from Microsoft in 2018 revealed a disparity in its hired workforce. The number of
working women and minorities was very poor, fuelling significant criticism and arguments against the HR policy of
the organization.
 For its Xbox Live game service, Microsoft has attracted a lot of criticism. In the Gamertag and user profile,
reference to homosexuality and gays may not be included, as the company finds this matter 'unsuitable' and
'offensive' for other users.
 With Google and Apple, Microsoft is in heavy rivalry. The existing positions of these companies could be a
challenge to the market position of Microsoft.
 The demand for smartphones, notepads, and laptops is highly appealing to people. In these markets, Microsoft
has modest shares.
 Like Linux OS and Open Source Workplace, several new open source projects that provide similar services for free
have successfully entered the market. Microsoft, which sells these goods at an expensive cost, could be at risk.
 Microsoft’s security network system is influenced drastically since cybercrime thefts and software piracy problems
increasing.

V. EXTERNAL IMPACT ON COMPANY’S DECISION:

To drive innovation, MSCI Inc. (NYSE: MSCI) and Microsoft Corp. have forged a strategic alliance with the global
investment industry. Businesses will unlock new industry innovations and strengthen MSCI's customer experience
among the world's most advanced investors, including asset managers, asset owners, hedge funds, and banks, by
combining the power of Microsoft's cloud and AI technologies with MSCI's global reach through its suite of investment
decision support tools.[ CITATION Mic205 \l 1033 ]
 VI. RECOMENDATION:

1. Recommendations on production development direction:

 Carry on with exploiting the strengths and possibilities to draw more customers by getting more innovative
marketing and promotion strategies.
 Create products that utilizers can easily understand and use effectively.
 Invest in a thorough upgrade of infrastructure such as machinery, raw materials, factories and means of transport,
products and so on.
 To better reach customers, strengthen and continue to widen the marketing and distribution system.

2. Recommendations to solve weaknesses and threats:

 Upgrade and add creativity to the apps. To successfully accept the future of innovation, Microsoft must take
radical steps.
 Efficient marketing tools continue to boost the brand image.
 In order to compete with competitors in technology such as Google and Apple, Microsoft has to create more
competitive benefits.
 To boost its market place, reinforce relationships, strategic alliances, and acquisitions.
 Handle cyber security problems and counter global cyber robberies through the improvement of their network
protection systems.
 Reduce costs in order to reduce the unauthorized use of their information systems.
 To boost potential growth and market share, diversify its business.

VII. CONCLUSION:

Through the above report, because of the analysis of environmental impacts inside and outside the company, it has
pointed out the important factors that investors are interested in. Therefore, it has demonstrated Microsoft's strength
and potential for future growth.

VIII. REFERENCES
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Cuenco, S. C. (2020, December 1). Retrieved from slideshare: https://www.slideshare.net/sjcuenco/ms-certificate-of-

achievement-13905957

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