Company Selected: Microsoft

Prior to beginning this Interactive Assignment, review the sections of Chapters 5, 8, and 9 in the Abraham’s textbook on Assessing the Company and Operational and Budget Planning. Also read the online articles

Analyze Investments Quickly With Ratios (Links to an external site.)

(Elmerraji, 2017) and

What Is an Annualized Budget? (Links to an external site.)

(Ashe-Edmunds, n.d.).

Using the same publicly traded company you used in the Environmental Scanning Interactive Assignment, and the downloadable

Operating Budget Template

, research the company online by accessing the Mergent Ashford University Library online database which offers company financials, descriptions, history, property, subsidiaries, officers and directors. Also, access the Business Insights: Global Ashford University Library online database which offers information on global companies, and industries. It includes SWOT reports, market share data, financial reports, case studies, business news, and company comparison charts. (View the

Mergent tipsheet

and

Business Insights tipsheet

documents for suggested methods of searching Ashford University Library databases generally as well as specific advice for searching these two databases). You can always conduct research using credible online sources of corporate financial information, just be sure that wherever you obtain financial information that you cite your source.

For this Interactive Assignment, you are going to look at the financial statements for the company you selected and, using the previous quarter’s financial data, interpret the data and propose a budget for the next Quarter based on your current and previous analysis of company performance. Complete the budget template using this Operating Budget Template:

• List your current sales, discounts and allowances, net sales, margins, operating costs, and earning before and after taxes.
• Choose a minimum of two financial ratios (below) and include in your analysis.
• Prepare the next quarter’s budget based on your interpretation of past data.

Include at least two of the following types of relevant financial ratios in your analysis. Review the online article Analyze Investments Quickly With Ratios (Links to an external site.) (Elmerraji, 2017) and Chapter 5 in the Abraham’s textbook to help with this portion of the budget:

• Profitability Ratio
• Liquidity Ratio
• Solvency Ratio
• Valuation Ratio
• Leverage Ratio

(NOTE: Incorporate the feedback you receive from your instructor and peers and save your work. It will be part of your Strategic Plan Final Project for this course).

Initial Post: In your initial post, provide a brief description of your company and provide a summary of your Operating Budget along with a rationale that supports suggested budgetary changes. Attach your Operating Budget Template to your initial post for review by your instructor and your peers.

Required Resources

Text

Abraham, S. (2012).

Strategic management for organizations

. Retrieved from https://content.ashford.edu/

• Chapter 8: Operational and Budget Planning
• Chapter 9: ImplementationStrategies

Web Pages

Ashe-Edmunds, S. (n.d.).

What is an annualized budget? (Links to an external site.)

Retrieved from http://smallbusiness.chron.com/annualized-budget-42668.html

• This web page’s author describes the key components and design of an annual operating budget that will assist you in your Operating Budget discussion forum this week.
  Accessibility Statement does not exist.
  Privacy Policy does not exist.

Elmerraji, J. (2017, January 30).

Analyze investments quickly with ratios (Links to an external site.)

. Retrieved from http://www.investopedia.com/articles/stocks/06/ratios.asp

• This web page’s author provides information about the most commonly used financial ratios in use by investors today that will assist you with your Operating Budget discussion forum this week.
  Accessibility Statement does not exist.
  Privacy Policy (Links to an external site.)

Surbhi, S. (2015, June 29).

Difference between strategic planning and operational planning (Links to an external site.)

. Retrieved from http://keydifferences.com/difference-between-strategic-planning-and-operational-planning.html

• This web page’s author provides information about key differences between Strategic Planning and Operational Planning that will assist you in your Strategic vs. Operational Planning discussion forum this week.
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  Privacy Policy does not exist.

Recommended Resources

Articles

Clark, D., & Legge, B. (2013).

The right way to execute your strategic plan (Links to an external site.)

. Forbes. Retrieved from http://www.forbes.com/sites/dorieclark/2013/05/08/the-right-way-to-execute-your-strategic-plan/

• This article provides tips to successful strategic planning and may assist you in your Strategic vs. Operational Planning discussion forum this week.
  Accessibility Statement does not exist.
  Privacy Statement (Links to an external site.)

Deeb, G. (2013).

If you build it, they may not come: Budget ahead for startup marketing (Links to an external site.)

. Forbes. Retrieved from http://www.forbes.com/sites/georgedeeb/2013/11/06/if-you-build-it-they-may-not-come-budget-ahead-for-startup-marketing/

• This article reviews the importance of budgeting ahead and may assist you in your Operating Budget discussion forum this week.
  Accessibility Statement does not exist.
  Privacy Statement (Links to an external site.)

Moore, J. (2012).

7 tips on building your business with better metrics (Links to an external site.)

. Forbes. Retrieved from http://www.forbes.com/sites/ciocentral/2012/07/09/7-tips-on-building-your-business-with-better-metrics/

• This article discusses metrics to consider when building a business and may assist you in your assignments this week.
  Accessibility Statement does not exist.
  Privacy Statement (Links to an external site.)

Surname 1

Microsoft History

Microsoft is a technology based company that began in its operations in the 1990s.It was started by a little known entrepreneur back then known as Bill Gates.The young man had embarked on a mission to tell people in America to be part of the computer revolution that was happening then.He managed to convince people to buy easy to use and pocket friendly PCs or personal computers. He also managed to convince them that it would only run on Microsoft built software, and that it would need to be constantly upgraded. It is through Microsoft and his technological innovation that he became one of the richest men in the world.This was largely facilitated by the technological improvements of the last two decades,starting with the internet boom in the 1990s. The internet was greatly improved by pioneering companies like AOL. This had been largely facilitated by Microsoft’s success since almost 10million copies of their latest software Windows 3.0. This may not mean much in layman’s terms but it meant an equal number in PC sales for the company.

In relation to actual economics however, Microsoft has been able to make a significant contribution to solve the unemployment problem. It has been able to employ 144,000 people in Microsoft working in full time positions across the world. Sixty percent of these employees are in the United States. The technology company had a revenue standing at around 126 billion U.S dollars in year 2019. The company’s employees have been increasing since when the company was founded. In reference to other areas of impact, Microsoft has devoted itself to philanthropic work through the Bill and Melinda Gates Foundation.

Running head:MICROSOFT MISSION STATEMENT

Microsoft Mission Statement

Brea P. Sylvester

BUS402: Strategic Management & Business Policy

Professor Fred Fening

26 January 2020

Brea Sylvester

Brea Sylvester

MICROSOFT MISSION STATEMENT 2

Microsoft Mission Statement

The mission statement by Microsoft, which is one of the world’s largest software

companies, reads: At Microsoft, we work to help people and businesses throughout the world

realize their full potential. This is our mission. Everything we do reflects this mission and the

values that make it possible. The mission statement does offer guidance to the company’s

organizational activities in the sense that they are structured to provide the most help to their

clients. It is not quite as precise as what is suggested by Patrick Hull in his article. The statement

encompasses the fact that the company seeks to help people and businesses through its activities

and values maximize their potential. The report itself is quite vague based on the article by Hull

(2013) since they fail to answer the fundamental four questions that appertain to the creation of a

great mission statement.

The first question is, what does the company do? This is adequately answered by

Microsoft in its mission statement since it highlights the fact that it helps people and businesses.

It gives the company the first element in the mission statement. The second question, based on

the article by (Hull,2013) is How do we do it? And in this case, unfortunately, the Microsoft

mission statement fails to provide information on how it intends to fulfill its promise of

maximizing the potential of the people and businesses it engages. The third question is, who do

we do it for? In this case, the company has laid out its intended target audience as people and

businesses. It also mentions the value that it brings to the business relationship, which is based

on the fourth question (Hull,2013). The problem is, what value does the company carry?

MICROSOFT MISSION STATEMENT 3

According to the 5-star rating system used in the Fortune 500 list, I would rate the

company’s mission statement as 3.1 out of 5. This is because it adheres to most of the rules set

out by (Hull, 2013) in his article, but also fails to mention its activities in detail. Given a chance,I

would rewrite the statement myself as Microsoft is a company that offers solutions in technology

by cheap, trending, and quality products for consumers across the globe. We offer the bridge

between the present and future solutions in cutting edge technology.

MICROSOFT MISSION STATEMENT 4

References

Hull, P. (2013). Answer 4 Questions to Get a Great Mission Statement.Forbes

Harper, C. (2019). https://www.missionstatements.com/fortune_500_mission_statements.html