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Business Plan

By Parker McLaughlin

www.microsoft.com 2

Mission Statement

Our Values“As a company, and as individuals, we value integrity, honesty, openness,

personal excellence, constructive self-criticism, continual self-improvement, and mutual respect. We are committed to our customers and partners and have a passion for technology. We take on big challenges, and pride ourselves on seeing them through. We hold ourselves accountable to our customers, shareholders, partners, and employees by honoring our commitments, providing results, and striving for the highest quality.”

www.microsoft.com 3

The Team

Steve Ballmer – CEO (Net worth: $14.5Billion US. Salary: $665,833

Peter Klein – CFO

B. Kevin Turner - COO

http://www.google.com/finance?hl=en&q=microsoft&um=1&ie=UTF-8&sa=N&tab=we

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Market Summary

Market:

www.microsoft.com 5

Opportunities

Problems and opportunities:– Users updating to vista felt like the update was bad, and not

worth the large amount of money spent on it• Solution: Create a new, less buggy OS: Windows 7.

– Xbox 360 users want a system update from the 5 year old system

• Solution: Software update, making the Xbox a home media center as well as a gaming console. • Solution 2: A new, slimmer Xbox 360.

– Phone Operating systems such as Android and Apple OS are beating Windows Mobile

• Create a major update for Windows Mobile, scheduled to be released late 2010.

http://en.wikipedia.org/wiki/Microsoft

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Business Concept

The leading supplier in software, operating systems, and office suite applications such as Word, Excel, and

PowerPointA player in the home

video gaming market with

the Xbox 360

http://en.wikipedia.org/wiki/Microsoft

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Competition

Microsoft has two major operating system competitors; OSX (Apple), and Linux (Canonical Ltd, Red Hat Enterprise, CodeWeavers, Fluendo, Geeknet, Loki Software.)

Advantages over competitors:• Windows is 80% of the desktop market.• Compatible with 68% of all software.

Disadvantages over competitors:• There are more than 3 times more viruses on Windows than on OSX and

Linux combined.• Software updates are not always free, as opposed to OSX and Linux updates.

www.microsoft.com 8

Goals & Objectives

Five-year goals– Create a new, polished, virus-proof Operating

System. – Corner the Tablet and Netbook market.– Increase in overall revenue by 1.89 billion more

than last year.

Forbes.com 9

Financial Plan

Gross Revenue: $18.9 billion– Spent $8 million on research and development

in 2009– Gained $8 billion so far in sales in 2010

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Resource RequirementsResource Requirements

Technology requirementsTechnology requirementsPersonnel requirementsPersonnel requirementsResource requirementsResource requirements

– Financial, distribution, promotion, etc.Financial, distribution, promotion, etc.

External requirementsExternal requirements– Products/services/technology required to be Products/services/technology required to be

purchased outside company purchased outside company

Microsoft.com 11

Risks & Rewards

Risks– Major Recalls in company products,

causing loss of profit– Labor costs increasing, causing price

to increase as well Addressing risks

– Both of the risks can be solved by creating an emergency fund to be added to the gross funds if the problems occur.

Rewards– Losing minimal revenue and funds

Gallup.com 12

Key Issues

Near term– Recent Apple products have been beating

Microsoft products.Long term

– Apple has become 42% of the computer market and is slowly gaining more (was 24% in 2005)