What are some relative advantages and disadvantages of using smaller local partners vs. a large local partner? Some advantages that Microsoft might have are that in general partnerships, each participant is personally responsible for the actions of the company. This includes debts, liabilities and the wrongful acts of other partners. One advantage of a limited liability partnership is the liability protection it affords. This type of partnership structure protects individual partners from personal liability for negligent acts of other partners or employees not under their direct control, states the SBA.
In addition, smaller local partners are not personally responsible for company debts or other obligations. This is advantageous for smaller local partners when potential lawsuits or claims of negligence against the business are concerned. Microsoft in individual smaller local partners the Individuals in a partnership are normally liable for filing personal income taxes, self-employment taxes and estimated taxes for themselves, according to the Internal Revenue Service. The partnership itself is not responsible for paying taxes.
The credits and deductions of the company are passed through to partners to file on their individual tax returns. This can be beneficial for partners who have a limited interest in the company or special tax requirements due to their interests in other businesses. One advantage of collaborating with a large local partner is that the smaller company has more money at its disposal to invest in the idea. When a large company chooses to collaborate with an entrepreneur, it is in the interest of supporting the new business concept so that it will produce more profits over time.
Of course, the investment from a large company is in exchange for a piece of the new company, but it might help the entrepreneur achieve a profit level that she would not have reached on her own. The small local partner have more money the large local partner has the control of all that money. 2. Are there countries where Microsoft’s strategy might not work? Microsoft programs are considered the standard against which other software is measured and are used throughout the world.
The company currently counts on sales in Europe and Japan for a substantial portion of its revenue, but feels that emerging markets such as China, India and Eastern Europe will become more important in the future. Microsoft’s strategy for entering new markets involves hiring a local manager to set up operations. The local manager then hires other locals in an effort both to gain knowledge of the local marketplace and to make a symbolic goodwill gesture toward the host country. The company then forms alliances with smaller, local companies that allow the firms to market Microsoft products.
It is Microsoft’s hope that its strategy will result in local software industries specifically linked to local circumstances. Microsoft’s reliance on local partners has allowed it to be effective in product distribution and sale, minimize difficulties with local languages, and even reduce problems associated with product piracy. Critics warn, however, that relying heavily on local partners could result in long term problems including a loss of corporate culture and product quality and distribution problems.
Microsoft is one of the most successful company’s in the globe they are successful because they attack the future, this means no complacency, do whatever is necessary to shape future opportunities in the market, and capitalize on them for Microsoft. They want to make favorable market change happen. That is way there’s no country in the globe that does not use Microsoft they are always innovating and looking for new ways to be successful. 3. What other kinds of businesses might find Microsoft’s strategy to be effective?
Well there’s a lot of business that might find the strategy of Microsoft to be effective because, Microsoft has seven points to success the first one is find smart people who know the technology and the business. The firm, from the beginning, has continuously sought, and employed such people and can thus immediately spot opportunities when they appear. Second, organize small teams of overlapping functional specialists. This is a blend of two leading concepts in new products management today — have small work groups and have highly skilled functional specialists.
Microsoft has large teams of small teams. At all times functional skills are at work, and “team members” do not lose sight of their major contribution. Yet, by having an overall plan, and overall team management, the small clusters are involved across all functions. So the firm achieves both functional skills and multifunctional operations. They talk about having distinct functional skills that are overlapped at the boundaries. This gives independence but not anarchy. Third, pioneer and orchestrate evolving mass markets.
This means to be the first, or early, to enter a market, find and build mass markets, don’t wait for perfect products but build a steam of incrementally better ones flowing in the direction of the market, and try to lead those markets in directions favorable to the firm. Fourth, focus creativity by evolving features and fixing resources. This means giving team’s vision statements for general guidance, freedom to implement those as their skills direct, insisting that developers keep in mind the volume of demand for the features they are building, and then restricting the total effort by tight restrictions on dollars and time available.
This gains creativity, but focuses it where the dollars are, and forces sign-offs. Fifth, do everything in parallel, with frequent synchronizations. They want creative thinking to continue as deep into the project as possible, yet they want the order that comes from integrating all of the work. Microsoft achieves all this by having the small groups work at feverish pace almost all the way through the project, but having a running synchronization at regular intervals where the output of each small group is hooked onto the total product being developed.
This is the activity where one small group’s most recent set of code is put onto the “build” and the build then run as a semi completed product. The sync must work, and people are brought in “off the street” to run the programs (builds) as a check. This makes for continuous creation of parts, and continuous testing of the tentative “complete” product. Sixth, improve through continuous self-critiquing, feedback, and sharing. Microsoft is its early years were not known for self-critique. The authors feel the firm today has so clearly accepted a new position on this point that critique has become one of their key strategies.
Information-sharing is now important – both as between the marketplace and the firm, and as between various functions within the firm. Seventh, attack the future. This means no complacency, do whatever is necessary to shape future opportunities in the market, and capitalize on them for Microsoft. They want to make favorable market change happen. The seven steps will help all companies to be successful in the market. 4. How might Microsoft need to change its strategy once it has established a strong position in a foreign market?
Changing their strategy when they have a strong position in the market could be really dangerous because of following their actual position is how they have to reach their goal and where are they now, but in case of them wanting to change the strategy they could innovate and take some fresh ideas from consumers so the change could be for more for good and it will be cheaper. So they can change the style of the products they are making it more interesting for the newest generations that are addicted to technology but keeping the touch of the old generations that follow the company from the beginning.
Ones they have a strong position, competition comes to one of the biggest competitors od Microsoft is Apple, it will have to be always innovating to be on top and not get step on by Apple. It will have to change all strategies by selling more technological items for probably less money. Microsoft probably will have to change the licensing of the product their sailing for a more secure way of making deals, and make the customer more secured to buy the product their sealing. Introduction It is no secret that Microsoft continues to dominate the software industry in the U. S.
Additionally; Microsoft derives over half its annual revenues from overseas operations. Microsoft has developed an interesting and highly effective strategy for entering new foreign markets. In this case we are going to learn how Microsoft become a successful company and what are the steps it takes to go to the top in global and be one of the best technological related companies in the world. Bill Gates “Life is not fair – get used to it! ”. Conclusion Some of the things we learn were that some advantages that Microsoft might have are that in general partnerships, each participant is personally responsible for the actions of the company.
Other thing we learn was that there’s a lot of business that might find the strategy of Microsoft to be effective because, Microsoft has seven points to success, First, find smart people who know the technology and the business, Second, organize small teams of overlapping functional specialists, Third, pioneer and orchestrate evolving mass markets, Fourth, focus creativity by evolving features and fixing resources, Fifth, do everything in parallel, with frequent synchronizations, Sixth, improve through continuous self-critiquing, feedback, and sharing, and Seventh, attack the future. If we learn dose steps our company’s will have a good chance to grow.
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