Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 16 pages
Data source: Published sources
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Abstract
Microsoft, the largest technology company in the world, has become bigger, slower and less profitable than it was five years ago. The company relies on Windows and a suite of desktop applications for 80% of sales and 140% of profits. Newer products, the Xbox videogame machine, the MSN on-line service, and the wireless and small-business software, have collectively accumulated losses worth $7 billion in four years. Analysts point out that Microsoft, with $40 billion in sales and 60,000 employees, had grown multi-layered and bureaucratic. Despite the restructuring exercise undertaken by Steve Ballmer, Microsoft seems to be steeped in bureaucracy. Ballmer plans to launch several new products and upgrade the existing ones. Will Ballmer''s plan succeed in rejuvenating Microsoft''s fortunes and boosting employee morale?
About
Abstract
Microsoft, the largest technology company in the world, has become bigger, slower and less profitable than it was five years ago. The company relies on Windows and a suite of desktop applications for 80% of sales and 140% of profits. Newer products, the Xbox videogame machine, the MSN on-line service, and the wireless and small-business software, have collectively accumulated losses worth $7 billion in four years. Analysts point out that Microsoft, with $40 billion in sales and 60,000 employees, had grown multi-layered and bureaucratic. Despite the restructuring exercise undertaken by Steve Ballmer, Microsoft seems to be steeped in bureaucracy. Ballmer plans to launch several new products and upgrade the existing ones. Will Ballmer''s plan succeed in rejuvenating Microsoft''s fortunes and boosting employee morale?