UKMM 3033 LEADERSHIP & TEAM BUILDING

Presented By:Liow Wai Kit Ho Ming HowTan Peak Yin Hoo Voon CheanMan Wai Kin Yap Min che

Microsoft

Bill Gates & Paul Allen together develop BASIC

codes.

Bill Gates registered ‘Microsoft’

‘Microsoft’ listed on Main Board of

NASDAQ

Timeline for ‘Microsoft’January 1975

November 1976

June 1981

• About• Current CEO—Steve Ballmer

• Objective• Trying to help people and business

worldwide to discover their full potential.

• Implementation• Building Corporate citizenship &

create opportunities in the communities

• Customer & Partner Experience (CPE)---ensure customers & partners satisfaction.

Microsoft

Product Line

Operating System• Windows

Productivity-Assistant Software• Office (Word,

Excel, Database)

Search Engine• Bing

Entertainment Console• Xbox 360+Kinect

Ethical Leadership

Theory

• Ethics– Human ‘s standard on determining right and

wrong.– It is subjective unless laws & regulations underline

it.– Some actions are fall in the grey area.

Ethics in Microsoft

• Microsoft has been rated by Ethicsphere Institute as one of the most ethical companies in the world.

• Involve in economic development programs• Donated millions of dollar to non-profits

organization.

Problem Encounter by Microsoft

Problem Encounter by Microsoft

Abusing Monopoly Position•Fined £605m & warned by EU•Bill Gates try to meet his own

needs•Marking-up the costs of

developing OS

Narrow - Platform For Running Software• Include substitute products-Apple

•Ex: Microsoft bundled up the OS

Intentionally Breached The Patent-Canadian Company

• The technology behind a text manipulation tool

• Lower courts used a wrong standard• lower standard of proof of

infringement• Pay £290m for patent infringement

Disregard The Consequences of Being Unethical

•Doesn’t provide relevant information

•Doesn’t put its illegal conduct to an end

•Obsolete information

The Affects To Company Performance?

How did the problem(s) affect the company’s performance?

Firstly, Microsoft bare extra cash outflow.In year 2005, its cash and cash equivalent from $14,304 mil $4,851 mil.

Second, it has diminished its other investments.Microsoft’s purchases of investments from $95,005 mil $68,045 mil.

Has increased the awareness among Microsoft employee.Consequently, it will reduce the production and increase the employee attrition rate.

On account of long period of monopolized.Therefore, its sales was not affected by the problem.

Microsoft’s Revenue throughout the year

2003 2004 2005 2006 2007 20080

10,000

20,000

30,000

40,000

50,000

60,000

70,000

32,18736,835

39,78844,282

51,122

60,420

Revenue

Revenue

Microsoft does not maximize the shareholder welfare.Microsoft average share price has dropped from $27.06 $26.95.

In general, this monopolize issue does not cause any noticeable effect on Microsoft performance.

The Solution by MicrosoftFail or Success ?

How did the company handle the problem(s) encountered? Are they success or fail to handle the problem(s)? Why or why not?

• Send negotiator – CEO, Mr.ballmer – failed• because Microsoft unable to fulfill the

requirement• The requirement will affect the company’s

strategy • EU judged - abusive monopolist• Result – paid 497million Euros• But the problems occur again

Continues…

• Changed strategy• Promised to provide greater transparency • more access to application programming

interfaces • launched an open source web• Company successfully solved the problem

Recommendation

Recommendation• Stop Abusing Monopoly Power

Behave to anti-monopoly law and legislation Participate in open source web Share information about technology

• Introduce more creative, innovative & productive products Adopt information from different sources

Microsoft surface

• Stop bundle strategy Operating system + PC

Provides alternative choices for consumers

• Market segmentation Home user + Office User + Designer User

Retain monopoly position

• Introduce own brand PC + OS Set own price without markup others PC

makers’ cost No more accusing for abusing monopoly power Raised fiercer competition in PC market

Conclusion

Conclusion• William Henry (Bill) Gates III & Microsoft Corporation =

Successful.• Maintaining the status of leader in software industry.• Getting sued and compound from EU Ethical• Donated Millions to non-profits organization or

association• Transparency its business practices and developmentUnethical• Monopolist the market.• Marking up the cost.