FINANCIAL MANAGEMENT

Financial Management

Financial Management

Core Businesses

Google

Google is a technology company focused on providing web search and advertising. The company maintains a large index of web sites and other online content, which are freely available through its search engine. It generates revenue primarily by delivering online advertisements. The company offers a broad portfolio of web based products and services which are classified into six categories: Google.com; applications; client; Google GEO; Android and Google Mobile; Google Checkout; and Google Labs (Google, 2010).

Microsoft

Microsoft is the world's leading supplier of computer software, specifically focusing on development, manufacturing, licensing, and support. The company operates in three primary divisions: Platforms and Services, Microsoft Business, and Entertainment and Devices. Microsoft has been extremely successful by staying continuously innovative in its products and services (Microsoft, 2010). The company's key products and services include the operating systems, MS Office, Bing search engine and many other web applications.

Leadership/Management Style

The leadership style at Google is mix. Leaders at Google are practicing transformational leadership provoke a conviction among employees in their beliefs and an absolute obedience to orders. In addition, they also stimulate emotional involvement on the part of the follower for the missions and a feeling that they can contribute greatly in the accomplishment of the mission. Transformational leadership is a two-way process that influences both the leaders and their followers. As a consequence, transformational leadership increases the level of self-awareness and pushes employees to outperform themselves and thus, leads to organizational transformation. Transformational leadership can be developed through training. This is an important form the management perspective as they can develop capable employees to become leaders of tomorrow.

Since transformational leadership is directly related to efficiency and job satisfaction in the followers, which stems from effectiveness on the part of both employees and the leaders it has a great impact on the emotional intelligence of all involved too. Transformational leadership results in a heightened self-awareness and a belief in one's own capabilities for success and achievement. Additionally, employees with a high emotional intelligence emerge as future transformational leaders because they are more open in their leadership style, particularly in a cohesive group setting (Nguyen & Mohamed, 2011).

Microsoft's leadership is heavily tied to the leadership of its founder, Bill Gates. Although Microsoft named Steve Ballmer CEO in 2000, it has undoubtedly been Gates' vision that truly has been guiding the company. Initially, Gates led by working with and supervising small research groups, controlling most aspects of the process. More recently, the company has been making changes in its leadership style in order to foster creativity, and transition Gates out of the company so that Ballmer can assume full control over day-to-day operations (Parry & Bryman, 2009). In Microsoft's old system, Gates and Ballmer used legitimate power to influence the employees because of their position within the company. They have transitioned to expert power by having department managers who are specialized and experts in their respective areas.

InnovationInnovation at Google

Google understands the capability of the World Wide Web to leverage ...