FINANCIAL MANAGEMENT

Financial Management

Abstract

The essay will look at different business models followed in Google and Microsoft. It will also carry out fundamental financial analysis of both companies to evaluate their financial positions and performance. On the basis of this, we will try to reach well supported investment decision in the concluding paragraph.

Financial Management

About the Companies

Google Inc. is a multinational internet corporation, originating in America, invested in advertising technologies, internet search and cloud computing. Google has developed itself as leading internet based product and services provider. The primary source of company profits are from advertising through its AdWords program. It was initiated with the mission 'to organize the world's information and make it universally accessible and useful'.

Microsoft is engaged in developing, manufacturing, licensing, and supporting a range of software products and services. Co.'s products include operating systems for personal computers, servers, phones, and other devices; server applications for distributed computing environments; productivity applications; business applications; desktop and server management tools; software development tools; video games; and online advertising. Co. conducts its businesses through five reportable segments: Windows & Windows Live Division, Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division.

Core Business

Since 1998, Google has grown by leaps and bounds. From offering search in a single language, it offers number of products and services-including various forms of advertising such as search advertising, display advertising and mobile advertising. It also provides tools for publishers and web application for all kinds of tasks- in scores of languages.

However, Microsoft focus more on solutions to business problems by providing services in areas such as online service division, server and tools business, business solutions, Microsoft office division, interactive entertainment business, window phone division, window and window live division and Skype.

Product & Services

Microsoft services and products divide into five main divisions; Windows & Windows Live Division, Server and Tools, Online Services Division which includes products like windows 7, Windows Live, Windows Server 2008 R2, Microsoft Visual Studio, Small Business Server, Microsoft BizTalk Server and alike. Business Division includes products like Microsoft Office and Enterprise resource planning(ERP) and Entertainment and Device Division offers Window Mobile, Computer games, Xbox 360, and alike.

Google products divide into web including web search and directory, mobile, media which includes images; Home & Office includes Docs, and other products such as social, specialized search and innovation. The features products are Google chrome translate docs, news, mobile and web search.

Management and Leadership Style

Bill Gates along with co founder Paul Allen founded Microsoft. Currently, Steve Ballmer is the Chief executive officer of the company while Bill Gates is the chairperson. In 2006, majority of the control was transferred from Bill gates to executives and there on they are maintaining the operations of the company. Sergey Brin and Larry Page are the founders of the Google. At both companies, there is a strong culture of change and innovation. One obvious change one can witness in the

Innovation Track Record

Microsoft

Starting from 1975 till 1985, Bill Gates along with co founder of ...