Microsoft Corp. is a worldwide digital hardware and software products developer and marketer with a market capitalization in 2014 of about $380 billion, with markets in every developed country. Marriott is also named a great place … (BING, MSN, Atlas), Microsoft Business Division. In this topic, we will clarify the meaning of the previous macroeconomical measures, we will observe their performance during the last decade and finally we will explain how their values inflect the global economy an… Transnational corporations refer to “corporations that have their home base in one country and branches, or affiliates, in other countries” (Mooney 2015, 213). The company competes in the technology market with diversity. Because of the inverse relationship between interest rate and money demand, low interest rate will encourage consumer expenditure and reduce savings. From the recession of 2007 to 2010, USA managed to overlap EU’s unemployment rate (USA 9.73%, EU 9.6%), while Japan and China levels of unemployment stayed almost unaffected (China 4.1%, Japan 5.1%). We will investigate the situation of the global economy, in terms of macroeconomic variables, such as GPD, Foreign exchange rates, labor, inflation and interest rates. ADVERTISEMENTS: Some popular examples of multinationals are given below: Features of Multinational Corporations (MNCs): Following are the salient features of MNCs: (i) Huge Assets and Turnover: Because of … The logo of the company look like simple, but actually, Background: Toyota Motor Corporation is a vehicle manufacturing company founded in 1937 in Japan. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. The Foreign Exchange Rate specifies how much one currency is worth, in terms of one other. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Until July 2013, Microsoft's global strategy reflected its divisional corporate organization. Black's Law Dictionary suggests that a company or group should be considered a multinational corporation if it derives 25% or more of its revenue from out-of-home-country operations. A close analysis of the, Capella University Such companies have offices and/or factories in different countries and usually have a centralized head office where they co-ordinate global management. MNCs can be structured and managed differently. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Sometimes referred to as a "transnational corporation" This can be illustrated if we observe the inflation rates since in 2004 when there was a huge rise of the inflation to 3.90% from -0.77% two years earlier (2002). Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. It deals primarily in development of personal-computer applications and software systems. Introduction Corporate Social Responsibility (CSR) is an increasingly essential element in the business world. Some logos also design creatively and have some hidden message. Fiscal police is the use of government public expenditure and the taxation policy in order to stimulus output, employment and aggregate demand of the economy during a recession (explanatory fiscal policy). A multinational corporation is known by various names such as: global enterprise, international enterprise, world enterprise, transnational corporation etc. Their assets and sales run into billions of dollars and they also make supernormal profits. It is “the worldwide leader in software, services, devices and solutions that help people and businesses realize their full potential” (Microsoft, 2016). The Human Resource Management (HRM) department spearheads this process by dividing it in to four separate stages (or processes). .In addition, it sells products to over 150 countries. A multinational corporation (MNC) or multinational enterprise (MNE) is a corporation enterprise, represents the brand name and company. These companies sell, manage and distribute products across geographic boundaries. Formed by Harvard College dropout, Bill Gates and his childhood friend Paul Allen, Microsoft has now become the biggest software company. (Microsoft Mouse, Micrsoft Windows). Firstly, we will be looking at the protective role of the government and then we will analyze the recent trend of fiscal and monetary policy. *You can also browse our support articles here >. The corporation is headquartered in Redmond, Washington, United States and was … +Google has changed the way the internet used to be in a very positive way. Established on April 4, 1975 to develop and sell BASIC interpreters for the Altair 8800, Microsoft … In Business ... From the competition posed by other existing firms like Microsoft and Dell, Apple is challenged to improve its production techniques and improve its products in order to remain competitive. Microsoft is an American multinational computer technology corporation whose history started 4th April 1975. Therefore, other factors that can influence MNCs are location, economic … Each segment is responsible for specific products and different functions of the company. Multinational Corporation ( MNC ) is one of type of possible house in the universe nowadays. A multinational corporation, or multinational enterprise, is an international corporation that derives at least a quarter of its revenues outside its home country. 1. If we observe the performance of the world’s GPD growth since 2000 (chart 1), we could note that according to the data, the global economy stands in a recovery pattern from the recession of 2007. As we explained earlier, the company spends a huge proportion of its sources in research and developing projects, therefore intellectual property rights are essential for Microsoft’s operations, as it shields the company against illegal copying. Generally the corporation has its headquarters in one country and operates wholly or partially owned subsidiaries in other countries. Example like the logo design of FedEx Corporation, FedEx is an American global courier delivery services company. It deals primarily in development of personal-computer applications and software systems. Since 2007, China’s economy growth rate was consecutively 14.2%, 9.6% and 9.1% and 10.5%, while USA’s rate, which was on average the best between the three ”leaders” was 1.9%, 0.0%, -2.6%, 2.6%. Furthermore, this segment designs the marketing and the promotion strategy of Microsoft Windows systems. Microsoft Corporation is an American multinational corporation owned company, created in 1975 based in Redmond WA. Copyright © 2003 - 2021 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. The main objective of those products is to help IT professionals and developers. 5 Multinational Corporations Making Significant Investments in Africa Africa is a continuing emerging market for many industries, from technology to transportation, and, as of recently, e-commerce. To be more specific, products related to software applications, operating systems, PC’s programs and accessories. Microsoft Corporation is a multinational corporation. 1.54K Followers. Free resources to assist you with your university studies! An example of such corporation is Microsoft. In order to achieve that, Federal Reserve has recently launched a quantitative easing. In addition to its … Multinational corporations are focusing their investments into Africa in support of the development of the industries on a continent that’s full of potential. The ease of international marketing and product delivery makes it simpler than ever before to sell products in several countries. Google !! In addition to developing personal-computer software, Financial Ratios James C. Baker defines a multinational corporation as a company- (i) which has direct investment base in several countries; (ii) which generally derives 20 to 50 per cent of its net profit from foreign operations; and (iii) whose management makes policy decisions based on the alternatives available anywhere in the world. Its subsidiaries report to the corporation’s This includes video games, computers and computer hardware, television, media players, etc. Economics. Server software, server tools for developers and others consulting services and solutions are designed and sold in this segment. This tool of expansionary monetary policy aims to keep the interest rate at a low level by buying USD$ 75bn long term T-bills. Interest rates are fundamental of the capital system and they interact with many factors of the economy such as, the aggregate demand, investments, level of prices (inflation) and money supply. What are the existing procedures for software testing, Microsoft : An American Multinational Corporation Company, I did my research on Microsoft of how they were formed and how the technology is always in competition with Apple, and Sony. As mentioned in the macroeconomic analysis, low interest rate encourages consumption and private investment and it will also depreciate the US dollars. However in the short run, this might signal a potential opportunity for increasing consumer expenditure and recovery from the recession, which might increase the demand for Microsoft’s products. Mar 26, 2014 - Microsoft Corporation is an American multinational corporation headquartered in Redmond, Washington, that develops, manufactures, licenses, supports and sells computer software, consumer electronics and personal computers and services. We're here to answer any questions you have about our services. The customers of Microsoft’s products are spread in many different categories; individual consumers, public and private organizations, governmental institutions, universities, application developers are only some of the main company’s clients. As a multinational corporation, we have both a substantial opportunity and a high responsibility to ensure that technology’s benefits reach people more broadly across our global society and economy. Microsoft Corporation, leading developer of personal-computer software systems and applications. … To serve the … Employment or Labor is a key factor of the economy. Companies that have invested heavily in pollution control mechanisms may lobby for very tough environmental standards in an effort to force non-compliant competitors into a … Also, it controls and manages production establishments with operations (IB book, year). Microsoft Corporation is an American multinational technology company. Info: 3311 words (13 pages) Essay It was started by Steve Wozniak and Steve Jobs. A multinational corporation is a company with business operations in two or more countries that derives at least 25% of its revenue from foreign operations. Inflation shows the increase of the level of prices in a specific period of time. Procter & Gamble Co (NYSE:PG) At 9th spot on our list of top 10 multinational corporations … 1980: Microsoft signed contract with IBM for the provision of operating systems which was used from the IBM’s Personal Computers (PC). The main purpose of those products is the provision of advertising opportunities to merchants. The company was started by Adolf Dassler in his mother’s house and was joined by his elder … Everywhere we operate, we focus on contributing to local communities in positive ways — helping to spark growth, competitiveness and economic opportunity for all. One of the main reasons why we are interested in this economic measure is the fact that, it affects the exports and the imports of the economy. In its first ever ranking of employee-friendly companies, the Great Place To Work Institute has named Microsoft the best multinational workplace. The first impression many people have towards corporations is that businesses are taking advantage of consumers and society. Multinational corporation (MNC), also called transnational corporation, any corporation that is registered and operates in more than one country at a time. Therefore from this point and on, our macro-analysis will be focused on those countries. Marketing internationally requires … Citigroup. Stephen Rosenman. About Microsoft Corporation. 3-month Treasury bill secondary market rate discount basis. It should not be treated as authoritative or accurate when considering investments or other financial products. In its first ever ranking of employee-friendly companies, the Great Place To Work Institute has named Microsoft the best multinational workplace. Microsoft Corporation is an example of a multinational corporation. In 2008, when the consequences of the crisis were starting to affect the GPD, the growth was 2.8%, while the worst year, the trough, was in 2009, when the growth had negative value, -0.6%. The design of logo is very important; logo design play an important role in influencing brand attitude among the target market. Multinational corporations make a foreign direct investment in another country by establishing branches or foreign subsidiaries. What is Transnational. Explore Microsoft's approach, policies, and practices for using technology as a powerful force for good. Figure 3. Microsoft: Being A Multinational Company Isn't A Bed Of Roses. well-known multinational corporations in the information technology industry. While Microsoft dominates the market by providing an operating system to nine tenths of the number of users (Net Applications, 2011), Apple 's products bring an alternative to the consumers ' experience. To make things simpler, Microsoft introduced its first graphical user interface, Windows 1.0, in 1985. However, we can easily observe that Dollar lost value during the last decade. Foreign direct investments are prevalent within multinational corporations. At the beginning of the decade, USA economy showed also very low levels of unemployment, however after the recession of 2007, the USA’s employment affected more from the other countries. It is also one of the most valuable companies in the world. 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