Wednesday, May 15, 2019
Research Project - Strategic Recommendations Paper
Project - Strategic Recommendations - Research Paper ExampleHowever, it is important to assembly line that mergers and acquisition would badly affect the competitiveness of a business and produce other unintended outcomes if they atomic number 18 planned thoughtlessly. Modern business organizations take strategic initiatives from time to time to influence the patience forces in such a way to enhance their sales and profitability. This paper intends to give the Microsoft Corporation some strategic recommendations for their future performance in the light of the association analysis and industry analysis already performed in the previous papers.While going through the financial statements of the Microsoft Corporation over the recent years, it is clear that the company had achieved a considerable financial growth throughout 2012 and 2013 fiscal periods and the first half the of 2014 before it began to amaze growth declines in second half of the 2014. Although the company is current ly experiencing financial setbacks, it still performs better when compared to industry benchmarks. It is interesting to see that in the fiscal year ending 2014, Microsoft was the top leading player in the business software and services industry with a food market capitalization of $347.51 billion when the total market capitalization of the industry was $5.728 trillion. Although the companys cash ratio, current ratio, and quick ratio dropped notably in the recent years, the drop was still better than the industry benchmarks. When the firms gross profit coast has been decreasing since 2012, the operating profit margin and light up profit margin improved during the period 2012-13 just later slightly dropped in 2014. According to the annual reports, Microsofts operating profit margin and net profit margin were 31% and 25.42% respectively in 2014. It is observed that these values were higher than the industry benchmarks at that time, justifying
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