Case on Microsoft Corporation

             Stated and Implied Objectives.
             1. Expand into new markets.
             a. Networking and hardware.
             b. Consulting.
             2. Hire the right people.
             a. Hire managers and executives with proven experience.
             b. Maintain an aggressive management style.
             3. Continuously improve products.
             a. Manage the product life cycle.
             b. Find problems and fix them.
             c. Evaluate product development, ask specific questions, keep in mind specific goals.
             4. Grow.
             a. Look beyond the look and feel of a small firm.
             b. Expand while maintaining quality.
             Stated and Implied Strategies.
             1. Enable people to do more.
             a. Incubate new products.
             b. Integrate existing products.
             c. Explore additional products.
             2. Build customer trust.
             a. Maintain quality.
             b. Be responsive to customers needs.
             3. Innovate.
             a. Evolve with technology.
             b. Explore new technology.
             4. Think and act globally.
             a. Work cross-culturally.
             b. Diversify partnerships and customer relations.
             5. Perform with excellence.
             Financial Analysis.
             Financial Ratios are a very important part of the financial analysis. Using ratios allows the user to compare companies in similar industries but with greatly varying sizes. For example, if you were to look at Microsoft's income statement and then look at an income statement from a local company such as Legend Micro based in Cleveland, the differences would be enormous. Using financial ratios allows us to compare two companies, such as the previous example, on an equal measuring tool and find out how they measure up to each other and the industry. .
             Liquidity Ratios.
             Microsoft current ratio is 52% above the industry average (FY 91: Microsoft 3.5 vs. industry 2.3). This means that Microsoft has $3.50 of current assets available to cover each dollar of current liability. Microsoft's quick ratio is 94% above the industry average (FY 91: Microsoft 3.3 vs. industry 1.7). The quick ratio is basically the current ratio minus inventory. The quick ratio measures the firm's ability to use cash to pay for immediate liabilities. The high quick ratio is due to the fact that Microsoft has $686,000,000 in cash, and short-term investments, and only $293,000,000 in current liabilities.