1 Business Plan By Parker McLaughlin

Mission Statement Our Values “As a company, and as individuals, we value integrity, honesty, openness, personal excellence, constructive self-criticism, continual self-improvement, and mutual respect. We are committed to our customers and partners and have a passion for technology. We take on big challenges, and pride ourselves on seeing them through. We hold ourselves accountable to our customers, shareholders, partners, and employees by honoring our commitments, providing results, and striving for the highest quality.”

The Team  Steve Ballmer – CEO (Net worth: $14.5Billion US. Salary: $665,833  Peter Klein – CFO  B. Kevin Turner - COO

n&q=microsoft&um=1&ie=UTF- 8&sa=N&tab=we 4 Market Summary  Market:

Opportunities  Problems and opportunities: –Users updating to vista felt like the update was bad, and not worth the large amount of money spent on it Solution: Create a new, less buggy OS: Windows 7. –Xbox 360 users want a system update from the 5 year old system Solution: Software update, making the Xbox a home media center as well as a gaming console. Solution 2: A new, slimmer Xbox 360. –Phone Operating systems such as Android and Apple OS are beating Windows Mobile Create a major update for Windows Mobile, scheduled to be released late 2010.

t 6 Business Concept  The leading supplier in software, operating systems, and office suite applications such as Word, Excel, and PowerPoint  A player in the home video gaming market with the Xbox 360

t 7 Competition  Microsoft has two major operating system competitors; OSX (Apple), and Linux (Canonical Ltd, Red Hat Enterprise, CodeWeavers, Fluendo, Geeknet, Loki Software.)  Advantages over competitors: Windows is 80% of the desktop market. Compatible with 68% of all software.  Disadvantages over competitors: There are more than 3 times more viruses on Windows than on OSX and Linux combined. Software updates are not always free, as opposed to OSX and Linux updates.

Goals & Objectives  Five-year goals –Create a new, polished, virus-proof Operating System. –Corner the Tablet and Netbook market. –Increase in overall revenue by 1.89 billion more than last year.

Forbes.com9 Financial Plan  Gross Revenue: $18.9 billion –Spent $8 million on research and development in 2009 –Gained $8 billion so far in sales in 2010

10

Microsoft.com11 Risks & Rewards  Risks –Major Recalls in company products, causing loss of profit –Labor costs increasing, causing price to increase as well  Addressing risks –Both of the risks can be solved by creating an emergency fund to be added to the gross funds if the problems occur.  Rewards –Losing minimal revenue and funds

Gallup.com12 Key Issues  Near term –Recent Apple products have been beating Microsoft products.  Long term –Apple has become 42% of the computer market and is slowly gaining more (was 24% in 2005)