1.1.

Microsoft Corporation Overview

1.1.1. Microsoft Overview
Microsoft is an American multinational corporation headquartered in Redmond,
Washington; specializes in developing, manufacturing, selling software licenses and
supporting a wide range of computer-related products and services. The company was
founded by Bill Gates and Paul Allen on April 4, 1975. If calculated by revenue,
Microsoft is the largest software maker in the world. It has also been called "one of the
most valuable companies in the world".
In 2000, Steve Ballmer replaced Gates as CEO, reorienting the company to a "devices
and services" strategy. The change began with the merger of Danger Inc. in 2008, the
company first entered the computer manufacturing market in 2012 with the launch of the
Microsoft Surface tablet, then established Microsoft Mobile after acquiring Nokia's
devices and services business. But since Satya Nadella took over as CEO in 2014, they
shifted their focus from hardware manufacturing to cloud computing services, and this
has brought the company's value to its highest level since December 1999. In In 2015,
although Microsoft continued to lead the market share of PC operating systems and office
software suites, they lost the leading position in Windows operating systems overall to
Android.
1.1.2. Development process
 1984-1994: Windows and Office dominate the world
 1995-2005: Internet and the new generation 32-bit era
 2006 – 2011: Windows and Office are completely upgraded
 2012 – 2018: Cloud computing technology and open-source code
1975
Although the first day Microsoft officially went into operation was April 4, 1975,
everything actually started on the first day of that year, when the MITS Altair 8800
computer appeared on the cover of Popular Electronics magazine. and stimulated the
creativity of Paul Allen as well as Bill Gates. The following month, they began creating
BASIC - the first programming language for personal computers and sold it to MITS
(Micro Instrumentation and Telemetry Systems), a company located in the city of
Albuquerque, New Mexico, and is also the manufacturer of the Altair 8800. This is also
where Allen and Gates moved to work. By April, the company was born (although it did
not yet have an official name) and by June, the second version of the BASIC language
began to be released. And a new journey has begun.
1980
Steve Ballmer first came to work for Microsoft on June 11, 1980, and later became the
CEO of the corporation. In 1980, the most important information appeared in July when
IBM approached Microsoft about a project. The project was codenamed "Chess". Later,
this project became a new operating system and also the foundation for MS-DOS. To
build it, Microsoft bought the rights to a simple operating system built by Tim Patterson
of Seattle Computer Products, and from there created the first lines of code for MS-DOS.
Microsoft also approached the Apple 2 computer when it launched the Z80 SoftCard
expansion card. This card can be attached to a computer to run applications based on the
Control Program for Microcomputers (CP/M) operating system and allows businesses to
continue using their software on Apple 2. An important product Also released on August
29 is Xenix OS - a compact version of the Unix-based operating system for 16-bit
processors. Later this product was transformed into Microsoft Word. In 1980, Microsoft's
revenue reached 8 million USD and this was a remarkable growth in the first 5 years.
1990
Windows 3.0 was released with a slightly upgraded interface and many new software.
The company sold 100,000 copies of Windows 3.0 in just 2 weeks, and that was also the
time when OS/2 began to come to an end. Microsoft began to convince many software
manufacturers to make applications for Windows. On July 24, Microsoft became the first
PC company to surpass the revenue mark of 1 billion USD in a year, specifically 1.18
billion USD. Office for Windows, including Excel, Word, and PowerPoint was also
launched on October 1, 1990, later one year compared to the Macintosh version.
2000
Microsoft was forced to split into two separate units to reduce monopoly (but then the
company appealed and did not have to follow suit). Windows 2000 launched on February
17 with higher stability and quickly gained popularity. preferred by businesses that use
computers. It also improved ease of use, and Internet compatibility, and introduced
support for mobile computing. Windows Me was released on September 14 of the same
year, which included many new features but encountered problems when installing.
placing it makes it "snubbed". This was also the last OS based on Windows 95, and from
then on Microsoft only used Windows NT and 2000 kernels. Steve Ballmer was
nominated to be CEO, and Bill Gates became director. software architecture for the
company. The Bill & Melinda Gates Foundation was established with an initial sum of 28
billion USD.
2018
At the Microsoft Ignite technology innovation exhibition organized by Microsoft and its
partners on September 28 in Orlando, Florida (USA), Microsoft introduced the next
generation of office application suite, Office 2019.

Looking at the chart, we can see that Microsoft's business situation has developed quite
evenly over the years. In the first quarter of 2013, when Microsoft began to acquire
Nokia's mobile branch and focus on the field of smartphone production, the company's
revenue only reached more than 15 billion USD, but later, with the launch of Windows
8.1, Microsoft gradually regained its position and reached a milestone of about 22 billion
USD in the second quarter of 2013 (with a net profit of about 7 billion USD). In the later
quarters of 2013, Microsoft's business situation had many fluctuations and revenue
gradually decreased over the quarters. However, by the second quarter of 2014, with the
launch of Surface Pro 3, the product was helping Microsoft achieve revenue of nearly 24
billion USD, surpassing the 2013 revenue milestone.
Future
Microsoft determines that Windows will no longer be everything and the future of the
corporation will be decided by Cloud and A.I (artificial intelligence). Windows 10
focuses on "creators" with 2 versions Major updates like adding Mixed Reality, 3D Paint,
and improved stylus. Forming a virtual assistant on the Windows operating system.
1.2. Organizational Structure
1.2.1. Leadership Team

At the helm of Microsoft is Satya Nadella, who has served as CEO since 2014.
Nadella’s leadership style is characterized by empathy and collaboration, fostering a
culture of innovation and inclusivity. His vision has been instrumental in transforming
Microsoft into a cloud-first, mobile-first organization, prioritizing customer-centric
solutions and enhancing user experiences across the company’s product lines.

Amy Hood, the Chief Financial Officer (CFO), plays a crucial role in shaping
Microsoft’s financial strategies and supporting its growth initiatives. Hood's background
in finance and her deep understanding of the technology sector allow her to provide
strategic insights that align financial performance with corporate goals. Under her
leadership, Microsoft has focused on maintaining a strong balance sheet and strategic
investments, ensuring that financial resources are allocated efficiently to drive
innovation.

Other key leaders, such as the heads of product divisions and regional managers,
contribute to this leadership structure by bringing specialized expertise and operational
oversight. Their collaborative efforts ensure that Microsoft can respond swiftly to market
changes while maintaining a coherent strategic direction.

1.2.2. Divisional Organization

Microsoft’s organizational structure is primarily organized by product lines, which

include Windows, Office, Azure (cloud computing), and LinkedIn, among others. This
divisional approach allows each segment to operate with a high degree of autonomy,
facilitating tailored strategies that align with specific market demands.

 Windows Division: Focused on operating system development and user

experience, this division emphasizes continuous updates and features that cater to both
personal and enterprise users.
  Office Division: Home to productivity tools like Word, Excel, and PowerPoint, this
division has pivoted towards subscription-based services (Microsoft 365), enhancing
customer engagement and revenue predictability.

 Azure Division: As a leading cloud service provider, Azure’s division emphasizes

scalability, security, and integration with other Microsoft products. The cloud division’s
rapid growth has positioned Microsoft as a formidable competitor to Amazon Web
Services.

 LinkedIn Division: This segment leverages Microsoft’s existing technologies to

enhance professional networking and business solutions, integrating with Office products
for a cohesive user experience.

Each division is supported by dedicated finance teams that facilitate financial

planning, performance analysis, and budget management. This structure allows divisions
to focus on their core competencies while relying on centralized financial expertise to
optimize resource allocation.

1.2.3. Role of Finance

The finance function at Microsoft is crucial in steering the organization towards its
strategic objectives. The finance team's responsibilities encompass several key areas:

 Centralized Financial Planning and Analysis (FP&A): This unit is tasked with
creating detailed forecasts, analyzing performance metrics, and providing insights to
guide business strategies. FP&A professionals collaborate closely with divisional leaders,
ensuring that financial data is integrated into decision-making processes.

 Treasury Management: Microsoft’s treasury function oversees cash management,

investment strategies, and funding operations. Given the company’s substantial cash
reserves, effective treasury management is vital for maximizing returns on investments
while ensuring liquidity to meet operational needs.
  Risk Management: As a global technology leader, Microsoft faces various risks,
including market volatility, regulatory changes, and cybersecurity threats. The finance
team plays an essential role in identifying potential risks and developing mitigation
strategies, thus protecting the company’s assets and reputation.

 Investor Relations: Effective communication with shareholders and analysts is

paramount. The finance team is responsible for articulating Microsoft’s financial
performance and strategic vision, ensuring transparency and fostering investor
confidence.

The centralized finance function supports strategic decision-making across the

organization by providing accurate, timely, and relevant financial information. This
integration of finance into the broader strategic framework allows Microsoft to remain
agile and responsive to market demands.