Strategic Initiative
Strategic Initiative
UOPX
Finance for Business
FIN/370
Davidson Jensen
November 13, 2013
In this paper the team will be discussing the relationship between strategic planning and financial planning for Microsoft. The paper will discuss strategic planning initiative and identify a strategic initiative discussed in the Microsoft annual report. The team will also discuss how the initiative affects Microsoft financial planning. It will then go on to discuss how the plan affects costs and how it affects its sales. Last the paper will examine the risk associated with the plan and how it affects Microsoft.
Current Strategic Planning Initiative The 2013 fiscal year was a significant one for the Microsoft Corporation. There were several accomplishments made throughout the year. Revenue grew to $19.90 billion which is a ten percent increase from the same quarter last year. There is a $4.97 billion net income, this comes with an earnings per share of $.59cents. Microsoft also has a $6.07 billion operating income. According to "Microsoft Q4 2013 Earnings: $4.97 Billion Net Income, $900 Million Charge Related To Surface Rt Inventory Adjustment" (2013), " Microsoft is taking a $900 million charge "related to Surface RT inventory adjustments," and we 're also told that the figures "reflect the recognition of $782 million of previously deferred revenue related to the Office Upgrade Offer" (para. 1). Microsoft continues to transform itself into a “devices and services company.” Another accomplishment the company has done of the last few years was donated to nonprofit organizations. Microsoft has donated an average of $2 million per day to nonprofit organizations around the world. There is also an employee giving campaign, the employees have donated more than $100 million to more than 18,000 nonprofit organizations worldwide. These goals effect how the company’s new products and experiences are marketed for both consumers and businesses. Microsoft continues
UOPX
Finance for Business
FIN/370
Davidson Jensen
November 13, 2013
In this paper the team will be discussing the relationship between strategic planning and financial planning for Microsoft. The paper will discuss strategic planning initiative and identify a strategic initiative discussed in the Microsoft annual report. The team will also discuss how the initiative affects Microsoft financial planning. It will then go on to discuss how the plan affects costs and how it affects its sales. Last the paper will examine the risk associated with the plan and how it affects Microsoft.
Current Strategic Planning Initiative The 2013 fiscal year was a significant one for the Microsoft Corporation. There were several accomplishments made throughout the year. Revenue grew to $19.90 billion which is a ten percent increase from the same quarter last year. There is a $4.97 billion net income, this comes with an earnings per share of $.59cents. Microsoft also has a $6.07 billion operating income. According to "Microsoft Q4 2013 Earnings: $4.97 Billion Net Income, $900 Million Charge Related To Surface Rt Inventory Adjustment" (2013), " Microsoft is taking a $900 million charge "related to Surface RT inventory adjustments," and we 're also told that the figures "reflect the recognition of $782 million of previously deferred revenue related to the Office Upgrade Offer" (para. 1). Microsoft continues to transform itself into a “devices and services company.” Another accomplishment the company has done of the last few years was donated to nonprofit organizations. Microsoft has donated an average of $2 million per day to nonprofit organizations around the world. There is also an employee giving campaign, the employees have donated more than $100 million to more than 18,000 nonprofit organizations worldwide. These goals effect how the company’s new products and experiences are marketed for both consumers and businesses. Microsoft continues
References: Microsoft Earnings Preview: Device And Software Launch To Take Center Stage. (2013). Retrieved from http://www.forbes.com/sites/greatspeculations/2013/10/22/microsoft-earnings preview-device-and-software-launch-to-take-center-stage/ Microsoft Q4 2013 earnings: $4.97 billion net income, $900 million charge related to Surface RT inventory adjustment. (2013). Retrieved from http://www.engadget.com/2013/07/18/microsoft-q4-2013-earnings-surface-rt- inventory/