CFA

Business description
Source: https://finance.yahoo.com/quote/MSFT?p=MSFT, https://www.forbes.com/companies/microsoft/, https://www.microsoft.com/investor/reports/ar21/index.html
United States
Other countries
Total
2019
2020
2021
69,855

Historical overview
Source: https://news.microsoft.com/facts-about-microsoft/
1975
Microsoft founded
June 25, 1981
Microsoft incorporates
March 13, 1986
Microsoft stock goes public
May 22, 1990
Microsoft launches Windows 3.0
Oct. 25, 2001
Microsoft launches Windows XP
Nov. 15, 2001
Microsoft launches Xbox
Oct. 21, 2003
Microsoft launches Microsoft Office System
Nov. 10, 2010
Microsoft launches Windows Phone 7

Historical overview
Source: https://news.microsoft.com/facts-about-microsoft/
June 28, 2011
Microsoft launches Office 365
Oct. 13, 2011
Microsoft closes its acquisition of Skype
Feb. 18, 2013
Microsoft launches Outlook.com
Feb. 4, 2014
Satya Nadella named chief executive officer for Microsoft
July 29, 2015
Microsoft launches Windows 10
Dec. 8, 2016
Microsoft completes acquisition of LinkedIn
Feb. 24, 2019
Microsoft introduces HoloLens 2
June 24, 2021
Microsoft introduces Windows 11

Stock price dynamic

Product portfolio analysis

Product portfolio analysis
Revenue by products

Key strengths
Source: https://uxplanet.org/usability-review-analysis-microsoft-teams-e91ff3d9cdc9, https://www.scmagazine.com/news/cloud-security/microsoft-adds-new-devops-and-cspm-features-to-defender-for-cloud, https://www.fintechna.com/press-releases/nexi-partners-with-microsoft-to-drive-the-digitalization-of-the-european-payments-space/
Expansive vision and User Experience chops to match
Microsoft is well known as a cloud player
Another major point of focus for Microsoft is AI
The gaming industry which is also experiencing massive growth
THE MAIN RESOURCE BY MICROSOFT IS PEOPLE ASSETS AND EXPERIENCE RECEIVED BY THE COMPANY DURING LIFETIME

Geographic location
Source: https://www.microsoft.com/en-us/worldwide.aspx

Corporate governance
STRUCTURE OF SHAREHOLDERS
SHORT-TERM DEBT
TOTAL SHAREHOLDER EQUITY
SHARE REPURCHASES
EV
In its 2017 annual report, the company listed $9.07 billion in short-term debt. In 2018 and 2019, the company reported no short-term liabilities.
Microsoft's total shareholder equity was $102.3 billion on June 30th, 2019.
In fiscal 2019, Microsoft spent $19.5 billion on share repurchases.
DIVIDENDS
In fiscal 2019, Microsoft paid $13.8 billion on dividends.
As of June 2020, Microsoft had an EV of almost $1.5 trillion.

Corporate governance
MICROSOFT ORGANISATIONAL STRUCTURE
General Manager
Functional Manager
Engineering Manager
Project Manager
Employee
Employee
Employee
Employee
Employee
Employee

Corporate governance
Source: https://www.sustainalytics.com/esg-rating/microsoft-corp/1007900081
SOCIAL RESPONSIBILITY
The following are the major stakeholder groups significant in Microsoft’s business, arranged according to the company’s prioritization in its CSR strategy:
Customers
Employees
Communities
Investors
Governments
15.2
ESG Risk Rating

Key drivers of revenue
Operating Segments:
More Personal Computing
Intelligent Cloud
Productivity And Business Processes
12%
8%
SERVER PRODUCTS & CLOUD SERVICES
OFFICE PRODUCTS AND SERVICES
WINDOWS
GAMING

Key drivers of costs
COST STRUCTURE
BUILDING AND OPERATING DATACENTERS, DRIVERS
SALES & PROMOTION, DRIVERS
HARDWARE SALES, DRIVERS
Number of deliveries, processed orders
Increase in rent, machine running cost, machine set up cost
Number of labour hours

Key external factors
ECONOMIC FACTORS
Considerable economic stability of the majority of developed countries
High growth of developing countries
Growing middle class disposable income
ESTEMPLE ANALYSIS
SOCIAL FACTORS
Growing Smartphone Market
Shortage Of STEM Professionals
TECHNOLOGICAL FACTORS
Rapid adoption of mobile technology
Increasing volume of online transactions
Increasing automation in businesses
MEDIA FACTORS
Change in media landscape
POLITICAL FACTORS
Political stability in the majority of markets
Increasing governmental support for automation
Increasing international trade agreements
ECOLOGICAL/ENVIRONMENTAL FACTORS
Increasing preference for green products
Increasing focus on business sustainability
Increasing availability of recyclable materials
LEGAL FACTORS
Increasing electronic waste disposal regulations
Improving patent laws
Energy consumption regulations
ETHICAL FACTORS
Artificial intelligence technologies development
Responsible gaming trends

Macroeconomic trends
Source: The U.S. Bureau of Economic Analysis, China National Bureau of Statistics
US MAJOR MACROECONOMIC TRENDS INDICATORS
CHINA MAJOR MACROECONOMIC TREND INDICATORS

Company Strategy analysis
MARKET PENETRATION
MARKET DEVELOPMENT
PRODUCT DEVELOPMENT
DIVERSIFICATION
PRODUCTS
MARKETS
New
Existing
ANSOFF MATRIX, MICROSOFT CASE
Selling Windows software and devices to 100+ Microsoft stores worldwide
MARKET PENETRATION:
Stable R&D processes trough:
• Applications and Services Engineering Group
• Cloud and Enterprise Engineering Group
• Windows and Devices Engineering Group
PRODUCT DEVELOPMENT:
Launch a product in limited number of countries and then make it available in the global scale.
MARKET DEVELOPMENT:
Occasional usage of the strategy. Example: cloud service business in 2006.
DIVERSIFICATION: