Analysis of Microsoft Gulf Report

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There is no use denying the fact that modern age could be characterized by blistering development of corporations which managed to seize various markets and introduce its products or services to people who reside in different parts of the world. Additionally, blistering development of globalization and various means of transport made cooperation between departments of a company, which are situated in a great number of countries, easier.

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That is why, nowadays, we can observe several huge international companies that struggle with each other in order to grasp the market and obtain extra benefits. It is obvious that usually the most perspective directions of development and regions are chosen. Traditionally, Europe and the USA had been taken as such regions. Thus, nowadays, the shift of priorities could be observed as countries which were comparatively weak in the past start to develop and attract attention.

It should be said that the UAE has become one of these states. Having great oil deposits and developed oil extraction industry, the state can boast one of the greatest incomes in the world. That is why, blistering development of the economy of the UAE coincided with the growth of the number of offices that represent various international companies.

With this in mind, the main aim of the given paper is the analysis of the main peculiarities of the functioning of Microsoft Gulf department, that is the part of a great Microsoft corporation and now functions within the territory of the UAE. It is obvious that the given company tries to introduce its products and services to new and perspective market and that is why, its functioning is organized in the most beneficial and efficient way.

First of all, it should be said that Microsoft corporation is one of the most famous and beneficial companies in the world which annual income is bigger than the budget of many states (Microsoft Corporation (MSFT), 2015). Though, it is obvious that any company has to evolve and promote its further development in order to remain topical and beneficial.

Under these conditions, Microsoft Company realized the necessity of new markets that will be able to increase the demand for its products and result in the significant increase of the level of incomes. However, one should mind that the process of introducing products to the new market is rather complicated and consists of a great number of various peculiarities that should be taken into account while trying to take on the market.

Peculiarities of language, culture and demands of customers should be given great attention while analyzing the state of the new market and creating the strategic plan. With this in mind, along with the decision to introduce its services to the Gulf region, Microsoft company also organized the department which main task is to align efficient and beneficial functioning of the company in the region.

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Microsoft Gulf nowadays is one of the most beneficial international companies that function all over the world and in the Gulf region, trying to provide qualified services to its customers in terms of peculiarities of local demands that could be taken as the reflection of customs, traditions and the state of the economy of the country. In other words, it is possible to say that Microsoft Gulf tries to spread its influence in the UAE, creating new departments and organizing new ways to work and improve the quality of services.

Having outlined the background for the development and introduction of the products of Microsoft corporation to the UAE market, it is also possible to start the analysis of the given company from the determination of its shareholder structure and the role which shareholders play in the functioning of a company.

First of all, it should be said that being a giant international company with great incomes, Microsoft is obviously organized according to rather popular pattern that is able to guarantee its efficient functioning. The company is ruled by the shareholders council which consists of people who possess companys shares.

They do not perform managerial functions, thought, they accept some very important strategic decisions and determine the way in which company will develop.

It should also be said that the shareholder structure is quite simple though efficient. The shares of the company are distributed between the main shareholders who now are Steven Ballmer with 333 million shares, then comes Bill Gates with 330 million and other important shareholders who own shares which comprise not more than 1% of the total number (Microsoft Corporation (MSFT), 2015).

However, due to the peculiarities of the shareholder structure, there are shares which could be bought by anyone who wants to become the shareholder of the Microsoft company (Sheridan, 2014). The shares of the company could be bought on the broker’s board or directly from the shareholder.

However, one should mind that Microsoft is a giant international corporation with the great level of incomes, that is why its shares cost a lot and if a person wants to become not just a common shareholder, but to have the right to participate in the shareholders council, he/she has to by at least one percent of shares. However, Microsoft organizes annual shareholders meetings in order to inform people about the strategic steps performed by the company and keep in contact with them.

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These meetings are organized with the help of various web technologies so the shareholders do not have to go to the main office. With this in mind, it is possible to conclude that the shareholder structure of Microsoft company is organized according to the traditional pattern as the main shareholders are able to manage the company and accept some important strategic decisions, while the rest of shareholders could just collect dividends from owning shares of the company.

Nevertheless, it is impossible but mention the way in which the process of the company is organized and how the main tasks are accomplished. With this in mind, it is possible to say that being the international company which centers on the production and distribution of various IT technologies, Microsoft tries to guarantee the efficient and clear process of delivery of a product and payment because its image depends on it.

Thus, having a great number of plants and factories all over the world. the company organizes its functioning in the way that could guarantee that the needed device or hardware will be delivered to the needed place in time. Moreover, it has to be of a good quality in order to meet the standards of the company, that is why the main principles of TQM are also implemented in the functioning of the company.

Besides, one of the main peculiarities of the company’s process is the great attention given to the credibility of partners and methods they use to pay for their products. That is why, Microsoft declares the standardization of its procurement practices. In other words “before payment can be approved, every Microsoft supplier has to be approved by the Microsoft Procurement group, have signed an agreement with Microsoft, and have a purchase order in hand” (Our Process, 2003, para. 2).

This procedure helps to avoid a great number of various problems connected with the payment methods and trust between partners. Moreover, the given practice makes the control over the spending of a company easier and Microsoft could manage its finances, deciding what sphere or project to invest. Additionally, it helps to make the process of communication with some potential customers easier as this mechanism can prevent the appearance of various problems.

Nevertheless, being one of the most beneficial companies in the world, Microsoft deals with great money flows. It is obvious that this process is also controlled and monitored. The company works mainly with cashless transfers. Customers payments, which come from the purchase of a product or some service, are transferred to the banking account of the company.

This account serves for the further distribution of costs. It is also obvious that relevant authorities control all money flows in order to get rid of mistakes of currency violations. The given model turns out to be rather efficient and productive.

It should also be said that such a great company as Microsoft should obviously have a certain insurance strategy which main aim is to get rid of some unexpected and unpleasant cases and guarantee the stable functioning of a company and security for its workers. That is why the company pays about $20 million annually for commercial insurance (Wojcik, 2009).

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This insurance includes property coverage, crime, ransom, kidnap employment practices liability and a great number of other points (Wojcik, 2009). Additionally, there are some other nontraditional risk-finacning solutions that could provide about $2 billion dollars for the company in case of some complications or unexpected situations (Wojcik, 2009).

It should be said that the main aim of buying insurance of the company nowadays is the attempt to guarantee security for all top managers and common workers in case of some catastrophic losses. Officials of the company do not eliminate the possibility of some natural catastrophe and want to be prepared for it. That is why, great sums of money are spent on it. However, Microsoft does not spend money on some issues which are taken as not important or expected.

Some intellectual losses are not covered by the insurance as Microsoft has other remedies and tools to protect it. With this in mind, it is possible to state the fact that the company wants to protect itself in case of emergency and buys insurance only if it could be taken as cost effective. Thus, having a great number of various assets like DirectX, Nokia, Xbox and many others, the company also provides insurance for them in order to be ready to compensate losses for staff that works at various departments.

It should also be said that the Microsoft company cares not only about its facilities and products. though, it provides various kinds of services and bonuses for its staff. First of all, it is possible to say that work at this very company can be beneficial because of the high level of salary.

However, it is not the only advantage. The thing is that Microsoft provides complete and beneficial insurance for all its workers. First of all, one can admit 100% paid healthcare, including the dental one (Microsoft Careers, n.d). It means that if a worker of a company gets sick he/she can count on good treatment that will be provided in various hospitals of the UAE or the state that will be chosen by a worker. Moreover, there is the practice of maternity leave, when mothers receive eight weeks of paid maternity disability leave.

Additionally, there is a paternal leave that provides benefits for new families in order to establish relations within the family. Thus, it should be said that there is a developed system of bonuses that could help to increase the level of performance of a worker and stimulate his/her better functioning.

Workers, who can be described as very precise and efficient, receive some bonuses which show them that their efforts are appreciated. Moreover, there are some extra benefits, such as gyms, discounts and social clubs that serve to create the beneficial atmosphere for a worker and help him/her to become the part of a collective (Microsoft Careers, n.d). With this in mind, it is possible to state the fact that high insurance rate of the company helps to make its workers feel secure and appreciated.

With this in mind, it is possible to state the fact that the insurance provided for workers of the Microsoft company could be taken as one of the best in the world. However, it should also be said that workers also have to pay for this insurance. Usually, money is kept back from wages during the year that is why the sum is not so great for a worker. For example, it should be said that “employees will be required to pay out-of-pocket maximums of $1,000 to $2,500 for catastrophic coverage” (Eaton, 2010, para. 4).

Thus, the given sum could be taken as quite fair in terms of existing insurance practice. The thing is that workers, who pay this money, are supplied with the 100% free health care that could be much more expensive. That is why, these payments are taken by the company only for the purchase of the insurance connected with some severe complications or conditions, while the rest is paid by the company. That is why, existing insurance practice could be taken as a quite efficient one.

Resting on these facts, having analyzed the main information connected with the activity of Microsoft corporation in the Gulf region, it is possible to make a certain conclusion. It should be said that realizing the great importance of the new and developing market, the company tries to organize it functioning in the most efficient way.

Being ruled by the shareholders council, it tries to create clear and efficient pattern according to which the company will function and evolve. Microsoft already has great incomes in the given regions and, moreover, want to increase them.

Additionally, wise and outstanding insurance policy, which main aim is to protect the top managers and workers of the company from various unexpected complications, also leads to the improvement of the image of Microsoft and attraction of new workers and customers. That is why, it is possible to conclude that Microsoft has good perspectives for its development in the Gulf region.

References

Eaton, N. (2010). . Web.

Microsoft Careers. Web.

Microsoft Corporation (MSFT). (2015). Web.

Our Process. (2003). Web.

Sheridan, P. (2014). . Web.

Wojcik, J. (2009). Microsoft relies on self-insurance for most exposures. Web.

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IvyPanda. 2021. "Analysis of Microsoft Gulf." August 2, 2021. https://ivypanda.com/essays/analysis-of-microsoft-gulf/.

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