UKMM 3033 LEADERSHIP & TEAM

BUILDING






Presented By:
Liow Wai Kit Ho Ming How
Tan Peak Yin Hoo Voon Chean
Man Wai Kin Yap Min che

Microsoft
Bill Gates & Paul
Allen together
develop BASIC
codes.
Bill Gates
registered
Microsoft
Microsoft listed
on Main Board of
NASDAQ
Timeline for Microsoft
January 1975
November 1976
June 1981
About
Current CEOSteve Ballmer

Objective
Trying to help people and business
worldwide to discover their full
potential.

Implementation
Building Corporate citizenship &
create opportunities in the
communities
Customer & Partner Experience
(CPE)---ensure customers &
partners satisfaction.
Microsoft
Product
Line
Operating
System
Windows
Productivity-
Assistant
Software
Office (Word,
Excel, Database)
Search Engine
Bing
Entertainment
Console
Xbox 360+Kinect
Ethical Leadership
Theory
Ethics
Human s standard on determining right and
wrong.
It is subjective unless laws & regulations underline
it.
Some actions are fall in the grey area.
Ethics in Microsoft
Microsoft has been rated by Ethicsphere
Institute as one of the most ethical companies
in the world.
Involve in economic development programs
Donated millions of dollar to non-profits
organization.
Problem Encounter by Microsoft
Abusing Monopoly Position
Fined 605m & warned by EU
Bill Gates try to meet his own
needs
Marking-up the costs of
developing OS
Narrow - Platform For
Running Software
Include substitute products-
Apple
Ex: Microsoft bundled up the OS
Intentionally Breached The
Patent-Canadian Company
The technology behind a text
manipulation tool
Lower courts used a wrong standard
lower standard of proof of
infringement
Pay 290m for patent infringement
Disregard The
Consequences of Being
Unethical
Doesnt provide relevant
information
Doesnt put its illegal conduct to
an end
Obsolete information
The Affects To Company
Performance?
How did the problem(s) affect the
companys performance?
Firstly, Microsoft bare extra cash outflow.
In year 2005, its cash and cash
equivalent from $14,304 mil $4,851 mil.

Second, it has diminished its other
investments.
Microsofts purchases of investments
from $95,005 mil $68,045 mil.
Has increased the awareness among Microsoft
employee.
Consequently, it will reduce the production and
increase the employee attrition rate.

On account of long period of monopolized.
Therefore, its sales was not affected by the
problem.
Microsofts Revenue throughout the year
32,187
36,835
39,788
44,282
51,122
60,420
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2003 2004 2005 2006 2007 2008
Revenue
Revenue
Microsoft does not maximize the
shareholder welfare.
Microsoft average share price has dropped
from $27.06 $26.95.

In general, this monopolize issue does not
cause any noticeable effect on Microsoft
performance.
The Solution by Microsoft
Fail or Success ?
How did the company handle the problem(s) encountered? Are
they success or fail to handle the problem(s)? Why or why not?

Send negotiator CEO, Mr.ballmer failed
because Microsoft unable to fulfill the
requirement
The requirement will affect the companys
strategy
EU judged - abusive monopolist
Result paid 497million Euros
But the problems occur again
Continues
Changed strategy
Promised to provide greater transparency
more access to application programming
interfaces
launched an open source web
Company successfully solved the problem
Recommendation
Recommendation
Stop Abusing Monopoly Power
Behave to anti-monopoly law and legislation
Participate in open source web
Share information about technology

Introduce more creative, innovative & productive
products
Adopt information from different sources
Microsoft surface
Stop bundle strategy
Operating system + PC
Provides alternative choices for consumers

Market segmentation
Home user + Office User + Designer User
Retain monopoly position

Introduce own brand PC + OS
Set own price without markup others PC
makers cost
No more accusing for abusing monopoly power
Raised fiercer competition in PC market


Conclusion
Conclusion
William Henry (Bill) Gates III & Microsoft Corporation =
Successful.
Maintaining the status of leader in software industry.
Getting sued and compound from EU
Ethical
Donated Millions to non-profits organization or
association
Transparency its business practices and development
Unethical
Monopolist the market.
Marking up the cost.