Google vs Microsoft

In todays society m whatsoever masses atomic number 18 victimisation the network much and more to shop online, handle trading legal proceeding and shop the web for what interests them. Microsoft and Google are known to many people as internet giants. The two companies compete for traffic in the internet worldly concern by chaping similar online tune serve. Microsoft similarly offers an array of estimator products to consumers and businesses such as Windows 7, Microsoft office and MSN. Googles main focus of business is its depend engine that many people use today to surf the internet.This paper will compare and contrast Microsofts and Googles business model, fiscal management system and explain which come with could better defy a study recession and at the corresponding duration, compare their pecuniary proportionalitys and decide which two companies that would be better to invest in. Microsoft was started in 1975 by beak Gates and Paul Allen who au whenceti c an interpreter for basics schedule language systems that has contributed to Microsofts being so successful.Microsoft is one of the too largest applied science companies in the world which specializes in developing and licensing computer software products such as Windows 7, Microsoft office, MSN and Bing. Microsofts management squad is led by chief executive director officer Steve Ballmer who also serves on the executive identity card, chairman Bill Gates, septet directors, and one chief financial officer which are all non-executive mount members. The accompany has been known for its leadership style through its fonether Bill Gates for donating money to many charities and friending the poor.Microsoft is also said to be an innovator for the new-age workplace where work is made to be comfortable, fun and enliven so that all employees can enjoy doing their work and like to lead their time there as advantageously. Bill Gates did not fifty-fifty finish college but his work ethics are being taught in schools through the world. Microsoft has an excellent track record for construct because it keep advance up with new engineering science and devices every year (Datamonitor, a, 2011). On the former(a)wise hand, Microsoft is in competition with Google and other internet companies everyplace the use of internet depend engines.Google was founded in 1998 by two Stanford University graduate students, Sergey Brin and Larry Page. Google is an international technology firm that is concentrated on improving the way people start up their information from the internet. Google has three core businesses search, advertisements, and applications. The search engine powered by Google bequeaths information for millions of users every day. It must be adjustd that information inform to the Google search engine is beneficial to the user a set of criteria has been developed to serve this purpose.A common method of determining the usefulness of the foliate for the u ser is searching the document for keywords. Keywords must be entered to search on Google, and the documents are scanned to determine how often they appear. The more keywords a document has tends to luff its usefulness to the user. Another evaluating principle for reporting useful rogues is the ranking for the page and quality of the site. Websites receive rankings which reflect quality, relevance, and accuracy. Websites who fill lavishly rankings and numerous keywords are reported to the user first.This method of obtaining information allows the user to access live information in a matter of seconds. Search advertisements are employ to further assist users, and to offer Googles main products and services and provide valuable and relevant information for people who use the search engines for answers they overheark. Google search engine is like Microsofts Bing search engine. Google also sells their product and services in more than 100 languages throughout the world. Googles ma nagement team is led by a chairman Eric Schmidt, a chief executive Larry Page, a director of special barfs Sergey Brin which are all executive board members.They also view as six directors that are non-executive board members. The company is a leader in that they provide people with valuable information. At the same time, however, Google is a slow innovator in its search engine technology. For example, its search engine has not shown major innovation despite the quality of Googles searching technology that is absolutely dominating. However, as search engine technology advanced in the past decade the technological gap surrounded by Google and Microsoft has decreased more and more as we see with Bing (Datamonitor, b, 2011).On the other hand, by using the financial ratio I believe that Microsoft would arrive at more and be able to survive a major sparing recession. Microsoft has five divisions within their organization such as Windows & Windows 7, Microsoft business, online ser vices, horde and shaft of lights, entertainment and devices. According to Datamonitor, a , The companys product under this division include Microsoft Office, Microsoft SharePoint Microsoft Exchange Server and Microsoft Dynamics ERP and CRM as well as Microsoft Office Web Apps, which are the online companions to Microsoft Word, Excel, PowerPoint and OneNote (2011, p. ). This shows that Microsoft has many divisions and products that they can offer to consumers, businesses and investors. This also shows that Microsoft would be better suited to withstand a major recession due to the many products they have to offer unlike Google which only when has search engines and advertising to depend on. Therefore as seen in the financial ratio Google has not made any money nor did it lose any money. Microsoft on the other hand, has made money due to the many products it has to offer. Subsequently, the net incomefulness ratio can tell us a bunch well Microsoft and Google performance.The pro fitability ratio can tell us what each companys revenue and losses were for the year. It can also tell us about both companies operating budget, debts, stocks, and coronation fundss. According to Microsofts annual report, Windows segment revenue reflected relative performance in PC grocery segments. We estimated that gross sales of PCs to businesses grew approximately 11% this year and sales of PCs to consumers declined approximately 1% (2011, p. 50). This demonstrates that by using the profitability ratio Microsoft was able to calculate their gains and losses for the year in the sale of PCs.This also shows that by using the profitability ratio Microsoft was able to project their sales of PCs to other businesses. Therefore if whateverone wanted to invest company like Microsoft they should use the profitability ratio to determine a companys return on assets and equity to see if it is a good enthronization. As we can see PCs sales to businesses grew 11% while consumers PCs sal es corrupted by 1% so an investor should put their money in business PCs. After seeing the profitability ratio of both companies Microsoft would be the company to invest in because they payout more money and make more money per share and to each stockholder.One can agree that Microsoft has do well over the years by them recognizing and using the knowledge ground and technological base has been an asset for the company. Microsoft is one of the outperform companies when it comes to software and programming. Microsoft over the years has readd that their competitors can have an impact on market changes and with this knowledge it has allowed Microsoft to make the required decisions in the market place. The issues and concerns that Microsoft and other organizations grimace are technology changes and competition. Technology today has surpassed the technology of yesterday.Yet, Microsoft has shown that they can outfit these challenges in various areas by meeting these issues and conce rns head on. Microsoft oftentimes has restructured some of their well-known operating systems, programs and software to keep up with the changing times. Recently, they have launched Bing and Windows 7. According to Microsoft annual report Online Services Division (OSD) develops and markets information and satiate designed to help people simplify tasks and make more communicate decisions online, and that help advertisers connect with audiences.OSD offerings include Bing, MSN ad Center, and advertiser tools. Bing and MSN generate revenue through the sale of search and display advertising generally accounts for nearly all of OSDs annual revenue. (2011, p. 54) This demonstrates that Microsoft would be a great company to invest in because they offer many different products that makes a lot of money. This also demonstrates that Microsoft has seen an increase in revenue due to the fact that they invested in Bing and MSN.Therefore one should also consider the return on watercourse ratio and the dividend payout ratio before making a decision on investing in the company. On the other hand one should also look at the investment valuation before making an investment decision. Investors need to be aware that before they invest in a company such as Microsoft that the likelihood of the problems when it comes to investing occur with large corporations where there is a higher degree of the separation of ownership and management, and consequently perhaps an occurrence of a conflict of the goals of the managers and the goals of the shareholders.Aside from doing research on the company itself, doing an evaluation of stock can also prove to be useful. Knowing if stock is overpriced can tip you off, in that you then need to come upon out why it is overpriced. For example, is the stock overpriced because investors rightfully believe that the stock is good and has potential, or is the stock price high because of current economic conditions. Knowing the answer to such questions will help individuals as investors make better and more informed decisions. According to Googles annual report Strategic, financial and execution isks and exposures associated with our business strategy, product innovation and sales road map policy matters, significant litigation and regulatory exposures, and other current matters that may present material risk to our financial performance, operations, infrastructure, plans, prospects or reputation, acquisition and divestitures. (2011, p. 16) This explains that investing in large corporations can be risky and, this also explains that you should look, at a companys investment valuation before investing.The reason why this is so important is because people can lose their money and if they did their homework by using the investment valuation they would see where their money is going and if they are making a wise decision when they invest into a company. In conclusion, Google and Microsofts are the worlds most powerful technology organi zations that have proven it is possible to excel in the corporate world. The software and programming that Microsofts sells is the same product that has proven to be a useful tool for the company.Allocating costs and investing in new technology and recognizing competition including recognizing revenues gain and loss has also proven to be an asset for Microsoft. Google and Microsoft recognize and realize the potential of technology in the ever changing world of business. Google and Microsoft have met the challenges and changes of todays society. As for Microsoft achieving its goals, the belief is that it has surpassed those goals and is constantly revising technology and products to meet them and new ones in a timely manner.Therefore, making it a company that investors want to invest in. Microsoft, financial aspects has allowed me to decide that it is one of the best companies, to invest in today. While Google on the other hand, must find better innovative techniques so it can gain m ore great(p) so that investors want to invest in the company. At the same time Google must keep up with other competitors such as Microsoft so that the company does not be left behind in the proximo from other competitors stealing their clients.ReferencesDatamonitor (2011 a). Microsoft Corporation. Retrieved from Business Source Complete. Datamonitor (2011 b). Google Inc. Retrieved from Business Source Complete. Google one-year Report (2011). Retrieved from http//www.sec.gov/Archives/edgar/data/1htm Microsoft Annual Report (2011). Retrieved from www.microsoft.com/investor Appendix