Google and Microsoft Essay Example | Topics and Well Written Essays - 1250 words

Google and Microsoft - Essay Example   Microsoft was founded in 1975 and is headquartered in Redmond, Washington. Microsoft is a leader in operating systems and Microsoft windows is its star product. Furthermore, office application such as Microsoft Office is also one of the key products of Microsoft. Microsoft develops licenses and supports various software products and services for computing devices all over the world. Leading products include PC operating systems that primarily include Windows 7. Microsoft also provides online solutions to its customers through Bing and MSN portals. Microsoft recently acquired ‘Skype’ and serves as one of its major product. Microsoft is also present in the entertainment industry through its product named Xbox 360. Organizational Culture Google Inc has a normal hierarchical structure and important decisions are taken by the upper management. Dissent and difference of opinion is encouraged and decisions are made in front of everybody. Google encourages its workers to fol low their instincts so that they can come up with creative ideas that help in innovation and product development. Although, Google is not lead by a charismatic leader such as Bill Gates, the vision of the company is well defined and the employees strive towards accomplishing the goals that are given to them. Microsoft strives to make the workplace as comfortable for the employees as they can. Microsoft has a clearly defined vision and the employees stick to the vision and mission of the overall organization. Microsoft is lead by a charismatic leader in the form of Bill Gates. Bill Gates knows that in order to move forward, he can leave no man behind. In order to ensure this, he has a clear vision not only in his mind but he also makes certain to pass it on to his employees. He sets clear standards about his expectation from the employees which is pursued passionately by the employees. By saying inspiring expressions like, every house and business must run on Microsoft software, or a computer on every desktop, he provides an unambiguous picture to his employees of exactly what is expected of them. This helps clear misconceptions and misunderstandings and provides refreshing clarity to employees. He has set a standard for them, they can easily envision it and therefore achieving it becomes easier (Grist, 2007) Google has always introduced new and innovative products. Employees are encouraged to provide Creative and innovative ideas. The concept of search engine, videos sharing, advertisements on blogs etc. are all examples of the innovations Google has introduced over the years. Ratio Analysis: Microsoft also has an impeccable track record in introducing innovative products and services. Microsoft Windows and Office are examples of introducing innovative products in the market that match the customer’s needs and demands. Google Inc. has a better current ratio of 4.2 times as compared to the current ratio of Microsoft. Hence, Google’s ability to rep ay its short term obligations is better than Microsoft’s (Brigham & Houston, 2012). However, Microsoft earns a far better return on its assets and equity than Google. The higher current ratio indicates that Google has excess short term assets available and hence is better positioned to withstand a recession. Microsoft has been more profitable than Google as indicated by the higher return on assets and return on equity figure of Microsoft. Microsoft earned 41% return on the total equity as compared to the