1. Google, a leader in Internet information searching, is being challenged by other big names in Internet technology. Compare and contrast Google’s business model and financial management with Microsoft’s, which launched Bing. Access Google and Microsoft’s annual reports and financial statements at their Websites. In addition to the text, you may access some other sites and or sources to understand the how to analyze an income statement and a balance sheet. For example, the following sites can provide guidance:
1. Calculate or identify from each company’s most recent annual report the six (6) specific financial ratios listed and provide as ...view middle of the document...
Google is known for creative and democratic leadership style. Its leaders have shown
consistent innovation track record and have come out with successful products regularly. Google
generate revenue primarily by delivering relevant, cost-effective online advertising. Businesses
use our AdWords program to promote their products and services with targeted advertising. In
addition, the third parties that comprise the Google Network use our AdSense program to deliver
relevant ads that generate revenue and enhance the user experience.
As per msn, “Microsoft Corporation is engaged in developing, licensing and supporting a
range of software products and services. It also designs and sells hardware, and delivers online
advertising to the customers. It has five segments: Windows & Windows Live Division
(Windows Division), Server and Tools, Online Services Division (OSD), Microsoft Business
Division (MBD), and Entertainment and Devices Division (EDD). Its products include operating
systems for personal computers (PCs), servers, phones, and other intelligent devices; server
applications for distributed computing environments; productivity applications; business solution
applications; desktop and server management tools; software development tools; video games,
and online advertising. Its cloud-based computing services include Bing and Windows Live
Essentials suite. In October 2011, it acquired Skype Global. In November 2011, the
Company acquired VideoSurf Inc.”
Microsoft’s leading products are:
1) Windows Division
Leadership style and innovative track record.
Microsoft’s leadership style was earlier guided by Bill Gates, founder of Microsoft.
3. Use the financial ratio analysis and explain which company is better able to withstand a major recession.
For this I will use debt equity ratio. This indicates the financial risk of the company.
Google has got lower debt equity ratio at 0.08 and hence I believe that Google will be...