Google vs Microsoft

In todays society numerous peck atomic number 18 exploitation the internet more(prenominal) and more to shop online, bag business transactions and surf the web for what interests them. Microsoft and Google be known to many people as internet giants. The two companies compete for business in the internet human being by offering similar online business services. Microsoft as well as offers an array of computer increases to consumers and businesses such as Windows 7, Microsoft office and MSN. Googles of import focus of business is its hunting railway locomotive that many people recitation today to surf the internet.This paper bequeath compare and contrast Microsofts and Googles business model, financial management system and explain which attach to could better withstand a major recession and at the very(prenominal) time, compare their financial ratios and decide which two companies that would be better to aim in. Microsoft was started in 1975 by Bill furnish and Pau l Allen who developed an translator for basics schedule language systems that has contributed to Microsofts being so successful.Microsoft is champion of the largest technology companies in the world which specializes in developing and licensing computer parcel returns such as Windows 7, Microsoft office, MSN and Bing. Microsofts management team is led by chief executive officer Steve B whollymer who likewise serves on the executive hop on, prexy Bill Gates, seven directors, and mavin chief financial officer which are all non-executive board members. The company has been known for its leadership style by means of its founder Bill Gates for donating m maviny to many charities and helping the poor.Microsoft is as well as said to be an innovator for the new-age trainplace where work is made to be comfort competent, fun and inspiring so that all employees so-and-so enjoy doing their work and like to spend their time there as well. Bill Gates did not even finish college but hi s work ethics are being taught in schools through the world. Microsoft has an excellent track record for introduction beca wasting disease it keep coming up with new technology and devices every course of instruction (Datamonitor, a, 2011). On the different hand, Microsoft is in contestation with Google and other internet companies all over the use of internet await engines.Google was founded in 1998 by two Stanford University grade students, Sergey Brin and Larry Page. Google is an international technology firm that is concentrated on improving the air people get their education from the internet. Google has three core businesses search, advertisements, and applications. The search engine powered by Google provides information for millions of exploiters every day. It must(prenominal) be decided that information reported 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 determine the useab leness of the page for the user is searching the document for keywords. Keywords must be entered to search on Google, and the documents are s ratned to determine how often they appear. The more keywords a document has tends to indicate its effectiveness to the user. Another evaluating principle for reporting useful pages is the ranking for the page and quality of the site. Websites receive rankings which reflect quality, relevance, and accuracy. Websites who keep up advanced rankings and numerous keywords are reported to the user first.This method of obtaining information allows the user to access vital information in a matter of seconds. depend advertisements are used to further assist users, and to offer Googles main products and services and provide blue-chip and relevant information for people who use the search engines for answers they soak upk. Google search engine is like Microsofts Bing search engine. Google also sells their product and services in more than 100 langu ages throughout the world. Googles management team is led by a chairman Eric Schmidt, a chief executive Larry Page, a director of special projects Sergey Brin which are all executive board members.They also have six directors that are non-executive board members. The company is a leader in that they provide people with valuable information. At the selfsame(prenominal) time, however, Google is a slow innovator in its search engine technology. For example, its search engine has not shown major innovation patronage the quality of Googles searching technology that is absolutely dominating. However, as search engine technology advanced in the past decade the expert gap between 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 benefit more and be able to survive a major economic recession. Microsoft has five divisions within their organization such as Windows & Window s 7, Microsoft business, online services, server and tools, entertainment and devices. check 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 dejection 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 impertinent Google which only has search engines and advertising to depend on. Therefore as seen in the financial ratio Google has not made any money nor did it nod off any money. Microsoft on the other hand, has made money due to the many products it has to offer. Subsequently, the advantageousness ratio can signalize us a dance band about Microsoft and Google performance.The profitability ratio can tell us what for each one companys revenue and losses were for the year. It can also tell us about both(prenominal) companies operating budget, debts, stocks, and investments. According to Microsofts yearly report, Windows Division revenue reflected relative performance in PC food market segments. We estimated that gross revenue events 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 someone wanted to invest company like Microsoft they should use the profitability ratio to determine a companys return on assets and uprightness to see if it is a good investment. As we can see PCs sales to businesses grew 11% while consumers PCs sales weakened 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 unsex more money per share and to each stockholder.One can see to it that Microsoft has done well over the years by them recognizing and using the acquaintance base and technological base has been an asset for the company. Microsoft is one of the best companies when it comes to software product and programming. Microsoft over the years has realized that their competitors can have an impact on market changes and with this knowledge it has allowed Microsoft to make the required finiss in the market place. The issues and concerns that Microsoft and other organizations face are technology changes and competition. Technology today has surpassed the technology of yesterday.Yet, Microsoft has shown that they can meet th ese challenges in various areas by meeting these issues and concerns head on. Microsoft often 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 content designed to help people simplify tasks and make more informed decisions online, and that help advertisers connect with audiences.OSD offerings include Bing, MSN ad Center, and advertiser tools. Bing and MSN recall revenue through the sale of search and display advertising more often than not accounts for nearly all of OSDs annual revenue. (2011, p. 54) This demonstrates that Microsoft would be a outstanding 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 point that they invested in Bing and MSN.Therefore one should also consider the return on current ratio and the dividend payout ratio before fashioning 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 croak with large corporations where there is a higher degree of the separation of possession and management, and thus perhaps an occurrence of a conflict of the goals of the managers and the goals of the shareholders.Aside from doing look into on the company itself, doing an evaluation of stock can also wax to be useful. Knowing if stock is over set can tip you off, in that you then need to find out why it is overpriced. For example, is the stock overpriced because investors sincerely believe that the stock is good and has potential, or is the stock price high because of curren t 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 fortune 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 valuable 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, Goo gle and Microsofts are the worlds most powerful technology organizations 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 have it off 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 rewrite 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 more capital 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 future from other competitors stealing their clients.ReferencesDatamonitor (2011 a). Microsoft Corporation. Retrieved from Business denotation Complete. Datamonitor (2011 b). Google Inc. Retrieved from Business Source Complete. Google Annual Report (2011). Retrieved from http//www.sec.gov/Archives/edgar/data/1htm Microsoft Annual Report (2011). Retrieved from www.microsoft.com/investor concomitant