MGT 4329 Evaluation and Control Part PDF

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This course has a final project worth almost half of your grade and divided into 17 parts. This is part 4...

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Evaluation and Control In order to measure Microsoft’s performance, we can look at the business segments’ (Intelligent Cloud, Personal Computing, and Productivity and Business Processes) increase in revenue. According to CNBC, Microsoft’s business segments’ growth revenue in the second quarter of the 2020 fiscal year was higher than originally predicted by analysts at Refinitiv. For example, the Intelligent Cloud segment had $11.87 billion in revenue, which was an increase of 27% from the previous quarter and more than the predicted $11.40 billion (CNBC)i. With a successful partnership, we should expect this revenue to increase even more as our software innovations will reach a larger market. We should also look at Microsoft’s annual revenue during 2019 which was a record high of $125.84 billion, along with their record R&D spending of $16.876 billion (Macrotrends)ii. By implementing a strategy to partner with a hardware company and to continue increasing the investment in R&D, specifically in AI innovations and cloud computing, we expect this trend of revenue growth to continue throughout the next three years. We believe the growth of revenue and market share will also be reinforced by the predicted 70% increase of AI integration in businesses by 2021 and collaboration tools needed to work from home due to the Covid-19 outbreak (Gartner)40. Therefore, considering the recent growth trends and with this strategy, we expect Microsoft’s annual revenue growth to be 17% over the years of 2020, 2021, and 2022.

i Novet, Jordan. “Microsoft Stock Rises on Earnings Beat and Better-than-Expected Guidance.” CNBC, CNBC, 30 Jan. 2020, www.cnbc.com/2020/01/29/microsoft-msft-earnings-q2-2020.html. ii “Microsoft Revenue 2006-2019: MSFT.” Macrotrends, www.macrotrends.net/stocks/charts/MSFT/microsoft/revenue....