In researching the environmental analysis on business operations, there was a particular interest in one company—Microsoft. Throughout the paper, there will be the discussion of how Microsoft has been affected by GDP, unemployment and inflation. In addition, there will also be information provided on how Microsoft may have affected the macroeconomics as well.
Bill Gates and Paul Allen founded Microsoft in 1975. Windows operating system and the office suite of productivity software were developed. These two areas account for more than 50% of Microsoft’s revenues (www.marketlineinfo.com). Other businesses such as Xbox 360 video game consoles, business software and software for mobile devices make up the rest.
Microsoft is currently known as a pure monopoly. However, some economists maintain that a pure monopoly does not exist simply because there is only one provider of a good or service. For instance, in the Microsoft case, the Windows operating system is extremely popular, but the potential for a competing firm to provide a similar product exists. In reality, Macintosh is a small but an important competitor in the computer and operating system market. Linux has also come forward in recent months as a feasible alternative to Microsoft Windows.
In the free enterprise system, there are several difficulties at the individual level as people change jobs, lose jobs, get new jobs, get raises, or earn money from investments. Furthermore, it is comparatively much easier for the individual to recover from a personal economic collapse than it is for the entire nation to do so. The state of the economy may have an impressive impact on individuals, who might be doing well, but when the entire economy falters and unemployment and inflation rise high above normal levels. Just as a growing economy benefits most of the individuals who participate in it, a shrinking economy hurts individuals.
One macroeconomic variable that has affect Microsoft has been...