Running Head Microsoft Product expansion Microsoft Product Expans.docx

Running Head: Microsoft Product expansion Microsoft Product
Expansion
1. Executive Summary
This business plan is about the product expansion of the most
recognized and highly reputable company Microsoft. The
company is famous from recent past years because of its
strength and the highly satisfied deployment of products and
services. The company is famous because of its reliable
manufacturing and delivering of services in those regions where
the technology was not actually higher. The company is decided
to expand its business through product expansion. It is
understood that the technology industry is vast and to lead the
top market position, there is a need to do more sort of
innovation with keen research of target market.
Basically, the company is planning to target the small and large
organizations equally to provide them with the Cloud ERP
facility by which the employee productivity would be increased.
The new product expansion in the American market will bring
the positive fluctuations in the economy. The company is
planning to design the powerful strategy and the strong social
media campaign to advertise it in estimated timelines and
deadlines. The company vision and mission statement clearly
indicate that it always put their customers as the highest
priority.
2. Company Summary
a. History of Company
Microsoft is a highly successful American corporation. The
company started with Bill Gates and Paul Allen, they both were
childhood friends and also they are co-founders of the
corporation (INDONESIA, 2014). They started the business in
that age when it was hard to access the computer and they have
a pair of the computer (Gaskin & Geoghan, 2016). Then they
started their own small company by selling computers to the

city of Seattle. In 1975, 29 July Bill Gates used the word Micro-
Soft and then with the partnership of Paul Allen, the company
name was registered as Microsoft. The company started with
BASIC coding language development and then it designed a lot
of product including the very first product “operating system”
(Kvåle, 2016).
The company also produced the first-word processor which
named as Multi-Tool Word. The company is highly famous
because of its business expansion. The corporate is top rated in
the entire world due to its product/services expansion in the
global world. The company is operating on a large scale which
is the major stimulator of its product expansion. Microsoft
planned to expand its product to win the loyalty and hearts of
its consumers once again. The company major goal is the
technology exploration to facilitate the consumers which
ultimately brings large revenue to the company. The new
product expansion also has the target to break the record of
financial benefits and customer loyalty. It’s not a piece of cake
in this highly competitive world but Microsoft has strong
hierarchies for product or service expansion. The company is
trying to provide the new product for the businesses which is
Cloud ERP.
b. Company’s Vision and Mission Statements
The company mission is “We believe in what people make
possible, our mission is to empower every person and every
organization on the planet to achieve more”. The company
mission statement is well defined and proved by its current and
previous work domains. The mission clearly depicts the
corporation customer value, their significance, and
organizational achievements.
Microsoft vision statement is “to help individuals and
businesses realize their full potential”. I believe that Microsoft
vision statement is based on the company software products and
computer technology products value. The vision statement
depicts its target market that what their products do and what
their customers get from their products.

c. Company’s location and facilities
The company is American based and it is headquartered in
Redmond, Washington. They informally knew as corporates
Redmond campus. The Microsoft works with perfect facilities
and bets equipment to solve the small and large highly severe
technical issues. their work is highly comfy and it is not
updated with the high-level technology always it is equally
relaxing with ample opportunity for learning, fun a work, stay
mentally and physically fit. To keep their people healthy, a fit
and an active lot of causal facilities are provided for them by
which they can take rest of can to enjoy the work in the less
rigid environment.
d. Company’s management structure
Microsoft is operating on a large scale, it is providing multi-
purpose products from recent past years with sustainable
efficiency and innovation (Herrera, 2016). The reason behind
this sustainability and effective deployment is its high-level
management (Aghion & Jaravel, 2015). Microsoft has well
design management under effective leadership styles. The
company is focusing on employee motivation, satisfaction,
happiness, health and basic needs to ensure that management is
very strong there (Sniukas, Lee, & Morasky, 2016). Gates was
the best source of motivation for all employees, he marinated
the high level of management which is beyond explanation. He
believed in communication and problem-solving approach rather
than showing rigidity towards employees.
Then Gates resigned in 2000 but remained the board of
directors. The major driving force in company management is
Satya Nadella who designed the best environment based on
promotional techniques and communications. The company is
leading because of management strength and these strengths are
always turned beneficial in case of new business venture or any
product expansion. As there is a plan to expand the company’s
product it would bring positive results because of high
management skills and strong motivational nature of leaders and
higher executives. The plan to expand the product will be good

because of top to down hierarchal management.
e. Company’s product/service mix
Microsoft corporations are the global commuter technology
manufacturer, its products are very vast and expanded. The
company is manufactured may products such as Exchange
server, Skype for business, SQL server, SharePoint server,
Microsoft office suite, Dynamics ERP and the services are Live
connected, Windows Live and MSN. Microsoft is a leading
developer of personal-computer software systems and all its
apps. The company sells electronic games and input-output
devices, portable media players. The company is providing their
own line hybrid tablet.
3. Business goals and objectives
a. Three business goals/objectives w.r.t company expansion
launch
Three business goals and objective are following
The company is planning to get the competitive advantage in the
entire world. The company is leading but in this world, the
competitive threat is the basic factor which is necessary to view
or update according to this. The company wants to get the
unbeatable competitive advantage by this expansion.
The second goal and objective of the company are to increase
the customer loyalty and satisfaction. With the passage of time,
the need of society and the environment is changing. People
need highly compatible and innovative products. It’s becoming
harder to satisfy the consumer. The company couldn’t believe
on rest assured but there is need to do something very carefully
to earn the loyalty of consumers and stimulate their buying
patterns.
To expand or occupy the target market with the new innovative
technological standard is the major goal or triggering force
behind this product expansion (Pisano, 2015). Microsoft
Corporation product expansion will be done on another third
goal which is its capitalization. The company wants to earn
more and more to be the strongest in US economy. The company
is still the richest and financially well stable but in Gates mind,

there is always the struggle to put the success standards higher
than before. This product expansion is based on standardization,
the standard matters a lot. The company wants to shift its
growth and financial standards so high that no one could ever
beat this standard.
These are some important goals and objectives which will
stimulate this initiative. These initiatives will get promoted
through these objectives. The Microsoft is highly stable
company and it’s all sort of expansions or extensions are
perfectly designed because of its clear description of
measurable goals and objectives. The company always work and
defined goals to meet all the deadlines and targets. The new
initiative will also be launch on these paradigms. Overall
objectives are in favor of this expansion.
b. Support expansion mission and vision statement
Mission statement
The mission statement behind this initiative is that “we are
focused on business expansion to serve the reliable services and
products in the global world to make our environment more
competent and trustworthy”
Vision statement: vision statement of the Microsoft new product
expansion is that” we are concerned with targeting a new market
and building the sustainable environment”.
These two statements are highly beneficial in the context of new
imitative. The company would work to achieve the goals and
objectives behind this initiative. The new product/service
launch is supportive to get the sustainable competition overall
competitors like Samsung and Del. In the technology world, the
expansion is necessary to get the lead in the market and that’s
why Microsoft has also defined the best mission and vision
statement for new product expansion. Every company survival
requires a fresh and intelligent approach to promote the growth,
flexibility, productivity, and collaboration.
For manufacturers, brands, consumer brands, retailers it is
complex to keep the change and it is difficult to do with soloed
point applications, outdated and monolithic applications. It is

the dream of the company to help many more companies to get
what they want through a highly intelligent cloud of business
apps.
4. Market Analysis
a. Target market
Companies are looking for the cloud which could automate their
businesses to higher scale. The companies searching for that
sort of cloud which can easily process their business automated
with the use of CRM and ERP. The basic need of the target
market is to get the best technology to shift their production
patterns to the upper level. The cloud will be able to that. With
the proper implementation and use of the cloud, the business
person could save their precious working hours and time with
the higher productivity of employees. Microsoft evaluated the
fact from external and internal resources that businesses are
finding difficulty to scale the productivity. According to the
APA (American Psychological Association) research, the time
lost between switching from task to screen is almost 40% of the
employee’s productivity. This lost cost almost $450B per year
of the global economy.
The company is evaluated the overall solution with a core
understanding of market needs and wants. Today the world is
revolving around business. People are associated with their
benefits and they want to get more and more with new
technological advancements. The business person is worried
about its employee’s productivity and financial loss. Microsoft
is targeting that type of business persons who are stressed to
scale their productivity. The company product expansion
through cloud ERP will target the global world with new
paradigms and domains of facilitating small and large
businesses. This would also serve to the economy of regions.
The target market involved those employees who are worried
due to the screen and task switches. They are searching for such
type of ease in which they couldn’t switch their working
windows for another task. The Microsoft is highly flexible to
provide the products according to the need of society. The

company targeted all class of business. The upper and the
mediocre level can also apply this in their business processes.
The automated system is targeting all those who want to
increase employees productivity so, they should execute their
unstructured and structures collaborative and production
processes.
From large scale organizations to small-scale organizations, the
company is designing the cloud for all (Scarborough, 2016).
The target market for Microsoft is the large scale and small
scale companies and organizations. The older way of designing
or developing the applications for businesses is traditional and
there will not go beneficial in future. But, the new approach
such as cloud ERP is necessary to shift the business standards
higher in the target market.
b. Industry in which the company operates
The company operates basically in the technology industry.
Microsoft operates in computer hardware, computer software,
consumer electronics and social networking services. The
company also operated in cloud computing and video games
internet industry. The Microsoft belongs to the corporate
venture capital industry also. Microsoft is a Technology
Company which is providing the large range of products and
services in the global world with perfect quality and reliability
standards of services and products. In the technology industry,
the company is leading due to all its business ventures and
expansions of products.
c. Competitive Analysis
Competition is the biggest need of era, people like to buy from
the most competitive seller because of the perception that
people like what they feel best (Bryson & Daniels, 2015). To be
the best in the market, the competition is the basic things which
are necessary to maintain (Baron, Essentials of
entrepreneurship: Evidence and practice, 2014). As we now
that, the world is evolving day by day. The world is replaced
with the name as the global world. People have evolving
demands and their natures need changes now (Baron &

Hmieleski, 2018). The traditional and the older approaches are
not best to get the attraction of people. Overall there is a need
to launch something interesting to be leading in the market. The
same case is with Microsoft, which is one of the most
influential leaders in the market. They like to introduce such
types of products which would ultimately bring a higher level of
competition for them.
Microsoft has many more competitive corporations which are
working along with it. The biggest competitor of the Microsoft
is Apple Inc. Apple is one of the famous technology marketing
leaders which are providing highly innovative and successful
technology incorporated services and products. There is huge
competition among the Microsoft and Apple. Apple is collecting
large revenue every year because of its some strength. It also
has some weaknesses by which the Microsoft can take the lead.
In the previous record, they are working on comparatively same
success goals. The company like Apple don’t need any
competitor the same is for Microsoft.
Apple company strengths
Apple Company has a lot of strengths which are always creating
an edge point for the company. The strengths reveal that how
Apple Corporation is becoming a dominant player in the tech
industry and trying to create the competitive advantage over all
tech industry service providers. The first and foremost strength
of the company is the unique ability to develop and design
hardware, software, services, and applications. Apple always
introducing its unique and innovative products which are always
very easy to use. The user-friendly interfaces and the easy to
use solutions are the basic strength driven approaches of the
company.
The second strength of the company is that it is a powerful
brand which is supported by marketing capabilities and strong
advertising capabilities. Apple is the name of the brand which is
valuable and recognizable in the global world. It is supported by
a vast ecosystem and the brand recognition is the major factor
by which the company built its reputation with the passage of

time. Apple is perfectly built reputation of providing high
quality, reliable products and also known as providing well-
designed innovative products to its customers and the company
also have the sound financial performance. The third strength
factor is the most loyal customer base in all major product
market where the Apple Company operates.
The company is providing all its products according to the need
or customers. Apple always enjoys the highly loyal base of the
customer in the absence of a loyalty program. They convey
high-status product which itself works as a loyalty program.
The customer always tries to buy Apple products even when
they available in cheaper options in the market.
Apple Weaknesses:
The weakness of the Apple Corporation is its Veto power over
its sold products. The company keeps control of designs inside
and up-to standards but it also destroys the hardware wide
adaption, it hurts the overall hardware adaption specifically in
computers. The company has a very small market share. Another
weakness of the company is its freaky control and the
demanding nature. The CEO Steve jobs created the environment
which is still rigid after his death. The company reputation is
become down after the death of CEO Steve Jobs. The Apple
Corporation is also not shareholder friendly. The company has a
poor relationship with its shareholders despite having the
growing and huge cash level.
As compared to Apple the Microsoft has also its strengths and
weaknesses. Microsoft has brand loyalty and strong well-built
brand reputation. Over the past years, the company is
strengthening its brand loyalty through multiple ways and
products or venture expansions. Microsoft has the effective way
to build the easy to use products and services with strong
distribution channels.
Another strength of the company is its robust distribution
channels by which the consumers can get Microsoft products
and service within short-time. The reliability and the quality of
its product is the reason by which people always like to trust in

it again and again. The major strength of the company is its
acquisitions such as Skype. The company is becoming more
powerful with this acquisition. The company has adaptive
nature and strong financial performance by which it is getting a
strong competitive advantage.
Weaknesses of Microsoft Company
The Microsoft Company has its weakness which is the
dependence on hardware manufacturers. The company has
another weakness which its security flaws criticism. The
company faced the criticism over the flaws of security, the
company is slow in terms of innovation. The company also
made some poor acquisitions which turned as its weaknesses.
5. Market and Sales Strategy
a. Marketing mix
Marketing mix involves the 4P’s which are price, product,
place, and promotion. For any new product expansion, these for
marketing are highly important (Londhe, 2014). If these four
elements are not well designed then definitely the product
expansion would bring the negative results to the company
(Huang & Sarigöllü, 2014).
Price
For Microsoft Cloud ERP expansion in products, the pricing
matter a lot. The company has its mission to facilitate all type
of its customers, then the pricing strategy needed for all type of
businesses either large or small (Karadag, 2015). The company
for this product has decided to set the lower pricing strategy or
moderate pricing strategy. In this, the affordable cloud services
will be applied to the buyer of the product. The companies who
want to get that product majorly could bear its financial cost
(Scholes, 2015). For the company the pricing matters a lot, it is
the way to earn the customer loyalty or introduce the product in
higher and lower markets to get the strong feedback and
triggering the purchase of the product (Buckley, Burton, &
Mirza, 2016).
Place
For Microsoft Cloud ERP the place is not harder to decide. In

the entire world, the business is facing the same type of issues
which are happening in the US also. But initially, the Microsoft
Company will launch its product in the US. The US population
including large and small-scale business owners could easily get
that facility and they could save their money and also can
provide 40% extra than ever recorded employee productivity
Product
The Cloud ERP is the product which is planned to launch in the
US to facilitate the businesses.
Promotion
Promotion is the basic requirement to advertise the new product
on the market (Nikabadi, Safui, & Agheshlouei, 2015). It is the
way to attract the consumers (Fine, 2017). The company has
decided to launch the product through advertisement campaigns.
In the yearly exhibition, the company will introduce its product
and also the company will use social media to advertise this
cloud service in a global world where everyone has the same
issue.
b. Sales strategy
Microsoft is not fats in terms of innovation. But in this case, the
company is working to provide the best business expansions
(Hasan, 2016). The company will use the needs-satisfaction
selling strategy (Terho, Eggert, Haas, & Ulaga, 2015). The need
selling strategy is the great approach of selling for the company
because the company focused on the needs and wants of its
customers. The sales strategy goal is to break all the records of
Microsoft products sales to achieve the sustainable higher rank
in the tech market with sustainability.
c. Sales forecast
It is common that every company before any product expansion
or any product venture did some sort of sales forecasting to
evaluate the acceptance of the newly launched product or ready
to launch a new product. Microsoft is designing Cloud ERP, on
the behalf of company reputation, long wait innovation and
sustainable and stable financial position of the company. The
new product sales can be forecasted under these factors

(Ingram, LaForge, Williams, & Schwepker Jr, 2015). The
Microsoft can collect the higher sales, especially from large-
scale business owners. The market conditions are very stable.
Politically, culturally, economically, legally and form all that
perspective the US market is stable and the product will get its
higher sales because of stable regional conditions. The company
will collect its return on investment in a first half year.
6. Implementation Strategy
a. Overall Strategy
For the new product expansion, the effective strategy is defined.
The Microsoft will clearly define the target buyer and the target
market. The company first starts with the analysis of market
needs and wants. Then the price, place, and promotions could be
decided to implement the product expansion. The company
started form research and analysis then decided its expansion
mission, vision statement with all measurable and non-
measurable goals. Overall after the goals definition, the
company decided to ensure that the product is not highly
expansive. The Microsoft major focus is on people not on any
other thing. Designing a strategy also involves the interview
with random people to do some research.
b. Implementation
The company has decided to fulfill all its product expansion
task in given timeline or deadline. The company is always best
to deploy the product in the estimated time. The company has
its first target to design the powerful product expansion strategy
before its launch.
· The company will provide its product expansion strategy for
15days.
· The company has the plan to target market in the first three
years of product expansion.
· The company will target the market segment through a social
media advertising campaign within three months of launch.
· The company has a target to achieve customer attraction and
loyalty within six months.
· The company planned the return on investment in the first six

months of product expansion.
c. Control Plan
A control plan is necessary for the successful business. The
control plan is the way to evaluate the company success by
achieving multiple milestones. The control plan is based on the
constant evaluation of each business subsidiaries. The control
plan is the based on the company monthly and yearly basis
financial analysis. The company will analyze the effectiveness
of each process through its outcomes. The evaluation for each
activity deadline and project timeframes will be done along with
their completions to ensure that all the hierarchies are properly
working on it.
d. Risk Management
Risk management is also the vital part to do while doing any
product expansion. In Microsoft, the company is designing the
new ways to target the new market with the highly innovative
approach. The biggest risk the company faced was the selection
of an appropriate product to launch. The company could face
the loss of investment and the customer loyalty due to the
unsuccessful perfect deployment of cloud ERP (Goetsch &
Davis, 2014).
The second risk the company could face is the loss of brand
reputation. Every new product expansion could create the
positive impact on company reputation or also could impact I
negative terms. It’s all based on the way of selecting a strategy
and impel meting control plan. Microsoft can overcome these
risk factors with proper implementation of strategy and control
plan for product expansion. The company will analyze the
strength of the market and the demand of the market to reduce
the risk factors in this expansion.
e. Key performance
Microsoft product expansion business success of failures
indicators will be Marketing metrics and PIs and the Sales
Metrics and KPIs. These two indicators are highly successful to
implement to judge the success and failure of any expansion in
business. These indicators can digitally track the market and

sales to reach the target month over months.
7. Organizational Structure
a. Management Team
Each product expansion needed the perfect team to manage all
its associated tasks. The company management team is
necessary to design because it can ensure the positive and
beneficial outcomes for the company (Bolman & Deal, 2017).
The management team for the Cloud ERP launch will consist of
20 people (Kerzner & Kerzner, 2017). The project manager and
the team manager will be hired to complete this project with all
its perfection levels.
b. Employees needed
Overall the company has the strong staffing infrastructure, the
company effectively managing its large range of employees with
proper satisfactory dealings. The Microsoft company has
believed to hire the expert in every launch of the product to
make it best ever. For the cloud ERP, the team will be designed
and the 20 staff members will be hired. The employees will be a
developer, software designers and the experts in cloud
computing. The computer science experts with high-level skills
and abilities will be hired to manufacture this product.
c. Job descriptions
Microsoft will plan the team and the staff recruiting according
to the need of product expansion. The members decided to
recruit are 20th. First, the company needs the experts in cloud
computing and the computer science postgraduates with the
expertise of more than ten years working in the recognized firm.
The company will recruit fifteen project developers and
manufacturers. Two people will be recruit as management who
will perform the team management and the project management.
The company will hire the advertisement or promotional
manager to introduce the new product in the market. The
timeline manager and the budget manager will also be designed
to deploy the well-designed product.
8. Financial Statements and Projections
The company Microsoft has undertaken expansion in its product

range as its growth strategy. The new product introduced is
Cloud ERP. The projected financial statements for the first year
of the Cloud ERP launched is shown below.
a) Capital/Investment Needs:
Estimates of capital and investment needs of the company is
about $176,165.This is
Will require about 60% of the capitalization of debt and the
remaining 40% will be capitalized by the equity. The company
was able to raise equity finance by issuing new shares in the
market for investment. Due to high growth prospects attached to
the Microsoft after launching the Cloud ERP, the company was
able to easily attract new investors. The Microsoft is extending
its brand by introducing a new product under the same brand
name. The long-term debt is of high portion due to tax
advantages on the debt payments.
Long-Term Loans
$9,000 M
Equity
55.5 shares x $ 108.04/ share= $6,000 M
Total Investment
$15,000 M
The other start-up cost will require high research and
development cost of $ 6,988 million. The cost is estimated on
the technological feasibility. All software cost are capitalized
until the product is available for general release to the
customer. The feasibility is reached after resolving coding and
testing issues.
b) Forecasted Income Statement for 12-months ( Year Ended
June 30, 2019 )using the month-by-month approach
Assumptions: The revenue of the Cloud ERP is estimated to be
increasing 10% every month, due to high growth potential.
The cost of the Cloud ERP is estimated to increase by 2% every
month.
The Research and development cost is estimated to be 85% of
the previous month cost, due to high research cost in the first
month followed by development cost each month.

The sales and marketing cost for the coming month is 95% of
the previous month.
The administration cost is increasing by 10%, as more
employees are needed, as production is increased and sales are
increased.
The interest cost is 6% of the long-term loan.
The income tax cost is 30% of the profit before interest and tax.
(All values are in Million)
July 2018
Revenue:
Totals
Product
$ 7496
Total Revenue
$ 7496
Cost of Revenue:
product
$2,855
The total cost of Revenue
$2,855
Gross Margin
$4,641
R & D cost
$1,086
Sales and Marketing
$1,294

General and Administration
$373
Operating Income or PBIT
$1,888
Interest cost
$434
Income tax
$162
Net income
$1,292
August 2018
Revenue:
Totals
Product
$8,246
Total Revenue
$8,246
Cost of Revenue:
product
$2,912.10

$2,912.10
Gross Margin
$5,334
R & D cost
$944.82
Sales and Marketing
$1,229.30
$410.30
$2,749
Interest cost
$434
Income tax
$234
Net income
$2,081
September 2018
Revenue:

Totals
Product
$9,070.16
Total Revenue
$9,070.16
Cost of Revenue:
product
$2,970.34
$2,970.34
Gross Margin
$6,099.82
R & D cost
$821.99
Sales and Marketing
$1,167.84
$451.33

$3,658.66
Interest cost
$434
Income tax
$311
Net income
$2,913
October, 2018
Revenue:
Totals
Product
$9,977.18
Total Revenue
$9,977.18
Cost of Revenue:
product
$3,029.75
Total cost of Revenue
$3,029.75

Gross Margin
$6,947.43
R & D cost
$715.13
Sales and Marketing
$1,109.44
$496.46
$4,626.4
Interest cost
$434
Income tax
$393
Net income
$3,799.4
November, 2018
Revenue:
Totals
Product
$10,974.89

Total Revenue
$10,974.89
Cost of Revenue:
product
$3,090.34
$3,090.34
Gross Margin
$7,884.55
R & D cost
$622.17
Sales and Marketing
$1,053.97
$546.11
$5,662

Interest cost
$434
Income tax
$481
Net income
$3,799.4
December, 2018
Revenue:
Totals
Product
$12,072.38
Total Revenue
$12,072.38
Cost of Revenue:
product
$3,152.15
$3,152.15
Gross Margin
$$8,920

R & D cost
$541.29
Sales and Marketing
$1,001.27
$600.72
$6,777
Interest cost
$434
Income tax
$576
Net income
$5,767
December 2018
Revenue:
Totals
Product
$13,279.62
Total Revenue

$13,279.62
Cost of Revenue:
product
$3,152.15
$3,152.15
Gross Margin
$10,065
R & D cost
$470.92
Sales and Marketing
$951.21
$660.79
$7981
Interest cost
$434

Income tax
$678
Net income
$6,896
January 2019
Revenue:
Totals
Product
$14,607.58
Total Revenue
$14,607.58
Cost of Revenue:
product
$3,279.50
$3,279.50
Gross Margin
$13,7328

R & D cost
$409.70
Sales and Marketing
$903.65
$726.87
$9,287
Interest cost
$434
Income tax
$789
Net income
$8,064
February 2019
Revenue:
Totals
Product
$16,068.34
Total Revenue

$16,068.34
Cost of Revenue:
product
$3,345.09
$3,345.09
Gross Margin
$12,723
R & D cost
$356.44
Sales and Marketing
$858.47
$799.56
$10,709
Interest cost

$434
Income tax
$910
Net income
$9,365
March 2019
Revenue:
Totals
Product
$17,675.18
Total Revenue
$17,675.18
Cost of Revenue:
product
$3,411.99
$3,411.99
Gross Margin

$14,263
R & D cost
$310.10
Sales and Marketing
$815.54
$879.51
$12,259
Interest cost
$434
Income tax
$1,042
Net income
$10,783
April 2019
Revenue:
Totals
Product
$19,442.69

Total Revenue
$19,442.69
Cost of Revenue:
product
$3,480.23
$3,480.23
Gross Margin
$15,963
R & D cost
$269.79
Sales and Marketing
$774.77
$967.47

$13,951
Interest cost
$434
Income tax
$1,185
Net income
$12,331
May 2019
Revenue:
Totals
Product
$21,386.96
Total Revenue
$21,386.96
Cost of Revenue:
product
$3,549.83
$3,549.83

Gross Margin
$17,837
R & D cost
$234.72
Sales and Marketing
$736.03
$1,064.21
$15,802
Interest cost
$434
Income tax
$1,343
Net income
$14,025
June 2019
Revenue:
Totals
Product

$23,525.66
Total Revenue
$23,525.66
Cost of Revenue:
product
$3,620.83
$3,620.83
Gross Margin
$19,902
R & D cost
$204.20
Sales and Marketing
$699.23
$1,170.63

$17,828
Interest cost
$434
Income tax
$1,515
Net income
$15,879
a) Forecasted Balance sheet for 12-months using the month-by-
month approach
Assumptions: The company assets such as cash, account
receivable, inventory is either showing the trend of increasing,
decreasing or remaining constant by 20%.
The goodwill is also increasing with the same trend.
The intangible assets are growing as the level of spending is
increasing on research and development.
The account payable is also following the same trend as current
assets.
The long-term and current portion of liability are divided into
months.
The equity is increasing as soon as capital is paid up.
The retained earnings are increasing with profit reserved for the
coming year.
The Balance sheet in July 2018
Assets
Current Assets:
Cash and Cash equivalent

$5,000
Account Receivable
$670
Inventories
$1,078
Total Current Assets
Goodwill
$778
Intangible asset
$6,000
Total Assets
$13,526
$13,526
Liabilities and Stockholder’s Equity
Current liabilities:
Account payable
$50
Current portion of The Long-Term debt
$750
Income taxes
$182
Total Current Liabilities

Long-Term Debt
$8,250
Total Liabilities
$9,234
Stockholder’s Equity:
Common stock and paid in capital
$3,000
Retained Earnings
$1,292
Total Stockholder’s Equity
$4,292
Total Liabilities and Stockholder’s Equity
$13,526
$13,526
The Balance sheet in August 2018
Assets
Current Assets:
$5106
Account Receivable
$682
Inventories
$1,234

$7,022
Goodwill
789
Intangible asset (R&D)
6012
Total Assets
$13,823
Account payable
$67
$1500
Income taxes
$200
$1,767
Long-Term Debt
$7,500
Total Liabilities
$9,267

$3,023
Retained Earnings
$1,533
$4,292
$13,823
The Balance sheet in August 2018
Assets
Current Assets:
$5,126
Account Receivable
$702
Inventories
$1,214
$7,042
Goodwill
$809
$6,032

Total Assets
$13,883
Account payable
$47
$2,250
Income taxes
$220
$2,517
Long-Term Debt
$6,750
Total Liabilities
$9,267
$3,256
Retained Earnings
$1,360

$4,626
$13,883
(All values are in
Million)
The Balance sheet in September 2018
Assets
Current Assets:
$5,106
Account Receivable
$842.40
Inventories
$1,456.80
$7,405.2
Goodwill
$970.80
$7,238.40
Total Assets

$15,614.4
Account payable
56
Current portion of the Long-Term Debt
$3,000
Income taxes
264
$3,321
Long-Term Debt
$6,000
Total Liabilities
$9,321
$3,907
Retained Earnings
$2,386.2
$6,293.2

$15,614.4
The Balance sheet at October 2018
Assets
Current Assets:
$6,127.20
Account Receivable
$1,010.88
Inventories
$1,436.8
8,574.8
Goodwill
$970.80
$6,668.8
Total Assets
$16,214.4

Account payable
$67.2
$3,750
Income taxes
$316.8
$4,134
Long-Term Debt
$5,250
Total Liabilities
$9,384
$4688.4
Retained Earnings
$2,142.2
$6,8308.8
$16,214.4
(All values are in

Million)
The Balance sheet in November 2018
Assets
Current Assets:
$6,7653.6
Account Receivable
$990.88
Inventories
0
$7,744.48
Goodwill
$1,164.96
$8,002.56
Total Assets
$16,912
Account payable
$47.2

$4,500
Income taxes
$380.16
$4,927.36
Long-Term Debt
$4,500
Total Liabilities
$9,427.36
$4,688.4
Retained Earnings
$2,796.24
$7,484.64
$16,912
The Balance sheet at December 2018
Assets
Current Assets:

$6,645.08
Account Receivable
$990.88
Inventories
$109
$7,744.48
Goodwill
$1,164.96
$8,002.56
Total Assets
$17,021
Account payable
$47.2
$5,250
Income taxes
489.16

$5,786.36
Long-Term Debt
$3,750
Total Liabilities
$9,536.36
$4,688.4
Retained Earnings
$2,796.24
$7,484.64
$17,021
The Balance sheet in January 2019
Assets
Current Assets:
$6,645.08
Account Receivable

$990.88
Inventories
$130.8
$7,766.76
Goodwill
$1,266.96
$8,866.28
Total Assets
$17,900
Account payable
$486.7
$6,000
Income taxes
489.16
$6,975.86
Long-Term Debt
$3,000

Total Liabilities
$9,975.86
$4,688.4
Retained Earnings
$3,235.74
$7,924.14
$17,900
(All values are in
Million)
The Balance sheet at February 2019
Assets
Current Assets:
$6,645.08
Account Receivable
$990.88
Inventories
$130.8

$7,766.76
Goodwill
$1,266.96
$9,287.28
Total Assets
$18,321
Account payable
$486.7
$6,750
Income taxes
489.16
$6,975.86
Long Term Debt
$2,250
Total Liabilities
$9,975.86

$5,109.4
Retained Earnings
$3,235.74
$7,924.14
$8,345.14
$18,321
(All values are in
Million)
The Balance sheet at March 2019
Assets
Current Assets:
$7,974.10
Account Receivable
$1,189.06
Inventories
$156.96
$9,320.32
Goodwill
$1,520

$9,287.28
Total Assets
$20,127.6
Account payable
$584.04
$7,500
Income taxes
$586.99
$8,671.03
Long-Term Debt
$1,500
Total Liabilities
$10,171.03

$5,450
Retained Earnings
$4,506.57
$9,956.57
$20,127.6
(All values are in
Million)
The Balance sheet in April 2019
Assets
Current Assets:
$9,568.92
Account Receivable
$990.88
Inventories
$156.96
$10,716.76
Goodwill
$1,520
$9,287.28

Total Assets
$21,524
Account payable
$467.04
$8,250
Income taxes
$704
$9,421
Long-Term Debt
$750
Total Liabilities
$10,171
$5,450

Retained Earnings
$5,902
$11,352
$21,524
The Balance sheet in May 2019
Assets
Current Assets:
$7,656
Account Receivable
$991
Inventories
$188
$8,835
Goodwill
$1,520
$9,287.28
Total Assets

$19,642
Account payable
$374
$9,000
Income taxes
$841
$10,215
Long-Term Debt
0
Total Liabilities
$10,215
$5,568
Retained Earnings
$3,859

$9,427
$19,642
The Balance sheet in June 2019
Assets
Current Assets:
$9,187
Account Receivable
$1,189
Inventories
$225
$10,601
Goodwill
$1,520
$9,287.28
Total Assets
$21,408

Account payable
$448
$9,000
Income taxes
$1009
$10,457
Long-Term Debt
0
Total Liabilities
$10,457
$6,000
Retained Earnings
$4,951
$10,951

$21,408
9. Recommendation and Justification
As far as my recommendation is concerned, I believe that the
company should focus on its innovative promotional techniques
to get the highly competitive edge over the technology market.
The company needs to focus on building strong innovation
techniques to get the sustainable financial revenue in the future.
10. Conclusion
Microsoft is a US based corporation which is leading in the
global market because of its strong reputation and sustainable
growth. The company is well-recognized because of its ventures
and the continuous introduction of new products. It could be
easy to say that the company has the advantage to expand its
products and build the strong customer and brand loyalty. The
company has the best strategy to expand the new product.
Currently, the company planned to introduce the new product
or trying to expand the product in a business market where the
business persons are seeing the high technological advanced
cloud to shift their working standards higher. They also want to
scale their productivity which is being considered impossible
for them. This is the expansion by which the small and large
business organizations would equally get the benefits in terms
of increase in employee productivity. Cloud ERP is the product
which is manufacturing to launch in American technology
market and the company is estimating higher customer
attraction towards it. This is based on the needs and wants of
the current environment.
Bibliography
Aghion, P., & Jaravel, X. (2015). Knowledge spillovers,
innovation and growth. The Economic Journal, 533-573.
Baron, R. A. (2014). Essentials of entrepreneurship: Evidence
and practice. Edward Elgar Publishing.
Baron, R. A., & Hmieleski, K. M. (2018). Essentials of
Entrepreneurship Second Edition: Changing the World, One
Idea at a Time. Edward Elgar Publishing.

Bolman, L. G., & Deal, T. E. (2017). Reframing organizations:
Artistry, choice, and leadership. John Wiley & Sons.
Bryson, J. R., & Daniels, P. W. (2015). Handbook of service
business: Management, marketing, innovation and
internationalisation. Edward Elgar Publishing.
Buckley, P. J., Burton, F., & Mirza, H. (2016). The strategy and
organization of international business. Springer.
Fine, S. H. (2017). Introduction to social marketing. In
Marketing the Public Sector . Routledge.
Gaskin, S., & Geoghan, D. (2016). GO! with Microsoft
PowerPoint 2016 Comprehensive. Pearson, 1-19.
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organizational excellence. Upper Saddle River, NJ: pearson.
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and stock price. Corporate Finance, 1-15.
Herrera, M. E. (2016). Innovation for impact: Business
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to market outcome, brand equity, and the marketing mix. In
Fashion Branding and Consumer Behaviors . Springer, New
York, NY, 113-132.
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Marketing Management, 12-21.
1
“Life in a Slam”
As I sit here in the morning light,
Watching the day set in slowly,
With sweet silent thought in flickering flight,
The tears from beneath my heart rise to my eyes.

Myself I can picture in my imagination world,
In a land far, far away,
Chasing something within my own soul
And the tears they swell in eyes and stay.
Maybe this is how it’s planned to be?
Maybe one day I would pursue my dreams?
Maybe? Maybe? Oh does it matter anyway!
And the tear they swell in my eyes and flow in a stream.
Process Analysis:
In “Life in Slum,” the poem explores the life of the persona
through such poetic
devices as imagery and symbolism that helps create the meaning
as well as intensify the

mood in the poem. The title of the poem utilizes a metaphor that
enables the reader to relate
the context to an existing societal setup. The poem also uses
symbols. Ideally, the
environmental context of this poem is hidden in the title.
Further, imagery forms another
important poetic device in the poem. For instance, the title of
the poem gives the reader an
impression of the location of the persona. On the other hand, the
writer of the poem seems to
be addressing certain issues in society in a rather poetic manner.
Therefore, this poetry
analysis of “Life in Slum,” will focus on the use of imagery,
symbols and also to mention
tone.
The title is designed to deliver as well as give a clear
impression of the challenges
addressed in the poem. The title shifts the mind of the reader to
an impoverished surrounding.
In other words, the title offers a descriptive image of a slum and
more importantly how it
reflects human survival. Basically, as the poem starts, the
reader gives a snapshot of the

persona somewhere in a slum. In other words, use of imagery in
the poem provides the reader
with a sense of own memories or experiences that the persona
emotionally connects to the
poem (Perez).
Referring to the 2nd stance the persona is chasing something
within own soul. This
constant use of imagery exposes us to the persona experiences.
The persona has to reveal own
experience briefly the use of this tool makes the poem effective.
At this point, it is right to say
that the persona is ambitious but the environment and economic
hardship deter progress.
Through the use of repetition, the poem reveals the hardship and
life in slums in a rather
unique way. For example in the last stanza, the persona is in
conflicted thoughts. “Maybe this
is how it is planned to be,” or maybe one day I would pursue my
dreams.” These two
questions are important in the poem because they somehow
show the quagmire the persona is
in.

The poem is also somehow informal. Literally, the poem does
not conform to formal
rules but the poet keeps it organized. From a look, the poem is
made up of two stanzas, with
the first stanza made up of eight lines with the exception of the
second stanza with five lines.
There are no formal rules but at a glance, the poem’s pattern
can be noted. The poem lines are
inconsistent in the sense that they are not uniform. The short
lines in the poem play a very
important role because as a descriptive poem, they create the
impression and form a
consistent rhythm. Use of repetition in the poem is also
essential in forming the tone of the
poem.
Additionally, the tone of the poem that of pain and sorrow. In
connection with this is
the setting of the poem. The persona in the poem is hopeless.
Throughout the poem, the
reader feels sorrow for the persona. For example, the fact that
it’s in the morning and the
persona seems to be wondering signals unemployment. The
persona represents the bigger
picture that people in slums have endured. The persona seems to

be in self-conflict when the
poet describes the persona to be chasing within own soul.
Choice of words is also another
notable element in the poem. For example, the last stanza,
represent the persona conflicted
thoughts. Maybe? Or maybe this is how it is planned to be? This
mix-up illustrates that the
persona is trapped in social-economic hardships.
In the poem, “Life in a Slum,” figurative language has been
employed in the poem.
Figurative language uses different figures of speech such as
rhetorical devices or alliterations
to make the poem more persuasive and impactful (Zwaan 240-
250). In the poem, the use of
figurative language is used to create an impression of the life
the persona is experiencing.
The author demonstrates the use of symbolism to emphasize the
state of economic
hardship. The poet writes, “The tears from beneath my heart
rise to the eyes,” and “the tears
they swell in my eyes and stay.” These two examples as
presented in the poem convey

information in a rather twisted way. As the two symbolisms
reflects, the person is in agony.
“Myself I can picture in my imagination world,” use of
figurative language, enable the poet
to explain to the reader’s hardship and challenges in this
society. From the onset of the poem,
the poet is able to express the economic as well as social
challenges in this environment. My
relationship with the chosen place is based on cultural concerns
to my experience in a slum
during my teenage. I have been able to show this by applying
imageries, rhetoric devices and
symbols to mention a few. The poem is able to tell a story of
life experience in a slum. In
broad perspectives, the theme in the poem can also be used to
relate to global social
economic issues that are affecting the people. Economic
hardships and psychological
perspectives as represented in the poem concerns large ideas
related to politics a society.
Arguably the persona state can in one way or the other be
attributed to poor governance. On
the other hand, the aspect of the persona giving up depict a
society where people are

reluctant.
To conclude, the poem ‘Life in Slum” makes the reader realizes
the economic and
social challenges that people endure every day. By use of
imagery, the use of repetition and
symbolism, the poet has been able to create a clear impression
of the situation in slums.
Simply, this poem analysis has concentrated on various aspects
that have enhanced the poem
to deliver the message.
Work Cited
McCurdy, Nina, Vivek Srikumar, and Miriah Meyer.
"Rhymedesign: A tool for analyzing
sonic devices in poetry." Proceedings of the Fourth Workshop
on Computational Linguistics
for Literature. 2015.
Perez, Craig Santos. from Unincorporated Territory [saina].
Omnidawn Pub., 2010.
Zwaan, Rolf A. "Toward a model of literary comprehension."

Models of understanding text.
Psychology Press, 2014. 249-264.

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