Solution
Harshit answered on
May 22 2021
MANAGERIAL ACCOUNTING
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Contents
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1.
Introduction
1
2.
About the company
2
3.
Collaboration with Key Suppliers
3-4
4.
Mutual Benefits
5
5.
Role of management accounting information in stages of collaboration
6-7
6.
Conclusion
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7.
Referencing
9
INTRODUCTION
The world is in a rapid growth phase wherein due to globalization, the world is becoming a smaller place and the competition in the market is increasing. This creates huge pressure on the financial condition of the companies. This has made collaboration between the companies essential for the survival of companies. In the traditional era, the companies used to employ the entire complicated processes by themselves but in the cu
ent market scenario, companies prefer to outsource some parts of the process to other companies who are already established in the market for that process. This offloads a huge burden from the company and makes the process of the company simple (Iba
a, H., Rattan, A., and Johnston, A., (2018)). As the outsourced process is the area of expertise for the other company, the cost of the process will be comparatively lower and of better quality and the turnover of the other company will increase and thereby increasing its profits. This will be a win-win situation for both companies due to collaboration.
ABOUT THE COMPANY
Microsoft is the largest software company in the world and ranks 37 in the Fo
es 500 list. The company was founded by Bill Gates and Paul Allen in the year 1975 and had its first IPO in the year 1986. The company is involved in the business of software from developing to manufacturing to licensing and selling the software. The company started by developing BASIC interpreters and then expanded to building an operating system and today is the largest operating software company in the world. It became the third US Company to achieve the market capital of one trillion USD. The company is software and hardware development and consumer electronics as well. The major products of the company are Windows, Office, Skype, Visual Studio, Xbox, Linkedin, Outlook, Office 365, etc. The company generated revenue of more than US $125.8 billion in the year 2019 and net income of US $29.2 billion.
COLLABORATION WITH KEY SUPPLIERS
The company Microsoft started from a garage and its journey to becoming the largest software company in the world involved in the constant collaboration with companies. Microsoft was founded before the internet and boom and because of that the need for computers has tremendously grown. The operating system is a basic requirement for any computer system or mobile to work. Microsoft started developing software and gradually diversified in video gaming, video streaming, cloud servers, mobile phones, etc. The company launched MS-DOS, an operating system, and later developed Microsoft Office.
Some of the collaborations of Microsoft with key suppliers are as below:
· Microsoft and Apple: Microsoft has been in collaboration with Apple for more than thirty years. Apple being a company of consumer electronics, it has a constant requirement of either the software or operating system. These two companies are one of the largest companies in the world and they both have collaborated many times (Giron, A. J. L., & Vialle, P. (2017)). Microsoft developed Microsoft word for Macintosh and Apple made its I-pod compatible with Microsoft. Apple also made Internet Explorer the default
owser on Mac. Microsoft launched Outlook for Mac. These two companies have always collaborated and have always been beneficial for both the companies.
· Microsoft and Nokia: Nokia was dominant in the market before Android and after Android; Nokia failed to keep itself up with the growing technology and therefore was left behind and became very unstable as a company. In 2013, Microsoft bought Nokia’s devices division and introduced a new set of mobile phones with Microsoft developed technology and operating systems and software. Nokia was financially...