Does the acquisition make strategic and financial sense? Provide a concise explanation in support of your assessment. (250 words max) Ans 2) Microsoft must have valued LinkedIn over $26 billion. This is more than 8 times the LinkedIn revenue of last 12 months ( $3.2 billion).The ratio is ~5 times Trailing twelve months for public companies on market places shows that price paid/valued by Microsoft is premium. However it is important to note that this is the best time for Microsoft to purchase LinkedIn (as the market cap is 60% of what it was compared to last year and it reached lowest in February 2016).There are half a billion users whose professional data and behavior is up for sale and Microsoft gets it in the right time.
He was the founder of a social networking site called “SocialNet” which is used to have local meet ups for those with common interests like tennis and also provided online dating facility. But It collapsed. Then he started working for PayPal and when that was sold to eBay he started working on his new idea which came out as one of the world’s most successful social media network called “LinkedIn”. LinkedIn officially launched in May 2003 after six months back end work. This was done with the help of his PayPal colleagues.
It was answered that it is because managers differs in how well they implement and create strategies, and this difference affects the competitiveness of their organization. Strategic management is used in all kinds of organization because it gives a way to answer what should an organization take
Oracle and SAP(German based company) compete with Microsoft for the business services market. Microsoft’s most popular product is its Operating System. There is much competition in this area with Apple’s iOS and other smaller firms such as Red Hat, that distribute open-source operating systems such as Linux. Microsoft distributes tablets as well that compete with other companies such as Apple. Logitech are another big competitor because they also make computer accessories.
However, the situation took a turn since 2000. Microsoft started to go down and Apple began to revitalize. With the introduction of iPhone and iPad, Apple revolutionized the smartphone market and created tablet computer industry, and the PC market is declining. The competitive advantage of Microsoft turned into a competitive disadvantage. In 2012, Apple became the most
In the organisation, the communication, information and knowledge are very important. The whole work gets done in the organisation be these things. So a manager has to manage these in an effective manner so that they can get the effective results. Every organisation have to get successes in the market. Without having a good communication, proper information and effective knowledge company can not get the successes in the market.
A company’s strategy is management`s action plan for running the business and conduction operations. (Thompson, A. A., Strickland III, A. J., & Gamble, J. E. 2007, p.3). The performance of an organization depends on how effective it is in converting a strategy into execution. Implementation is the key to being competitive and sustainable, given an appropriate strategy.
acquired Tumblr, a blogging company for $1.1 billion. However, this did not help Yahoo!, instead it meant they were spending more money than the companies actual value. This lead to investors calling for Yahoo! to save money by the sale of Yahoo!’s minor business, and the firing/laying off employees. In doing so it created low morale and unhappy employees.
While Google Android based smartphones are trying to catch up with the iPhone, Apple has the greatest market share in the smartphone industry. Since smartphone industry will grow as time goes by, the prospects for iPhone looks bright. 4. What are Apple’s long-term prospects for the iPad? Tablet is suitable for consuming rather than producing.