A- Assesse and analyse Bill Gates\'s three options below and recommend the most

Question

A- Assesse and analyse Bill Gates's three options below and recommend the most appropriate option based on your analysis

Bill Gates had to decide whether to :-

1- Pay $1.5 billion for a firm with total annual revenues of less than $200 million

2- Gear up to compete more aggressively and more effectively in these markets in an effort to repeat the kind of success that Microsoft and enjoyed in the word processing and spreadsheet market niches , or

3- Continue as marginal player in the niches dominated by intuit while focusing Microsoft’s effort in other (perhaps more important) markets of the future.

B- In addition to the case assessment, you will need to submit any and all explanatory exhibits that summarize your group's analysis. Any exhibit you include must be mentioned explicitly in the case brief, clearly delineating the exhibit's contribution to your argument.

Explanation / Answer

Now, Bill Gates had to decide whether,

1. To Pay $1.5 Billion for a firm with total annual revenues of less than $200 Million.

Firm is having a total annual revenue of less than $ 200 Million, now to fund the company one has to know the type of company we are investing into.Whether it is startup company or a company which is in the business for a long time. Then we have to look into the growth of the company in terms of finacial as well social growth i.e; the name and godwill of the company must be assesed. One also needs to know the earning potential of the investment and the capability of the company personal. Diversificaion of the business is good but a lot risk bearing form the bill gates side.

2. Gear up to compete more aggressively and more effectively in these markets in an effort to repeat the kind of success that Microsoft and enjoyed in the word processing and spreadsheet market niches

Competing in the market more aggresively and more effectively in the Word processing and Spreadsheet market niches, is a way to improve the Business. Word processing and Spread sheet merkets are growing at a apid speed. Data analysis using word processors and spread sheets is increasing as now a days, a lot of data market is coming up and there is a potential to tap it by coming up with more innovative products and techniques. The investment in this markets by doing a bit of research can help gain ffrom the business.

3. Continue as marginal player in the niches dominated by intuit while focusing Microsoft’s effort in other (perhaps more important) markets of the future.

Continuing as marginal player in the niches dominated by intuit is not a good move from Finacial point of view , because one has to knw the potential of the business and if it is feasible then only one shouldinvest in the business. Ging purel b intuit is not a good idea, research has to be done and then decision need to be taken. Focusing on future market is a good idea but one has to be carefull in choosing the investment in future markets, beacause it is uncertain. But with good research one can Make a lot of difference and can be benefited a lot.

Option 2 Gear up to compete more aggressively and more effectively in these markets in an effort to repeat the kind of success that Microsoft and enjoyed in the word processing and spreadsheet market niches is the best option available to Bill Gates as the other two are riskier then this.

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