TOPIC MICROSOFT IN CHINA

OUTLINE

Part 1 Company Profile

- who is it ? What kind of business activities is it engaged in? . Part II Business Practice

How's its business performance in china? Is there any specific issues once arising from their operations in china?

. Part III Comment/Recommendation

INTRODUCTION-MICROSOFT LTD

Microsoft Company Limited is an American multinational corporation which was being founded by two friends by name Paul Allen and Bill Gates. It was founded in Albuquerque, New Mexico in the United States of America on April 4, 1975 as result of the interest of Gates and Allen in computer programming, and this came to bare when IBM introduce the personal computer which needed to run on an operating system. Microsoft limited has its headquarters by name One Microsoft Way, in Redmond, Washington, United States.

INTRODUCTION-MICROSOFT LTD

Since the founding of Microsoft Ltd, the company has introduced a wide range of computer programs which has contributed in the development of the usage of personal computer in our work as academia's, business professionals and others. Microsoft delivers business value to customers by developing, manufacturing, licensing, and supporting a wide range of software products and services. Microsofts business includes the Windows Client, Server and Tools, Information Worker, Microsoft Business Solutions, Windows Mobile, Embedded Devices, MSN, and Home & Entertainment products.

BRIEF HISTORY OF MICROSOFT IN CHINA

In 1992, Microsoft established its first office in Beijing, and later incorporated Microsoft (China) Co. Ltd. in 1995. Microsoft has rapidly expanded its business across China, establishing the Microsoft China Research and Development Group and Microsoft Global Technology Support Center, and opening branch offices in Shanghai, Guangzhou, Chengdu, Nanjing, Shenyang, Wuhan, Shenzhen, Fuzhou, Qingdao, Hangzhou, Chongqing, and Xian.

BRIEF HISTORY OF MICROSOFT IN CHINA- CONT

Microsofts comprehensive operations in China include research and development, sales and marketing, services, technical support, and training. Microsoft China Research and Development Group includes Microsoft Research Asia, Microsoft Advanced Technology Center, Windows Live (China), Server and Tools (China), Microsoft Asia Center for Hardware, Strategic Partnership Group, and a number of other research and development facilities located in Beijing, Shanghai and Shenzhen.

MICROSOFT STRATEGY AND GOAL IN CHINA

our strategy in China is all about being a value provider, a trustworthy partner and a good corporate citizen by Tim Chen, Corporate Vice President and CEO of Greater China Region, Microsoft. As one of the most dynamic and booming economies in the world, China has seen the importance for the adaptation of information technology increase rapidly and it is one of the most important and strategic markets for Microsoft. Microsoft strategy and goal in China is to integrate with the local market through its collaboration with industries and to create outstanding software product and solutions that meets the need of its customers in china. 7

MICROSOFT OPERATION AND BUSINESS ACTIVITIES IN CHINA

Since the 1992 establishment of its first representative office in Beijing to its incorporation in 1995 and up to date, Microsoft China has grown to over 1,500 employees.

MICROSOFT OPERATION AND BUSINESS ACTIVITIES IN CHINA-cont.

OFFICES R&D AND SERVICE FACILITIES
BEIJING,SHANGHAI,GUANGZHOU,CHENGDU,WU HAN,NANJIANG,SHENYANG,SHENZHEN,FUZHOU, QUINGDAO,HANGZHOU,CHONGQING AND XIAN

.Microsoft China Research and Development Group. All

research and development facilities located in Beijing , Shanghai and Shenzhen including Microsoft Research Asia advanced Technology center, Microsoft China Technology center, MSN Technologies . .Microsoft Global Technology Support Center, Greater China Region

BUSINESS SCOPE CUSTOMERS PARTNER

Windows Client, Server and Tools, Information Worker, Microsoft Business Solutions, Mobile and Embedded Devices, MSN and home & Entertainment products. Individuals users, government organizations, enterprises Microsoft has more than 3000 partners in China in terms of software, hardware, services and sales channels .Censoft Co. Ltd.(as an invested company) .Wicresoft Co. Ltd .Shanghai MSN Network Communication Technology Company

JOINT VENTURES AND INVESTED 9 COMPANIES

MICROSOFT COOPERATION IN CHINA-FRAMEWORK

Microsoft since its establishment in China, has strengthen their relations with the government, customers and other players in the industry in other to support information technology in the areas of capital, technology, talents, markets, to aid the development of China software ecosystem and IT industry for its win-win strategy. In view of this Microsoft have a cooperation framework in China in which it follows:

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MICROSOFT COOPERATION IN CHINAFRAMEWORK

In 2002 Microsoft signed a $720million dollars MOU with the National Development Reform Commission to work together to build a dynamic Chinese software industry, which includes a package of cooperation projects. The amount covers investment , training , technical cooperation, software projects and hardware procurement.

Also in June 2002 they sign an MOU of Great Wall with the ministry of Education of china to develop its cooperation with Chinese universities in higher education in categories of academic exchange, talent training , research cooperation 11 and curriculum support

MICROSOFT COOPERATION IN CHINA-FRAMEWORK

In November 2003, Microsoft signed a cooperation framework with the ministry of Education on its information efforts regarding Chinas primary education in order to support primary and normal education. Microsoft signed an MOU with the Ministry of Information Industry in March 2004 to jointly build labs related to the states Public service platform for software and Integrated circuits.
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CONTRIBUTION OF MICROSOFT IN CHINA

STRATEGIC INVESTMENT During 2002-2005, Microsoft made over $62M strategic investment in local companies like Langchao International, Chinasoft International, Dalian Hi-Tech Computer Technology Co. Ltd, etc.

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CONTRIBUTION OF MICROSOFT IN CHINA-cont

TALENT TRAINING Microsoft and the Ministry of Education jointly launched the Great Wall Plan in June 2002. In the past three years 40 universities and research organization's have participated in the program. Over 600 academic exchange activities have been held that include a total of 300,000 attendees. Microsoft has trained over 10,000 software architects and senior program for 11 national software parks since 2003 through onsite training and e-learning. Currently the training focus on case studies and best practices in software park. Since 2004, Microsoft has cooperated with the Ministry of Information Industry to jointly organize the Share The New Century And Strategic Training Courses On IT Application And Management To Boost Northwestern Region which has trained over 300 executives and technical staff from Chinese software companies, and 100 CIOs from state-owned enterprise in Northeast China. Microsoft and China National development and Reform commission jointly launched the Development potential initiative in November 2005. In cooperation with local software industry bases/software parks, Microsoft provides training for mid-and high-level talents and effiecient technical support in order to enhance the core competitiveness of software companies. The initiative 14 will be expanded in the next five years

CONTRIBUTION OF MICROSOFT IN CHINA

Software Outsourcing and Purchase Microsoft has cooperated with Chinese companies in software outsourcing to help them go abroad. Microsoft has establish an Xbox production line in china with large quantities of annual purchase of annual purchase of hardware, amounting to 8 billion Yuan since 2002.

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PERFORMANCE OF MICROSOFT IN CHINA

Since the establishment of Microsoft China it has increase its performance in china. According to ChinaHR.com Microsoft China ranks 4th on the top 50 employers in china , which means they are contributing both to the economic and social aspects of the country

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