In this post we are going to simply post a copy of the letter we have forwarded to Microsoft's Board of Directors.
Attention: Board Of Directors
Events have fatally undermined investor confidence in Microsoft (MSFT) CEO Steve Ballmer. With Microsoft share price now down in 5 months, and stagnant for a deacde, we call upon the MSFT Board of Directors to immediately seek the resignation of CEO Mr. Ballmer. Absent prompt action to remove Mr. Ballmer, we will have no choice but to call upon MSFT shareholders to join us at MSFT upcoming annual meeting in voting against Mr. Ballmer, and the Board of Directors which is responsible for CEO succession.
According to the Microsoft website the Board of Directors “oversees the company's business affairs and integrity, works with management to determine the company's mission and long-term strategy, performs the annual CEO evaluation, oversees CEO succession planning, oversees internal controls over financial reporting, and assesses company risks and strategies for risk mitigation”.
Based on the above definition the Board has failed to deliver on its mandate. The company has failed to display a long-term strategy and based on Mr. Ballmer’s decisions during his tenure the Board has failed in correctly evaluating the CEO and pursuing a succession plan.
It has been communicated by reporters, analysts and Microsoft employees that Mr. Ballmer is required to resign. It is the fundamental responsibility of the Board to ensure that it acts within the best interest of shareholders.
During Mr. Ballmer’s tenure an acquisition of Yahoo was pursued. Mr. Ballmer pursued a 65%premium bid for Yahoo valued at $45 billion. An analyst with Goldman Sachs stated this was the stupidest move in the company history. According to a recent report the company commands only 8% of the search sector. This is despite massive spending with acquisitions and R&D.
The largest dilemma with the Yahoo bid decision was the lack of strategy and correct communication. During a meeting with analysts Mr. Ballmer when confronted with acquiring Yahoo stated that Microsoft prefers organic growth. Less than one year after this statement Mr. Ballmer pursues a Board approved 65% premium bid for Yahoo.
Microsoft has engaged in massive R&D spending. Pacific Crest Securities analyst Mr. Barnicle states that Microsoft is required to examine its R&D spending. Despite the massive expenditure the company fails to be innovative. Microsoft mobile, and MSN are all failing within their respective sectors.
Mr. Ballmer during his tenure deployed $40 billion towards share buybacks. Despite this massive expenditure the shares have remained flat. The most disconcerting event with this failed expenditure is the announcement by Mr. Ballmer that Microsoft intends to deploy an additional $40 billion through to 2013 on share buybacks.
During Mr. Ballmer’s tenure the company shares have remained flat and stagnant for a long-term period of approximately eight years. In 2004, at a shareholder meeting when confronted with a stagnant share price Mr. Ballmer indicated that the company had plans and subsequently the shares would take care of itself. Despite this statement and Mr. Ballmer’s plans, the shares have continued to remain flat and fail to create shareholder value. During Mr. Ballmer’s tenure Microsoft has lost $300 billion in shareholder value.
During Mr. Ballmer’s tenure he has presided over massive spending, poor decisions, poor execution of plans, failed to communicate strategy to shareholders and employees, has failed to create shareholder value and is responsible for Microsoft losing $300 billion in market value. This subsequently leads to a no-confidence with Mr. Ballmer.
While we believe shareholders are entitled to a full explanation of what the board knew, when it knew it, and whether it approved of Mr. Ballmer’s disastrous decisions, it is more important in our view that the board do what is necessary to restore investor confidence. Removing Mr. Ballmer as CEO is necessary first step in this challenging process.
According to a recent poll of Microsoft employees conducted by GlassDoor, only 44% of the company employees approve of Mr. Ballmer. A review of the blogs Mini-Microsoft and MSFTextreme will aptly demonstrate the resignation of Mr. Ballmer is required for the future success of the company.
Corporate governance at Microsoft serves several purposes:
•To establish and preserve management accountability to Microsoft's owners by appropriately distributing rights and responsibilities among Microsoft Board members, managers, and shareholders.
•To provide a structure through which management and the Board set objectives and monitor performance.
•To strengthen and safeguard our culture of business integrity and responsible business practices.
•To encourage the efficient use of resources, and to require accountability for stewardship of those resources.
The campaign has obtained feedback from Microsoft employees. The primary consensus of employees is that Mr. Ballmer is required to resign. The campaign obtained this comment from a Microsoft employee.
"The elephant in the boardroom is Ballmer's relationship with Gates. Ballmer is the best friend and college buddy of the founder, chairman and biggest shareholder of the company. Ballmer probably can't be fired unless Gates wants him to be fired. And Gates is a loyal friend. Ballmer is also a board member and major shareholder, with 4 percent of the company (Bill Gates himself owns less than 10 percent). It's an unhealthy situation for Microsoft and its shareholders."
Regardless of the fact that Mr. Gates and Mr. Ballmer are friends, Microsoft is a business. Subsequently, the most significant word within the above statement is the word “Boardroom”. It is a boardroom that is required to act within the best interest of its shareholders. Numerous shareholders are demanding the resignation of Mr. Ballmer. During his tenure the shares have remained stagnant.
Based on the detailed duties of the Board of Directors it seems evident that it has failed to execute effectively in respect to its duties. Shareholders have witnessed a tremendous loss in value and the shares have remained stagnant. The current management has failed to set objectives, realistically monitor performance and engage in efficient use of its resources. Therefore, this results in the immediate and necessary resignation of Mr. Ballmer. Failure to encourage his resignation will therefore result in the current Board of Directors being held accountable for failing to act in the interest of Microsoft shareholders and its employees.
To offer support in the form of shares for voting contact
newstrategy4msft@gmail.com
We can be contacted at thecrandreagroup@hotmail.com
Monday, April 6, 2009
Elephant in the Boardroom
In the comment section of "Who Will Lead Microsoft" is this anonymous comment:
"The elephant in the boardroom is Ballmer's relationship with Gates. Ballmer is the best friend and college buddy of the founder, chairman and biggest shareholder of the company. Ballmer probably can't be fired unless Gates wants him to be fired. And Gates is a loyal friend. Ballmer is also a board member and major shareholder, with 4 percent of the company (Bill Gates himself owns less than 10 percent). It's an unhealthy situation for Microsoft and its shareholders."
When this campaign was launched we were aware of Mr. Gates and Mr. Ballmer being significant shareholders. However, it is the final statement within the above comment that can provide tremendous discussion. Ultimately, there are numerous unhealthy situations for Microsoft and its shareholders.
This campaign has addressed some of the unhealthy situations for Microsoft. The campaign has provided analysis of the financial situations confronting the company. The loss of OS share, the growing popularity of the Internet (search and advertising) and the dominance of Google. The introduction of netbooks, SaaS and handhelds.
Microsoft is lost and floundering. The company lacks vision and direction. This campaign has referred to the ill-conceived Yahoo bid. Massive spending. This campaign has referred to the numerous acquisitions, massive R&D spending and the $40 billion deployed on share buybacks. Microsoft has for several decades controlled a massive amount of cash. However, it has failed to elevate the share price. Ultimately, capital without vision and direction fails to be an asset. In Microsoft's case it has become a liability.
There was a period when it was innovative and a darling of Wall Street. However, those days are long gone. Microsoft has been replaced by Apple and Google. Refer to:
In addition to this campaign's analysis there are numerous Wall Street analysts referring to Microsoft's loss of share. However, there are also numerous internal situations that confront Microsoft. This leads to the next point.
In the post "Could Microsoft Become the Next General Motors" this campaign provides a qualitative analysis of additional Microsoft dilemmas. A simple review of MSFTextreme or Mini-Microsoft and it becomes clear that numerous employees are frustrated with the company. The company is confronted with poor employee morale.
The company is also confronted with poor company image. Microsoft has lost consumer loyalty through poor products (such as Windows that freeze, Zune, MSN and the failure of Vista). It has also been the target of Apple through advertising. Microsoft's campaign has failed to improve the company image. Brand expert Rob Frankel states that the new commercials by Microsoft will prove detrimental to the company. Refer to: http://www.newsfactor.com/story.xhtml?story_id=65597&full_skip=1
There is still the elephant in the room. ( This is a term referring to a big problem that often fails to be addressed). Mr. Ballmer is a friend of founder and shareholder Mr. Gates. Granted they are friends. However, friendship aside, business is business. Reality check for Mr. Gates and Mr. Ballmer is simply--Microsoft is a business. Therefore, as a business there requires accountability. This leads to the next point.
Mr. Gates and Mr. Ballmer are substantial shareholders. However, as a business there are also numerous other shareholders. This includes both small shareholders and large institutions. For a decade shareholders have witnessed the shares remain stagnant. Refer to: http://seekingalpha.com/article/63975-lots-of-overlap-between-top-yahoo-microsoft-shareholders
Shareholders have every right to ask management tough questions. They also have every right as stakeholders in the company to demand change. This leads to the final point.
There is without a doubt a elephant in the room. However, the room we are referring to is not Mr. Gates livingroom. That is the place for friendship. The place we are referring to is the Boardroom. As mentioned, this is a place of business. Refer to: http://itmanagement.earthweb.com/columns/executive_tech/article.php/11282_3745546_2
According to the Microsoft website is the following:
Corporate governance at Microsoft serves several purposes:
1)To establish and preserve management accountability to Microsoft's owners by appropriately distributing rights and responsibilities among Microsoft Board members, managers, and shareholders.
1)To establish and preserve management accountability to Microsoft's owners by appropriately distributing rights and responsibilities among Microsoft Board members, managers, and shareholders.
2)To encourage the efficient use of resources, and to require accountability for stewardship of those resources.
Since Mr. Ballmer has failed in the effecient use of resources, the above states that it requires accountabilty for stewardship. Therefore, the Board is required to address its mandate and preserve management accoutability to Microsoft's owners.
Mr. Ballmer has failed in effecient use of resources. Massive spending on acquisitions that have failed to increase share. Massive spending on R&D that have failed to translate into innovation. Massive spending on share buybacks that have failed to elevate the share price. Massive spending on advertisements that have failed to improve the battered company image.
Perhaps the biggest resource Mr. Ballmer failed to utilize was Microsoft employees. Mr. Ballmer failed to use talented employees to propel innovation. Mr. Ballmer failed to listen to employees who have for years on blogs such as Mini-Microsoft indicated that Mr. Ballmer refuses to listen.
This campaign's belief is simple. A CEO who refuses to have a open door to their employees needs to be shown the door. Granted that typically CEO's are intelligent individuals, it is the employees that are in the trenches and failure by a CEO to listen to employees leads to the failure of the company.
The Board of Directors is required to act within the best interest of the company and its owner's. Numerous employees and shareholders have stated that Mr. Ballmer is required to resign. Despite that fact that there is a elephant in the room, it is still a Boardroom, and therefore the Board is required to act in the interest of shareholders. The Board is accountable to act in the interest of shareholders. Therefore, they are required to remove the elephant and ultimately remove Mr. Ballmer.
This campaign is seeking to rally support through shares. Through rallying votes, shareholders have the potential to force the Board to address the elephant in the room and remove Mr. Ballmer. Failure by the Board to comply and act in the interest of shareholders, places accountability on the Board. If they fail to remove Mr.Ballmer then subsequently the Board should be removed at the next shareholder meeting as shareholders exercise their vote against the Board.
To offer support through shares contact
We can be contacted at thecrandreagroup@hotmail.com
Sunday, April 5, 2009
Former Microsoft Employee Interview
This campaign was previously interviewed for an article with Microsoft Subnet. The campaign was asked a series of questions which were used for the article. Refer to http://www.networkworld.com/community/node/38350
At the time of the report we decided to post the entire interview on this blog. This was to provide the reader with access to the entire interview as opposssed to a condensed version for the article. The entire interview was posted on this blog simply titled "Microsoft Subnet Interview".
The campaign has indicated that a former employee has agreed to provide an interview with Microsoft Subnet. This report is still forthcoming. In the interm we thought it would be interesting to direct the same questions to the former employee that Microsoft Subnet asked the campaign.
This will subsequently result in a series of posts consisting of the questions and answers presented to a former Microsoft employee.
1)Who are you and what is your relationship to Microsoft?(Do you work for the company, or used to work for the company?
Answer:Former employee, no longer work for MS.
2)In your opinion, besides Apple, what companies compare to Microsoft to indicate that Microsoft stock is underperforming in the same period? (Oracle? IBM? CA? Symantec? Google?)
Answer: IBM & Apple are the two that most closely match MS in breadth and depth of offerings. Google, while the lead competitor in search, is primarily focused in that one area and doesn't have the breadth of offerings to make it a fair comparison.
Refer to http://www.marketwatch.com/quotes/msft
for comparison refer to:
http://www.marketwatch.com/quotes/aapl
and
http://www.marketwatch.com/quotes/ibm
(Notice that Microsoft with $60 billion in revenue has a market cap of approximately $166 billion. However its nemesis Apple with half Microsoft's revenue at $32 billion has a market cap of $103 billion. Microsoft's P/E is 10 while Apple is 21)
3)You note Microsoft's failed attempt to buy Yahoo as a poor decision regarding how to spend its capital. That deal didn't actually go through, as we all know, but what are your thoughts on other Microsoft acquisitions over the past few years? Tellme (2007), for instance, seems particularly promising as does DATAllegro in 2008. What kinds of technologies would you like to see Microsoft buy?
Answer: It's not that the acquisitions don't make some degree of sense, it's just that they don't seem to make sense for MS. The bigger question is what does MS plan to do, and in that context do these acquisitions fit? The impression that MS leaves one with is that they're a kid in a candy store, not knowing what to buy and as a result, they buy anything and everything. They don't show purpose and direction in their acquisitions.
Refer to: http://en.wikipedia.org/wiki/List_of_companies_acquired_by_Microsoft_Corporation
What do you think the problem is between buying a promising technology and showing Wall Street how that buy indicates growth potential?
Answer: See my previous answer for the majority of this answer. To follow on, MS has a lousy track record of delivering on the promise of the technology acquired from an acquisition. If MS could deliver on that promise, the answers to Wall Street would be easy and obvious. Because MS has no sense of direction and purpose, Wall Street doesn't see where these acquisitions "fit" into some semblance of a plan (nor does anyone else for that matter) and that makes people anxious.
In the second post for this series the former employee will provide further insight. This will include if leadership should be replaced, if Microsoft should acquire RIM and also analysis of Microsoft's R&D spending.
To offer support though offering shares for vote contact:
newstrategy4msft@gmail.com
We can be contacted at thecrandreagroup@hotmail.com
At the time of the report we decided to post the entire interview on this blog. This was to provide the reader with access to the entire interview as opposssed to a condensed version for the article. The entire interview was posted on this blog simply titled "Microsoft Subnet Interview".
The campaign has indicated that a former employee has agreed to provide an interview with Microsoft Subnet. This report is still forthcoming. In the interm we thought it would be interesting to direct the same questions to the former employee that Microsoft Subnet asked the campaign.
This will subsequently result in a series of posts consisting of the questions and answers presented to a former Microsoft employee.
1)Who are you and what is your relationship to Microsoft?(Do you work for the company, or used to work for the company?
Answer:Former employee, no longer work for MS.
2)In your opinion, besides Apple, what companies compare to Microsoft to indicate that Microsoft stock is underperforming in the same period? (Oracle? IBM? CA? Symantec? Google?)
Answer: IBM & Apple are the two that most closely match MS in breadth and depth of offerings. Google, while the lead competitor in search, is primarily focused in that one area and doesn't have the breadth of offerings to make it a fair comparison.
Refer to http://www.marketwatch.com/quotes/msft
for comparison refer to:
http://www.marketwatch.com/quotes/aapl
and
http://www.marketwatch.com/quotes/ibm
(Notice that Microsoft with $60 billion in revenue has a market cap of approximately $166 billion. However its nemesis Apple with half Microsoft's revenue at $32 billion has a market cap of $103 billion. Microsoft's P/E is 10 while Apple is 21)
3)You note Microsoft's failed attempt to buy Yahoo as a poor decision regarding how to spend its capital. That deal didn't actually go through, as we all know, but what are your thoughts on other Microsoft acquisitions over the past few years? Tellme (2007), for instance, seems particularly promising as does DATAllegro in 2008. What kinds of technologies would you like to see Microsoft buy?
Answer: It's not that the acquisitions don't make some degree of sense, it's just that they don't seem to make sense for MS. The bigger question is what does MS plan to do, and in that context do these acquisitions fit? The impression that MS leaves one with is that they're a kid in a candy store, not knowing what to buy and as a result, they buy anything and everything. They don't show purpose and direction in their acquisitions.
Refer to: http://en.wikipedia.org/wiki/List_of_companies_acquired_by_Microsoft_Corporation
What do you think the problem is between buying a promising technology and showing Wall Street how that buy indicates growth potential?
Answer: See my previous answer for the majority of this answer. To follow on, MS has a lousy track record of delivering on the promise of the technology acquired from an acquisition. If MS could deliver on that promise, the answers to Wall Street would be easy and obvious. Because MS has no sense of direction and purpose, Wall Street doesn't see where these acquisitions "fit" into some semblance of a plan (nor does anyone else for that matter) and that makes people anxious.
In the second post for this series the former employee will provide further insight. This will include if leadership should be replaced, if Microsoft should acquire RIM and also analysis of Microsoft's R&D spending.
To offer support though offering shares for vote contact:
newstrategy4msft@gmail.com
We can be contacted at thecrandreagroup@hotmail.com
Friday, April 3, 2009
Microsoft Requires Image Makeover
In a Microsoft SubNet article Mr. Barnicle of Pacific Crest Securities states that the company biggest problem is its image. Refer to http://www.networkworld.com/community/node/38350
Microsoft’s image has been battered. The public’s perception is that the I’m a PC ads and the Seinfeld ads failed to capture the consumer and improve the company image. In the comment section of the previous post "Who Will Lead Microsoft" is this following link: http://www.pcmag.com/article2/0,2817,2344107,00.asp
Apple has through their advertising openly targeted Microsoft. Microsoft in a effort to improve its image hired the hot new agency Crispin. This firm has created a series of campaigns which have included comedian Jerry Seinfeld. However, the commercials have failed to capture consumers. Refer to http://www.marketwatch.com/news/story/microsofts-ad-counter-offensive-against-apple/story.aspx?guid=%7B95EC30F8%2DC0B7%2D4AF6%2DBD7E%2D3B0E27905B4C%7D&dist=TQP_Mod_mktwN
Also refer to the link within the above post or follow:http://www.marketwatch.com/News/Story/microsoft-needs-help-mad-men/story.aspx?guid=%7B3F67FAE3%2D4733%2D4BC3%2DB30A%2D143EAA9399C6%7D
In the above report the author refers to the notion that through these commercials Microsoft is ultimately admitting that it is Number 2. This is not going to improve Microsoft. It is perhaps the worst move possible to further damage the company image. In essence it is Microsoft admitting defeat.
Could someone have stepped into the ring with Mohamed Ali and said I am "cool" and you are a "nerd" therefore I am going to win?
Mohamed Ali would reply "I move like a butterfly and sting like a Bee". Let's get a reality check. Ali was the world champ, and unless you are strong enough the "cool" component is not relevent. Unless you were the strongest and biggest, Ali was going to punish you in the ring.
This campaign has mentioned that Microsoft is losing share to Apple. However, Microsoft still controls over 80% of the OS market share. It is still the champ. But, through these commercials the company is essentially saying "we are the chumps". It should be saying "we are bigger, we are stronger, and as the Queen song says "WE ARE THE CHAMPIONS OF THE WORLD".
Why should Microsoft concede its the "nerd" when in reality it's the "BIG" kid on the block?
Refer to: http://www.newsfactor.com/story.xhtml?story_id=65597&full_skip=1
Within the above CBS Marketwatch report the author refers to the former Win95 commercials. These commercials captured the consumers attention. It caused consumers to desire the product.
This campaign has created a series of commercials that will dramatically improve the company image.
Advertisements
1)The scene begins with Adam and Eve walking through the Garden of Eden. Eve is about to pick an Apple from the tree.
A voice then states “Resist the temptation. Resist the Apple”. The screen then shows the Microsoft logo with the words
Microsoft. The Better Choice. Always.
2)The scene begins with two kids sitting in a school cafeteria. Both the boys are opening their lunches. Boy 1 states “What do you have?”
Boy 2 replies “I have cake what do you have?”
Boy 1 states “I have an Apple, do you want to trade?”
A voice then states “Resist the temptation. Resist the Apple”.
The screen then appears showing the Microsoft logo with the following:
Microsoft. The Better Choice. Always.
3)It will open with a scene from the Walt Disney movie “Wild Hogs”. It will show the character Dudley displaying his Apple tattoo.
The dialogue continues as follows: Dudley- “I’m a biker, dude! I got a tat!”
Doug- “It’s an Apple…”
Dudley- “I know. Trademarked. But what are they gonna say?
A voice then states “Resist the temptation. Resist the Apple”. The screen then appears showing the Microsoft logo:
Microsoft. The Better Choice. Always
4) It will open with a scene from the Walt Disney movie “Wild Hogs”. Dudley is sitting in a restaurant and states “Mac, open Internet please”.
Computer responds: Command Unknown
Dudley: I think I have to search “alternative specs”.
Computer: Searching “alternative sex”.
Edit the clip to end with the Mac computer overheating with smoke coming out of it. Screen then appears showing:
Microsoft. The Better Choice. Always
Refer to http://movies.yahoo.com/movie/1809426511/trailer
Prior to the launch of Windows 7 Microsoft will present the following two advertisements.
1)It will present a commercial similar to Win95 commercial Refer to http://www.youtube.com/watch?v=5VPFKnBYOSI
This commercial has the song “Start Me Up”. It was a commercial that captured attention. It created consumer reaction. It created a positive image. Win95 was associated with the song and was for lack of better terminology “cool”. The commercial will follow a similar format. However, it will be filmed with New footage. The commercial will end with the screen showing:
Windows 7. Start it Up.
2)It will follow a format similar to Win95 and the above Windows 7 format. However, it will incorporate the Beatles song “Got to Get You Into My Life”. Refer to http://www.youtube.com/watch?v=22H1ciSvVm8
The format will follow the Win95 commercial format. It will involve the Beatles song. The screen will then appear showing the following:
Windows 7. Get It Into Your Life.
3)Following the same format as the above two commercials it will include the Queen song "We are the Champions". It will demonstrate the product and what it can do. However, in the song is the line "they are the losers". At that point of the song it will show a "Mac" on the screen. The commercial ends and the screen shows the Microsoft logo and states:
Windows 7. Be A Champion.
Microsoft is confronted with a battered image. Based on the response of consumers with Microsoft's previous commercials the company is failing desperately in its efforts to improve its image. The consensus is that Crispin is failing to improve Microsoft's already battered image. Joe Wilcox of Microsoft Watch states that the company is required to fire Crispin.
The company is required to get consumers excited about Microsoft products. Microsoft needs to approach presenting its brand similar to a movie premier. It needs to excite the consumer to the point they can no longer wait. This is what the company did with Win95. Consumers have stated that it has become a dinosour. It's time the company get back to its roots. Show the consumers that this is STILL THE NUMBER ONE software company in the world and we mean business.
One of the most powerful and most mandatory necessities for the company is to instill consumer confidence and improve brand image. Improving brand image will unlock a tremendous amount with shareholder value. A large pert of the low company share price is directly linked to brand perception. However, it is integral to ensure that the product delivers on the promises to ensure brand perception.
Prior to launching these commercials, based on Microsoft employee feedback, it is integral to ensure the product is revised and ready for consumers. Failure to deliver a superior product will prove counter-productive for the advertising commercials. Microsoft through advertising and proving its still "Number One" will improve the company image and brand perception.
Ultimately this will unlock shareholder value.
To demonstrate support through offering shares for vote contact: newstrategy4msft@gmail.com
We can be contacted at thecrandreagroup@hotmail.com
Microsoft’s image has been battered. The public’s perception is that the I’m a PC ads and the Seinfeld ads failed to capture the consumer and improve the company image. In the comment section of the previous post "Who Will Lead Microsoft" is this following link: http://www.pcmag.com/article2/0,2817,2344107,00.asp
Apple has through their advertising openly targeted Microsoft. Microsoft in a effort to improve its image hired the hot new agency Crispin. This firm has created a series of campaigns which have included comedian Jerry Seinfeld. However, the commercials have failed to capture consumers. Refer to http://www.marketwatch.com/news/story/microsofts-ad-counter-offensive-against-apple/story.aspx?guid=%7B95EC30F8%2DC0B7%2D4AF6%2DBD7E%2D3B0E27905B4C%7D&dist=TQP_Mod_mktwN
Also refer to the link within the above post or follow:http://www.marketwatch.com/News/Story/microsoft-needs-help-mad-men/story.aspx?guid=%7B3F67FAE3%2D4733%2D4BC3%2DB30A%2D143EAA9399C6%7D
In the above report the author refers to the notion that through these commercials Microsoft is ultimately admitting that it is Number 2. This is not going to improve Microsoft. It is perhaps the worst move possible to further damage the company image. In essence it is Microsoft admitting defeat.
Could someone have stepped into the ring with Mohamed Ali and said I am "cool" and you are a "nerd" therefore I am going to win?
Mohamed Ali would reply "I move like a butterfly and sting like a Bee". Let's get a reality check. Ali was the world champ, and unless you are strong enough the "cool" component is not relevent. Unless you were the strongest and biggest, Ali was going to punish you in the ring.
This campaign has mentioned that Microsoft is losing share to Apple. However, Microsoft still controls over 80% of the OS market share. It is still the champ. But, through these commercials the company is essentially saying "we are the chumps". It should be saying "we are bigger, we are stronger, and as the Queen song says "WE ARE THE CHAMPIONS OF THE WORLD".
Why should Microsoft concede its the "nerd" when in reality it's the "BIG" kid on the block?
Refer to: http://www.newsfactor.com/story.xhtml?story_id=65597&full_skip=1
Within the above CBS Marketwatch report the author refers to the former Win95 commercials. These commercials captured the consumers attention. It caused consumers to desire the product.
This campaign has created a series of commercials that will dramatically improve the company image.
Advertisements
1)The scene begins with Adam and Eve walking through the Garden of Eden. Eve is about to pick an Apple from the tree.
A voice then states “Resist the temptation. Resist the Apple”. The screen then shows the Microsoft logo with the words
Microsoft. The Better Choice. Always.
2)The scene begins with two kids sitting in a school cafeteria. Both the boys are opening their lunches. Boy 1 states “What do you have?”
Boy 2 replies “I have cake what do you have?”
Boy 1 states “I have an Apple, do you want to trade?”
A voice then states “Resist the temptation. Resist the Apple”.
The screen then appears showing the Microsoft logo with the following:
Microsoft. The Better Choice. Always.
3)It will open with a scene from the Walt Disney movie “Wild Hogs”. It will show the character Dudley displaying his Apple tattoo.
The dialogue continues as follows: Dudley- “I’m a biker, dude! I got a tat!”
Doug- “It’s an Apple…”
Dudley- “I know. Trademarked. But what are they gonna say?
A voice then states “Resist the temptation. Resist the Apple”. The screen then appears showing the Microsoft logo:
Microsoft. The Better Choice. Always
4) It will open with a scene from the Walt Disney movie “Wild Hogs”. Dudley is sitting in a restaurant and states “Mac, open Internet please”.
Computer responds: Command Unknown
Dudley: I think I have to search “alternative specs”.
Computer: Searching “alternative sex”.
Edit the clip to end with the Mac computer overheating with smoke coming out of it. Screen then appears showing:
Microsoft. The Better Choice. Always
Refer to http://movies.yahoo.com/movie/1809426511/trailer
Prior to the launch of Windows 7 Microsoft will present the following two advertisements.
1)It will present a commercial similar to Win95 commercial Refer to http://www.youtube.com/watch?v=5VPFKnBYOSI
This commercial has the song “Start Me Up”. It was a commercial that captured attention. It created consumer reaction. It created a positive image. Win95 was associated with the song and was for lack of better terminology “cool”. The commercial will follow a similar format. However, it will be filmed with New footage. The commercial will end with the screen showing:
Windows 7. Start it Up.
2)It will follow a format similar to Win95 and the above Windows 7 format. However, it will incorporate the Beatles song “Got to Get You Into My Life”. Refer to http://www.youtube.com/watch?v=22H1ciSvVm8
The format will follow the Win95 commercial format. It will involve the Beatles song. The screen will then appear showing the following:
Windows 7. Get It Into Your Life.
3)Following the same format as the above two commercials it will include the Queen song "We are the Champions". It will demonstrate the product and what it can do. However, in the song is the line "they are the losers". At that point of the song it will show a "Mac" on the screen. The commercial ends and the screen shows the Microsoft logo and states:
Windows 7. Be A Champion.
Microsoft is confronted with a battered image. Based on the response of consumers with Microsoft's previous commercials the company is failing desperately in its efforts to improve its image. The consensus is that Crispin is failing to improve Microsoft's already battered image. Joe Wilcox of Microsoft Watch states that the company is required to fire Crispin.
The company is required to get consumers excited about Microsoft products. Microsoft needs to approach presenting its brand similar to a movie premier. It needs to excite the consumer to the point they can no longer wait. This is what the company did with Win95. Consumers have stated that it has become a dinosour. It's time the company get back to its roots. Show the consumers that this is STILL THE NUMBER ONE software company in the world and we mean business.
One of the most powerful and most mandatory necessities for the company is to instill consumer confidence and improve brand image. Improving brand image will unlock a tremendous amount with shareholder value. A large pert of the low company share price is directly linked to brand perception. However, it is integral to ensure that the product delivers on the promises to ensure brand perception.
Prior to launching these commercials, based on Microsoft employee feedback, it is integral to ensure the product is revised and ready for consumers. Failure to deliver a superior product will prove counter-productive for the advertising commercials. Microsoft through advertising and proving its still "Number One" will improve the company image and brand perception.
Ultimately this will unlock shareholder value.
To demonstrate support through offering shares for vote contact: newstrategy4msft@gmail.com
We can be contacted at thecrandreagroup@hotmail.com
Thursday, April 2, 2009
Who Will Lead Microsoft
There have been various posts and articles refering to the notion that Mr. Ballmer needs to resign. Refer to: http://www.extremetech.com/article2/0,2845,2317347,00.asp
And refer to: http://itmanagement.earthweb.com/columns/executive_tech/article.php/11282_3745546_2/Why-Steve-Ballmer-Should-Resign.htm
Numerous comments on this blog refer to the fact that regardless the strategy the campaign creates "Mr. Ballmer is the wrong candidate to execute the strategy". It has been indicated on this blog that Mr. Ballmer needs to resign. Here is a comment extracted from this site:
"Until true leadership is shown at the highest levels of that company, I don't expect things to change. Until that change happens, morale will continue to sink and that more than anything else will be the undoing of Microsoft. Lots of discussion can be had about where the company should go and what they should do, but the single biggest step that needs to occur is replacing Steve Ballmer".
On the Mini Microsoft blog there is a recent comment refering to starting a poll to remove Mr. Ballmer. Numerous shareholders and Microsoft employees are advocating for Mr. Ballmer to resign.
This campaign obtained a comment refering to a survey conducted by GlassDoor. This survey indicated that 56% of MSFT employees failed to support Mr. Ballmer. Refer to: http://blogs.zdnet.com/BTL/?p=14121
The dilemma that occurs is if Mr. Ballmer resigns who will then lead Microsoft?
This campaign has obtained comments from employees of Microsoft stating that it requires a leader that will command respect. It has also been stated that it requires a leader that can foster communication. It has been communicated that employees fail to respect Mr. Ballmer and also to many are apt to simply "yes man" him when in reality it demands employees to have the ability to say "no". It has been stated that many employees are afraid of being the next Mark Lukovsky. Refer to: http://www.theregister.co.uk/2005/09/05/chair_chucking/
The campaign has obtained comments stating that a "fish rots from the head" and this is the demise of Microsoft. Based on comments on Mini Microsoft this statement appears true. There are also comments that the leader needs to be a team player. Willing to take a "bullet" or "go down with the ship". Comments from Microsoft employees state that through the layoffs Mr. Ballmer failed to display these characteristics. Its been stated that he is more like a King saying "let them eat cake".
Comments also indicate that the leader has to inject vision. Understand technology. Foster passion for Microsoft products with employees. Improve morale. Re-establish the core and focus on building a solid foundation. Enhance the share price. Improve performance reviews. Improve the company image better then the failed Crispin generated commercials.
Mr. Ballmer has obviously failed at accomplishing these desired goals. However, eventhough Mr. Ballmer failed to fill expectations, based on the above comments the replacement has "Big" shoes to fill.
This ultimately results in the same question. Who will lead Microsoft back to being a leading company?
In a 2008 CNet article Mary Jo Foley presents a list of potential candidates. Refer to http://news.cnet.com/8301-10784_3-9932237-7.html
This campaign has also obtained names such as Brian Valentine and Paul Maritz. There have also been comments regarding Kevin Johnson. Refer to: http://247wallst.com/2008/07/24/microsofts-msft/
It is without dispute that Mr. Ballmer is not the right candidate to lead Microsoft. However, if shareholders lead a no-confidence or if shareholders hold the Board accountable and force Mr. Ballmer to resign, who will lead Microsoft?
We would like suggestions.
We can be contacted at thecrandreagroup@hotmail.com
To demonstrate support through offering shares for votes:
newstrategy4msft@gmail.com
And refer to: http://itmanagement.earthweb.com/columns/executive_tech/article.php/11282_3745546_2/Why-Steve-Ballmer-Should-Resign.htm
Numerous comments on this blog refer to the fact that regardless the strategy the campaign creates "Mr. Ballmer is the wrong candidate to execute the strategy". It has been indicated on this blog that Mr. Ballmer needs to resign. Here is a comment extracted from this site:
"Until true leadership is shown at the highest levels of that company, I don't expect things to change. Until that change happens, morale will continue to sink and that more than anything else will be the undoing of Microsoft. Lots of discussion can be had about where the company should go and what they should do, but the single biggest step that needs to occur is replacing Steve Ballmer".
On the Mini Microsoft blog there is a recent comment refering to starting a poll to remove Mr. Ballmer. Numerous shareholders and Microsoft employees are advocating for Mr. Ballmer to resign.
This campaign obtained a comment refering to a survey conducted by GlassDoor. This survey indicated that 56% of MSFT employees failed to support Mr. Ballmer. Refer to: http://blogs.zdnet.com/BTL/?p=14121
The dilemma that occurs is if Mr. Ballmer resigns who will then lead Microsoft?
This campaign has obtained comments from employees of Microsoft stating that it requires a leader that will command respect. It has also been stated that it requires a leader that can foster communication. It has been communicated that employees fail to respect Mr. Ballmer and also to many are apt to simply "yes man" him when in reality it demands employees to have the ability to say "no". It has been stated that many employees are afraid of being the next Mark Lukovsky. Refer to: http://www.theregister.co.uk/2005/09/05/chair_chucking/
The campaign has obtained comments stating that a "fish rots from the head" and this is the demise of Microsoft. Based on comments on Mini Microsoft this statement appears true. There are also comments that the leader needs to be a team player. Willing to take a "bullet" or "go down with the ship". Comments from Microsoft employees state that through the layoffs Mr. Ballmer failed to display these characteristics. Its been stated that he is more like a King saying "let them eat cake".
Comments also indicate that the leader has to inject vision. Understand technology. Foster passion for Microsoft products with employees. Improve morale. Re-establish the core and focus on building a solid foundation. Enhance the share price. Improve performance reviews. Improve the company image better then the failed Crispin generated commercials.
Mr. Ballmer has obviously failed at accomplishing these desired goals. However, eventhough Mr. Ballmer failed to fill expectations, based on the above comments the replacement has "Big" shoes to fill.
This ultimately results in the same question. Who will lead Microsoft back to being a leading company?
In a 2008 CNet article Mary Jo Foley presents a list of potential candidates. Refer to http://news.cnet.com/8301-10784_3-9932237-7.html
This campaign has also obtained names such as Brian Valentine and Paul Maritz. There have also been comments regarding Kevin Johnson. Refer to: http://247wallst.com/2008/07/24/microsofts-msft/
It is without dispute that Mr. Ballmer is not the right candidate to lead Microsoft. However, if shareholders lead a no-confidence or if shareholders hold the Board accountable and force Mr. Ballmer to resign, who will lead Microsoft?
We would like suggestions.
We can be contacted at thecrandreagroup@hotmail.com
To demonstrate support through offering shares for votes:
newstrategy4msft@gmail.com
Friday, March 27, 2009
Microsoft-A Change of Mentality is Required
In the last post we stated that General Motors failed because it became complacent. Microsoft is a company that for several decades commanded over 80% share in OS. Similar to General Motors it controlled a near monopoly within its sector of business. However, Microsoft became complacent. It rested on its laurels, it is losing share in OS. It fails to innovate. It is being outpaced by competitors. It has lost brand value.
Microsoft continues to have the mentality that everything is ok. It continued to believe that the cash cows would never be threatened. Microsoft allowed its size and success to believe that it was indestructible. However, there is competitors such as Apple and Linux. Google dominates the important search sector.
Microsoft continues to have the mentality that everything is ok. It continued to believe that the cash cows would never be threatened. Microsoft allowed its size and success to believe that it was indestructible. However, there is competitors such as Apple and Linux. Google dominates the important search sector.
The lesson to be learned is, that if GM as one of the world's largest companies can be pushed into bankruptcy, a company must avoid the temptation of being misled by its own success (and size) into believing that it is indestructible. Management must cultivate a sense of vulnerability and the potential risk of mortality. That is part of the formula for the survival and growth of a company. However, this is the area were Microsoft is failing.
Someone should remind Ballmer that MS products are not like Proctor and Gamble. Microsoft makes software products, but this isn't a product where it is consumed and replaced on a monthly basis. That mentality has gotten Microsoft to where it is today, and to where their vision is run like a corporation not an innovated company. Refer to the following
http://www.informationweek.com/blog/main/archives/2008/06/microsoft_needs_1.html
Perhaps the most interesting comment in the above post is "The Internet group is the tail of Microsoft; every other part of the dog is more profitable and therefore more influential -- no matter the lip service to the Internet".
General Motors failed because it continued doing business in the same manner despite competitors recognizing consumer trends. Slowly competitors gained more share and eroded General Motors revenue, profits, and image. Microsoft seems to be conducting business in the same manner as a decage ago. Its survival is contingent upon the sale of its Client, and Server and Tools divisions.
The problem is the emergence of free software. The emergence of Apple and Mac OS. The emergence of netbooks, SaaS, mobile services and the Internet. Microsoft is trailing in all these arenas.
On the blog Mini-Microsoft is the following comment which we have extracted:
"I hate to be a naysayer because I support what Crandea wants to do, but I say "nay." "Nay," I say. MSFT will not change until the dagger is at the throat. Things will get much much worse before they will get any better".
A Microsoft employee has indicated that the company will continue to deteriate. President Obama released a bailout plan for General Motors. This once "Great Company" requires a government bailout. However, on CNBC it was stated that President Obama was demanding the resignation of CEO Rick Wagoner. It was indicated the government held the CEO accountable for the instability of the company.
Question. Who is holding Mr. Ballmer accountable?
During his tenure the company despite massive spending is still dependent on its same business model. Additionally, the same business model (cash cows) are failing to secure consumer loyalty and is losing share to competitors.
After a decade the company appears to have no real continguency plan and lacks vision. Its core business is losing share, it has failed in mobile, search, Zune. It is being battered by Apple in share and advertising brand perception (which even CBS Marketwatch is stating Microsoft requires a new ad company). It appears evident that Microsoft requires a drastic change in mentality.
However, after sites such as MSFTextreme, Mini-Microsoft, analysts, reporters, stagnant shares for eight years--Mr. Ballmer still refuses to listen. Therefore, it seems evident that Microsoft requires a dagger at its throat. Before it becomes the next General Motors, shareholders need to place the dagger at the Board and demand the removal of Mr. Ballmer.
The Board is responsible for overseeing strategy, perfomance and succession. After eight years of Mr. Ballmer displaying "no strategy" and "no performance" its time for a successor. It is time for a change of mentality.
We suggest that shareholders forward letters to the Board demanding the resignation of Mr. Ballmer and hold the Board accountable to act in the interest of the company and its shareholders.
We can be contacted at thecrandreagroup@hotmail.com
To demonstrate support through shares contact newstrategy4msft@gmail.com
Microsoft requires a change of mentality. However, it will never happen as long as Mr. Ballmer remains at the helm.
Thursday, March 26, 2009
Could Microsoft become the Next General Motors
There are numerous articles concerning quantitative analysis of Microsoft. There are articles referring to revenue decline, earnings decline, charts and graphs demonstrating analysis of Microsoft's problems. This campaign within this blog has also engaged in providing quantitative analysis of Microsoft.
In this post we wish to pursue a more qualitative analysis. In this post we will be examining its non-numeric characteristics, such as management, employee morale, customer loyalty, and brand value.
In the last few posts we have referred to the current management of Microsoft. Refer to the posts "Microsoft, With or Without Ballmer", or "Is it Steve Ballmer or Steve Yang". Since launching this campaign, the consensus with the feedback that has been obtained from Microsoft employees, is that the company requires new leadership. This subsequently leads to the next issue.
There are numerous sites created by frustrated Microsoft employees. The sites MSFTextrememakeover and Mini-Microsoft were created by anonymous Microsoft employees. They have become a forum for Microsoft employees to post anonymous comments. The site Mini-Microsoft has become a place where Microsoft employees and others engage in an open discussion about all aspects of the company and what it is like to work there. The site is credited with providing some of the impetus for internal changes at the company in 2006, specifically concerning how employee reviews are done. This site has numerous comments concerning the company morale. Refer to http://minimsft.blogspot.com/
There are also numerous articles referring to consumer loyalty and company brand value. There are articles referring to loss of market share in OS. There are articles referring to the commercials with Seinfeld and the failure to improve the company brand and image. Therefore, in this segment we will not create an exhaustive list of articles and links. However, we will simply refer to an article concerning this campaign. A leading Microsoft analyst Mr. Barnicle of Pacific Crest Securities states that the company biggest problem is image. Refer to www.networkworld.com/community/node/38350
Perhaps one of the biggest problems facing Microsoft is the General Motors mentality. General Motors in the past was Number One of the Big Three. It was a company that dominated auto sales and commanded a large market share. In these circumstances it is easy for a company to become complacent. A company can rest on its laurels and fail to be cutting edge. Such was the demise with General Motors. The once number one auto company is headed towards bankruptcy.
In this post we wish to pursue a more qualitative analysis. In this post we will be examining its non-numeric characteristics, such as management, employee morale, customer loyalty, and brand value.
In the last few posts we have referred to the current management of Microsoft. Refer to the posts "Microsoft, With or Without Ballmer", or "Is it Steve Ballmer or Steve Yang". Since launching this campaign, the consensus with the feedback that has been obtained from Microsoft employees, is that the company requires new leadership. This subsequently leads to the next issue.
There are numerous sites created by frustrated Microsoft employees. The sites MSFTextrememakeover and Mini-Microsoft were created by anonymous Microsoft employees. They have become a forum for Microsoft employees to post anonymous comments. The site Mini-Microsoft has become a place where Microsoft employees and others engage in an open discussion about all aspects of the company and what it is like to work there. The site is credited with providing some of the impetus for internal changes at the company in 2006, specifically concerning how employee reviews are done. This site has numerous comments concerning the company morale. Refer to http://minimsft.blogspot.com/
There are also numerous articles referring to consumer loyalty and company brand value. There are articles referring to loss of market share in OS. There are articles referring to the commercials with Seinfeld and the failure to improve the company brand and image. Therefore, in this segment we will not create an exhaustive list of articles and links. However, we will simply refer to an article concerning this campaign. A leading Microsoft analyst Mr. Barnicle of Pacific Crest Securities states that the company biggest problem is image. Refer to www.networkworld.com/community/node/38350
Perhaps one of the biggest problems facing Microsoft is the General Motors mentality. General Motors in the past was Number One of the Big Three. It was a company that dominated auto sales and commanded a large market share. In these circumstances it is easy for a company to become complacent. A company can rest on its laurels and fail to be cutting edge. Such was the demise with General Motors. The once number one auto company is headed towards bankruptcy.
The lesson to be learned is, that if GM as one of the world's largest companies can be pushed into bankruptcy, a company must avoid the temptation of being misled by its own success (and size) into believing that it is indestructible. Management must cultivate a sense of vulnerability and the potential risk of mortality. That is part of the formula for the survival and growth of a company.
General Motors failed because it became complacent. GM continued to manufacture its range of gas-guzzling models, its Japanese competitors had designed and launched fuel-efficient vehicles. The second mistake was while GM concentrated on upgrading sports utility vehicles, its competitors upgraded their range of normal cars and increased their market share in this premium segment.
Microsoft is a company that for several decades commanded over 80% share in OS. Similar to General Motors it controlled a near monopoly within its sector of business. However, Microsoft became complacent. It rested on its laurels, it is losing share in OS. It fails to innovate. It is being outpaced by competitors. It has lost brand value.
Microsoft continued to have the mentality that everything is ok. It continued to believe that the cash cows would never be threatened, additionally they had the mentality of protecting the cash cows. Microsoft after a decade of acquisitions and R&D spending is as equally dependent on its cash cows for revenue as it was a decade ago. Microsoft allowed its size and success to believe that it was indestructible. However, there are competitors such as Apple and Linux.
Microsoft continued with its operating system and missed the Internet. In essence, Google has become to Microsoft similar as what Toyota was to General Motors. Google has increased share in a premium segment. Meanwhile, Microsoft is left with minimal share. Google has a market valuation that is comparable in size to Microsoft. This demonstrates how the market perceives the respective companies.
The final analysis is simply that Microsoft is quickly becoming the General Motors of the tech sector. Unless the company changes its mentality, similar to General Motors it will be eventually seeking bankruptcy protection. We will affirm this analysis from a recent comment in an article with CBS Marketwatch. Refer to http://www.marketwatch.com/news/story/microsoft-pokes-hole-cloud-computing/story.aspx?guid=%7BFE589532%2D894D%2D44AE%2D8FB3%2D14C11DF54892%7D&dist=TQP_Mod_mktwN
It states:
"Microsoft is obviously reacting to what it deems as a big threat to it's backwards retarded mentality, and I do mean that literally as in try to slow down the progress through it's twisted negative spin on what is to be an inevitable future of progression in technology and shifting of infrastructure led by Google, IBM and Amazon. Microsoft has long had a delusions of grandeur superiority complex of invincibility attitude because it doesn't want to do anything to upset its height advantage of 1) proprietary software and code and 2) tethering OS and software to PC. For Microsoft, power blinded and handicapped their ability to truly innovate years ago and this will ultimately be The Great Fall of the Microsoft Empire".
This ultimately leads into our next post "Microsoft-A Change of Mentality"It is time to rally support. It is time to effect change. After nearly a decade of stagnant share price, it is time for shareholders to demand change before Microsoft becomes the next General Motors.
We can be contacted at thecrandreagroup@hotmail.com
To offer support through shares contact newstrategy4msft@gmail.com
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