Microsoft Corporation
Microsoft Corporation is a global leader in MBA FPX 5008 Assessment 3 Applying Analytic Techniques to Business technology, known for its innovation in computer software, services, devices, and solutions. Over the years, Microsoft has consistently improved its product offerings to cater to the evolving needs of its users (Yahoo Finance, 2019). This report examines the company’s performance, strategic pivots, and financial trends, focusing on data analytics to understand its stock performance. These insights align with the objectives of MBA FPX 5008 Assessment 3 Applying Analytic Techniques to Business, which emphasizes applying analytic techniques to business decisions.
Overview of Microsoft’s Products and Strategy
Key Product Offerings
Microsoft’s best-known products include:
- Microsoft Windows: Capturing about 35% of the operating system market share as of March 2019 (StatCounter, 2019).
- Office 365: A cloud-based suite of productivity tools for businesses and individuals.
- Microsoft Azure: A powerful cloud platform for data storage, analysis, and application development (Yahoo Finance, 2019).
Strategic Shifts
Initially focused on software, Microsoft shifted its strategy under CEO Steve Ballmer in 2013, emphasizing hardware products like phones, tablets, and the Xbox gaming console (Belanger, 2018). However, the acquisition of Nokia’s Devices and Services business fell short of expectations.
With Satya Nadella’s appointment as CEO in 2014, Microsoft redirected its efforts toward business technology services and cloud computing. This shift proved successful, as evidenced by initiatives like the acquisition of LinkedIn, enhancements to Office 365, and the robust growth of Azure (Belanger, 2018).
Financial Performance
Microsoft has demonstrated steady growth in recent years:
- Annual Growth Rate: Over the past five years, the company has achieved a 1.4% growth rate, with projected profits expected to rise by 7%.
- Profit and Sales: Microsoft reported $7.6 billion in profit, driven by a 76% increase in Azure sales and a 39% boost in Surface device sales (Weise, 2019).
These figures underscore Microsoft’s financial health and ability to adapt to market trends.
Graphical Representations of Data
Interpreting Scatterplots
Stock Price Trends (2018-2019)
Scatterplots provide a visual representation of Microsoft’s stock price movements. From February 2018 to February 2019:
- The highest stock prices showed a weak positive correlation with time. While prices generally rose, they fluctuated, particularly in late 2018.
- The lowest stock prices exhibited a similarly weak positive correlation, with modest increases from March to October and stabilization thereafter.
These findings suggest that Microsoft’s stock prices were relatively stable, with predictable trends that reflect market confidence.
Interpreting Histograms
Adjusted Closing Stock Prices
Histograms of adjusted closing stock prices reveal:
- A positive skew, with most data points clustered toward higher price ranges.
- A median higher than the mean indicates a slight asymmetry in stock price distribution.
This skew suggests that Microsoft’s stock prices were generally higher, reinforcing the company’s market strength.
Daily Traded Stock Volume
Histograms of daily traded stock volumes show:
- A strong positive skew, with most values concentrated at the lower end of the range.
- A mean significantly more significant than the median, reflecting occasional high trading volumes.
This variability indicates high market interest in Microsoft’s stocks, further validating its liquidity and attractiveness to investors.
Descriptive Statistics
Adjusted Closing Stock Prices
Key metrics for Microsoft’s adjusted closing stock prices:
- Mean: $101.939, reflecting the average stock price during the analysis period.
- Median: $103.249, slightly higher than the mean, indicating a concentration of prices at the higher end.
- Standard Deviation: $6.953, showing relatively low volatility and manageable investment risks.
These metrics highlight Microsoft’s stable stock performance and appeal to risk-averse investors.
Daily Traded Stock Volume
Metrics for daily traded stock volumes:
- Mean: 31,210,598 shares, underscoring high market liquidity.
- Median: 28,123,200 shares, slightly lower than the mean, reflecting consistent trading activity.
- Standard Deviation: 12,909,909 shares, indicating moderate variability.
This data confirms strong investor interest in Microsoft’s stocks, aligning with the company’s robust market presence.
Conclusion
Microsoft’s strategic focus on cloud computing and business technology services, coupled with its robust product portfolio, has positioned it as a leader in the technology sector. This report demonstrates the company’s financial stability and market potential through a detailed analysis of scatterplots, histograms, and descriptive statistics.
The insights derived from MBA FPX 5008 Assessment 3 emphasize the importance of data-driven decisions. For Microsoft, rising adjusted closing stock prices and consistent trading volumes indicate a bright future. As the company continues to innovate, stakeholders can rely on these findings to make informed decisions and capitalize on growth opportunities.
Read more about MBA FPX 5008 Assessment 2 Using Analytical Techniques to Add Meaning to Data for complete information about this class.
References
Belanger, L. (2018, April 4). Ten unforgettable moments in Microsoft’s history, from its founding to desktop dominance to today. Entrepreneur India. Retrieved from
Morah, C. (2018, March 2). Are stocks with large daily volumes less volatile? Retrieved from
Seth, S. (2018, January 10). The risks of trading low-volume stocks. Retrieved from
https://www.investopedia.com/articles/active-trading/051415/risks-trading-lowvolume- stocks.asp
Simply Wall St. (2019). Microsoft Corporation (NASDAQ: MSFT): What is the future? Retrieved from
https://simplywall.st/stocks/us/software/nasdaq- MSFT/Microsoft/news/Microsoft-corporation-NASDAQ MSFT-what-does-the-future-look-like/
StatCounter. (2019). Operating system market share worldwide. Retrieved from
http://gs.statcounter.com/os-market-share
Weise, K. (2019, January 30). Releasing earnings, Microsoft stays in stride, with the cloud powering the way. The New York Times. Retrieved from
Yahoo Finance. (2019). Microsoft Corporation (MSFT) [Data set]. Retrieved from
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