Microsoft financial strategies essay

Those with poor implementation of these policies have ended up making great losses to a point of collapsing. The current corporate world is very competitive and for businesses entities to survive, proper international monetary policies have to be employed. The major goal of every business is to make revenue and strive economically. The most successful companies in the world are classified in terms of their economic superiority which is based on how much the companies are financially powerful. No matter how big or popular a company might be, this cannot put it at a good position as far as power is concerned. Most of multinational companies have been classified as the most successful companies in the world and they have been able to attain immense market across the world.

Most of multinational companies have been in operation for quite a number of years or even centuries. Their services or products have gained a lot of popularity in various countries in different continents. They success have been attributed to the sound international monetary policies they have been putting in place in their international operations. Great percentage of these companies have their headquarters in the United States of America. This has been proven by the number of powerful players in international business. Sometimes it becomes very difficult for both veteran companies and new-comers in the business to be in good position to strive over years. Many companies have closed their business doors in various branches in various parts of the world and have opted to concentrate on domestic business and some of them have absolutely given up and called it a day in business.

Microsoft Company has made drastic and immense steps in the corporate world and many companies have tried to benchmark with it. The most instrumental part of every business is its financial wellbeing. Currency denomination is a very crucial aspect of every business and it has both short-terms and long term effects on the company. Multinational companies are very keen when pricing their revenues and costs in terms of currency denomination. This is because of the facts that they operate in various parts of the world where different currencies are used. Microsoft Company being a U. S. Some of the foreign operations are in Canada, England, Sweden, Turkey, Germany, South Africa, Brazil, Italy and Venezuela (McDowell, 2014). Microsoft England is one of the most successful foreign operations for the Microsoft Company.

It has its base in London and has remain the chief player in the English market. Since its start up, the firm has been very innovative in its activities and has remained very competitive having the largest market share across England. There are other foreign based competitors from China and Japan which have been posing great threat to Microsoft, London but with ideal strategies, the firm has been unshakable. This is because a lot of time is saved in distributing the products to the consumers which would not be the case if there products were being distributed from the mother firm. It is the duties of every multinational company to embrace sound monetary policies so that they can be able to thrive in the current competitive world.

Uniqueness and creativity is also important in ensuring that every firm performs well in all its undertakings. Many multinational companies have failed due to poor international monetary policies that they have been using during their activities. However, the best performers have continued to gain more competitive advantage over their competitors. To ensure good performance in the Canadian market, the firm has embraced sound marketing strategies which has helped it remain the strongest player in the market. Price discrimination, advertising and discount giving are the main marketing strategies that the firm is using to enable it perfectly penetrate the Canadian market. The revenue generated from the Canadian market over years has been so great and this has made the mother firm to get a lot of profits.

Methods of Hedging against Foreign Rate Risks Foreign exchange risks are also called forex risks and are usually unavoidable in foreign investments. However, the risks can be avoided by avoiding to invest in the foreign markets but however, this is not the best alternative. This will probably reduce the profitability of the firm. Conclusion Microsoft Company has made drastic and immense steps in the corporate world and many companies have tried to benchmark with it. The most instrumental part of every business is its financial aspect. Finance is the element that every business must uphold with a lot of concern. Finance is the backbone of businesses and in that view, Microsoft Company has remained has taken it with a lot of consideration in its economic and finance aspects.