Economical Unemployment: Due to global recession, Microsoft had cut-down around 5000 of its international jobs. The company’s view was that this downsizing was mainly due to the economic conditions that prevailed in the country. The job cuts were assumed to save around $1.5 billion of operating cost of the company. However, this will affect all its departments such as human resource, IT, sales, R&D, marketing, and finance as well. Fiscal Condition: The fiscal condition of USA was badly affected by the housing bubble followed by a credit crunch and recession. In order to attract customers like software leasing companies, Microsoft offered lease of software at a discount of 26 percent.
The company has also cut down its support and maintenance contracts. However, Microsoft is always said to have supported the economies of countries it does business in. It can be said the company plays a versatile role in the macro business environment (Arthur, and Rousseau, 1996). Social Social Responsibility: It is an obvious factor that economic conditions have direct effect on the society. The increasing job loss has led o decrease in the purchasing power of the customers.
Microsoft as a company has high level of goodwill in the market. The company being an industry leader considers itself to be an excellent corporate citizen, which complies with the regulations and laws. It is also committed towards being a global leader in terms of corporate social responsibility. Technological Competitive Software Market: The technology industry is ruled by companies like Microsoft, IBM, Apple, Google, Yahoo, etc. Though due to innovation and cutting edge technological advantage, companies in this industry has survived the recession, but this has been at the cost of severe job-cuts.
‘Windows’ of Microsoft enjoyed a monopoly market around the world. Though now Microsoft is given tough competition by Apple’s Macintosh, Linux, or in case of smart phones, Android is a tough competitor of Windows 8. Microsoft office is still the most user-friendly office tool around the world (Schein, 1978). Environmental Carbon Footprint Policies: The US government has not set any legal bindings or targets for reduction of GHG emission in the past but President Barack Obama has introduced the policy of US to reduce the emission by 14 percent below 2005 levels by 2020.
The US government is mainly focusing on the reduction of fuel emission by regularly reviewing the number of vehicle and the emission of GHG gases.