Proposal -Equity of Foreign Investment
Introduction:
M.C. Consultancy has been commissioned to direct Microsoft in regards to the implementation of a global education and training plan. This action seeks to increase the cultural diversity of Microsoft’s human resources (H.R.), via investment in developing nations. Furthermore the plan seeks to create a framework for further expansion of information technology training (I.T) in developing nations, in order to drive economic growth in these nations, whilst allowing Microsoft access to the best talent.
Equity of foreign investment:
Microsoft is in a position of immense power and influence; Netmarketshare’s latest data showing operating system market share shows that ninety two percent of computers that access the net are run by a Windows operating system (2010). Such a monopolistic share provides Microsoft with a great deal of leverage when determining standards for both hardware and software application development (Baye and Scholton n.d). However Microsoft generally concentrates its employment recruiting in wealthier nations. So while innovation is currently concentrated in areas with the greatest number of current computer users it does not cater to the future where most users will not be from nations which are currently in rapid development. This imbalance has both negative impacts for Microsoft and the global community as it restricts technical innovation in the company as well as growth of the I.T industry in the countries neglected by Microsoft. Furthermore due to the great importance and increasing role of IT in all facets of life it is of ethical interest that equal opportunity should be provided to all nations to contribute and compete in the development of these technologies.
Action Plan:
This proposal has been prepared for Microsoft Corporation in order to create a social relating system, in this case concerning the promotion of quality, outcomes and expansions in education and training project around the world. In order to reach the high levels of these aims, a brief action plan is required as a milestone to guide Microsoft Corporation’s operation of the project. This action plan contains 3 stages and is going to carrying on for 2 to 3 years.
Stage One: Start-up
i. Set up a department named social project development, which will function as supervising, making budgets of every processing project and researching and investigating anything relating to the project. Furthermore, set up some relating positions, such as investigator, procurator and supervising committee.
ii. Make an announcement to the world media that Microsoft is going to provide education and training assistance commencing within the year, so as to attract worldwide applications.
iii. Procedures to build up the relationship with local communities(recommended steps) :
- 1. Collect and assess those applications,
- 2. Evaluate the situation and environment of those applied countries,
- 3. Decide which of those must be advance processed. Then contact those local stakeholders (i.e. local government, private companies, education institutions and charity organisations),
- 4. Examine the reliabilities and capacities of those stakeholders and formalise a partnership with the chosen stakeholders.
Stage Two: Execution
* Investigator- person in this position is required to contact with local stakeholders, acquire local information, inspect the reliabilities and capacities of those stakeholders and collect feedback from the operating projects in local areas. Finally, send the analysis report to manager for decision making. Therefore, it’s provided by Microsoft Corporation.
* Procurator- person in this position is on behalf of both Microsoft and local stakeholders, and therefore is provided by both parties. Procurator will help manage the operation of the project, use the information from the investigator to make decisions and report directly to stakeholders. It’s also required to establish and develop a high-quality channel of communication to spread Microsoft’s social performances.
* Supervising committee- this position directly hold responsibility to stakeholders, which will monitor the operation and decision made by the procurator, record a journal and minutes for each meeting and entitle power of replacing the procurator, if the procurator’s action spoil the benefits of all stakeholders.
Stage Three: Feedback and Improvement
Since the action plan is a continuing procedure to develop Microsoft’s social performance in education and training aspect, this stage is not the final stage for the whole plan but a changing point from primary phase to an advanced phase. By evaluating the feedbacks of operation and the actual outcomes, Microsoft Corporation and their local partner can exercise their project more efficiency and effective in the next phase.
Challenges to implementation:
Several challenges maybe faced by Microsoft and local stakeholders while exercising this proposal. Therefore, to recognise those challenges is essential for minimising the impacts during the procedure. Three challenges are highlighted below:
Difficulties in allocating the resources
The gap of wealth (gap between poor countries and wealthy countries) over the world makes the allocation of scarce resources difficult, which may also cause unfair distribution to some developing countries. In the previous years, Microsoft supplied its public relations CSR budgets to promote education and training programs in most of the countries in Europe, but merely are developing countries (Microsoft, n.d.). To evaluate the situation and environment of those applied countries, and then decide which of those must be advance processed will minimise this challenge.
Difficulties in negotiating foreign cultures
Cross culture (culture diversification) is the major issue for multinational company who are willing to invest and do business aboard, to design strategies (McCaffrey, J. A. and Hafner, Craig R., 1985). Eliminating this challenge can be accomplished by analysing local culture and consulting experts in this area, in order to overcome any barriers.
Costly to stakeholders
The cost of exercising this proposal is high. These are including overcoming the challenges above, establishing different education and skill training programs and providing funds and different upgraded hardware and software supports. This can be minimised by create an efficient budget and coordination with partners.
Benefit to the stakeholder:
There can be realised into two main aspects which beneficial to stakeholder, these are economic and employability. Microsoft offered different education plan to the people all over the world. This does not only include students but the adult and elderly too. Based on their offers are so widely in term of education issue, therefore the people no matters who joined these programs should have the chance to improve their ability and so that they can increase their employability. (Anonymous, 2009)
On the other hand, economic growth can be predicted. According to Sina Chenari, experiences and skills are developed using the professional tools learning from the program, it can help to earn necessary skills. (Anonymous, 2009) This is the reason that the competitive global workforce can be increased for the local. When the local competitive workforce is upgraded, their economic power should increase as well. This is because the community has sufficient human resources to turn over their economic. Increasing both employability and economic growth are the main benefits to the stakeholder.
Benefit to Microsoft:
According to Anonymous, a growing IT skills shortage in the global workforce, the need for qualified developers and technologists is greater than ever. Microsoft is a technology company, IT professionals are the most important resources to company. In this global market of technologist workforce, this is hard to get good employee from this market. No matter what the education program the company offered, the greatest benefit for the company is that may provide some well-trained employee back to Microsoft. If the company want to develop continuously and never be stop their forward step, human resources then will become the most important and valuable resources to the company. Different generations will have different ideas to the same thing. The product of Microsoft is a kind of creative products. Development of the products are required the most creative mind in order to maintain the company’s market. Different generations can provide different fresh ideas to develop an excellent product. Therefore good human resources are the most important investment and the best long term return for the company.
Improvement of Microsoft:
In previous paragraph, it explained how important of the human resources are. In this aspect, Microsoft should expand their budget much more and spread their investment widely to other countries where had no attention from Microsoft. Although this may harm the financial issue and the benefit to the shareholder as well, it is not important when it compares to the future development. Shareholder should realise their benefit can be larger than this moment when they expand the donation budget and need to realise this is a kind of investment.
Conclusion:
Successful implementation of a global education and training program will add great prestige to Microsoft Corporation as it leads the I.T industry in affording equal opportunities to people of all nations. Ultimately, this will fast-track international I.T development whilst allowing Microsoft to maintain its prominent position and unprecedented access to the best human resources worldwide.
Reference list:
Operating System Market Share. 2010 http://marketshare.hitslink.com/operating-system-market-share.aspx?qprid=8 (Accessed 1st May, 2010):: (t.parton)
Baye, M and Sholton P. n.d. Strategies Used by Microsoft to Leverage its Monopoly
Position in Operating Systems to Internet Browser Markets.1-24
McGraw-Hill. http://highered.mcgrawhill.com/sites/dl/free/0072487933/46617/ microsoft_case.pdf :: (t.parton)
McCaffrey, J. A., Hafner, Craig R. 1985. When Two Cultures Collide: Doing Business Overseas. Training and Development Journal. Madison 39 (10): 26. http://proquest.umi.com.dbgw.lis.curtin.edu.au/pqdweb?did=1321615&sid=6&Fmt=2&clientId=22212&RQT=309&VName=PQD (accessed 1st May, 2010)
MICROSOFT: Microsoft Commits $50 Million in Higher Education Resources, Training and Certifications to Drive Economic Recovery; Resources offered in support of UNESCO-Microsoft Task Force on Higher Education and ICT.2009.M2 PresswireJuly10, :: (t.ng)
Microsoft Corp.; Microsoft Helps Prepare Global Workforce With Skills to Promote Economic Development.2009.Pediatrics Week,April11,85 :: (t.ng)
Microsoft. n.d. http://www.microsoft.com/about/corporatecitizenship/en-us/default.aspx (accessed April 26, 2010)