Question

Suggest five (5) ways in which the primary stakeholders can influence the Microsoft INC's financial performance. Provide support for the response. Please explain with examples.?

Answer 1

Suggest five (5) ways in which the primary stakeholders can influence the Microsoft INC's financial performance. Provide support for the response. Please explain with examples.?

EXPLANATION:

In several ways primary stakeholders will affect Microsoft's financial results. Next, shareholders may agree to spend more capital or sell the remaining capital into the company. Investing additional money increases the organization's financial muscle and can contribute to big ventures that lead to significant profits for the company. Instead of buying the goods which lead to a failure, consumers will shy away from purchasing the company's public trust if the shareholders want to divest themselves.A business like Microsoft must be soundly run so that businesses can be used to their fullest extent to enable shareholders to continue channeling more money to the company.

Secondly, borrowers that represent the key source of funds will tighten up their credit terms; for instance, raising interest rates, rendering access to the credit difficult. This usually decreases the revenue base and can result in lower income for the company. Better credit terms, however, enable the company to access more funds to finance its operations and make profit. Second, vendors improve the financial efficiency of the company by ensuring that it has the required resources to manufacture the requisite goods that are then used for revenues.

Good connections with suppliers mean the product is not sold out by the company and that its consumers are still maintained. If the vendors fail to deliver, the company can not manufacture the goods and loses reputation and there are no financial revenue fluctuations, which leads to failure. So Microsoft will maintain a good relationship with trusted suppliers to boost its financial results.

Fourthly, the organization's primary revenue stream is consumers. When quality items are sold at affordable prices , customers can continue to buy the goods and produce more profits. Their buying power is another consideration for customers. High income consumers usually buy more, which leads to increased cash inflow, but low-income consumers consume less and so the the company's cash.

Fifthly, workers in the company are engaged in manufacturing goods that are then sold for money, thus improving financial efficiency. On the other hand, less motivated workers , for example, are underpaid, will slow down and strike to decrease their productivity and therefore decrease revenues.