Risk Analysis
The establishment of Microsoft Company as one of the software companies was a successful venture commenced by a private individual. However, there emerged some bottlenecks that that threatened the well-being of the company. One of the risks was competition from other companies such as IBM and Apple (Wallace & Erickson, 1993). These companies also stepped their intentions to develop their operations systems that would work on a variety of computers (Brehm, 2007). Copyright issues were a challenging factor for the Microsoft Company. When Bill Gates sold some software rights to IBM, it was a massive risk because it offered restricted application of the software (Drexler, 2007).
Leasing the software items to a third party was a risk because the competitors would have easily evaluated and analyzed the functionality of the software paving way for the competitors to invent a similar entity (Vinnem, 2007). Another risk factor was the development of software that could work with computers, especially IBM. The challenge was developing operating systems that had the specifications required for computers. Lawsuits were a common phenomenon that compelled the company to spend numerous resources to defend itself in court. Controversial claims by Apple and other companies concerning infringement on intellectual property rights threatened the reputation of Microsoft (Hampton, 2009).
Cues To Watch how They Are Handled
One of the cues to watch is the development of a new computer architecture and improvement of the operating system. The employees of the company who are based in specific departments will be in charge of the cues. One of the methods that Microsoft uses in ensuring that the cues are successful is that it puts the intelligent individuals in small groups. The groups can deliver on their mandate as appropriate.
References
Brehm, P. J. (2007). Enterprise risk analysis for property & liability insurance companies: A practical guide to standard models and emerging solutions. New York: Guy Carpenter & Co.
Drexler, K. M. (2007). Icons of business: An encyclopedia of mavericks, movers, and shakers. Westport, Conn: Greenwood Press.
Hampton, J. J. (2009). Fundamentals of enterprise risk management: How top companies assess risk, manage exposures, and seize opportunities. New York: American Management Association.
Wallace, J., & Erickson, J. (1993). Hard drive: Bill Gates and the making of the Microsoft
Empire. New York: Harper Business.
Vinnem, J. E. (2007). Offshore risk assessment: Principles, modeling, and applications of QRA studies. London: Springer.
