The different business models employed by Microsoft and Redhat in Thomson (2007) atomic number 50 be summarized as follows:
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As opposing as they are to each other, twain models were built with the same strategic intent, in this discussion I will attempt to assess the two models by evaluating: 1) the upshot the model has on the stakeholder groups of both companies (Owners, Customers and Employees) and 2) how good their strategy is with rate to Thomson three aspects of strategy evaluation.
Shareholders who invest in companies might be passionate about it, believe its mission or support its products, but their main interest is the market value of their shares and the dividends they prevail periodically. Microsoft has an estimated annual EPS (earning per share) of 1.61 and a 5yr expected peg ratio (Price/ boodle To Growth ratio) of 1.25 while Redhat has an estimated annual EPS of 0.61 and a 5yr expected PEG ratio of 1.73, (Finance.Yahoo.com) so while this means that Microsoft has a stronger financial position, yet chances for growth for Redhat are wider. Redhat on the other reach out pays no dividends and cannot be considered a yield stock. Rubens (2009) states that Red assume has far less cash: about $1 zillion at the last count. Adding in other assets doesnt come cobblers last to $2.7 billion รข" the company is not being valued on an asset basis. And Red Hat pays no dividend,...If you want to get a full essay, order it on our website: Orderessay
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