Microsofts purchasing problem

Microsoft’s Purchasing Problem

Problem:
Microsoft today is finding that it has problems just like any other company. Problems could come from anywhere as far as cost reductions. All the material used in this paper is taken from the article Microsoft Takes Steps to World Class Procurement.
The problem that Microsoft found when it was looking at its financial material was that it needed to start cutting costs. Steve Ballmer the CEO of Microsoft issued a 1 billion dollar cost savings goal in 2001. Today Microsoft was about to meet and exceed this goal. The goal was to be accomplished in 24 months and at 20 months Microsoft was sitting at $825 million. The cost savings could not have even come close to 1 billion dollars if it wasn’t for a worldwide procurement strategy led by Don Jones. Since Microsoft keeps on growing into new markets and new lines of products the cost cutting goal is harder to accomplish.
Microsoft:
Microsoft is an ever-growing company from nu...