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Microsoft has decided to cutback more than 2000 staffs , and shut down one of its research centers. They claimed that this decision is due to its new CEO’s goal. However, I believe the shrinking of employees is the beginning of downfall for this historical company. As another technological giant, Apple, grows exponentially over the past decade, sales and popularity of Microsoft products have seriously plummeted. One of the numerous factors is that their operation system “Windows” does not contain any prominent upgrade for years. While it still stick to its old formula to success, Apple has continuously improved its operation system. From applications to design , “IOS” is always considered innovative and user-friendly to consumers. As one of the many unsatisfied  “Windows” users, only words I can associate with its O.S. are flawed , problematic and sluggish. From the Microsoft example, it is clear that bad reputations from users will lead to a devastated effect on your products’ demand. Moreover, for a company to sustain success and profits, endless changes and innovative ideas are required. If a company decides to rely on its successful past and refuses to step into the future, elimination will eventually occur; just take a look at blackberry. Is Microsoft turning into the next Blackberry? Only time will tell.

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Sources

Original Article: http://www.theglobeandmail.com/report-on-business/microsoft-lays-off-2100-axes-silicon-valley-research/article20671086/

MORE INFO: Comparison between Windows 8 and the new IOS Yosemite – http://www.macworld.co.uk/review/mac-software/mac-os-x-yosemite-vs-windows-8-comparison-review-3572006/

(1). http://omnitechsupporter.com/wp-content/uploads/2014/05/Windows-Support-Number.png

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Recently, Shi Zhaokun, a 15 years old Apple worker, was found dead of Pneumonia. His death was most likely caused by his heavy workload of nearly 280 hours in a single month. Although nowadays, corporations realize the importance of corporate ethics, endless factories launching in Asia show that money is still their only concern. Most Big corporations choose China as their production base due to cheap labor force and poor working conditions. Take Apple for instance. They claimed that they have improved working conditions drastically over the past few years. However, Shi still has to work over 60 hours per week. If Apple really has an ethical sense, why don’t they switch their production headquarters to countries with a better working standards such as the United States?. The reason is simple; it is all about making more profits. Changing production base to these countries will probably increase their cost and decrease production efficiency(shorter working hours), thus, minimizing their total profits. R. Edward Freeman’s stakeholder theory explains that every stakeholder, including employees,  is essential for a business to be successful. As one can see, there is still a long way to implement his idea into big enterprises.

 More information on wages in China, United States and Germany(Infographic): http://www.huffingtonpost.com/2012/03/08/average-cost-factory-worker_n_1327413.html

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Citations:

http://www.nytimes.com/2013/12/12/business/international/worker-deaths-raise-questions-at-an-apple-contractor-in-china.html

https://www.youtube.com/embed/bIRUaLcvPe8

[1] http://static.itpro.co.uk/sites/itpro/files/styles/article_main_image/public/images/dir_184/it_photo_92338.jpg?itok=oMdbGlUn

[2]http://cdn.macrumors.com/article-new/2013/08/fifthavenue.jpg