Microsoft Corporation (NASDAQ:MSFT) eyes on a restructuring plan

Denver, CO, 07/12/2013 (Avauncer.com) – Shares of Microsoft Corporation (NASDAQ:MSFT) rose 1.38% to close at $35.17 in the last trading session, remaining close to their 52-week price range of $26.26 to $35.78. This was in the backdrop of Microsoft announcing its plans to realign its business.

Microsoft, a company that experiences declining profits in recent quarters, was quick to unveil an expected restructuring of its operations to improve its ability to compete in such a dynamic marketplace. Such realignment of the company’s operations is expected to continue throughout the year. The management team however now keeps its focus on its current products like the Windows 8.1, Xbox One and the Windows Phone among others.

The company also plans to venture out into new areas, by increasing its customer portfolio, introducing tablets, TV-attached devices, phones, PCs, 2-in-1s, and other devices that will develop over time. This was in the wake of the hit the PC industry has taken in recent times, with the arrival of smartphones and tablets. According to research firms Gartner, Inc. and IDC, PC shipments fell by 11% in the second quarter. Sales have declined for fifth consecutive quarter; the industry’s longest ever slump.

The company faces also challenges in mobile devices and web-based services, and plans to restructure its engineering efforts into major groups and change the composition of its top executives. Mr. Ballmer, the CEO of the company, is expecting to bring products to the market faster, by making the company more efficient. He also plans to enthrall people to use its Office products, on a variety of PC-based devices.

On the one hand, this restructuring is necessary, but has raised many questions among investors. It was however unclear that Microsoft will offer fewer financial data about certain products. The current restructuring plans should not be used to further reduce the transparency on behalf of investors.