Global Company \"Microsoft\" Affected Germany

¶ … global company "Microsoft" affected Germany both positively and negatively?

How Microsoft affected the country of Germany

The world's second most important company after General Electric (as a survey carried out by Financial Times, in 2003, emphasized), Microsoft, is a multinational computer technology corporation, founded in Albuquerque, New Mexico, on April 4, 1975, by Bill Gates and Paul Allen. The company evolved admirably in the years that followed and consequently, the decision of establishing subsidiaries aboard was taken. Thus, in 1983, Microsoft opened two branches in France and Germany, the latter being one of the most prosperous centers that Microsoft relies on.

The interaction between the American corporation and the German culture was considered to be a prolific one due to its results in the public sector, charity actions or employment politics.

First of all, one could mention the significant role that Microsoft played in the German Government's attempt to modernize public administration. The company exchanged expertise with the German Federal Ministry of the Interior for increasing IT security and took part in the SAGA expert circle within the institution for bringing e-Government applications to a superior stage. Moreover, at a state level, it helped Niedersachsen's judiciary to develop specialized court procedures and to enhance its relationship with citizens, companies and authorities by implementing the concept of e-Justice and a hotline allowing to receive external calls and to make public announcement of insolvency proceedings. It also simplified the activity of the Higher Administrative Court (OVG) in Rheinland-Pfalz by developing a system that permitted lawyers to use e-mail for filing suits, petitions, and applications or accessing records online. The huge difference from the traditional mail channel was immediately noticed due to the impressive decrease in time-consuming that equated the work of 70 employees. Microsoft also worked closely with the German Association of Towns and Municipalities on projects aimed at making calculations of grant and allowances and utilization of common facilities easier. In addition to all these, the Community Portal offering rapid search and research procedures and the MS E-government starter Kit allowing citizens to request public administration services anytime from anywhere were other two projects that benefited from Microsoft's support (http://download.microsoft.com/download/d/3/d/d3db3118-dc6d-4a08-967e-485f08a57ae5/partneringWithGovernmentCS.doc).

Still, Germany's IT updating didn't end here. In 2003, Microsoft founded the European Microsoft Information Centre (EMIC) in Aachen. The establishment was intended to contribute to the world's scientific progress by cooperating with academia and industry in public-private research and development projects sponsored by the public sector. The entity also responded to one of the objectives that the European Commission announced on the Lisbon agenda:" to become the most competitive knowledge-based economy in the world by 2010." In order to achieve this goal, Microsoft's infusion of workforce was decisive as the American company reunited highly-ranked scientists and engineers from seven EU countries under the command of Pierre-Yves Saintoyant, a professional carrying 25 years of experience in research and consulting. Some of the major projects that have been drawn out within the framework of this organization are: Cocoon, aimed at reducing risk for healthcare professionals; the European Learning Grid Infrastructure, focused on learning through web services; TrustCom, intended to enhance interorganizational relationship and Fidis, preoccupied with creating a "more fair information society in Europe." Thus, being confronted with an avalanche of favorable consequences due to the foundation of EMIC, German authorities have soon begun to make appreciative remarks. For instance, Peer Steinbrck, the minister president of North-Rhine Westphalia said that:" The establishment of EMIC in Aachen strengthens a long-standing relationship between Microsoft and the state of North-Rhine Westphalia...After less than one year, EMIC has already made great strides in the research and development of future technologies for the European market, thus contributing to the reputation of our region as a European technology hub" (http://www.microsoft.com/presspass/press/2004/apr04/04-26emicopeningpr.mspx).

But he was not the single voice appreciating Microsoft's initiative. Will Berchtold, chairman of the German Association for Information Technology, Telecommunication and New Media, joined the club by asserting:" Alliances with global companies such as Microsoft are indispensable if we want to drive innovation in Germany" (http://www.microsoft.com/presspass/press/2004/apr04/04-26emicopeningpr.mspx).

The positive umbrella that Microsoft opened over Germany by penetrating its business environment isn't limited only to the public sector. It also encompasses a variety of social aspects. For example, no one could remain insensitive in front of Microsoft's attempt to back up Thomas Bliesner's project aimed at helping child leukemia patients from one of Germany's most notorious clinics. The German lecturer (also designated one of the company's Most Valuable Professionals) thought to give a hand to those children who, after undergoing bone-marrow transplants, must be isolated for three months because of their weakened immune system: "Imagine an 8-year-old child knowing their chance of survival is 50-50, and they can't touch their parents. They can only see each other through a window, and no brothers, sisters or playmates are allowed in. They're cut off from everything that supports their regular life." (http://www.microsoft.com/presspass/features/2005/sep05/09-29MVPSummit.mspx)

Therefore, he thought of using different techniques like MS Live Meeting and Messenger, Tablet PCs, desktop PCs, wireless networks etc., in order to facilitate communication between these innocent children and their beloved ones. But as any idea, however genial or generous this may be, claims financial support in order to be applied, Bliesner went to Microsoft and asked for help. The company's response was prompt and consisted of the American company donating the software and one of its German partners offering the hardware. Moreover, Microsoft converted Bliesner into a model for its employees by nominating him MVP and reiterated its interest in charity actions.

Actions resembling the one described above are not the only way in which Microsoft attempts to highlight it cares about the community. The corporation also pays great attention to other social phenomena and doesn't hesitate to pull the alarm signal when needed. Such was the case of the decrease in German IT specialists, outlined by Jurgen Gallman, CEO of Microsoft Deutschland:"The German industry is losing its most valuable capital: its brains" (Smith, Dec, 19, 2005). Therefore, Microsoft was forced to hire graduates from abroad, depriving Germans of the chance to become its employees. This downward trend is expected to continue in the near future as more and more German students give up computer science courses. Gallman warned that this tendency will affect the "growth and competitiveness" of the economy, stating that "Germany, as a location of science and industry, cannot afford this trend to go on indefinitely" (Smith, Dec, 19, 2005). His warnings didn't remain without an echo because the authorities took immediate measures and redesigned educational programs for increasing the number of computer literates.

Besides being an active indicator of social deficiencies, Microsoft was also declared "the best employer" for the third time in a row, according to a survey carried out by the German magazine "Capital," in 2005 (http://(www.design-aspekt.com/clients.php?id=44&sort=0&DA_web=56de9e65b5b071f4ea36408d4186c59b).

Consequently, the American company plays a major role in reducing the unemployment rate by hiring numerous IT specialists who are appropriately remunerated. Yet, monetary benefits are not the only reason determining people to work for Microsoft. The corporation also acts according to its "ADK" policy (Attract, Develop and Keep people) by offering excellent work conditions, trainings, autonomy and control to valuable performers, rewards like time off and extended vacation time, accurate performance observations etc. The high degree of satisfaction that employees feel is very important because this results in the quality of the products and services that German consumers purchase. In this context, Microsoft's slogan "eat your own dog food" became legendary as it referred to testing products within the organization before launching them on the market (http://en.wikipedia.org/Wiki/Microsoft).

Yet, as any coin has two sides, Microsoft's entrance on the German market, hasn't exclusively exerted a positive influence. One of the main critiques that are brought to the multinational refers to its monopolistic practices. The slogan "enhance, extend, and extinguish" has become an emblem for the company's strategy consisting of penetrating product categories with common standards, improving these standards and using the enhancements made for defeating their competitors. For the same goal of reducing competition, the company accustoms to buy enterprises whose products are suspected of undermining those manufactured by Microsoft. (http://en.wikipedia.org/Wiki/Microsoft).