Discussion 11- economics- span of control - Assignment Example

Span of Control Insert Insert DISCUSSION 11 Microsoft is buying Web TV networks at about $425 million (McGuigan, Moyer, & Harris, 2008). Web TV sells cheap machines that enable users to surf the internet without owning computers. Since most rival companies such as Sun and Oracle are lining up for network computers, Web TV was a good offer for accessing the internet cheaply. Microsoft is buying Web TV networks in order to counter other competing companies in terms of network computers. However, the main goal is for Microsoft to merge its own Windows CE with Web TV’s access standards and technologies.

Initially, Windows CE targeted handheld computers. However, with the purchase of Web TV networks Microsoft will be able to make Windows CE an operating system for the whole consumer electronic world. The new operating system would conquer the electronic world from cable set top boxes to DVD players to internet telephones. Integrating Windows CE and Web TV will make consumer electronic companies such as Sony and Phillips to adopt windows CE as their multi-purpose operating system for their products.

Purchasing Web TV would make Microsoft continue to stay on top of the market because the ‘new smart consumer goods’ would be cheaper but only operate on Microsoft platforms. The main span of control issues that may face the purchase of WebTV by Microsoft mainly relate to coordination of functions and divisions of the new company. Since Microsoft is buying WebTV technologies, span of control issues might include hierarchy of authority in term of coordinating subordinates. Since Microsoft may still service from WebTV in managing the new technologies, a major span of control issue would be to coordinate activities of people, functions and divisions with a clear hierarchy of authority.

However, proper integrations and agreements during the purchase can help control some of the span of control issues. ReferencesMcGuigan, J., Moyer, R., & Harris, F. (2008). Managerial Economics: Application, Strategy, and Tactics, 12th Edition. Mason: South Western, Cengage Learning.