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Example research essay topic: Company Profile Of Sun Microsystems - 1,192 words

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Introduction I choose Sun Microsystems because I bought some of their stock three months ago and it has done very well. In fact it had, at one point, gone up close to sixty percent. After watching its rise over the time that I have owned it I began to wonder what Sun Microsystems is really all about. I knew that it built the backbone of the Internet, but I wasnt exactly sure what that meant. When I heard the focus of the project we were assigned for class, I decided this would be a great opportunity to learn more about the company and its global operations.

Company Background Scott McNealy, William Joy, Vinod Khosla and Andreas Bectholsheim founded Sun Microsystems in 1982. They created the company to sell high-performance desktop computers, running on the UNIX operating system. They were immediately successful with the more technical type of user such as engineers, scientists and software developers. The company was started entirely with investments and large purchase agreements, something that was very rare at the time. An agreement with a company called Computervision Corporation, where the aforementioned company agreed to pay millions of dollars for Sun to manufacture their computers, really started Sun on their way. From there Sun went on to make many more original equipment manufacturer (OEM) agreements.

Scott McNealy made most of the original deals that helped start Sun so, in 1984, he took on the titles of CEO and chairman. Some of the first OEM agreements were made with Xerox, Eastman Kodak, AT& T and an Italian copier maker, Olivetti & C. SpA. (Britannica. com, 2000) As mentioned above Sun Microsystems was created in February of 1982. Right away in 1983, after signing the OEM agreement with Computervision they began operations in Europe. Sun Microsystems was almost immediately an international company.

In 1984 NFS technology was introduced, this technology allowed computers to share files and soon became to main technology of its kind used in the computer industry. In 1985 Sun opened operations in Canada. The next big idea of Suns came out in 1986. PC-NFS technology allowed PC users to create a network of computers. As the company opened operations in Asia and Australia it also opened to the stock market with its IPO. In a joint effort with AT& T, Sun develops the UNIX System V Release 4.

At this time Sun became the leader in the workstation market. In 1988 Sun Microsystems reached one billion in revenues. Then, in 1989, Sun opened a research center in France. In 1990 Sun introduced the first workstation for fewer than five thousand dollars.

They also opened a manufacturing plant in Scotland. In 1991 operations began in Latin America. Sun introduced the first multiprocessing desktop computer, the SPARCstation, in 1992. After a little over ten years Sun had shipped out one million systems.

In 1995, Sun introduced Java technology, a software platform that allows application developers to write programs that can run on any computer. In 1998, Sun formed an alliance with AOL to develop the future of Internet devices. Sun Microsystems is the leading provider of industrial strength software and hardware that power the Internet. (Sun. com, 2000) Global Sales Masood Jabbar is the executive vice president in charge of Global Sales Operations.

Suns website describes his position as responsible for providing a consistent, integrated and responsive customer experience through a single Global Sales Operations group, incorporating all of Suns current sales organizations, except those for iPlanet and Forte development tools. In other words, Sun uses a global sales strategy; they consider their customers to be part of one worldwide market. Sun is present in over 150 countries around the world from Albania through the Western Sahara. Their research and development facilities are in the U. S. , Canada, Ireland, France, the U.

K. , China, India, Japan and Israel. (Sun. com, 2000) Revenues Breakdown Suns revenue breakdown worldwide for 1999 was as follows: 12 billion in total revenues, with 6. 1 billion coming from the United States, 3. 3 billion in Europe, 1. 1 billion from Japan and 1. 4 billion from the rest of the world. Their projected revenues for the year 2000 are: 8. 1 billion from the United States, 4. 3 billion from Europe, 1. 3 billion from Europe and almost 2 billion from the rest of the world, in total a 39. 1 % increase from the year before. (Sun. com, 2000) Marketing/Management Problems Suns biggest failure was their inability to compete with Microsoft when it came to personal computers for the everyday individual. Suns UNIX operating system is too complicated for the average user and they never developed it to cater to that average user. Because of this Microsoft cornered the market with their pretty to look at and easy to use operating system.

This missed opportunity of Suns came to a head in the late 80 s when many of the employees of Sun started to become frustrated with Suns direction. Faced with this situation, Suns CEO and Chairman Scott McNealy decided to act. (David Bank, 1996) The following is the story of how Sun developed a groundbreaking software platform while trying to solve management and company direction problems. A 25 -year-old programmer named Patrick Naughton, who had made a name for himself at Sun, told Scott McNealy that he was quitting. McNealy wanted to know why, so the two men went out for beers. Naughton told him that he was going to go to work for a company called NeXT Computer, Inc. because they were more on the ball than Sun.

McNealy then made a very intelligent move and asked Naughton to write up a proposal of what Sun was doing wrong and propose solutions. Naughton did just that, and the next day he wrote up his ideas in a report. McNealy read the report and then forwarded it to his entire management team. The report caused a major wake up call throughout the company, many people agreed with what Naughton had written. Meanwhile, Naughton was delaying his departure from Sun.

The overwhelming response was that Sun had lost touch with their earlier direction. Not long after, the top engineers in the company, including Naughton, brainstormed until they came up with the following ideas: consumers should be the main focus, they should build a small team of engineers and programmers and develop a new environment including a new generation of machines for the average user. These ideas were not very specific but they were a starting point of the development of Java technology. (David Bank, 1996) The idea was to get a small group of the best engineers Sun had away from the corporate environment and develop an innovative idea. They wanted to develop a software platform that could be used on anything, not only computers. They started out developing a device that could control every appliance in a household. They decided that they needed to create a new language that they called Oak (eventually to be called Java).

David Bank, writer for Wired, described Oak as an industrial-strength object-oriented language that would work over networks in a very distributed manner. (Da...


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