Is Microsoft Corporation (MSFT) Too Big?

In the business world, most people still believe that bigger is better. The more revenue the better. The more employees the better. The more offices the better. However, many are beginning to wonder if Microsoft Corporation (NASDAQ:MSFT) has grown too big over the past few years.

This concern has come to the forefront for a variety of reasons, but is worth talking about right now due to the fact that the company recently took its relationship with Nokia Corporation (ADR) (NYSE:NOK) to the next level.

Who is Next in Line to Run Microsoft Corporation (NASDAQ:MSFT)?

Not everybody is a big Steve Ballmer fan, but he has done an admirable job heading up Microsoft. The big question is this: who is the company going to turn to in the near future? Who is going to take over as CEO during this crucial time?

Let’s put it this way: Microsoft cannot afford to make a mistake. It must be sure the next CEO is the right person for the job.

A recent article by The New York Times discusses the idea that Microsoft may be too big for its own shoes. Although this is a matter of opinion, the author, Nick Wingfield, has touched on some very interesting points.

If you are unsure of just how big Microsoft Corporation (NASDAQ:MSFT) has become, consider the following. The company currently has the number one video game console in the world, with Xbox One set for release to the public in November. Along with this, MSFT is running the second most popular search engine. And of course, this doesn’t even account for the fact that its Windows operating system is top dog.

Throw in its recent deal with Nokia Corporation (ADR) (NYSE:NOK) and it doesn’t take a genius to see why many believe the company is growing at an uncontrollable pace.

In the New York Times article, Harvard Business School professor David Yoffie said, “It is very hard to be a broad-based tech conglomerate. It makes it harder to manage, which is a challenge for Microsoft no matter who the successor is.”

The next Microsoft Corporation (NASDAQ:MSFT) CEO will have a lot on his or her plate.

Do you think the company has grown too big, or do you like the direction in which the company is headed?

These hedge fund managers continue to invest heavily in MSFT: William Duhamel, James Litinsky, Jeffrey Ubben, Kelly Cardwell, and Sandy Nairn.

Disclosure: none