In preparation for your site visit to Microsoft Ireland, the short video reflects several of the points that Professor Darren Kelly made regarding the business environment in Ireland (and specifically Dublin) being a great setting for expansion into Ireland and Europe due to the combination of strong employee talent, favorable corporate taxes and the promise of a strong economy over time.  Based on your quick review of the YouTube video on Microsoft in Ireland, identify one commercial opportunity and one commercial challenge they are addressing at Microsoft Ireland.

One commercial opportunity that Microsoft is addressing at Microsoft Ireland is the low corporate tax rate. Microsoft has been in Ireland since 1985 but has since expanded their employee base in Dublin from 100 to over 1200 because they do not have to worry as much about the taxes that they would normally be paying in America or elsewhere in Europe.

One challenge that Microsoft faces is that many companies that operate in the US denounce Microsoft for outsourcing to Ireland because of the tax rate and believe that they should be paying US tax rates for operating there. This challenge is important for Microsoft to address because it creates a rift in the American market and defames their company, which could be detrimental to the success of the company.

Finally, acting as members of consulting teams that might choose to write a group paper about the commercial opportunities and challenges connected to Microsoft targeting Ireland as a destination for commercial development, what specific questions do you have about the business model for Microsoft Ireland that relate to our course material (Triple Bottom Line and sustainability, market segmentation, maximization versus shared value, etc.)?  Give us a specific question for tomorrow’s visit.

How is Microsoft actively working to create a more sustainable business environment to suit a more sustainable world?