Reference no: EM132262268

Few people command as much respect - even from their enemies - as Bill Gates, founder of software giant Microsoft. After all, the operating systems his company created, everything from DOS through the latest version of Windows, are required to run 90% of the world’s personal computers. By making operating systems, Microsoft was able to get a critical head start on its competitors in launching mainstay software applications such as word processing programs (Microsoft Word), electronic spreadsheets (Excel) and even games. Indeed, Microsoft’s revenues have, in recent years, been greater than that of all its competitors combined. The company has been hugely profitable, and it has made Gates a multibillionaire (his net worth has been estimated at some $40 billion). ?Having won the desktop computer wars, you’d think Gates would be content with the incredible amount of power (and money) he has amassed. But as far as Gates is concerned, this is only the beginning. Microsoft is involved in many more ventures, including the Microsoft Network (an on-line service) and the interactive-cable TV news network MSNBC. All this is in addition to various electronic banking services, wireless data transmission services, and multimedia entertainment projects (including Dreamworks SKG, with Steven Spielberg). ?Because Microsoft has had its hands in so many different pots, both competitors and the federal government became concerned that Gates had developed a choke hold on a vital industry. Reflecting this alarm, the U.S. Justice Department blocked Microsoft’s $2 billion bid to buy Intuit, the maker of Quicken, the popular electronic checkbook program. This move was seen as a blow to Gates’ intention to control every commercial transaction in cyberspace. Gates was also accused of anticompetitive practices by forcing PC makers to adopt the Microsoft Internet browser rather than one made by Netscape. Until Microsoft linked its browser to the Windows operating system, Netscape had dominated the market. With the incorporation of the Microsoft browser, Netscape sales dropped dramatically. ?There appears to be good reason to suspect Gates’ intentions. After all, he has a long history of using strong-arm business tactics. Years ago, for example, Microsoft programmers were accused of adding lines of code so that a competing product would not run properly on their systems. Legal papers have also accused Gates of threatening to stop developing Macintosh applications if Apple failed to cease work on a programming tool that would compete with Microsoft. And the would-be deal with Intuit? It came about as Microsoft strongly hinted that it could do a lot to derail Quicken with the billions of dollars it planned on spending to buy the company. “Sell it or lose it” appeared to be the message. Such bullying tactics have led to a growing list of Microsoft detractors. Among them is Robert Frankenberg, Novell’s CEO, who has referred to Microsoft’s practices as “blatantly illegal”. Although Gates admits no wrongdoing, he notes that Microsoft is usually involved in as many as 60 different lawsuits at a time. ?Despite the questionable nature of some of Microsoft’s practices, one thing is for certain: Bill Gates has become one of the most powerful people in the world, a world that has been revolutionized by his visions and actions.

According the article what types of power does Bill Gate’s possess In terms of legitimate power, expert power, and referent power?

Do you think he will be able to maintain his power? Why or why not?

Is there a potential for abuse of power in business? How might that be prevented?