Copyright © Philip M. Parker, INSEAD. Terms of Use.

MICROSOFT

Specialty Definition: MICROSOFT

DomainDefinition

Computing

MicrosoftThe new Evil Empire (the old one was IBM). The basic complaints are, as formerly with IBM, that (a) their system designs are horrible botches, (b) we can't get source to fix them, and (c) they throw their weight around a lot. See also Halloween Documents. Source: Jargon File.

Source: compiled by the editor from various references; see credits.

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Specialty Definition: Microsoft

(From Wikipedia, the free Encyclopedia)

simple:Microsoft

Microsoft Corporation is the world's largest private sector producer of commercial off-the-shelf computer software. Its headquarters are in Redmond, Washington, a suburb of Seattle. The company was founded in Albuquerque, New Mexico in 1975 by Bill Gates and Paul Allen to develop and sell BASIC interpreterss under the company name Micro-soft.

Microsoft products

Software

Microsoft produces a wide range of software products.

Network Services

In the mid-1990s, Microsoft began to expand its product line into the networked computer world. It launched its online service MSN (Microsoft Network) on August 24, 1995, which was a direct competitor to AOL. MSN became an umbrella service for all of Microsoft's online services.

In 1996, Microsoft and NBC, an American broadcasting network, created MSNBC, a combined 24-hour news television channel and online news service.

At the end of 1997, Microsoft acquired Hotmail, the original and most popular webmail service. It was rebranded MSN Hotmail and was used as a platform to boost Passport, a universal login service.

MSN Messenger, an instant messaging client, was introduced in 1999 to compete with the popular AOL Instant Messenger (AIM).

Training

Microsoft has created a number of training initiatives, with the intention of creating a pool of low-cost employees with skills relating partly or exclusively to Microsoft products. The best known of these is the MCSE qualification, which stands for "Microsoft Certified Systems Engineer". While the MCSE certifies familiarity with Microsoft products, it is not, as its name suggests, an engineering qualification.

Hardware

Although Microsoft also produces a number of computing related hardware products.

History of Microsoft

Formed in 1975, Microsoft started to sell its BASIC interpreter at a time when hobbyists, who also wrote small BASIC interpreters, freely gave away the source code of their creations. However, because its was one of the few commercial vendors of BASIC interpreters, many home computer manufacturers chose Microsoft BASIC for their systems. As the popularity of Microsoft's BASIC grew, manufacturers adopted Microsoft BASIC's syntax and other features to maintain compatibility with existing Microsoft BASIC implementations. Because of this feedback loop, Microsoft BASIC became a de facto standard, and the company cornered the market. Later, it tried (unsuccessfully) to extend their grip on the home computer market by designing the MSX home computer standard.

The name "Micro-soft" (for microcomputer software) was used by Bill Gates in a letter to Paul Allen for the first time on November 29, 1975. "Microsoft" became a registered trademark on November 26, 1976.

In late 1980, International Business Machines needed an operating system for its new home computer, the IBM PC. Microsoft licensed an existing operating system called 86-DOS, written by Tim Patterson for Seattle Computer Products' line of Intel 8086-based hobbyist computers, and contracted with IBM to provide one of three alternative operating systems for the PC. Microsoft subsequently purchased all rights to 86-DOS, renamed it MS-DOS (for Microsoft Disk Operating System), and modified the operating system for IBM's 8088-based hardware. It was released as IBM PC-DOS 1.0 with the introduction of the PC in 1981, and, because it was smaller, cheaper, and much more readily available than the other system software, quickly became the default system for the IBM PC. In contracting with IBM, however, Microsoft had retained the rights to license the software to other computer vendors as MS-DOS. The flood of IBM PC clones in the early 1980s, from companies including Texas Instruments, Compaq, and Seiko Epson, made Microsoft's operating system ubiquitous in that segment of the industry.

Software running on PC hardware was not necessarily technically better than the mainframe software that it replaced, but it had two advantages that mainframe software could not beat: it offered more freedom to the end-user. And it offered this at much lower cost. Microsoft's success rode on the PC boom.

Microsoft developed a wide variety of software products including:

Some of these products were successful, and some were not. Although early versions of Microsoft software were often buggy, feature-poor, and inferior to its competitors, later versions improved rapidly and the software grew in popularity. By the turn of the millennium, many of Microsoft's software products dominated the market in their respective categories.

Microsoft has devoted huge amounts of effort to marketing and usability engineering in developing their products, as well as to the integration of their software products with one another in an attempt to create a seamless and consistent computing environment for the user.

Microsoft has attempted to leverage the powerful Windows brand into many other markets, with products such as Windows CE for PDAss and their "Windows powered" Smartphone products.

Public perceptions

For a long time, Microsoft was widely seen as the "good guy" in the computer software market, providing an inexpensive alternative to the expensive systems provided by the major mainframe and UNIX vendors, and it was admired for the large amounts of money it made in doing so.

By the 1990s, the perception that Microsoft had become the "bad guy" had increased substantially. It was frequently accused of leveraging its market dominance in desktop computing in order to try to exploit its customers unfairly.

In recent years, Microsoft has been accused of anti-competitive business practices by US government and Microsoft's competitors, and has generated huge negative perceptions.

The monopoly question

Microsoft's Windows product has an effective monopoly in the desktop operating systems market. Those who make this claim point out that, among other things, almost every PC sold has a copy of Microsoft Windows pre-installed.

Some observers claim that the characterization of Microsoft as a monopoly leaves its competitors in a conflict:

Monopoly or not, there is no doubt that: Critics of Microsoft have accused it of using its dominance in desktop operating system to try to leverage market share in other sectors of the computer market, such as web browsers (Internet Explorer), server operating systems (Windows NT), office software suites (Microsoft Office), and streaming media (Windows Media).

After its bundling of the Internet Explorer web browser into its Windows operating system, Microsoft acquired an extremely large market share in the browser market. Partly as a result of this dominance, Microsoft was convicted by a USA federal court for abusing its monopoly in the desktop operating systems market (see Microsoft antitrust case for more details).

Microsoft has in all of these cases depicted its actions as its response to customer demand.

Critics also decry Microsoft's "embrace and extend" strategy of adding proprietary features to open, de facto standards, thereby using its market dominance to gain de facto ownership of standards "extended" in this way.

Security

By 2002, several of Microsoft's networking- and Internet-related products had become the subject of intense criticism following several high-profile security lapses. Malicious programmers increasingly exploited weaknesses in Microsoft software by creating and distributing worms, viruses, and Trojan horses designed to spread across the Internet and waste computing resources or destroy data. These exploits frequently targeted Microsoft's Outlook and Outlook Express e-mail programs, Internet Information Server (IIS) Web server, and SQL database server software. Microsoft contends that its dominant position in several Internet-related software categories naturally subjects the company's products to more attacks, because the products themselves are so widespread. Critics counter that these attacks also target Microsoft products that do not hold commanding market shares, and suggest that this is because Microsoft products in general are fundamentally less secure than those of the company's competitors.

In several cases, Microsoft's practice of designing and configuring software to make it easier to use and less intimidating to novices has facilitated the spread of these viruses and worms. For example, Windows operating systems released since 1995 hide file extensions by default, which can help malicious programmers trick unwitting e-mail recipients into opening dangerous file attachments that masquerade as harmless files with innocuous extensions. (Recent versions of Outlook and Outlook Express disable dangerous file types upon receipt, so that users cannot open them.) Critics charge that this focus on usability and automation has come at the expense of important security considerations.

In January 2002, Gates announced the Trustworthy Computing initiative, which he described as a long-term, companywide initiative to find and fix security and privacy vulnerabilities in all of Microsoft's products. The initiative prompted the company to reevaluate and redesign several of its practices and processes, and has significantly delayed the release of Windows Server 2003, the successor to the Windows 2000 Server family of operating systems. Reaction to the Trustworthy Computing initiative has been mixed, with observers lauding Microsoft's increased focus on security but charging that the company still has a lot of work to do.

Advantages of Microsoft software

Most of the advantages of Microsoft software arise from its ubiquity, allowing the user to benefit from so-called network effects. For example, the large installed base of Microsoft Office makes MS Office files the de-facto standard word-processor format, making a copy of MS Office essential for most business users. In addition, more potential employees having training in MS Office than competing products. Hence using MS Office can result in reduced training requirements, especially in the case of temporary employment.

Microsoft software is also designed to be easy to configure, allowing companies to hire lower-paid non-expert systems administrators. Microsoft supporters argue that this results in a decreased "total cost of ownership".

Microsoft software also represents a "safe" option for IT managers purchasing software systems, in that the ubiquity of Microsoft software allows them to claim that they are following accepted best practices. This is a particularly attractive option for IT managers with limited technical knowledge.

Disadvantages of Microsoft software

Microsoft software makes heavy use of software re-use. Whilst this is very efficient for rapid software development, it leads to complex interdependencies between software packages. This can mean, for example, that crashing the Microsoft web browser can also crash the operating system GUI.

The same interdependencies mean that the resources of most Microsoft software can be used from most other Microsoft software. This means that most programs can run other programs, even where this should not be possible. For example, macros embedded in documents or HTML in E-mail can run programs, allowing an attacker to take over the user's computer. Microsoft has a security stance of "permitted unless forbidden", which is hard to change, as much Microsoft software relies on this policy.

This is demonstrated in the proliferation of worm and virus programs that attack Microsoft software. This problem is compounded by the very ubiquity of Microsoft software, cited as an advantage above. Once a working virus is released, it is almost certain to spread very widely because almost every computer it comes across is able to replicate and spread the virus. This effect has recently been dubbed the "Microsoft monoculture", by analogy to the problems associated with lack of biodiversity in the environment.

As a result, the advantage mentioned above of being able to hire less highly trained, and therefore cheaper, systems administrators is offset by two factors:

Microsoft's critics describe the greater costs of running a Microsoft installation as "total costs of non-ownership" as they point out that the users of Microsoft software actually do not own the software they run: something which is crucial to Microsoft's business model.

The future

As the OpenSource movement becomes more and more popular since 1997, Microsoft have increasingly taken it seriously as a competitor. The OpenSource movement posses as a threat to Microsoft, especially large potential markets like China and Brazil has government sponsored movements away from Windows towards Linux.

Linux as of 2003 has become a popular OS in the server market with almost 25% market share. Linux is also trying to make an entrance as a consumer product. Linux-based products are beginning to be bundled with PCs sold in the consumer market. Notably is Lindos sold by Walmart in 2003.

Microsoft CEO Steve Ballmer has stated that Linux is a "tough competitive force... It's non-traditional, it's free and it's cheap. We have to educate people why what they pay for [our offerings] is more than offset by the value we deliver. We used to be the cheap guys. We were cheaper than Novell, cheaper than Oracle. We can't do that with this one." (Reported in CRN.com, June 17, 2002).

With $50 billion in cash reserves, it is unlikely that Microsoft will lose its position as a major player in the computer market anytime soon.

November, 2002: Microsoft's quarterly 10-Q filing to the Securities and Exchange Commission revealed that most of its businesses were losing money, while two had enormous profit margins: almost 86% for its "client" division that sells Windows. Microsoft is likely to focus on these sectors of the market. (See theSEC filing and the news.com article)

Microsoft is working to leverage its current success in desktop operating systems into new markets such as media players, server software, handheld devices, web services and video games, with varying degrees of success.

It is also looking to move towards a "subscription model" for licensing. Microsoft's current revenue scheme depends on users buying upgrades on a periodical basis, but this is becoming increasingly difficult, as many users fail to see the benefits of upgrades and continue to use older packages, such as Windows 95. Microsoft would like to switch to a subscription basis, whereby users pay an annual fee for software. The success of this strategy partly depends on the proliferation of broadband Internet access, as Microsoft will need build online licence verifying mechanisms into its programs.

At the same time, Microsoft is engaging in a major public relations and branding exercise to try to combat the negative PR associated with the recent accusations regarding its business practices.

Microsoft is now positioning PCs running Windows XP Media Center Edition as a home entertainment hub.

Based on recent Microsoft management comments, it appears that Microsoft is attempting to move up-market, positioning its products and services as high-value, rather than low-cost. Steve Ballmer was quoted as saying in 2002 "We are actually having to learn how to say, 'We may have a high price on this one, but look at the additional value and how that value actually leads to a lower cost of ownership despite the fact that our price may be higher,'" (Reported in VARbusiness, July 15 2002).

Microsoft .NET initiative

The .NET initiative is a major company-wide effort by Microsoft. It has several aspects including:

It will achieve this by using a proprietary extension of XML to link several different devices together to be controlled quickly and easily by other computers. Critics view .NET as yet another Microsoft attempt to leverage its operating system monopoly into a similar monopoly on Internet applications.

Furthermore, in regard to the name of the initiative and its components, critics also point out that not only are the terms ".net" and "CLI" in use to mean other things (Microsoft used CLI to stand for Common Language Infrastructure), but that Microsoft regularly overloads generic terms (e.g. "Windows", "Word", "DNS") to refer to its proprietary technology, and then attempts to control them using trademark law and patent law.

Microsoft Next-Generation Secure Computing Base initiative

Microsoft has now launched the Next-Generation Secure Computing Base, recently renamed from Palladium operating system initiative. This effort is also called Trusted Computing. Microsoft presents this as their solution to computer insecurity. Opponents have characterised it as another exercise in entrenching and extending their monopoly, effectively allowing Microsoft to control all uses of PC technology. In particular, they have accused Microsoft of using it as a way to combat the emergence of free software.

The Future of Windows

Microsoft has a number of new initiatives: .NET, Palladium and the "Longhorn" operating system (Longhorn is the next home Windows release).

Microsoft intends that Longhorn will have many new features such as speech recognition and an enhanced user interface but it is likely that the operating system itself will be an extension of and improvement on Windows XP and Windows Server 2003.

See also

External links

Microsoft sites

Other sites

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Abbreviations & Acronyms: MICROSOFT

The following table is compiled from various sources, across various languages. When English abbreviations or acronyms come from a non-English source, this is noted.
EntrySourceExpressionField
MIDLEnglishMicrosoft Interface Definition LanguageComputer - (NT)

Source: compiled by the editor, based on several corpora (additional references).

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Crosswords: MICROSOFT

Specialty definitions using "MICROSOFT": Microsoft Access, Microsoft Basic, Microsoft Certified Solution Developer, Microsoft Certified System Engineer, Microsoft Certified Systems Developer, Microsoft Corporation, Microsoft Excel, Microsoft Exchange, Microsoft Foundation Classes, Microsoft IIS, Microsoft IntelliMouse Explorer, Microsoft Internet Information Server, Microsoft Mail, Microsoft Mail Application Program Interface, Microsoft Network, Microsoft Networking, Microsoft Office, Microsoft Point to Point Encryption, Microsoft Windows, Microsoft WordThe Microsoft Network. (references)
Non-English Usage: "MICROSOFT" is also a word in the following language with the English translation in parentheses.

German (Microsoft).

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Modern Usage: MICROSOFT

DomainUsage

Lyrics

Yeah, more like microsoft (Freakin It; performing artist: Will Smith)

Clever

Microsoft Works (references; author: unknown)

Source: compiled by the editor from various references; see credits.

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Commercial Usage: MICROSOFT

DomainTitle

References

  • Microsoft Corporation: International Competitive Benchmarks and Financial Gap Analysis (reference)

    (more reference examples)

  

Books

  • Disarming Strangers: Nuclear Diplomacy with North Korea [DOWNLOAD: MICROSOFT READER] (reference)

  • Don't Discard Microsoft IIS - Keep Security Knowledge Current: Giga Collaboration [DOWNLOAD: PDF] (reference)

  • On Doctoring: New, Revised and Expanded Third Edition [DOWNLOAD: MICROSOFT READER] (reference)

  • Desperate Distractions [DOWNLOAD: MICROSOFT READER] (reference)

  • Microsoft Access 95 How-To: A Compendium of Dispensable Tips from Master Developers Who Reveal Their Best Techniques (reference)

    (more book examples)

  

Periodicals

  

Theater & Movies

  • Microsoft Outlook 97:Getting Started (reference)

    (more DVD examples; more video examples)

  

High Tech

  • Microsoft MSDN Universal Subscription 7.0 (reference)

  • Microsoft Internet Security and Acceleration Server 2000 (reference)

  • Microsoft Windows 2000 Server Terminal Services (5-client access license) (reference)

  • Scenic Railway Add-On For Microsoft Train Simulator (reference)

  • Inoculan Antivirus Suite for Microsoft Small Business License Add On Pack (5-user) (reference)

    (more camera examples; more video game examples; more computer examples; more electronic examples; more software examples)

Source: compiled by the editor from various references; see credits.

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Digital Photo Gallery: MICROSOFT
 

"CeBIT2003 - Microsoft free zon" by Julia Eisenberg
Commentary: "CeBIT2003 - Microsoft free zone."
"Geek crossing" by Jeremy Maritz
Commentary: "Me and some work buddies crossing the street in an obvious location while I was working at Microsoft."

Source: photographs selected by the editor, with permission from the photographers.

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Non-Fiction Usage: MICROSOFT

SubjectTopicQuote

Business

Acer, Apple Computer, Microsoft, Oracle, and SGS are some of the other major IT businesses operating in India. (references)

This is not surprising as Microsoft products are shipped through a channel of 2,000 partners who enjoy discounted pricing. (references)

Companies such as IBM, Intel, Hewlett-Packard, Compaq, Microsoft or Sun Microsystems all have established offices in Germany. (references)

Economic History

Sweden

Among those companies are Microsoft, IBM, Motorola and Intel. (references)

Mauritius

In 1998, Microsoft opened a regional distribution office in Mauritius, serving the Indian Ocean region. (references)

China

More recently, several companies, including Microsoft and Motorola, have established research centers in China. (references)

Political Economy

MOROCCO

Morocco's new commercial courts have ruled in favor of Microsoft in past cases against software pirates. (references)

MOROCCO

In the last two years, Microsoft, the Business Software Alliance, and the Moroccan Bureau for the Rights of the Author have participated in an antipirating campaign, which according to private studies has reduced the level of software pirating from almost 90 percent in 1995 to about 60 percent in 2000. According to the same study, financial losses in the software industry are between $6 to 6.5 million. (references)

Source: compiled by the editor from ICON Group International, Inc.; see credits.

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Spoken Usage: MICROSOFT

SpeakerPhrase(s)

Andrew Weil

You get them in many health food stores. There is a product out there called Microsoft that I like, there's another product called Host Defense. Read the labels, go to my web site for more information about it.

Source: compiled by the editor from various references; see credits.

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Usage Frequency: MICROSOFT

"MICROSOFT" is generally used as a noun (proper) -- approximately 94.98% of the time. "MICROSOFT" is used about 1,792 times out of a sample of 100 million words spoken or written in English. Its rank is based on over 700,000 words used in the English language. Some parts-of-speech are not covered due to the samples used by the British National Corpus. (note: percents less than one-hundredth of one percent have been omitted)
Parts of SpeechPercentUsage per
100 Million Words
Rank in English
Noun (proper)94.98%1,7024,927
Lexical Verb (base form)2.4%4352,181
Noun (singular)1.78%3261,292
Noun (common)0.84%1590,616
                    Total100.00%1,792N/A

Source: compiled by the editor from several corpora; see credits.

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Usage in Company Names: MICROSOFT

CountryName
USA

Microsoft Corporation

 (more examples...)

Source: compiled by the editor from Icon Group International, Inc.

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Expression: MICROSOFT

Expressions using "MICROSOFT": Microsoft Access Microsoft Basic Microsoft Certified Solution Developer Microsoft Certified System Engineer Microsoft Certified Systems Developer Microsoft Corporation Microsoft disk operating system Microsoft Excel Microsoft Exchange Microsoft Extended Microsoft Foundation Classes Microsoft IIS Microsoft IntelliMouse Explorer Microsoft Internet Information Server Microsoft Mail Microsoft Mail Application Program Interface Microsoft Network Microsoft Networking Microsoft Office Microsoft Point to Point Encryption Microsoft SQL Server Microsoft Windows Microsoft Word the Microsoft Network. Additional references.

Hyphenated Usage

Beginning with "MICROSOFT": microsoft-backed, microsoft-compatible, microsoft-controlled, Microsoft-insignia, Microsoft-intel, microsoft-led.

Ending with "MICROSOFT": anti-microsoft.

Source: compiled by the editor from various references; see credits.

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Frequency of Internet Keywords: MICROSOFT

The following statistics estimate the number of searches per day across the major English-language search engines as identified by various trade publications. Hyperlinks lead to commercial use of the expression at Amazon.com.
 
ExpressionFrequency
per Day
ExpressionFrequency
per Day

microsoft

69,523

microsoft outlook express

914

microsoft internet explorer

5,782

microsoft game

898

microsoft clipart

4,833

microsoft training

860

microsoft word

4,731

microsoft media player for window

802

microsoft update

3,267

microsoft office xp

797

microsoft expedia map

3,011

microsoft template

771

microsoft office

2,671

black entertainment microsoft television

752

microsoft outlook

2,097

microsoft works

746

microsoft access

2,045

microsoft upgrade

673

microsoft excel

2,026

microsoft support

643

microsoft publisher

1,867

microsoft explorer

634

microsoft power point

1,659

microsoft word download

594

microsoft download

1,649

microsoft exchange

593

microsoft software

1,398

microsoft photo editor

590

microsoft window

1,290

microsoft office 2000

583

microsoft frontpage

1,243

microsoft help

555

microsoft virtual machine

1,147

microsoft certification

547

microsoft money

1,101

microsoft work

517

microsoft window update

1,094

microsoft clip art gallery

485

microsoft project

1,054

microsoft picture it

451
Source: compiled by the editor from various references; see credits.

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Modern Translation: MICROSOFT

Language Translations for "MICROSOFT"; alternative meanings/domain in parentheses.

Chinese 

  

微软, 微軟 . (various references)

   

German

  

Microsoft, Microsaft. (various references)

   

Korean 

  

마이크로소프트. (various references)

   

Pig Latin

  

icrosoftmay.(various references)

   

Russian 

  

микрософт. (various references)

Source: compiled by the editor from various translation references.

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Misspellings: MICROSOFT

Misspellings

"MICROSOFT" is suggested in spellcheckers for the following: Microsft, Microsof, microsofts, Micrososft, Mircosoft. (additional references)

Source: compiled by the editor, based on several corpora (additional references).

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Anagrams: MICROSOFT

Scrabble® Enable2K-Verified Anagrams

Words within the letters "c-f-i-m-o-o-r-s-t"

-1 letter: comforts.

-2 letters: comfits, comfort, motoric, octrois, osmotic.

-3 letters: comfit, crofts, formic, fortis, micros, motifs, motors, octroi, sitcom.

-4 letters: coifs, coirs, coofs, coots, corms, croft, firms, first, foist, foots, forms, forts, frits, frost, micro, moist, moors, moots, morts, motif, motor, omits, osmic, rifts, riots, roofs, rooms, roost, roots, rotis, rotos, scoot, scrim, stoic, storm, tiros.

 Words containing the letters "c-f-i-m-o-o-r-s-t"
 

+1 letter: conformist, discomfort.

 

+2 letters: conformists, discomforts.

 

+3 letters: conformities, discomforted.

 

+4 letters: confirmations, conformations, discomforting, disconformity, nonconformist.

 

+5 letters: discomfortable, fibrosarcomata, inconformities, mortifications, nonconformists, unconformities.

Source: compiled by the editor from various references; see credits.

SCRABBLE® is a registered trademark. All intellectual property rights in and to the game are owned in the U.S.A and Canada by Hasbro Inc., and throughout the rest of the world by J.W. Spear & Sons Limited of Maidenhead, Berkshire, England, a subsidiary of Mattel Inc. Mattel and Spear are not affiliated with Hasbro.

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INDEX

1. Crosswords
2. Usage: Modern
3. Usage: Commercial
4. Images: Digital Art
5. Quotations: Non-fiction
6. Quotations: Spoken
7. Usage Frequency
8. Names: Company Usage
9. Expressions
10. Expressions: Internet
11. Translations: Modern
12. Abbreviations
13. Acronyms
14. Derivations
15. Anagrams
16. Bibliography


  

Copyright © Philip M. Parker, INSEAD. Terms of Use.