Executive Summary:

Faced with major losses from operations, Sharp Corporation’s president, Mikio Katayama, questioned the whether it was necessary to reform the current business operating model. Sharp’s current operating model contained several flaws. It placed sensitive, high-value-added operations such as research, development, and component manufacturing near its headquarters in Japan. Faced with threats such as intense industry competition, currency risks, very high transportation and utility costs, and extremely high infrastructure costs and high corporate tax rates, Sharp Corporation needs resources in the forms of new methods, technology, and approaches to doing business in the modern world. It is recommended that the company remodels their operating model in order to emphasize cooperation with other firms. Cooperation with other firms can take place in many forms, such as partnerships and joint ventures, and provides firms with many advantages. Sharp will greatly benefit from cooperative agreements since they are cost effective, provide financial support, and allow for more creative brainstorming. In addition, the economic risk is shared, and firms may help each other to tap into new technologies, methods, and approaches. Sharp Corporation needs outside help in order to achieve a turnaround. Joint ventures and partnerships with other firms open up the venue for such need.

Problem Statement:

Sharp Corporation is currently struggling with its financial position, aiming to achieve a turnaround in order to increase their sales revenue, capital, and finance, and ensure a sustainable future. The decision maker in this case, Mikio Katayama, President of Sharp Corporation, must reconsider the current operating model and develop an approach that is more suitable for current industry conditions.

Analysis:

In order to identify the underlying causes