... Welcome to the World of Sony Background: From my perspective and what I read in the textbook, Sony is falling. The textbook explains that Sony was doing very well on the electronic side if the business. Majority of Sony's revenue was from the United States and Europe, and other countries. Together the United States Europe, and other countries held 60 percent in Sony's sales. In 2009, Sony exports decrease from 70 percent of 2008 to 49 percent (2009). This drop affected production as we'll as employees. Sony also limited orders to their suppliers, which also resulted in the reducing of employees. The Strong Yen also hurt Sony’s financial statements. As Sony translates dollars and euros to yen, the dollar and euros was worth less than the yen. These are the main reason Sony has fallen. Issue: Is it possible for Sony to overcome their crisis? In my opinion, I do not think they can overcome their crises as long as the Strong yen is around. The reason is because a strong yen is seen as a disadvantage to Japan’s largely export driven economy. When the yen remains strong for an extended period of time, the Bank of Japan tries to weaken the currency through direct and indirect intervention. ANALYSIS: If it’s possible for Sony to get back on top, what does Sony have to do? Yes: In my opinion I believe if Sony has a chance to get back on top of...
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...the contraction of the U.S. And Japanese economies and the rise in the value of Yen hurt Sony's exports from Japan ? The strong rise in the value of Yen and the contraction of US economy resulted in a sharp drop in exports from Japan. The decline in exports was primarily due to a lower demand for consumer electronic products in US due to the slowing US economy, as well as the strong rise in the value of Yen relative to US dollars or Euros making the exports more expensive or less affordable for foreign countries. As exporters saw their sales and profits declining, they started cutting operating costs and slashing orders from their suppliers thus creating a ripple effect in the Japanese economy affecting both production and employment. These events and deflation caused a sharp contraction in the Japanese economy where consumers were delaying purchases in hopes that prices would continue to fall. Sony as well as other local companies were hesitant to invest more in technology and or R&D due to these uncertain conditions thus making their exports less competitive relative to competiton. 2. In what other ways has the strong yen affected Sony's bottom line ? What would be effect of a weak Yen? Exchange rate fluctuations affect Sony’s operating profitability because many of Sony’s products are sold in countries other than the ones in which they were manufactured. The strong appreciation of Yen created a negative impact on Sony's financial results as exports were invoiced in...
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...Q1. How did Sony become a diversified company? What was the rational for entering the entertainment sector? Was it a good choice? Sony first ventured into diversification in 1961 when it created Sony Enterprise Co. in order to manage the Sony building in Ginza. Gradually, Sony moved into the space of retailing, took interest in a French restaurant named Maxim’s, ventured into Sony Travel Service and also became an importer to sports equipment and luxury goods. Over a period 50 years, the company either acquired or started new subsidiaries, most of which are shown below: Year | Company (created or allied with) | Industry | 1963 | Joint Venture (JV) with CBS bought out by Sony | Entertainment | 1965 | JV with Tektronix | Measuring equipment | 1969 | Sony Magnescale | Instrumentation for magnetic scales | 1975 | JV with Union Carbide | Battery business | 1979 | Sony Creative Products | Cosmetics | 1979 | JV with Prudential Insurance | Life Insurance | 1980’s | Sony Vaio | Computers | 1989 | Acquisition of Columbia Pictures | Entertainment | 1993 | Started manufacturing digital cameras | Imagining | 1993 | Started Sony/ATV in JV with Michael Jackson | Music publishing | 1996 | Sony Computer Entertainment | Video games and consoles | 2001 | Initially JV with Ericsson, bought out by Sony | Mobile telephony | Sony’s decision to set foot in the entertainment sector possibly stems out of co-founder Akio Morita’s analogy of electronics hardware and entertainment...
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...CASE STUDY - SONY CORPORATION A record number of Sony Corporation shareholders, total 9,500, gathered in a posh hotel in Tokyo on 27th June 2012 waited anxiously for the new chief to reveal revival plan and strategies for Sony. This was Kazuo Hirai‘s first interaction with the share holders. Board of Sony Corporation had announced him as the new Chief Executive in February 2012 and he had taken over charge in April 2012. Kazuo Hirai, 51 years old new CEO, first asked the outgoing American national CEO and now the Chairman of Board Howard Stringer to talk the shareholders. Howard Stringer British born American national CEO of Sony Corporation from 2005 to 2012 deeply regretted the record loss of 457 billion yen ($ 5.75 billion) for the year 2011- 2012. According to Stringer, the poor performance of the current year was a result of the earth quake in Japan and the floods in Thailand. Shareholders became increasingly restless, one share holder shouted at the peak of his voice: ―Stringer, how can you justify your salary of $ 3 million per year. The company has been losing money since 2005 and you have been drawing such huge salaries and only talking‖. Another old share holder stated: ―the share price of Sony stock is now only 10% of Samsung‘s share price, and 2% of Apple Inc.‘s. This is your performance Howard Stringer for Sony Corporation.‖ He also questioned why Stringer had been retained as the Chairman of the Board This case has been prepared on real...
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...achieved around US$300 million in revenue last year.It is also becoming noticeable as overseas game developers are also entering Asia, including Singapore. Ubisoft and LucasArts have both opened studios in the region, and MIT has opened the Singapore-MIT GAMBIT Game Lab to educate the local population in preparation for industry jobs. And the government is in on the act, too -- with Contact Singapore, an agency designed to recruit industries, including the game industry, to the country. Key significant points and swot analysis ?? must add it in. Introduction Sony Corporation of America, based in New York, NY, is the U.S. subsidiary of Sony Corporation, headquartered in Tokyo, Japan. Sony is a leading manufacturer of audio, video, communications, and information technology products for the consumer and professional markets. Its motion picture, television, computer entertainment, music and online businesses make Sony one of the most...
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...Sony Smart TV SWOT Strengths Substantial Brand Identity Sony is a corporate brand whose identity is deeply rooted and very well established in the minds of potential customers. Interbrand valued Sony brand at $11 million. Unique Design Sony’s unique design always make it stand out from the crowd. For example, Sony 55HX853 rather than mount the TV on a pedestal, as other manufacturers do, the TV slots into a long and quite wide frame. High Quality It expertly melds together supreme picture quality for both 2D and 3D material, excellent sound quality and a strong line-up of Internet services. Customer Loyalty There was a time when the best TV buying advice you could give someone was to get a Sony. Sony’s customer loyalty is still very high even today. Help & Support Get a 10/10 rating in Help& Support in 2013 Best Internet TV comparisons and reviews. Its help & support includes telephone, one-year-warranty, FAQs, Chat support, Email, Community Forums, Service Center Locator. Global Diversification Sony products and services are available throughout the world in approximately 200 countries and territories. This diversification helps to minimize the impact of adverse conditions that may arise in any one geographic region. Weaknesses Poor Proximity of Production to Customers Sony's production facilities are located far from its customer base. Approximately 60% of the annual production in Japan must be distributed to for other regions. Not Quite...
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...competitors that Sony is facing, what other risk are Sony facing? Other than risk from competitors, Sony also faces risk such as investment in R&D does not yield the expected result as preferences of customer is changing rapidly and Sony is not able to catch up with the progress fast enough to produce product that fits the wants of consumers all over the world. The low prices and technological innovation of competitors that ahead of Sony might cause Sony inability to catch up and produce new and competitive products and services in a timely manner. Other risk that Sony is facing is also financial risk as there are continuously implementing restructuring initiatives on their investment plan such as realignment of its manufacturing sites, reallocation of its workforce and reduction of employees. These transformations are costly but they might not attain their objectives and if these initiatives are not realized as scheduled it will not only affect the level of profitability but also worsening the conditions of Sony because of market conditions. Foreign exchange rate fluctuation is also one of the risks that Sony might face and can affect Sony’s operating results and financial condition because many of Sony’s products are sold in many countries. Sony’s material cost, cost of procurement of parts and components, and cost of outsourced manufacturing services are incurred in USD and Yen. Sony’s electronics businesses, R&D and headquarters overhead costs are incurred in Yen. Foreign...
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...Comments TECH 2/09/2014 @ 9:00AM 23,771 views Forbes.com Sony Spins Off TV Business In Bid To Reconquer Market BY mark Sparrow Comment Now Follow Comments If you’re of a certain age you’ll probably remember growing up with a Sony Trinitron TV in your living room. Back in the late 1970s when I grew up in England, when Europe still produced most of its own televisions, Sony dominated the TV market with its superbly sharp Trinitron screens boasting rich blacks and saturated colours. Indeed, at one time there really was no alternative. Gradually the likes of Philips ,Hitachi , Grundig and countless other small European producers fell by the wayside, even with the help of high import tariffs to protect the European TV business. To get around this protection, Sony set up an EU television factory in the UK and soon cornered the market. For a decade or more the huge lumbering CRT screens with their shiny Sony name badges stared back at viewers. If you didn’t have a Sony it was probably because you couldn’t afford one; and that’s the way the market looked until the advent of flat-screen technology. The problem for Sony was that it was caught unawares by the sudden popularity of flat screens, perhaps because it was too busy enjoying its dominance in the conventional CRT market. Sony intends to spin off it TV business by the summer and concentrate on high quality 4K screens. Without the facility to produce its own LCD panels Sony found itself forced to buy in components from the likes...
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...Case: Anglo American PLC in South Africa (from Lesson 5) 1 Who are the various stakeholders that Anglo American needs to consider as it adopts an effective HIV/AIDs strategy? - Anglo American employees and their families - Government bodies - Non- Profit organizations (NGOs)/ World Health Organization (WHO) - Competitors/ Other large mining concerns or companies operating in South Africa - Pharmaceutical companies - National Union of Mine Workers - Financial Institutions - Shareholders 2 What are the pros and cons of Anglo American’s adoption of an aggressive strategy in combating HIV/AIDS among its South African workforce? What recommendations would you give the company concerning its HIV/AIDS policy? Pros: - Prevented further operating loss and increased productivity. - Bright future as government started national strategic plan to combat HIV/AIDS. - By adopting the strategy, the company achieves trust and commitment from ethical minded shareholders. - It got good response from WHO, Global business council for HIV/AIDS and other NGOs, this makes the company a socially responsible organization in Global business. - It became a trend setter for other major companies operating in South Africa, thus gaining a goodwill among other companies Cons: -This program had spiraling costs for the company as the distribution of the medicines remained high. - It was unable to determine if its efforts are making a difference in underlying problem as one...
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...How Sony Playstation has Applied the 10 Operation Management Strategies Kenneth Turner GM583 Operations Management June 19, 2011 Table of Contents Abstact 1. Background 1. Problem Formulation Discussion 2. Analysis 5. Reflection 7. Recommendation 8. Appendix 9. References 10. Abstract Even though the Sony Playstation is a leader in their market, they still have the problem of the Japanese yen being more valuable than their foreign country’s currency, and the location of their manufacturing facilities being too far from their customers. This contributes to the increased cost of quality of them having to transport the materials, and finished products to and from the manufacturing facility. Also the cost of imports and exports is not as valuable for them because of the value of the American dollar, or the European pound compared to the Japanese yen. (Sony Corporation SWOT Analysis, 2010) As an Operations Management Consultant, I have been asked to present a paper to Sony Corporation on how they have applied the Ten Operation Management Strategies to successfully achieve their financial, social, market place dominance, cultural influence, international presence, and successful application of quality principals to successfully achieve their objectives in America. Background The Sony corporation is one of the largest consumer electronics makers...
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...TABLE OF CONTENTS 1.0 MULTINATIONAL FINANCIAL MANAGEMENT (SONY CORPORATION) 2.1 Main business of the Sony Corporation 2.2 Goal of the Sony Corporation 2.3 International business methods used by Sony Corporation 2.4 Expectation to expand to another countries, opportunities to expand and risk of pursuing new business in another countries 2.0 INTERNATIONAL FLOW OF FUNDS 3.5 List countries of Sony Corporation export products 3.6 Sony Corporation export business by recent changes in the factors that can affect the degree of international trade 3.0 INTERNATIONAL FINANCIAL MARKETS 4.7 Foreign exchange market used by the Sony Corporation 4.8 The Sony Corporation issues stock in foreign countries 4.0 EXCHANGE RATE DETERMINATION 5.9 Currencies that the Sony Corporation uses to conduct its international business 5.10 The trends in the main foreign currencies used by the Sony Corporation and affected by changes in the values of these currencies 5.0 FINANCING INTERNATIONAL TRADE 6.11 Types of payment methods to pay for imports 6.12 Types of trade finance method 1.0 MULTINATIONAL FINANCIAL MANAGEMENT 2.1 MAIN BUSINESS OF THE SONY CORPORATION Sony is engaged in the development, design, manufacture and sale of various kinds of electronic equipment, instruments and devices for consumer, professional and industrial markets as well as game hardware and software. Sony’s...
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...and capabilities. 3.2 Why Sony is growth successful in the competitive consumer electronics industry. 3.3 As a non-typical Japanese enterprise, comment on the role played by Sony’s corporate cultural. 3.4 Sony’s background from 1987 to 2003. 3.5 Outline Sony’s strategies in including internationalisation and diversification. 3.6 Use Ansoff Matrix to evaluate Sony’s strategies. 3.7 Why was internationalization so important? 3.8 Sony’s strategy changes involved to be evolutionary. 4.0 CONCLUSION 5.0 REFENERCES 1.0 INTRUDUTION Sony was founded in 1946. One of Sony’s founders Akio Morita deems that “made in Japan” from contemptuous sentence become a compliment one, Sony contributed a lot. The purpose of my report is to analyse Sony’s resources, competencies and capabilities to explain its success, and evaluate Sony’s strategies including internationalization and diversification from 1987 to 2003. 2.0 PROCEDURE Material was collected from of Sony case study, media websites, economy magazines and books. 3.0 FINDINGS 3.1 Sony’s resources, competencies and capabilities. Sony’s resources have different sections. The first of all, Sony’s leader is excellence who founded this corporation. Masura Ibuka and Akil Morita are outstanding founders of Sony. They make a great contribution to Sony including solve the problems of Sony’s growth in the future and development. In addition, Sony was also hired non-Japanese manager...
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...CHAPTER 1 INTRODUCTION TO INTERNATIONAL ACCOUNTING Chapter Outline I. International accounting is an extremely broad topic. A. At a minimum it focuses on the accounting issues unique to multinational corporations, especially with respect to foreign operations. B. At the other extreme it encompasses the study of the various functional areas of accounting in all countries of the world, as well as the activities of a number of supranational organizations. C. This book provides an overview of the broadly defined area of international accounting, with a focus on the accounting issues encountered by multinational companies engaged in international trade and invested in foreign operations. II. There are several accounting issues encountered by companies involved in international trade. A. One issue is the accounting for foreign currency-denominated export sales and import purchases. An important issue is how to account for changes in the value of the foreign currency-denominated account receivable (payable) that occur as exchange rates fluctuate. B. A related issue is the accounting for derivative financial instruments, such as forward contracts and foreign currency options, used to hedge the foreign exchange risk associated with foreign currency transactions. III. There is an even greater number of accounting issues encountered by companies that have made a direct investment in a foreign operation. These issues primarily result from the fact that GAAP...
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...CHAPTER 1 INTRODUCTION TO INTERNATIONAL ACCOUNTING Chapter Outline I. International accounting is an extremely broad topic. A. At a minimum it focuses on the accounting issues unique to multinational corporations, especially with respect to foreign operations. B. At the other extreme it encompasses the study of the various functional areas of accounting in all countries of the world, as well as the activities of a number of supranational organizations. C. This book provides an overview of the broadly defined area of international accounting, with a focus on the accounting issues encountered by multinational companies engaged in international trade and invested in foreign operations. II. There are several accounting issues encountered by companies involved in international trade. A. One issue is the accounting for foreign currency-denominated export sales and import purchases. An important issue is how to account for changes in the value of the foreign currency-denominated account receivable (payable) that occur as exchange rates fluctuate. B. A related issue is the accounting for derivative financial instruments, such as forward contracts and foreign currency options, used to hedge the foreign exchange risk associated with foreign currency transactions. III. There is an even greater number of accounting issues encountered by companies that have made a direct investment in a foreign operation. These issues primarily result from the fact that GAAP...
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...decisions and actions undertaken by the upper echelon of the organization in order to accomplish performance goals is called strategy [1]”. From the case study we get a fantastic idea about how a business plan should be made and executed to sustain the highly volatile and oligopolistic market (few sellers with uniform/non-uniform product). I will discuss about these strategy of Nintendo here. Assessment of current strategy: Though Nintendo is a big and renowned video game publisher from the very early age of video games in Japan, it captured 80% of USA games market a few years later than Japan. Before reaching the big USA market they made an outstanding plan for positioning their product with care and consciousness. While other companies like Sony and Microsoft made a mess among their business strategy Nintendo did well by making careful relation between software and hardware, uniform distribution as well as quality assurance of the product. Target market and market research are important tools for forecasting business policy. While other companies confined their market within the consumer range of 13 to 30 years, Nintendo expanded their customer market within different ages starting from 10 to 55 years. This huge market of gamers allowed them to earn more profit and overrun other industries. Development of new product is also important. Sometimes companies take proposals from outside for new product and idea. However the employees are the greatest source of new ideas. Consumer...
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