Presentation Sony

7/30/2019 Presentation Sony

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IMCOST COLLEGETHANE (W)

S.Y.M.M.S 3RD SEM (2013-14)

SUBJECT:

STRATEGY MANAGEMENT

PROJECT REPORT

stratergy management of sony

UNDER GUIDANCE OF

PROF. CHITNIES

SUBMITTED TO

Institute of Management & Computer Studies (IMCOST


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Project Done By:

Jeetendra Chaurasia - 4

Rohit Gupta 12

Vishesh Rane 24

Siddesh Shinde 28

Amol Jadhav -41Utkarsh Arya - 63

Girish choure 69

Jyoti Sansi 86

Pranav shetty 90

Pranali sirsat -94

Amit rane - 113

2


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Sony Corporation has been a leader in motion picture, television,

computer entertainment, music and online businesses.

In the past year, annual sales in the fiscal year end of March 31,

2008 estimated $88.7 billion, and it employs 180,500 people

worldwide.

With a high level of brand awareness amongst most consumers,

Sony has become a widely recognized global brand.

The company operates globally in over 204 countries across Japan,

North America, Europe, and Asian countries


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Our marketing team is focused on increasingsales for Sonys electronic products, as well

deliver corporate value to their customersand partners. Because the electronicconsumer market is such a large industry,there is a great opportunity for Sony tocapture a large share of this market, despitethe economic down turn in the U.S.


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Sony has experienced declining sales in consumerelectronics, which in-turn, has forced the company to

respond to the declining unit price. Overall, this has resultedin size reduction of TV screens, as well as fierce price-

cutting competition.

Elimination of more than 16,000 jobs, and a shutdown of a total ofsix production bases.

Joint-ventures including Sony Ericsson Mobile Communications &

Samsung LCD panels.

Price increases in both raw materials and parts will be a challenge tomanufacture electronic devices and maintain competitive pricing.


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Profit & LossYear Ended

31 March 2013 2012 2011 2010 2009JPY millionsTurnover 6800.0 6493.0 7181.0 7213.0 7729.0Operating

Profit 237048.0 54422.0 185759.0 62007.0 -202674.0Net Interest -4670.0 -8331.0 -12126.0 -9314.0 -2059.0Profit Before

Tax 245681.0 -83186.0 205013.0 26912.0 -174955.0Profit After

Tax104176.0 -398425.0 -220326.0 12954.0 -102214.0

Total

Dividend n/a n/a n/a n/a n/aRetained

Profit / Loss n/a n/a n/a n/a n/a


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Balance SheetYear Ended 31

March 2013 2012 2011 2010 2009JPY millionsIntangible Assets 1440.0 1350.0 1135.0 817786.0 840306.0Tangible Assets 861550.0 930998.0 924868.0 1007.0 1175.0Fixed Investments

7317.0

6319.0

5892.0

5299.0

4798.0

Total Fixed Assets 10559.0 9540.0 9067.0 8733.0 8392.0Stocks 710054.0 707052.0 704043.0 645455.0 813068.0Debtors n/a n/a n/a n/a n/aCash at Bank and in

Hand 826361.0 894576.0 1014.0 1191.0 660789.0Total Assets 14206.0 13295.0 12911.0 12866.0 12013.0Creditors Amount

Within 1 year 4070.0 4119.0 3178.0 2958.0 3359.0Creditors Amount

After 1 year 5894.0 5208.0 4701.0 4359.0 4137.0Total Liabilities 11522.0 10785.0 9955.0 9580.0 8796.0

Net Assets 2684.0 2510.0 2955.0 3285.0 3216.0Net Current Assets n/a n/a n/a n/a n/aCalled Up Share

Capital 630923.0 630923.0 630921.0 630822.0 630765.0Share Premium

Account n/a n/a n/a n/a n/aOther Reserves 464546.0 313506.0 350792.0 484079.0 416937.0Profit and Loss

Account 1102.0 1084.0 1566.0 1851.0 1916.0Shareholders Funds 2197.0 2028.0 2547.0 2965.0 2964.0


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Key FiguresYear Ended 31

March 2013 2012 2011 2010 2009Earnings Per Share

Basic JPY0.43 n/a n/a n/a n/a

Earnings Per Share

Diluted JPY 0.40 n/a n/a n/a n/aEarnings Per Share

Adjusted JPY 0.43 n/a n/a n/a n/aEarnings Per Share

Growth (%) n/a n/a n/a n/a n/aTotal Dividend JPY0.25 0.25 0.25 0.25 0.25Operating Margin

(%) 3 1 3 1 -3ROCE (%) 9 -3 6 1 -5Dividend Cover 1.71 -18.20 -10.35 -1.63 -3.94Dividend Yield n/a n/a n/a n/a n/aPrice / Earnings

Ratio 3754.80 n/a n/a n/a n/aDividend Per Share

Growth (%) n/a n/a n/a n/a n/a


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12 months ended

Mar 31,

2012

Mar 31,

2011

Mar 31,

2010

Mar 31,

2009

Mar 31,

2008

Mar31,

2007

Consumer Products & Services 37,246 45,359 39,103 41,041 49,046

Professional, Device & Solutions 11,773 12,827 11,618 17,873 21,167

Pictures 7,983 7,212 7,580 7,304 8,563

Music 5,241 5,505 5,493 3,940 2,282

Financial Services 10,573 9,603 9,010 5,479 5,800

Sony Mobile 946

All Other 4,600 4,544 4,083 8,942 9,726

Corporate and elimination 642 1,315 649 (5,887) (8,038)

Sales and operating revenue,customers

79,002 86,365 77,537 78,693 88,546
http://www.stock-analysis-on.net/Knowledge-Base/Revenueshttp://www.stock-analysis-on.net/Knowledge-Base/Revenueshttp://www.stock-analysis-on.net/Knowledge-Base/Revenueshttp://www.stock-analysis-on.net/Knowledge-Base/Revenues


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Mar 31, 2012 Mar 31, 2011 Mar 31, 2010 Mar 31, 2009 Mar 31, 2008 Mar 31, 2007

Current ratio 0.83 0.93 1.02 0.95 1.25 1.28

Quick ratio 0.56 0.63 0.66 0.52 0.65 0.75

Cash ratio 0.35 0.40 0.44 0.30 0.38 0.36


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Current ratio = Current assets Current liabilities

= 45,686 55,116 = 0.83

Quick ratio = Total quick assets Current liabilities

= 30,995 55,116 = 0.56

Cash ratio = Total cash assets Current liabilities

= 19,169 55,116 = 0.35


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in 2010, Sony made a loss of 40,802 million yen. This has

been an improvements from 2009's 98,938 million yen loss.

The decrease in the loss can be attributed mainly to the

decreased cost of sales (decreasing about 600.000 million yen

during 2009-2010)

However, total receipts has not seen any dramatic change and

reflect the fact that consumer spending on Sony's goods are

still weak, especially when comparing it to the pre financial

crisis figures(difference of 1,200,000 million yen) Overall, the profit/loss position of Sony is recovering

according to the profit and loss account presented by the

company and this may create some confident amongst the

investors which can bring in more funds for Sony to increasetheir operations.


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During the past 5 years, there is a steady increase in thetotal amount of asset within the company, especially inthe investments. Cash and other current assets have beenhit by the economic crisis of 2008 but in 2010, Sony was

able to replace the lost cash and even increase it by about200.000 million yens since before the financial crisis.

In addition, there is a steady decline in the tangible fixedassets, showing the cost-cutting efforts made by Sonyduring the period of 2006-2010, creating a net decline of

300.000 million yen in the tangible current assets Therefore, Sony has been able to increase its assets

steadily over the years


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Cash flow in Sony has seen many ups and downsduring recent years (2006-2010) however, in2010, the company made a very positivedramatic cash flow impact, from more than -420,000 million yen to 530,000 million yen.

This improvement is due to an increase in overall

cash inflows (probable due to less customersusing credit card (need clarifications)) and adecrease in cash outflow.


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Decline in product competiveness

Inefficient manufacturing structure Consumer Satisfaction Huge competitors in every business at every

level (consumer electronics, music industry,movies, games)

Low PBR (price-to-book ratio)


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LCD TVs are Sonys leading revenue driver

At a disadvantage since they dont make LCD

panels (all their competitors do) Toshiba and Sharp top competitors in Japan

Panasonic net income, profit, operating profit

ALL increased in fiscal year 2007-2008

Sony operating income down 57.2% for sameperiod


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Sony will have to retool their products, and overall marketingattitudes to suit different demographics, and capture the growthopportunities in technology developments .

Decrease the number of materials and parts required tomanufacture, and keep costs down.

Bring a strong presence to e-products & innovative devices, whichwill provide an opportunity to capture a large share of theelectronic market.

Computer/handhelds & Peripherals.

Digital Cameras & Camcorders

Mobile Phones

LCD Televisions

Semiconductor Innovation.


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Presentation Sony

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