b. Sony has reported to have a net loss of ¥128.4 billion in 2014. Due to the strong competition in this smartphone sector from global rivals such as Apple and Samsung, this electronic giant has been losing its competitive power and starting to lose money. Besides, Sony is losing its ground in …show more content…
We believe that Sony intended to pay lesser interest expense for its debt. Thirdly, Sony’s total liability has increased for ¥100billion from 2013 to 2014. This shows that Sony needs external financial assistance to finance its corporate.
c. Sony has been making loss in 2014 for a reason which is their bad management structure. Based on the management function, Sony had a problem in developing strategy to coordinate activities, which is the lack of focus on the business. From 60,000 feet Sony’s two major business areas, which are, entertainment and consumer electronics look like there would be synergies between the businesses. The entertainment division has had a number of impressing entertainment successes – however the success was on the topline and the bottom-line numbers were lackluster when compared to their entertainment business peers. The consumer electronics business fared far worse – the once market-dominant business is keep on losing money. …show more content…
Firstly, political factors could have a direct influence on the ways Sony operates. Government often makes new decisions involving policy or regulation which would affect a business daily operation. An example of political factors that affects Sony which includes government laws is the implementation of the minimum wage law. This would affect Sony as the minimum wage law keeps changing every year. At the same time product cost also keeps on changing, this will make Sony bear more expenses, causing Sony faces losses. Secondly, Sony is influenced by the technological factor. In order to preserve and protect the environment, Sony has improved its equipment to reduce the release of carbon dioxide. For example, the green teams is established by Sony in the UK businesses where people coordinate activities and the communication at different sites like reducing general power consumption in facilities and offices, employee travel especially flight. The next effort is done by Sony to protect the environment is introducing the dye sensitized solar cell. It can generate electricity by converting energy from light. This type of cell is manufactured by low cost materials therefore the cost of producing this cell will be lower. Furthermore, vegetable based plastic can last long and fire resistant which is suitable use for durable consumer goods. Sony has decided use this material in year 2002 for the purpose of Walkman case. After that, it has been extensively used in its different