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Preparing a Comprehensive Case Analysis, Part 1

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Assignment 1: Preparing a Comprehensive Case Analysis, Part 1
BUS 490: Business Policy

Identify The Firm’s Existing Objectives and Strategies Sony has been going through a restructuring program the past few years under the new CEO Kazuo Hirai. Hirai states that fiscal 2014 will be the last year in the three-year plan he presented when he was appointed president, so that in fiscal 2015 the company can transition to a three year growth period and deliver stable profits. (Hirai, K. 2014, para. 3) Sony has had much criticism because the company has had losses for two years in a row now. It is vital that the restructuring program be completed FY2014 and a gain be shown in FY2015. In Sony’s 2014 strategy report CEO Hirai discusses three areas: “the reform of Sony’s electronics business structure,” “fiscal 2014 key initiative to be executed in core businesses,” and “new technology development and measures for new business creation leading to growth from FY2015.” (Hirai, K. 2014, para. 5) These topics are key elements that will help Sony continue to thrive amongst its competitors once again. Increased competition and advancements in the electronic world has left Sony struggling to keep up. Completion of Sony’s Electronic Business Structure is vital in the company’s success. This structure focuses on Sony’s PC & TV businesses. Due to significate losses in the PC business the last two years and the changing market environment, Sony decided to withdraw from this business. In regards to Sony’s TV business, they plan to launch Sony Visual Products Inc. starting on July 1, 2014, which will reduce cost and execute a 4K strategy, while working to establish a speedy more flexible operation. Sony believes its TV business will return to Black the next fiscal year. Sony’s turnaround for their electronic business is behind schedule, while the entertainment and...

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