Sony problem

Candidate Number: 398010008 Candidate Name: Kamyar Hosseini

Is Sony's choice to sell Vaio division a good financial decision?

Name: Kamyar Hosseini

CBE number: 39801008

October 2014

Introduction:

Sony Corporation is a Japanese multinational corporation headquartered in Tokyo, Japan. It's primarily focused on the electronics, game, entertainment and financial services sectors. VAIO Corporation (Visual Audio Intelligent Organizer) is a manufacturer of personal computers that was originally a brand of Sony Corporation, introduced in 1996.

Sony Corporation has experienced loss in four years out of six because of its electronics division, and the loss lead the corporation to have negative net income until 2014. Although they collected profit in year 2013 and 2010, they also forecasted 30 billion profit in 2014, but then again the company announced that they would lose $1.1 billion until the end of March 2014. A shrink in laptop market caused a lot of companies as well as Sony to think about focusing more on tablets and smartphones because of its emerging trend, so Sony had sold its PC division to a Japanese investment firm.

[1: Sony annual report, Annual Report. Available from: http://www.sony.net/SonyInfo/IR/financial/ar/Archive.html [Oct 3rd 2014]]

This commentary will evaluate that if Sony's judgement was a financial decision using cash flow forecast, gross profit margin, net profit margin, and opportunities that has been recorded due to Sony's place in different markets.

SWOT analysis for Sony Corporation