CASE STUDY 2

Welcome to the World of Sony—Unless the Falling Yen Rises Again

1.0 Case Summary

This case study about the Sony company. Sony was one of the world's most successful
and innovative electronics companies. It began business. Later, when other companies compete
against it and launch new innovative products, it failed to meet customer requests. In 2005, by
naming an American citizen as the Japanese business president, Sony agreed to change its
strategy. This dispute was aimed at returning Sony to a system of cost cutting and reinvention
of reorganizations, which was deemed necessary due to frequent losses and benefit decline.
2.0 Problem Identification
2.1 Problem 1 (Competitive pressures)
Sony was one of the world's largest businesses for consumer goods, computers, music
and film through these decades of currency fluctuations. It won a premium in the
market with a wide range of product innovations; then the competition started to enter.
The price has risen because last year since Samsung started to establish its own name
in technology engineering. Asian firms such as Samsung are making affordable goods.
In order to further increase their cost advantage Samsung and other international
competitors have begun setting up offshore plants, especially in China.

2.2 Problem 2 (Global economic crisis)

With Japan's interest rates too low in 2008, many investors lent yen and invested money
outside Canada to generate greater profits, money flew out of emerging economies
quickly and returned to Japan as the crisis hit, and the role of the yen in the crises as
the security currency.
3.0 Alternative Strategies
3.1 Problem 1 (Competitive Pressure)
3.1.1 Alternative Strategies
3.1.1.1 Alternative One
Industrial rivalry refers to the already established intensity of competition in a given
market. These companies oppose each other and try to leverage any competitive
advantage. This usually means price wars, weakness campaigns and product launches
that focus on new characteristics or overall quality.

3.1.1.2 Alternative Two

In some cases, companies that used to be competitors have learnt that cooperation can
benefit each other. It is often viewed as a takeover one company merged by another
which may sometimes feel like a joint alliance in which the integrity of two companies
continues.

3.2 Problem 2 (Global Economic Crisis)

3.2.1 Alternative Strategies
3.2.1.1 Alternative One
Unconventional monetary measures may provide a space for responding to crises
through negative rates, forward guidance pledges to keep rates below the inflation
target or policy guidelines, or any other innovation, longer than justified. However, with
the effectiveness of these ideas at best unsure, the power of monetary policy is cause
for concern.

3.2.1.2 Alternative Two

Importance in planning and intervention multilaterally. Institutions such as the IMF have
played a crucial position in crisis prevention and the world economy. A consistent reform
process needs to be continued in order to respond effectively to these challenges.
4.0 Evaluation of Alternative Strategies
4.1 Problem 1 (Competitive Pressure)
4.1.1 Alternative Strategies
4.1.1.1 Alternative One (Industry Rivalry)
Advantages/Positive Outcome
Sony would stick out from the crowd because Sony has rivals. A competitor means that
Sony needs to find creative ways of making a difference. Perhaps a new idea with a
different angle is being looked at professionally.

4.2 Problem 2
4.2.1 Alternative Strategies
4.2.1.1 Alternative One
Advantages/Positive Outcome (Unconventional Monetary)

Overall economy enhancement of the solvency position of defined contribution pension

plans and their members to combat any deleterious impact on yield scope from low
interest rates

4.2.1.2 Alternative Two (Planning and Intervention Multilaterally)

Advantages/Positive Outcome
It is essential that the processes of IMF development across the range of lending,
analytical and research activities continue to meet our core role of promoting global
economic growth and stability faced with discontent with multilateralism in some
advanced economies. It would become all the more relevant because there are
inadequate national government resources to tackle a crisis.
5.0 The Best Strategy and Justification
5.1 Problem 1
5.1.1 Alternative Strategies
5.1.1.1 Alternative One (Industry Rivalry)

The competition and high exit costs are high. Rivalry is high It is also difficult for companies in
the global consumer electrical industry to comply with the main factors affecting the ongoing
research and development, innovation, pricing, quality, brand image and services and
marketing. It is also difficult. In addition, the short product life cycle and the need to develop
new products are other challenges Sony Corporation always needs to work with, especially
when you have this high competitive environment.

5.2 Problem 2
5.2.1 Alternative Strategies
5.2.1.2 Alternative Two (Planning and Intervention Multilaterally)

Committed to enhancing the life of all peoples of the planet and to achieving a more equitable
share of the economic gains of globalization and technology. It is an imperative goal and one
aspect is to insure that potential disasters are avoided and to respond to the next crisis
effectively. It is a realistic and proactive means of addressing social mistrust and creating a
stable and sustainable future.
6.0 Implementation

6.1 Problem 1
6.1.1 Alternative Strategies
6.1.1.1 Alternative One (Industry Rivalry)

Short Term implementation

Other issues Sony Corporation always needs to deal with are the necessity to develop new
products, particularly when the high competitive environment lies at you; the rate of growth is
slow and thus the intensity of competition increases.

Long Term implementation

It is also difficult for companies in the global consumer electrical industry to comply with the
main factors affecting the ongoing research and development, innovation, pricing, quality,
brand image and services and marketing. It is also difficult.

6.2 Problem 2
6.2.1 Alternative Strategies
6.2.1.2 Alternative Two (Planning and Intervention Multilaterally)
Short Term implementation
The most challenging aspect of strategic strategy is perhaps the development of short-term
priorities and objectives over the next three to five years. For the next three years, what are
the total amount of beneficiaries? Short-term priorities help guide to discourage you from
making optimistic job schedules for workers that are not accomplished and will not relate
positively to the long-term perspective.

Long Term implementation

Objectives are worthless without accountability. Depending on the strategic strategy, priorities
and mission strategy, company annual plans are created. Group members will generally make
their own proposals for the team. They will then establish monthly workplans and rely on how
the management sees fit to add monthly goals to them.
7.0 Conclusion
In conclusion, Sony's company is increasingly vulnerable to volatility in the market, such as
currency exchange rate fluctuations, interest rates and asset prices. While Sony tries to reduce
exchange risk through avoidance of a portion of the currency risk before the transactions occur,
this risk prevention operation may not outweigh any adverse exchange rate changes or only
slightly negative financial effects over a limited period of time during which hedges operate.

In areas outside Japan to minimize the impact of exchange fluctuations on their financial
results, especially in the electronic segments, Sony is trying if appropriate to locate the design
and production operations, materials and components acquisition. Sony is a good company,
Sony has created many decent and high-quality products. Although it has, by itself, been
difficult for Sony, especially to address the problems to survive, like diverse operating locations,
a global sales-orientated market, a cut in suppliers' orders, sell more to improve profit margins
or return dividends from elsewhere to Japan.

Sony also found many solutions to overcome these problems. Sony has been successful
because of its tremendous efforts to tackle this issue, which can then be linked to factors like
strong goods and the effective financial risk management. Sony's continued battle isn't because
of the products it makes as one of the strongest items actually sold by the consumer electronics
industry. Their wars are attributed to Japan 's inability to discourage it from consolidating its
currency.

To order to prevent financial issues and focus upon through revenue, Sony must ensure reliable
cash flows. Depending on global demand, their operating sensitivity to exchange rates and the
world economy is increasing. New financial approaches will be built to reduce macroeconomic
risks. The economic scenario in conjunction with the US-China trade war is expected to
contribute to the intensity of the dollar, which impacts Sony's profits. Sony's policy not will in
the mid-term 2018-2020 but also 2021 take appropriate preparation and intervention to address
the deficit due to the heavy yen.