Winner in the 'Human Resource Management / Organizational Behavior' category in the ecch Case Awards 2012, organized by ecch, UK

Sony Corporation - Future Tense?

Sony Corporation - Future Tense?
Case Code: HROB130
Case Length: 19 Pages
Period: 2005-09
Pub Date: 2010
Teaching Note: Available
Price: Rs.500
Organization: Sony Corporation
Industry: Consumer Electronics
Countries: Japan
Themes: Corporate Culture, HR Restructuring, Leadership
Sony Corporation - Future Tense?
Abstract Case Intro 1 Case Intro 2 Excerpts

Sony Reports Loss

In May 2009, Japan-based multinational conglomerate, Sony Corporation (Sony) announced that it had posted its first full year operating loss since 1995 and only its second since 1958, for the fiscal year ending March 31, 20092.

Sony announced an annual loss of ¥ 98.94 billion; with annual sales going down by 12.9% to ¥ 7.73 trillion (Refer to Exhibit I for Sony's consolidated statements of income and Exhibit II for Sony's balance sheets for the financial years 2005 to 2009).

The company, which had reported a net profit of ¥ 369 billion for 2008, also warned that with consumers worldwide cutting back on discretionary spending in light of the recession, the losses could touch ¥ 120 billion for the year ending March 2010.

Sony had been a dominant player in the global consumer electronics industry since its inception in Japan in 1946. Over the years, it had introduced some path-breaking products including the Walkman and the PlayStation. However, by the early 2000s, it had lost its leadership position in some of its key products like televisions and media players.

In fiscal 2009, almost all its product lines were reporting losses (Refer to Exhibit III for operating income/loss by business segments of Sony Corporation).....

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