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Everything about Sony Corp.
Everything about Sony Corp.
Everything about Sony Corp.
Everything about Sony Corp.
Everything about Sony Corp.
Everything about Sony Corp.
Everything about Sony Corp.
Everything about Sony Corp.
Everything about Sony Corp.
Everything about Sony Corp.
Everything about Sony Corp.
Everything about Sony Corp.
Everything about Sony Corp.
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Everything about Sony Corp.

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Analysis of Sony Corp. …

Analysis of Sony Corp.
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  • 1. SONY – make.believeSONY – make.believeSUBMITTED TO:Dr. Michael J. Barnes,Professor & Dean,Jindal Global Business SchoolAnalysis of SONY Corp.By- Maneesh Garg (20110025) “11jgbs-mgarg@jgu.edu.in”01-Dec-11
  • 2. SONY – make.believe 2011Table of content1. About SONY Corp.:2. Functioning In India3. Brief History4. Major competitors of SONY5. Research & Development6. Financial Highlights7. Stock Analysis of SONY8. Ownership and Distribution of Shares9. Stock Price (in $) trend NYSE of SONY (December’10 to Dec’11)  NYSE  SONY_Corp.10. Beta value for Jan’11 to Dec’1111. Major Financial indicators of SONY Corp.12. Conclusion  Points in Favour  Points not in favour13. Recommendation14. References By- Maneesh Garg (20110025) “11jgbs-mgarg@jgu.edu.in” 1
  • 3. SONY – make.believe 2011About SONY Corp.:SONY CORPORATION is a Japan-based company mainly engaged in the manufacture and saleof electronic products. This is a company of 168,200 employees(as of March 31, 2011).The major products company manufacture areAudio- Home audio, portable audio, etc.Video- Video cameras, digital still cameras, and DVD-Video players/recorders, and Digital-broadcasting receiving systemsTelevisions- LCD televisionsInformation and communications- PC, printer system, broadcast and professional useaudio/video/monitors and other professional-use equipmentSemiconductors- LCD, CCD and other semiconductorsElectronic components- Optical pickups, batteries, audio/video/data recording media, anddata recording systemsSONY Corp. has seven business segments. Manufactures and sells televisions, The Consumer cameras, audio videos, semiconductors, 1. Professional Device batteries, data recording systems and (CPD) segments other industrial equipment. Designs, develops, and sells game The Network consoles, game software, personal 2. Products Service computers (PCs), personal navigation (NPS) segment systems and portable audio devices. 3. The Movie segment Produces movies and television programs. Produces and sells music software and 4. The Music segment animation work. Provides life and non-life insurance The Finance 5. services, banking services and credit segment finance services. The Sony Ericson operates mobile phone business 6. segment provision of Blu-ray disks, network 7. The Others segment services and advertising agency services. By- Maneesh Garg (20110025) “11jgbs-mgarg@jgu.edu.in” 2
  • 4. SONY – make.believe 2011Functioning In IndiaOne of the most recognized brand names in the world today, Sony Corporation, Japan,established its India operations in November 1994, focusing on the sales and marketing of Sonyproducts in the country. In a span of 15 years Sony India has exemplified the quest for excellencein the world of digital lifestyle becoming the country’s foremost consumer electronics brand.With relentless commitment to quality, consistent dedication to customer satisfaction andunparalleled standards of service.With brands names such as BRAVIA, BRAVIA Theatre, Cyber-shot‚ Handycam®, VAIO,Walkman®, Xplod, Memory Stick™‚ PlayStation®. Sony has established itself as a value leaderacross its various product categories of Audio/Visual Entertainment products, Information andCommunications‚ Recording Media, Business and Professional products.In India, Sony has its footprint across all major towns and cities through a distribution networkcomprising of over 5000 dealers and distributors, 240 exclusive Sony outlets and 19 directbranch locations. Manned by customer friendly and informed sales persons, Sony’s exclusivestores ‘Sony Centre’ are fast becoming the most visible face of the company in India.Sony India also has a strong service presence across the country with 20 company owned and190 authorized service centres and 16 exclusive demonstration centres. A distinctive feature ofSony’s service is its highly motivated and well-trained staff that provides the kind of attentiveand sensitive service that is rare today.Brief History By- Maneesh Garg (20110025) “11jgbs-mgarg@jgu.edu.in” 3
  • 5. SONY – make.believe 2011Sony’s humble beginning started in Japan in 1946 from the sheer determination and hard workof two bright and enterprising young men. Both Masaru Ibuka and Akio Morita joined hands inmaking their dream of a successful global company a reality. Learn more about who we are andwhat we do in this section. It was in 1946 that Masaru Ibuka and Akio Morita together with a small team of passionate and committed group of employees started to build “Tokyo Tsushin Kenkyujo” (Totsuko), or “Tokyo Telecommunications Research Institute” into the billion dollar global conglomerate that it is today. The main objective of the company was to design and create innovative products which would benefit the people. From early attempts at creating products like the rice-cooker to the later success of creating Japan’s first magnetic recorder, the innovative company went on to create other hit products which won the company widespread recognition and international acclaim as a truly global company known for its quality and innovative products. Significant product milestones included Japan’s first transistor radio (1955), Trinitron colour television (1968), Walkman personal stereo (1979), Handycam video camera (1989), PlayStation (1994), Blu-ray Disc recorder (2003) and PlayStation 3 (2006). The company name of Sony was created by combining two words of “sonus” and “sonny”. The word “sonus” in Latin represents words like sound and sonic. The other word “sonny” means little son. Used in combination, Sony is supposed to represent a very small group of young people who have the energy and passion towards unlimited creations and innovative ideas. With the far-sight of expanding worldwide, it was in 1958 that the company formally adopted “Sony Corporation” as its corporate name. Easy to pronounce and read in any language, the name Sony, which has a lively ring to it, fits comfortably with the spirit of freedom and open-mindedness.Major competitors of SONYPanasonic CorporationPioneer CorporationToshibaCorporationFoster Electric Co., Ltd.Koninklijke Philips ElectronicsResearch & Development By- Maneesh Garg (20110025) “11jgbs-mgarg@jgu.edu.in” 4
  • 6. SONY – make.believe 2011By- Maneesh Garg (20110025) “11jgbs-mgarg@jgu.edu.in” 5
  • 7. SONY – make.believe 2011Images showing the story of SONY……………… By- Maneesh Garg (20110025) “11jgbs-mgarg@jgu.edu.in” 6
  • 8. SONY – make.believe 2011Financial Highlights  Consolidated operating income was significantly higher, 6.3 times the previous fiscal years amount, despite the large, unfavorable impact of foreign exchange rates.  The increase in consolidated operating income was driven primarily by improved results in the Networked Products & Services segment, due principally to the contribution of the game business.  A net loss attributable to Sony Corporations stockholders was recorded, mainly due to a non-cash charge to establish a valuation allowance against certain deferred tax assets in Japan. By- Maneesh Garg (20110025) “11jgbs-mgarg@jgu.edu.in” 7
  • 9. SONY – make.believe 2011Stock Analysis of SONYCountry JapanExchange NYSESymbol SONYMarket Cap (billion) 18.35BP/E Ratio NABeta Coefficient 0.91Earnings per Share -4.60Ownership and Distribution of SharesNo. of shares (2011) = 1,004,636,664Stock Price (in $) trend NYSE of SONY (December’10 to Dec’11)NYSE January start value= 8043.97 Value on 9 Dec.2011= 7502.88 % Change = -6.72%SONY_Corp. By- Maneesh Garg (20110025) “11jgbs-mgarg@jgu.edu.in” 8
  • 10. SONY – make.believe 2011 January start value= 36.38 Value on 9 Dec.2011= 18.28 % Change = -50% approxFrom the graphs it is clear that trend of SONY Corp. stock is downside as market trend. SONYCorp. stock price has shown huge decline of 50% from Jan’11 though market has fallen only 7%approx. We can say stock is underperforming and its performance is also not in the line ofmarket trend. Beta estimation can help us to find out how much stock is correlated with market.Beta value for Jan’11 to Dec’11 10 y = 0.909x + 0.220 Beta- Year 2011 R² = 0.418 8 Sony Corp. Return % 6 4 2 0 -6 -4 -2 -2 0 2 4 6 8 -4 -6 -8 NYSE Return %Beta value for SONY Corp. stock is 0.917 for year 2011 which means SONY Corp. stock giveapprox. 9% less return than market (NYSE) whether positive or negative so risk associate is By- Maneesh Garg (20110025) “11jgbs-mgarg@jgu.edu.in” 9
  • 11. SONY – make.believe 2011high. In this case SONY Corp. stock price has declined 50% from Jan’11 though market hasfallen only 7%.To find out the risk involved with SONY Corp. stock, month wise volatility graph for 2011 isshown below. Volatility Jan. to Nov. 2011 3.50 3.16 3.24 3.00 2.50 2.42 2.44 2.25 2.00 1.68 1.65 1.50 1.46 1.25 1.31 1.18 1.00 Series1 0.50 0.00It can be seen from the graph that volatility in the SONY stock is a little high from Jan’11 toApril’11, and from july to November its more volatile which means stock becomes morerisky.Major Financial indicators of SONY Corp.ConclusionPoints in Favour:- By- Maneesh Garg (20110025) “11jgbs-mgarg@jgu.edu.in” 10
  • 12. SONY – make.believe 2011Only Sony makes everything you need to bring movies, music, games, photos and books to oureyes, ears, fingertips, hearts and minds. Thats why the shortest distance between content andconsumers is Sony. And thats why I believe that Sony will be in everyones future, because Sonyis where entertainment meets technology.Sony is constantly evolving to meet the demands and opportunities of the fast-changing globalbusiness environment by creating innovative hardware, content and services. Sony is a marketleader with total Market Capital of 18.35 Billion. Company has very strong good will position. Ithas diversified business in 7 major sectors. The company is known for its quality products and italso has a very large range of electronic products for each segments. The company also has verygood reputation in terms of after sale service and quality of their products. There Focus Areasfor Growth -- Emerging Markets are-India (Bolstered by successful television advertisements and in-store promotional efforts, infiscal year 2010 Sony garnered the top spot in the local markets for a variety of products,including LCD televisions and compact digital cameras.),Russia (in fiscal year 2010 Sony achieved record-high sales in the Russian market),ChinaSonys focus in China is not limited to consumer products, but also broadcast- andprofessional-use equipment, earning it a solid reputation as a top brand in HD and 3D from thelens to the living room)&Brazil (Brazil will host the 2014 FIFA World Cup Brazil™ -- for which Sony is one of theOfficial FIFA Partners -- as well as the 2016 Summer Olympics).Points not in favour:-Though company’s operating profit is huge despite this company is facing net losses. Because ofthis company’s stock performance is getting affected. SONY Corp. stock price is continuouslydecreasing. Sony’s stock price has went down by approx. 50%, though the decrease in market isjust 7%. This is also because of large, unfavorable impact of foreign exchange rates. A net lossattributable to Sony Corporations stockholders was recorded, mainly due to a non-cash chargeto establish a valuation allowance against certain deferred tax assets in Japan.Recommendation:-After evaluating balance sheet, P&L account and after calculating different ratios it seems thatcompany has strong potential to do better in the market. But somehow possibly huge long termdebt making the company in loss. The decrease sales revenue also shows that Co. has not able torecover the lost selling power. So it is recommended to “wait & watch”. By- Maneesh Garg (20110025) “11jgbs-mgarg@jgu.edu.in” 11
  • 13. SONY – make.believe 2011References:-http://in.finance.yahoo.com/q?s=SNEJF.PKhttp://www.google.com/finance?q=NYSE%3ASNE#http://www.reuters.com/finance/stocks/financialHighlights?symbol=SNE.Nhttp://www.bloomberg.com/quote/SNE:UShttp://www.google.co.in/http://en.wikipedia.org/wiki/Sony_Corphttp://www.sony.co.in/section/homehttp://www.sony.com/http://www.sony.net/ THA U NKY O By- Maneesh Garg (20110025) “11jgbs-mgarg@jgu.edu.in” 12

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