A general report of Sony Corp to CEO in 2003

Introduction Although the global scrimping showed some signs of growth last year, the promenade action in Iraq contributed to increased economic uncertainty in this year, especially in the USA, and the year ended without any indications of a reco really. Recently, Sony is doing well, but under such difficult market conditions, Sonys unrefined sales for 2003 go downd near 1.5 percent and operating income decreased approximately 5 percent compared with the previous year (Sony yearly herald 2003). Last year, in order to compete with different companies in some certain markets, we decreased our expense aim of some our products, such as PC, DVD-Video player, and home-use video camera markets. It seems that the primary(prenominal) reason, which causes the decrease of sales and operating revenue, was the increased price competition. However, it was not. there were more(prenominal) other problems that cause the decrease. And the problems still exist in the catamenia global economic system. In Japan, Sony suffers the pain from the stagnant consumer demand and the eminent exchange rate of Japanese Yen against American dollars. devil study Issues First of all, it is the general economic recession in Japan overcompensate now. A decade of deflation in Japans economy has discouraged the median(a) Japanese citizen from spending. During a period of deflation, the price train decreases rapidly, and general interest rate decrease coincides with a angle of dip in economic growth.

The decline in wealth depresses consumers spending. Although the Japanese presidency has lowered the interest rate n ear to zilch to progress public investment! and private investment, the continually falling price made consumers very pessimistic. Currently, Japanese consumers confidence about Japans economy is extremely low. In this situation, investing in air in Japan right now would be a very brave thing to do for every argumentation owner because the low profit growth would give the concern no... If you lack to get a full essay, order it on our website: OrderCustomPaper.com

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