Business Plan Sony Essay Example

are tend to get high-quality products. This is because, we produce the product that good quality and that is the reason why people are tending to buy our products.

Furthermore, we also target to the people that want a new model and advanced technology. We also do market survey by our marketing research to learn more about their customer. Whether our product can satisfy the customer, the quantities of our product enough and many more. We also determined the product that customers demand is personal computers and also the audio visual product Products & Services Sony Corporation is the one of leading in manufacture for the technology. We have produced many innovative product that help people in their daily life.

We always create new innovative products with good quality.The factor that gives us competitive advantages is level quality. Many customers know about the product that Sony produce can give high-level quality. Furthermore, we also provide new features in our product. This will attract people to buy our product. Pricing Power The price that Sony Corporation wants to sell is suitable with the product.

This is because; we have put many new features and also provide new technology at our product. So, the customer can get our product with valuable price. We had arrived at this pricing structure because of the customer demand for our product.The unique of our product that will us enable to maintain our price is the products that we produce have good qualities. The product that we produce has long-lasting use. In another hand, we also give warranties to our customer.

Strengths & Core Competencies

The most important business strength is the product itself. Our products

have good quality that is the main strength. Our product also long lasting. In another hands, customer can also have the new technology. The factors that make Sony Corporation succeed are the quality of product that they deliver to their customers.

Many customers satisfy with the quality product that we provide. Furthermore, we succeed because of the name brand. Every body knows that our company is the one of the big company that leading in produce product that related with the technology. Growth Trends In This Business Sony Corporation has involved in the technology industry since 1946. So, many people know that we are the one of the head company technology in the world. Of course this industry is a growth industry.

Because the demand of technology always exists in the future.The changes that we foresee in the industry, short term and also long term is we need to improved the features and also the technology that we use to produce the product. In another hands, we also need to find and create the new product in the future to make sure the profit in the short term and also in the long term. Sony Corporation will take advantage into their product through the price that they put into their product. Expansion Planning Sources of financing Such as banks- our business required to submit our budget and financial projections when applying for a loan.

Our institution will then thoroughly assess the application for finance to check that our business will generate sufficient cash flow to meet the required loan repayments. Increase in capacity/ product range. We continue to invest heavily in production equipment in the electronics segment. We

also invest in production-related joint ventures. One recent example is the investment between us and Samsung made in connection with 8th generation production capacity for amorphous TFT LCD panel production.

Scenario Planning

There are some adverse conditions that could affect our business.For example, there are new competitors that want to go into the market. It will affect the perception of our customers to buy our products. There are also new innovations that come out from many competitors from their existing products. There is also a challenge on maintaining our manpower to make sure that our products are at their best conditions.

To maintain our liquidity in our cash flow projection, we usually try to decrease our notes and account payable, trade because it is consider as long term debt to the other financial institution. It is not good if we had too many debt because we cannot maintain the liquidity of our inventory.

The Social Impact Model

Description of the Social Cause We could benefit the society by making many social activities. For example; “For the Next Generation,” we place a priority on activities in two areas: promoting education for children—the next generation—and contributing to the building of a sustainable society. In the area of education for children, we focuses on providing support for science education, a priority set by one of our Sony’s founders, Masaru Ibuka, and for arts education in the areas of music and film, which allows Sony to use its vast entertainment resources.

We also strives to fulfill our responsibilities as a global corporate citizen by providing emergency disaster relief and by implementing various activities in association with international agencies and nongovernmental organizations (NGOs). Targeted Beneficiaries Our

beneficiaries profile is the communities in regions around the world where we conduct our business. Communities who live in the world of many challenges and face the critical issue. They need this help is because they could do it by themselves, thus they need to have support to overcome the problem.We can get many benefits from our business by gaining foundation, sponsorship and money aid from us because we do have some activities that concerning about the welfare of our beneficiaries such as Sony Foundation for Education, Sony Music Foundation and Sony USA Foundation Inc.

Innovation

Our business is different because of several activities that we do. In addition to our ongoing education-oriented programs, during fiscal 2006 we worked with such organizations as the United Nations Children’s Fund (UNICEF) and Medecins Sans Frontieres.We also different from other organizations because we provide our own social department to make sure that we could satisfy our beneficiaries wants and needs. We does not have to get help from other social service agency because we already have a high quality service for our social benefits towards our beneficiaries.

The Vision and the People

Vision

Sony undertakes a wide variety of social contribution activities to help address the needs of communities in regions around the world where Sony conducts business.Sony strives to have a positive impact through these activities by making effective use of its resources, namely, its technologies, products, business activities and personnel. Mission- To play a major role going forward by stepping up efforts to address global issues, such as those detailed in the United Nations’ Millennium Development Goals, and maximizing its creativity to contribute tothe realization of a sustainable global society.

The

People

Work Experience Related to My Intended Social Enterprise

Our chairman and chief executive officer had many experience from his previous years of working.He had been the president of CBS news and the chairman and chief executive officer in TELE-TV. Our employees should have some important criterions regarding on their skills and knowledge that includes the understanding or aware about the critical issue face by the communities, applies critical thinking skills to organize and use info acquired from a variety of sources including electronic technology, and could communicates in written, oral and visual forms in different languages.

Personal Background and Education (CV) Professional Consultants

Our lawyer is Sakie T. Fukushima had born at April 25, 1933.He had been the member of the board since 2003. He had taken the responsibility of being a lawyer to our organization from the year of 2006 to solve many cases regarding on illegal actions and etc. our accountant is Yoshihiko Miyauchi that born at September 13, 1935. He had been the member of our board since 2003 and taken the responsibility of an accountant to solve many problems regarding on our financial management every year.

Our manager in insurance agent is Fujio Cho that born at February 2, 1937. He had been the member of our board since 2006 and capable to solve many problems regarding problem in insurance.

Details of Management Team Nominating Committee: Yotaro Kobayashi (Chairman)

• Determines the content of proposals regarding the appointment/dismissal of Directors Audit Committee: Yoshiaki Yamauchi* (Chairman)
• Monitors the performance of duties by Directors and Corporate Executive Officers (with regard to the preparation process of financial statements, disclosure controls and procedures, internal controls, compliance structure, risk
  

management structure, internal audit structure, internal hotline system, and other matters)

Charter of the Board of Directors: Compensation Committee: Akishige Okada* (Chairman) Sets policy on the contents of individual compensation for Directors, Corporate Executive Officers, Corporate Executives and Group Executives, and determines the amount and content of individual compensation of Directors and Corporate Executive Officers in accordance with the policy PERSONNEL As of the end of fiscal 2006, the total number of Sony Group employees was approximately 163,000, up nearly 4,500 from a year earlier. As of June 21, 2007, Sony Corporation had 14 Board members, of whom one is female and three are non-Japanese nationals, and seven Corporate Executive Officers, of whom one is female and two are non-Japanese nationals.We had taken many types of labor such as skilled or unskilled workers to be work with us. We also took the disabilities and senior citizens to be our workers.

We find the right employees by providing interviews, pay structure and training.

Management of Beneficiaries

Hiring Process

In the hiring process, we need to consider several things before we could take new employees into our organizations:

1.  afford to pay employee’s wages,
2. education or training levels the employee should have,
3. personal attributes the employee needs,
4. the experience or skills they need the employee to have and
5. hours and work type needed.

We will also make an agreement on working conditions such as sick leave, holidays, overtime rates, bonuses, allowances and incentive payments, maternity and paternity leave, how much notice needs to be given if an employee leaves or is fired and how employees and employers will settle any disputes that arise.

Training & Support

Our staff in our business can often perform better if

they are given additional education and training.

One staff member in a factory shows another staff member how to operate a machine The shift manager in a supermarket teaches the shelf-stacking staff how to lift heavy boxes without hurting their backsOur graphic designer teaches our employees to attend classes on web design at their own class. Our company hires a training consultant to teach a course on time management and organization to our management staff. We pays for one of our staff to attend university to learn to speak Japanese and study international marketing.

Social Benefits

Our organization could give several benefits to the needy.

• First, we could increase the percentage of working people; people who are searching for job.
• Second, we could increase their lifestyle by giving them salaries.

The disadvantage for our employees is they need to work at their maximum effort to give the best for our organization. Our employees could have more income by working extra hours at our organization. They will get extra money by making any actions that can increase our productivity and profit to our business, such as advertise our product.

Marketing & Sales

Marketing Plan For our marketing strategy, we use campaigns, we create an appropriate massage to be given to the public, media alternatives and we schedule our advertising.

As for sales strategy, we use sole-sponsored sales promotions, and joint–sponsored sales promotions. These two strategies had been use by us to retain our customers. Size for our target market is huge. To estimates the demand of people we really rely on economic conditions, psychological, socio-cultural and government market segmentation.

We also rely on demographic segmentation that considers such factors as age, gender, income,

educational attainment, life cycle stage, nationality. We expected that we can 59% share of market in the world.

Advertising and Promotion Plans

We use several types of promotions; advertising, sales promotions, publicity, and personal selling.

Promotion Method

Advertising in media, posters, bulletin boards, websites, and yellow pages. Direct mail, mail order, direct response advertising Sales promotion.

Eg coupons, competitions, and loyalty cards

Website Promotion

Sales promotions—exhibitions, and demonstrations. Location Criteria (for retail) Our space requirements for our location are big enough to display our product nicely. For future requirements, we need to have a store that could attract more customers to our store by adding more features and facilities to it.We estimated for 12% of our net sales for our occupancy cost (taken from annual report 2007). We use some approvals from some agencies and the government from the related countries such as SLA and HDB.

Distribution Channels

We use several distribution channels to distribute our product to our consumer.

We use mail order, foreign distributors, agents, direct contracts with governments, retailers or import firms, foreign trading companies, internet, and sales representative. The Competition Our strongest competitors are LG and Panasonic. We had made a comparison between us and LG. Sony LGAdvantageVariety of products Sony has many products that they required to sell such as game, music, pictures and electronics.

Variety of services The LG provides customized information services. AV content sharing between digital appliances will be an added benefit. Disadvantage Lack of services Sony has lack of services such as consultations with their customers. Lack of products LG focuses on their main product, electronics products.

E-Commerce (Optional)

E-Commerce Plans Our organization use the internet as the best source to market any product and gain attention of people.The

main criterion of internet marketing include, email marketing (also known as e-marketing), display advertising, interactive advertising (which interacts with the customer and is very interesting), and search engine marketing.

We use internet marketing such as bulk mail, junk mail and spam which is highly unlike by many internet users. Our customers could make online payment and we will deliver our customer’s products in a safe condition. To make our customers not worried about the security of their online payment, our organization had been using www. paypals. om that securing our customer’s online payment. E-Commerce Budgeting We had attach an e-commerce budgeting on analyzing the related cost involved in creating, operating and maintaining our e-commerce activities.

(attachment)

E-Commerce Competition

Our main competitor is LG. LG utilize e-commerce with Xinnet will build, implement and maintain an online ordering, transaction and management platform for San Jie. Xinnet will also provide training and support to San Jie management and technical personnel. San Jie will require all its agents and distributors to utilize the Xinnet platform. The Xinnet e-commerce platform is built on Sun Microsystems servers and the Solaris operating system.

It also incorporates Oracle Corp. database and software. Both Sun Microsystems and Oracle have extended their full support towards Xinnet's e-commerce efforts. Xinnet provides Internet access and content (www.xinnet. com. cn), online domain name registration (www. ChinaDNS. com) and online auction (www.xinbid. com). It currently operates in Beijing, Guangzhou, Shanghai and Shenyang and has ISP licenses for six (6) other Chinese cities. To compete with LG, our organization utilize e-commerce with Relationships with suppliers involve the rapid exchange and sharing of large volumes of information to enable transactions to be performed efficiently and effectively.

Sony

employs e-commerce, through the Internet and other networks, for this purpose. Sony, therefore, requires all suppliers to be e-commerce ready.

Production Plan

Production

The idea of creating and innovation happens at our centre located in Japan. The final product being make up at our manufacturing facilities around the world. For the quality control, we do our own research and development.We provided our customer service consist of repairing and maintaining the product.

We marketed our product through sales via internet and sales subsidiaries. Suppliers Our key suppliers come from many countries. We had more than one supplier to make sure that our resources are enough. Our supply costs are steady for three years back. If we had fluctuating cost, we can deal the problem by reducing the number of our supplier thus our products. Location Criteria (for production) Our space requirements for our location are big enough to produce our products efficiently and effectively.

For future requirements, we need to have a manufacturing facilities that have a high technological machines so that our products are produce in a high quality condition. We estimated for 12% of our net sales for our occupancy cost (taken from annual report 2007). We use some approvals from some agencies and the government from the related countries such as SLA and HDB. Inventory We will some inventory to make sure that our resources are enough to make our products.

The examples of our inventory that we keep are consist of raw materials ( e. g : copper, cobalt, and plastic parts), supplies (e. : lithium-ion batteries and power cables) and finished goods ( e. g: LCD Panels).

The average value in stock for the year 2007 is

940, 875 in yen millions and the rate turnover of our inventories is 8 times for the year 2007.

Compliance With Legal and Regulatory Requirements

Business Organization

Our business uses the form of making a business in electronics, game, pictures, and music. It is important for our business because it can increase our profit on fulfilling the needs and wants people around the world that always need change and new innovations. There are few names and legal entities to be use by our organizations. For example, at Japan, the name Sony EMCS corporation is use and at Singapore, the name Sony Electronics Asia Pacific Pte. Ltd. is use.

Licenses

We had many licenses to make sure that our business is legal to operate. For example, our business is licensed to use a number of patents owned by others, covering a wide range of products such as licenses from MPEG LA LLC, Dolby Laboratories Licensing Corporation, Nissim Corp, and Thomson Licensing Inc. Our business considers its overall license position beneficial to its operations.

Insurance

We have several types of insurance we use in our business. For example, life insurance policies, that the life insurance subsidiary underwrites, most of which are categorized as long-duration contracts, mainly cost of whole life, term life and health insurance contracts. We also have the insurance for workmen’s compensation that consist of bonuses paid and benefits in kind granted by us for our employees.

Accounting and Cash Flow

Accounting

We had attached our starting balance sheet and projected income statements for the first 3 years (start from the year 2006 – 2008). (Attachment)

Cash Flow Planning

We had attached our one year cash flow analysis for the year 2008 including estimated

sales, all costs and capital investments. A checklist of all expense items for input into our cash flow projection also had been attached together.

(attachment) Analysis of Costs In our accounting projection, we incurred several types of costs that effect our financial statement in our business.

For example of our cost: Types

Examples of cost Fixed costCost of land, building and machinery Variable costCost of utility (water, electricity) and equipment Product costCost of raw materials Delivery costCost of transportation and logisticInternal Controls An audit of internal control over our financial reporting includes obtaining an understanding of internal control, and performing such other procedures as we consider necessary in the circumstances. To overcome the problem of controlling shrinkage and dishonesty plus the incoming merchandise, we required many policies and procedures that pertain to the maintenance of records, and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition.

Credit Policies

We usually make sell on credit to our retailers around the world. There are several credit terms that we use to give to them:Net 30Payment in full due full within 30 days after date of shipment. Net 10 EOMEOM stands for end of month.

A payment is full due before the tenth day of the month following shipment in January is due before February the 10. Another similar version is Net 10 MOM (middle of month). 2/10 net 30If invoice is paid within 10 days from shipment date, a 2 percent discount is permitted, or else, payment in full is due within 30 days. 2/10 prox, net 30If invoice is paid on approximately the tenth day of the month following shipment date, a 2 percent is permitted, or else,

payment in full is due ithin 30 days. 2/10 ROI, net 40

If invoice is paid within 10 days of receipt of invoice, a 2 percent discount is permitted, or else, payment in full is due in 40 days.

2/10 EOM, net 40If invoice is paid by the tenth day of the following month, a 2 percent discount is permitted, or else, payment in full due in 40 days. We know that it will cause us a big amount of cost if we extend our credit. It involves opportunity cost earnings forgone from other investment opportunities and other direct costs such as cost of managing and collecting account receivable, and bad debt losses.To overcome this kind of problem, we should continuously monitor the effectiveness of our credit policy to be sure that standards are being enforced.

Financing

Financing Strategy

We have targeted a 5% operating profit margin as a baseline of profitability needed to generate funds and continue to lead and innovative. We consider this to be the minimum acceptable level going toward. In addition, return on invested capital (ROIC) has been formally established as a fundamental framework for evaluating all capital investments across the Sony Group.We will thoroughly review the expected return on capital before implementing investments or making acquisitions.

Sony is also targeting return on equity (ROE) of 10% by fiscal year 2010. In addition, to sustain sufficient liquidity, Sony has committed lines of credit with financial institutions, together with its cash balances.

Funding Request i. Funding to be used for the following:Amount

1. Increasing the promotion of new products. 1,000,000.00
2. Increasing the research and development of new and innovative products. 1,500,000. 00
3. Increase the number of new retailers around
   

the orld. 2,000,000. 00

• Amount from the CEF3,500,000. 00
• Applicant2,000,000. 00
• Partner(s): 1,500,000. 00

Contributions in kind:

1. Bank loans.

Deliverables

Financial Performance Our business targets:

1. Increase sales by 20%,
2. Increase gross margin to more than 25%, and
3. Increase our non hardware sales to 65% of the total.

• The following marketing budget comes to a total of less than ?
• 450K. This is actually a decrease over the ?
• 485K we spent this year on the marketing budget.

We believe we can get more effective marketing with less money, because we are managing the marketing better.

Overall, we plan to spend 7. 28% of sales on sales and marketing expenses, which seems about in line for our plan. That breaks down to 3. 78% of sales for home offices, 12. 79% for small business, and 10. 98% for expenses not tied to either one. As broken down by products, we spend about 3% of sales on software and systems, and 16% on service and 23% on training. This breakdown makes sense for our marketing, because of the impact on software and systems of better training and better service.

The graphs and other year-by-year projections can be refer in appendices) Social Benefits Our company had issued the Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans requires an employer to recognize the overfunded or underfunded status of a defined benefit pension and other postretirement benefit plan as an asset or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through other comprehensive income.

Sony Corporation beneficiaries’ are given 2,600 million

yen for 18 people. The graphs and other year-by-year projections can be refer in appendices) Appendices

E-Commerce Budgeting

For Office Use Only Proposed co-funding

Approved co-funding (A)(B)(C)(D)(E) Expenditure itemsUnit Cost QtyTotal Cost Requested funding from CBF/CCSBalance to be raised by applicantFinal amt funded by CBF/CCSFinal amt raised by applicantRemarks Manpower (please provide budget breakdown in table 10. 2 below, AND state the sub-total in the row below) 24, 650Based on a co-funding of 50% 24,650 73, 472 105, 865 Sub-total24, 65024, 65073, 472105, 865 Equipment

e. g.computer or any physical asset to be acquired ,000 100,000 500,000 200,000 8,973,673 9,873,456 Sub-total5,000100,000500,000200,0008,973,6739,873,456 Software

e,g. Computer programmes or any software required for the project 2,000 100,000 200,000 100,000 987,654 123,456 Sub-total2,000100,000200,000100,000987,654123,456 Materials & Consumables 30,000 3,000 900,000 658,000 675,863 698,464

e. g. raw materials Sub-total30,0003,000900,000658,000675,863698,464 Marketing (e. g.website, events, PR, collaterals etc) 8,000 200 160,000 10,000 987,645 1,008,765 ?e. g. brochures, advertisements Sub-total8,000200160,00010,000987,6451,008,765 Others (e. g.IP protection, professional fees, outsourcing, production of prototype etc) 54,299 1,000 5,429,000 200,000 556,377 4,353,677

Professional fee for design/ consultancy, manufacturing costs etc Sub-total54,2991,0005,429,000200,000556,3774,353,677 GRAND TOTAL187, 024100,00010,607,7539,000,0009,400,1009,877,653 Yen in millions.. ?Stockholders’ Equity Number of employees by segments200620072008 Electronics124,500130,800136,900 Games4,3004,7005,100 Pictures5,9006,9007,300 Financial Services6,8006,5006,600 All Other 8,0007,4004,700 Unallocated (Corporate Employees)1,9002,2002,400 Total 151,400158,500163,000