In 2014, Sony Pictures Entertainment faced a cyber attack from North Korea prior to the release of The Interview, a film that discusses the personality of North Korea’s dictator, Kim Jong Un. In addition to the cyberattack that caused millions of losses for the company, Sony also faced a threat from the terrorists that several theaters that will show the film will be attacked. Sony’s response to the threats included canceling the film’s release and switching to video-on-demand outlets. Some suggested that canceling the film’s release creates a dangerous precedent of a large company submitting to terrorist orders. However, while the company’s solution partially allowed them to disobey the terrorists’ order, it also displayed how terrorists’ plans can be prevented through technological development.
In my opinion, Sony’s response was appropriate for the situation, as it could be acknowledged as the use of the opponent’s weapon against him. Therefore, while the terrorists used cyberattacks to steal the company’s information and destroy their equipment, Sony switched the release to on-demand platforms and streaming services, allowing a speedy and widespread release of the film. As on-demand videos are easier to pirate, the film’s pirate copies quickly spread across the internet, making film easier to access and more discussed across different countries and segments of the population. In addition, the film’s plot turned out to be more appealing to comedy than satire, influencing the public’s opinion about the earlier threats from North Korea. In my opinion, Sony’s response to the attack was appropriate for the situation and politicly addressed several concerns.
Furthermore, while the case is complicated by presenting a real terrorist threat to the population, there are certain things that Sony and the U.S. government could have done differently to discourage future such attacks on other U.S. organizations. Firstly, Sony never publicly acknowledged that The Interview is a satire that has no connection with reality and does not threaten North Korea’s political regime. Instead, it seemed that the company used unexpected publicity to market a relatively insignificant comedy film. Therefore, by initially canceling the film’s release date, the company set a negative precedent of a major company submitting to terrorist demands.
Next, considering the government’s role in Sony’s case, the issue should have raised attention to the cyber security problem in both governmental structures and large business corporations. Instead of acknowledging that the issue was Sony’s problem, analyzing the breach and constructing new cyber security policies for the governmental organizations could have helped prevent other attacks in the future. For example, it could have prevented the 2016 controversy with foreign interference in the presidential election (Stengel). Therefore, by focusing on Sony’s financial losses instead of similar potential threats in the future, the U.S. government exposed the cyber security issues that contributed to future cyberattacks.
In conclusion, the case of Sony’s response to the cyberattack demonstrates the importance of prompt identification of the issue and its consequences. The case also displays how a creative approach to a problem that simultaneously addresses several concerns is not always the right choice. Furthermore, preventing both real-world terrorist violence and cyberattacks requires a collective effort of the U.S. government and business organizations. The possible measures include regulation of governmental and private organizations’ cyber security to achieve higher data protection standards. Through collective efforts and sufficient budgeting, organizations can develop more advanced cyber security and supervision systems and implement them in a short period of time, preventing future real-world terrorist violence and cyberattacks.
When Sony Corporation (“Sony”), a Japanese-owned firm, started making state-of-the-art technologies in the 1970s, the world was caught off-guard. Americans were amazed, thrilled, and alarmed, all at the same time with regards to this emerging technological powerhouse that offered among other things, miniaturized music players, reliable cars, and machinery. It was not a long time ago when this tiny nation was humbled by American forces in World War II. But decades later two prominent American firms, Universal City Studios, Inc. (“Universal”) and Walt Disney Studios (“Disney”) sued Sony, a move that can be explained by one or all of the following factors: a) need to reassert control; b) ignorance of the technology; and c) greed. The Supreme Court decided that the respondents, Universal and Disney had no case against Sony, stating that the use of Betamax Video Tape Recorders (“Betamax”) to record movies and shows does not make Sony guilty of copyright infringement or even of contributory infringement.
Background
For a very long time companies like Universal Studios, Inc. and Walt Disney had total control over their products. In the early part of the 20th century and even after the Second World War, these firms had mastered the intricacies of the moviemaking business and even TV broadcasting. Since the adoring public continued to clamor for movies and other entertainment products created by these companies there was a constant flow of money from a captive audience. From the point of view of the paying public, there is no other way to view these highly entertaining films except to go to the movie houses and pay for tickets.
When the Television set was invented and became popular in the 1950s, Universal and Walt Disney’s cash flow was never threatened. In fact, the emergence of this new technology allowed them to expand and took a bigger slice of the market. For those who find it inconvenient to get out of their homes and go to the cinema, watching movies on their TV sets is the best alternative. But entertainment behemoths like Universal and Walt Disney were protected by copyright laws. TV stations had to pay them every time they use films and other media production created by the aforementioned companies. The cash flow of Universal and Walt Disney was never threatened even as the 1960s came to a close.
But thousands of miles away, a technological powerhouse was about to rise from the ashes of war. The Japanese economy was rebuilt, brick by brick by the same people who a few decades earlier threatened to conquer all of Asia. There was no warning when the Japanese finally landed in the United States and with Sony Corporation and Sony Corporation of America began to challenge American firms, especially those that are linked to the music and entertainment industry. Although Sony did not start to imitate media giants like Universal and Walt Disney, it was able to create products that threatened to upset the balance of power in the said industry.
Sony was so successful because it was able to create products that serve the needs of the people. The leaders at Sony Corp. had an uncanny knack for figuring out what Europeans, Americans, and Asians wanted in their electronic gadgets. They want it small and yet high-tech. It did not take long before the Japanese invented a device that would allow home viewers the capability to watch movies without the aid of projectors, TV stations, or other complexes yet unwieldy devices. They invented VTRs, tapes provided the means not only to watch movies whenever users feel like watching. It is also a device that can copy whatever is being shown on TV at the moment and then watch the same show at a later time. This process is called “time-shifting”, a great way to save time. But from the point of view of respondents, this is purely copyright infringement.
The Case
There are two respondents in this case, Universal Studios and Disney Studios and their case against Sony was described as a “…copyright infringement action against petitioners in the United States District Court for the Central District of California in 1976” (464 U.S. 417, par. 2). The American consumers were mostly thrilled by the features of the 1970s model of the Betamax videotape recorder. It allows them to record their favorite shows and build a library composed of these tape-recorded shows in Betamax format and they could enjoy watching it over and over again or as long as the tape will last. The same can be said of movies broadcasted over public airwaves and beamed to their TV sets. They can use their VTRs to record these movies.
But aside from the recording of favorite shows and movies in a process described earlier, another popular use of Sony’s VTR’s is to record shows airing on TV while the owner of the device is not at home. This is called “time-shifting”, something that has to do with time management. If the owner is at work there is no need to take a break just to watch a show or a televised event broadcasted live. The consumer can simply program the VTR so that it will record the exact time, copying everything on TV, as if he or she was watching the whole program.
The respondents would not let Sony sidetrack them and they insisted that there is clear evidence that Betamax VTR’s is capable of being used to make illegal copies of copyrighted works. According to the respondents, the petitioner is helping others, “…to record some of respondents’ (Universal) copyrighted works which had been exhibited on commercially sponsored television and contended that these individuals had thereby infringed respondents’ copyrights” (464 U.S. 417, par.2). Universal and Walt Disney would like to link Sony and the individuals who violated copyright laws, for the respondents, Sony and the consumers who infringe on copyright are one and the same.
But the petitioner argued that the Betamax VTRs were never created to infringe on copyrighted works. Instead the petitioner argued that there can be other ways to use the said device. Sony, therefore, presented considerable evidence, “…describing television programs that could be copied without objection from any copyright holder, with special emphasis on sports, religious, and educational programming” (464 U.S. 417, par. 10). This is one of the highlights of the case and this part here can help explain why Sony was not forced to pay damages and give up a portion of its profits from the sale of Betamax recorders to the two respondents.
The Decision
The decision of the Supreme Court can be understood through the following arguments (Band & McLaughlin, 1993):
There is an exemption to the 1976 Copyright Law – home video recording.
Betamax users were not liable to copyright infringement because they were protected by the fair use doctrine. This means that watching recorded movies and shows in the comfort of one’s own home is considered fair use.
Sony had no knowledge that manufacturing Betamax VTR’s is already an infringement of copyright.
The copied programs were voluntarily sold by the respondents for free broadcast over public airwaves.
Aside from taking shelter in the exemptions found in the 1976 Copyright Law, there are other reasons why Sony was not held liable for the alleged infringement violations. First of all, Sony created something that improved the lives of people. The Betamax VTR was a very important time-saving device. It helps in making people more productive. Instead of waiting for the shows and watch at the exact time when it is being aired, the consumer can simply record the event, show, movie, etc. and come back to watch at his or her leisure.
U.S. Courts could also not deny the capability of VTR’s to help increase access to information. As stated earlier, owners of VTR’s can record religious and education shows and build libraries containing helpful topics. They can access these tapes at a later time so that others can enjoy their content. From the point of view of educators, especially those serving in poor countries this device is heaven-sent. In a non-commercial environment education shows can be replayed over and over again without worrying about copyright violations.
Control, Ignorance, and Greed
As mentioned earlier Universal Studios and Walt Disney Studios are used to being on top of their game. They are well aware of the intricacies of their trade and mastered the technology required to maintain their dominant position in the industry. But when Sony Corporation came introducing their Betamax VTR’s their position was severely threatened. They no longer have full control. In the past Americans had to go to their stores and buy original products just so they can enjoy watching their favorite shows and movies.
But with the VTR’s American consumers now can enjoy movies and their favorite shows by recording what was previously made available through “free broadcast over public airwaves” (Band & McLaughlin, 1993). If the respondents would not act now then they would forever lose control over their copyrighted works.
But in this case, respondents made some very interesting statements, Sony was liable for the copyright infringement committed by users of Betamax because Sony produced the technology that allowed them to do so. But there is more, respondents sought no relief against any Betamax consumer but instead are asking money damages and equitable accounting of profits from Sony. If they are serious about copyright infringement then they should go after those who allegedly committed the crime. So why attack a firm having no direct control over those who are using the VTR’s to record copyrighted shows and movies?
It is also possible that aside from trying to wrest control of the burgeoning industry of home entertainment, the two respondents did not fully understand the technology behind Betamax VTR’s. They constantly argued that copying movies and shows while being broadcasted over public airwaves is tantamount to recording the same show or movie while in production as if the consumer was right there in the middle of Universal Studios or Walt Disney Studios filming the whole event. Today, the technology is very easy to understand but perhaps very advanced for top executives at Universal and Walt Disney in the 1970s.
The basis for this assertion is the fact that it took years before the Supreme Court was able to fully grasp the problem. They needed more time to review the case, signifying that the technology involved was too advanced for its time. Imagine this, Betamax VTR’s can record a show on a different channel while the owner of the device is watching another show in yet again a different channel. But some may say that this argument is not logical because the respondents had the resources to do research and they would be able to understand this new technology in no time.
If ignorance of cutting-edge technology is not the main reason for erroneously suing Sony Corporation for copyright infringement then it can be argued that greed is the central motivation as to why Universal and Disney wanted the Courts to order Sony to pay them in damages as well as a slice of the profit from the sale of Betamax recorders. This argument can be expounded by looking at the many incomes streams available for the two companies. According to the U.S. Supreme Court, the two respondents can exploit their rights in their copyrighted works through the following:
Authorizing theatrical exhibitions;
Licensing limited showings on cable and network TV;
Marketing pre-recorded videotapes or videodiscs (464 U.S. 417, par. 5).
In other words, the respondents already made money out of the broadcasted shows when they asked TV stations to pay them for the use of their copyrighted works. The best way to understand their greed is through the use of the following remarks, when U.S. Courts decided in favor of Sony, “The district court’s opinion focused on the fact that the taping took place in private homes for private, non-commercial home use, and on the fact that the copied programs were voluntarily sold by the copyright holders for free broadcast over public airwaves” (Band & McLaughlin, 1993). The TV stations already paid for the right to air it publicly. Therefore what was broadcasted free of charge can also be considered public property.
Relevance in the 21st Century
This was a landmark case. The decision of the Supreme Court enforced the spirit of the law, specifically the copyright law. The original intent of the copyright law was not to make authors and inventors wealthy beyond their dreams and to continue earning from their works in perpetuity but to encourage them to produce innovative ideas and create great works to enrich human lives. Thus, there should be an end to the “monopoly” but before that time will come they are allowed to make money out of their work. But clearly, the goal was not for profit but merely an incentive.
Universal Studios and Walt Disney Studios bid to force Sony Corporation to pay damages and to give-up, a portion of their earnings from the lucrative sale of Betamax VTR’s, plus an injunction on the future sales of the device is a blatant disregard for the true purpose of the copyright law. They simply want to have control and to make as much money as they can from their copyrighted works. The Supreme Court saw their desire to expand the coverage of the copyright law by asking Sony to pay for being an indirect link to copyright infringement activities.
In the 21st century some did not fully agree to the 1984 decision of the Supreme Court to allow VTR users the ability to record copyrighted shows and videos. Critics are clamoring to review the ruling made on the said case, especially when it comes to “contributory copyright infringements” (Hamilton, 2007). While the Supreme Court was correct in ruling that Sony Corporation was not guilty of copyright infringement, the landmark decision did not anticipate that the day will come when videos recorded at home can be sent halfway around the globe to be enjoyed by a total stranger.
When the Supreme Court penned its decision in 1984 there was a prevailing belief that the Betamax tapes stay home and therefore only to be enjoyed among family members. But this is not the case in a highly global world where everything is interconnected. There is a need to look into this new development when it comes to recording and storage of copyrighted works.
Conclusion
The case of Sony versus two respondents, Universal Studios and Walt Disney Studios was a defining moment in the legislative history of the Copyright Law. As a result many issues were resolved by the ruling while at the same time creating new ones. The Supreme Court must be commended for the tough ruling because the Courts were able to see beyond the surface and able to shift through all the technical jargon as well as complex money-making schemes resulting from the sale and reproduction of copyrighted works.
One of the most important aspects of this ruling is how the Courts demonstrated how to correctly interpret the law and to stand firm against those who seek to monopolize a particular industry and to think of nothing else but profit. The essential purpose of copyright laws is not to transform talented inventors and authors into multi-millionaires but to encourage talented people to share what they know with others. Therefore, copyright laws were established so that others will be blessed by the talents of others. But respondents Universal and Walt Disney had only one thing in mind and that is to make as much money as they could from the sale and licensing of their copyright products.
The respondents were not even content to seek an injunction on the future sale of Betamax VTR’s the two companies also wanted a share of the profits made by Sony Corporation. The greed was so palpable that the Supreme Court was able to detect that respondents were trying to expand the scope of the laws and to make it work to their advantage. One of the main arguments that sealed the decision in favor of Sony is those concerning home use of the Betamax tapes as well as the fact that the material recorded in the VTR’s came from authorized use of copyright material that was broadcasted free over public airwaves.
References
Band, Jonathan & Andrew McLaughlin. (1993). The Marshall Papers: A Peek Behind the Scenes at the Making of Sony v. Universal. Columbia-VLA Journal of Law & the Arts. 2009. Web.
Hamilton, Marci. (2007). It’s Time for the Supreme Court’s Sony Betamax Decision to be Reversed: The Latest in Online Copyright Infringement – Offering Menus of Links to Illegal Video Copies of Television Shows and Movies. 2009. Web.
Sony Corp. of Amer. v. Universal City Studios, Inc., 464 U.S. 417 (1984). 2009. Web.
The brand chosen for the marketing creative strategy is Sony PlayStation. The new product from the brand is a new model of Sony PlayStation home video game console that is going to be advertised among teenagers and young adults.
The Purpose of the Project
The purpose of the project is to advertise the new PlayStation console among the target market with the help of the Internet, i.e. social media, and draw the consumers’ attention to the product by means of creative advertising and viral videos/promo-campaigns. Such an approach will allow the team to address the target market correctly and through such means that are used by the target market on a daily basis. The main tool of the promo-campaign is the social media as they allow reaching out to creative consumers and target market and improve the presence and recognition of the brand in the Web 2.0.
The target markets of the project are the teenagers (approx. 10-19 y.o.) and young adults (approx. 20-28) who are active users of social media and the Web. As it was stated in one of the studies devoted to blogs as marketing tools, the social media, and its users can be a perfect tool for a successful campaign of a product (Maurya 76). Nevertheless, any promo campaigns online need to be implemented with caution as inefficient planning will most likely result in a catastrophe.
Thus, to advertise the new PlayStation console creatively and successfully, it is necessary to understand our target market and its wishes. The target market of the product belongs to the millennial generation whose social interaction heavily relies on social media and other online resources.
What Are We Going to Tell Our Target?
The target market of Sony PlayStation can vary; although it does target younger generations, PlayStation users that are older than 30, 40, 50, etc. also exist and their number is not small. Thus, it is important to understand what the representatives of the target market want to hear. Hard-core gamers, predominantly male and between 18-25 years, are interested in innovations and the gaming process itself, while mainstream players do not seek the truth “gaming process” but rather entertainment.
Thus, the brand needs to address both types of consumers but with different messages. As it was done with PS 4, to address the hardcore gamers and their wishes, the campaign must be launched at websites and in magazines that this target market uses, i.e. games.com. As hardcore gamers are already familiar with the brand, it is not necessary to provide an advertisement that will explain what Sony PlayStation is and how it can be used. As proficient gamers stay focused on gamers’ news, it seems reasonable to provide an intriguing message, possibly in the form of a trailer, about the new console. Thus, rebuilding and refreshing of the gaming experience is what these customers want (Hou et al. 617).
As to mainstream gamers, these often can be represented by parents of children who like to play console games or individuals who are not fans of gaming but regard it as entertainment. For this target market, Sony PS can be presented as entertainment for the whole family that maybe even better than films and TV series.
Interaction Goals
It has now become clear that modern advertisement is transforming into an interactive online tool that allows the consumers to experience the product and not simply “consume” its description in the form of videos, pictures, or music. As some of the consumers spend almost half of their day on such social networks as Facebook, Twitter, Tumblr, YouTube, Instagram, etc., it seems reasonable to try engaging the consumers in the interaction with the brand (Jothi 237).
According to Jothi, 32% of social networks’ users have come across web banner advertisements while they were using the network (238). However, this type of interaction through ads on social networks is only useful when we want to approach people who are not familiar with the product. Another strategy called “word-of-mouth” can be used to increase the number of individuals that can be interested in the product. The goals of all these interactions are to raise awareness of the new upcoming product in the social networks and attract as many “newcomers” as possible by advertising the product through video bloggers, video advertisements, trailers, and teaser trailers.
However, one of the biggest advantages of such advertisement and interaction is the company’s ability to evaluate the positive and negative feedback from the users (Gregurec, Tomaš, and Ćorić 232). Word-of-mouth strategy allows the brand to build trust between the brand and consumers who tend to approach the advertisement from their friends and relatives more attentively as the one on the TV.
The development of apps that are presented to the customers prior to the launch of the product advertisement campaign is also one of the key marketing strategies that shape the modern, so-called ‘viral’ advertisement. Some of the gaming platforms (e.g. Steam) provide a free limited trial of games. Such interaction would also be helpful in promoting the product: the consumers who purchase the PlayStation also receive free trials to several games. This approach is called co-branding and is possible when another brand that offers console games is interested in working with our brand.
What Impact or Role Do We Want Users to Have with the Message?
The brand message plays a crucial role in advertising the product to the consumer. Thus, the consumers need to feel that the message was designed for them and not to simply promote the product. As Ekhlassi, Maghsoodi, and Mehrmanesh argue, personal selling is one of the most effective means of promoting the product (762). However, it is also rather expensive. Thus, to combine users’ interaction with the message and personal selling, it seems reasonable to suggest parasocial interaction in advertising that allows the user to engage with the brand message more directly than through other types of advertising.
A teaser trailer will awake interest, while parasocial interaction with a celebrity or game characters during the next trailer will help the user connect with the message and brand more actively. Although employees who communicate with users through social networks on behalf of the brand often use prescribed scripts and standardized forms, such interaction fosters users’ loyalty to the brand and boosts the feeling of connection to it (Labrecque 135). Another form of connecting the users to the brand message is developing an application that will allow users to create an online avatar and explore the brand’s features (see Marvel’s “Contest of Champions” app). Exploration of the brand’s personality and history can significantly increase consumers’ willingness to purchase the product.
What Kind of Social Currency Does Our Target Have?
The social currency of our target depends on the representatives of the target market that we discussed above. For example, two parents with an 8-year-old boy will discuss PlayStation console on their Facebook walls or on Twitter not as frequently as serious gamers who have been engaged in the video gaming industry for more than five or six years. The first type of target market may mention the console as a gift for the child or as an interesting hobby that made the family laugh and spend time together.
However, serious gamers will devote much of their time discussing the advantages and disadvantages of the new product, no matter if they are big fans of the brand or prefer Xbox to PlayStation. It is necessary to understand that while mainstream gamers will possibly post pictures on Instagram discussing the new hobby or purchase in short, but emotional sentences, serious gamers are expected to share their opinions on gaming portals, on each other’s walls, on the brand’s social networks’ pages, on their blogs, and in comment sections of magazines that will discuss the product.
Hence, the brand should take into account the experienced gamers’ opinion because playing a PlayStation console has become a part of their everyday life a long time ago. However, it does not mean that mainstream gamers’ opinion does not matter.
These users are able to promote the product to other users of social networks that were not interested in buying a console initially. It is advisable to look through the hashtag #PlayStation on Instagram and other social networks to understand what type of consumers prefer sharing their experience with the brand. However, as the popularity of console games increases and “geeky” activities become synonyms to “cool” activities, it is possible to assume that both types of gamers will appreciate the product.
How Will We Measure the Effectiveness of the Creative Strategy?
Evaluating the efficiency of marketing strategies is important for the future company’s projects and its budget. New tendencies in marketing require original approaches and concentration on the integrated comprehension of marketing practice. There are several methods we may employ while measuring the effectiveness of our creative strategy.
The first approach is advanced planning and creating a “response-attribution” framework (Krishnamurthy and Ewald par. 4). To successfully implement this method, we shall need to identify the kinds of campaigns which will be tracked, find which data is accessible to correspond to the feedback, and decide whether the response statistics can be improved (Krishnamurthy and Ewald par. 4).
Another method is designing control groups for a precise assessment of the campaign rise (Krishnamurthy and Ewald par. 7). This approach is especially vital for our project as the digital media advancement requires competent determining of the control groups which provides the correct accounting of the cumulative outcomes.
Delineating the appropriate evaluation metrics also is essential when measuring the strategy’s effectiveness. A strong metrics structure will help to see the interaction between the company’s corporate targets and the marketing strategies (Krishnamurthy and Ewald par. 9-10).
The next approach is to outline the precise attribution standards. This method involves creating the rules for the project’s channels, concentrating on “more-generalized” rules, and checking the standards for each project as they may have various outcomes in different circumstances (Krishnamurthy and Ewald par. 11).
Finally, we can employ the analytic and visual reporting instruments for measuring the strategy’s efficiency. These tools allow the systematic checking of the metrics and help create the reports of the project’s cusses (Krishnamurthy and Ewald par. 13).
Employing these approaches will make it possible to check the effectiveness of the strategy and to design a further action plan.
Works Cited
Ekhlassi, Amir, Vahid Maghsoodi, and Shiva Mehrmanesh. “Determining the Integrated Marketing Communication Tools for Different Stages of Customer Relationship in Digital Era.” International Journal of Information and Electronics Engineering, vol. 2, no. 5, 2012, pp. 761-765.
Gregurec, Iva, Boris Tomaš, and Ana Ćorić. “Word-of-Mouth Marketing within Social Networking Sites.” Proceedings of the 22nd Central European Conference on Information and Intelligent Systems, vol. 2, no. 2, 2011, pp. 227-233.
Hou, Jinghui, Yujung Nam, Wei Peng, and Kwan Min Lee. “Effects of Screen Size, Viewing Angle, and Players’ Immersion Tendencies on Game Experience.” Computers in Human Behavior, vol. 28, no. 2, 2012, pp. 617-623.
Jothi, P. “Analysis of Social Networking Sites: A Study on Effective Communication Strategy in Developing Brand Communication.” Journal of Media and Communication Studies, vol. 3, no.7, 2011, pp. 234-242.
Labrecque, Lauren I. “Fostering Consumer–Brand Relationships in Social Media Environments: The Role of Parasocial Interaction.” Journal of Interactive Marketing, vol. 28, no. 2, 2014, pp. 134-148.
Maurya, Mohit. “Evolution of Blogs as a Credible Marketing Communication Tool.” Journal of Case Research, vol. 2, no.1, 2011, pp. 71-90.
Sony Corporation is the fifth largest media conglomerate with its headquarters at Minato, Japan; the company concentrates in consumer and professional markets oriented commodities, its range of electronic commodities includes phones, radio, and television. Currently the company’s board of directors chairperson, who doubles as chief executive officer (C.E.O) is Howard Stringer, Vice president is Ryoji Chubachi and the chief finance officer is Masaru Kato. The current number of employees are above 167,900; in 2010 financial year, the company made an after tax profit of ¥ 7.214 trillion, which is equivalent to $88.205 billion.
Sony is a public company listed in two international stock exchanges: Japan Stock Exchange and New York stock exchange; when operating in the stock exchange, the company’s ticker symbol is SNE.
As a listed company, the company makes its financial accounts according to international financial reporting standards, and makes disclosures as per the standards requirements. It also has to comply with United States Public Company Accounting Oversight Board requirements: the company’s ends on 31st March. The company’s public accountants are PricewaterhouseCoopers Aarata branch; they have been with the company for over ten years. Technology has assisted Sony to develop better customer service; mechanisms to get feedback and respond to customer issues are developed and facilitated by computer systems; the company has embarked on massive innovation and invention in electronic products. The company’s operating tag is “make. Believe”.
In 2010, the company’s cash and cash equivalents are as follows 1,191,608 million Yens; in 2009, the company’s cash and cash equivalents amounted to 660, 789. The above figure was an 80.33 % increase with an amount of 530819 million yens.
The above result is an indication of absuiness that is having an increased growth in liquid cash; the cash can allow the company take advantage of the market as they occur.
In 2010 and 2009, the company’s total liabilities were 9,580,559 Million Yens and 8,796,909 Million Yens respectively; the growth of the total liabilities can be seen in current accounts liability increase. The increase in total liabilities between 2009 and 2010 was 783650 Million yens representing an 8.9% increase. The rate of increase is far small than the rate of growth in current asset so the company has not danger despite the changed liability budget.
Company’s revenues (or net revenues) for the last 3 annual reporting periods has been on a negative growth; the sale revenue including operating revenue, other revenues, financial services revenue are as follows 8,871,414 Million Yens, 7,729,993 Million Yens and 7,213,998 Million Yens for 2008, 2009, and 2010 respectively.
The above sales translated to the following net profits during the same period 26,912 Million Yens, (174,955) Million Yens and 149,447 Million Yens for 2008, 2009, and 2010 respectively. One noted character of the accounts as noted is that the company is that in 2010, when the company minimal sales the profits were the highest, this is an indication of a company that has embarked on cost reduction methods.
The company’s strength is vested in its total fixed assets of 12,013,511 Milion Yens in 2009 and 12,866,114 Million in 2010. According to the accounts, Sony seems to have slowed its massive investments to look into its internal operations so that it can enjoy reduced operating expenses and improve new products to meet changing consumer demands (Sony Corporation official website, 2011).
I have just completed a virtual tour of the Sony Style – USA website. I was able to analyze all the sections of the website and observe its various link uses and functions. Everything seems to be highly user-friendly and designed to make site navigation a breeze.
However, there seem too many products presented within the website so it sometimes gets confusing and exasperating to find what it was that the visitor began to set out to find.
Over-All Presentation
The home page of the site was designed to highlight the latest product lines from Sony ranging from the Sony Vaio notebook PC to the Sony Playstation games and accessories.
Using multi-colored images of actual products and adding interactive elements to the pages helps to keep the interest of the visitor focused solely on the products on the screen. This takes away from the somewhat drab background color. Sleek and stylish presentations instead gave the chosen background colors a tinge of class and sophistication that carries over well onto the various products being featured.
The homepage effectively guides the first-time visitors of the website towards the various services, inquiry departments, and special product offers without the complexity of having to go through the whole website to find the support they need.
Appeal to the Reader
The website successfully appeals to the young and hip “yuppie” crowd of professionals of today who have successfully found a way to merge work and play, style and functionality, and durability with cost-effectiveness. With the wide range of choices offered by Sony Style in terms of product range and quality, one can see why the website is most frequented by young professionals and why these visits usually translate into online or real-time sales.
Product Information
The website outdoes itself in terms of product information as it contains as much information as can squeeze into the area for the product. However, the prints are done in font sizes 9 and 8, making it hard for the eyes to read. The use of red to highlight the important product release or availability information is acceptable over the white background that most of the pages use.
Account Registration and Online Sales Assistance
Account registration that allows one to access more parts of the Sony Style website is pretty much straightforward as it only requires an email account to sign up.
The online sales service also comes with a real-time live chat during PDT office hours from Monday to Friday starting at 8 AM – 5 PM and until 4 PM on Saturdays. I find this to be a highly useful feature of the website as it allows the potential buyer to make immediate inquiries regarding products being considered for purchase without having to bother to drive down to the store and find a salesperson who can hopefully, answer the questions the buyer has.
Conclusion
In the end, I see a highly entertaining, effective, and user-friendly website that simply begs to be visited over and over again, even if one does not have any intention to purchase Sony products at the moment.
I strongly urge the web developers of Sony to continue to develop interactive ways to keep the website interesting. As a tech-oriented website, it is at par with the best out there and, dare I say, outclasses the others in its class with its smooth and sleek presentation of products, creative use of colors, and concern with ensuring that the visitors, potential buyers, or current buyers always have the best surfing time possible at the Sony Style website.
What is on my wish list for this seemingly perfect website? Real-time tech support for under-warranty items should be a nice addition. After all, the user is the first line of troubleshooters available for any product.
Work Cited
Germshield, Cassie. (2006). Before you ask for a website critique: do’s and dont’s. Small Business Brief. Web.
Sony is willing to promote its TV products as a partner of the Texas Rangers Club. The company emphasizes on the fact that if TVs produced by Sony are to be installed at the Rangers’ Ballpark, then they can be easily fixed up in houses as well. This will ultimately raise the awareness of the brand.
Marketing tactics
Pre-event strategies
Sony will raise awareness among people in order to remind the public of the partnership it has had with the Rangers (Kurtz 37). The public awareness will involve ads; commercials will account for about 60% of the total budget set for ads during the pre-event period.
The purpose of the pre-season advertisement is to instill a notion in the minds of the public that the coming season is a fully entertaining event; by its advertising Sony highlights the fact that thanks to the digital TV any person has the chance to watch their team perform and play. Therefore, if Sony can provide such an entertainment at the ballpark, then the product will appear even more entertaining in homes.
During the sporting period
During the sporting season, Sony will take the advantage of the massive number of fans visiting the stadium to watch their team performing on the pitch (Koekemoer and Bird 21). The company has weighed the advantages of advertising its product during the sporting season.
The estimated number of fans attending every sporting event at the Ballpark is around 42,719. During the season, Rangers plays about 162 games, 81 of which are home events. This means that every season around 3.4 million fans attend home events. By placing the advertisements in the Ballpark, the company will make sure that about 3 million fans see the ads 81 times in the Ballpark and 162 times on TV screens.
The marketing tactics during the season will also involve television advertising during out matches. In this case, Sony will seek to advertise itself in the leading sporting media – the Fox Sports TV that reaches approximately 6.5 million homes in the five southwestern states. The Sony product and its name, consequently, will appear every time Rangers Club appears on the television with additional ads to remind people about their partnership with the club.
Finally, during the season, Sony will communicate the role it plays in sponsoring the club by placing its ads free in the club’s print magazine, on social media pages and the internet (Kress 231). Rangers has an estimated number of 3 million visitors of their website every season, most of whom are looking for daily updates about the club, its events and performances.
Visitors to the website will gain awareness that Sony is the sole sponsor of the club, and the one that organizes the events they enjoy watching. Graphics, pictorial representatives and videos on Sony products about their importance in homes will appear on every page at Ranger’s official website and on social media pages. (Koekemoer and Bird 21).
Post-event
Every post event will involve an analysis of the club’s performance, its strengths, weaknesses, threats and opportunities. The analysis will be fully a project of the Sony Company and the Club. Airing the analysis of the team performance on TVs is likely to attract a large number of viewers, especially men who are Sony’s main target group.
Promotion mix
Sony’s completive advantage will largely rely on its strategy of sponsoring the big club. Competitors sponsor only a few sports events or clubs in the region. The promotion of the Sony product will rely on the contract between the company and the club. Television ads will take up 60% of the total budget; they will attract attention of most fans, who check on the updates about the club and its events on television.
TV commercials will run throughout the season during games, and will frequently appear on television during the pre and post-game analysis. Secondly, fans may buy and read print media, including the official yearbook, the club’s magazines and its pocket schedule.
In each of these kinds of media, Sony’s product and name will appear as a part of the game and the team. Its name and pictures of the products, including their benefits, technology and favorable prices will appear on several pages. Print media will take up 20% of the total budget.
Fans like visiting the club website for updates on its events and other information. In addition, the club has some accounts with leading social media. The agreement with the club will allow Sony to place its ads on both the website and the social media pages. The internet takes 10% of the total budget. Finally, billboards, most of which being digital technologies created by Sony, will appear around the stadium as well as in the lounges, cafeterias, inside the stadium and on the way to it.
Creative brief
The TV ads will reach the largest number of customers. The internet and print media ensure that every fan seeking information about the club sees Sony products quite often, while billboards seek to create an impression that Sony is the only partner to the fan’s club (Charan, Bossidy and Burck 122).
Men, mostly those between 35 and 50 years, are the target group of the advertising company. Most of them work earning between $50,000 and $100,000 a year. They have the capacity to recognize the brand in the shops, and choose it based on its involvement in sponsoring the clubs they like.
Execution plan sample
Promotion channel
Target audience
Pre-season
In-session
Post-session
TV
2,000,000
5,4000,000
1,300,000
Print
120,000
2,00,000
Internet
400,000
1,900,000
200,000
Billboards
3,400,000
Works Cited
Charan, Ram, Larry Bossidy and Charles Burck. Execution: The Discipline of Getting Things Done. New York: Springer, 2010. Print.
Koekemoer, Ludi and Steve Bird. Marketing Communications. Mason, OH: South-Western Cengage Learning, 2004. Print
Kress, Markus. Intelligent business process optimization for the service industry. New York: Springer, 2009. Print
The dream of any company or business is to generate a wide customer base throughout the world. For Sony, its major objective is to reach a large population internationally. Its partnership with FIFA is very significant in achieving this.
This is because FIFA has a wide base of reaching many people in terms of football funs allover the world. During its major events, FIFA attracts millions of football funs. This is a fertile ground in which Sony can operate to reach its target market.
By having the right of using the FIFA logo, Sony would benefit in generating a strong brand image of its products. This is because many people trust FIFA, esteem it highly and associate it with quality. Sony can benefit from these positive qualities associated with FIFA by improving its brand image.
In addition, since the focus of Sony is sale of electronics, Sony would benefit in the sale of televisions, which would be useful in watching the competitions. In addition, due to association with the most esteemed competition in the world, many football funs would also esteem Sony as a company and respect its products.
Sony could also benefit from product differentiation especially in sale of televisions. FIFA events could make Sony brands unique in the market and render them different from their competitor products.
In addition to product differentiation, Sony can highly benefit through the program of advertising in the television during the events. This can attract millions of football funs allover the world, hence attract more customers to Sony products.
Business objectives that Sony should concentrate on
Due to the numerous opportunities accorded to Sony through the partnership, it should concentrate on specific objectives that would help the company achieve its goals. First, Sony should seek to generate creative marketing campaigns during the events.
Since the sponsorship is just for a designated period, Sony should aim at reaching as many new customers as it can, through successful advertisements. The company can achieve this through creating attractive billboards and generating creative television commercials.
The other objective that Sony should seek to achieve is to heighten awareness and respect for the Sony brand. Since the partnership is just for eight years, Sony should seek to generate confidence on its current and prospective customers during the designated period.
This would ensure that people respect Sony products and trust them even without such a partnership. In addition, Sony should seek to increase the television business, which had suffered a loss in previous years. In this regard, Sony has a chance to improve the quality of its television sets, which have a high demand during FIFA competitions.
In addition to increasing awareness for the Sony brand, the company should also seek to increase its overall sale of electronics. This is because Sony has a chance to display products and offer sales during the FIFA events at the sites.
Since FIFA competitions attract millions of football funs, Sony can benefit by making increased sales at the sites. Sony should also seek to enhance its overall corporate value through generating confidence in its present and prospective customers.
This is the overall objective that encompasses all other objectives. This is because an enhanced corporate value helps to increase the customer base as well as increase overall sales.
Another objective that Sony should seek to achieve through this partnership is to get a chance to offer new forms of entertainment and gaming. This is largely because Sony’s entertainment and gaming have not been very successful in the market.
This would offer the company a good platform to offer new and exiting forms of entertainment and enjoyment that most football funs would embrace and like.
This will in turn generate a wide customer base for entertainment and gaming, who will continue requiring the services even after the end of the deal. Some of the objectives like contributing to soccer would not be of preeminence since the overall goal for the partnership is for Sony to build an extended customer base.
Sponsorship benefits to realizing Sony’s objectives
Since the partnership offers Sony various benefits and privileges, Sony would make much out of these benefits. Particularly, the privilege of offering product displays and sales at the sites is very crucial.
This would help Sony achieve the objective of increasing its sales and offering new forms of entertainment. In addition, the benefit of featuring in television commercials would help Sony improve the customer base and generate creative advertising campaigns.
Another benefit that would be of crucial significance in achieving the objective is that of using a combined logo with FIFA. Since many people trust FIFA and associate it with quality, this feature would help Sony build and improve its brand image and quality.
Moreover, the benefit of featuring rotating boards during competitions would help Sony increase its sales and create new customers. Due to the magnitude of the objectives set by Sony, all the benefits offered by the sponsorship would be influential in various degrees.
However, the least influential would be exposure to the official FIFA website and publications. This is because they do not highly help to achieve the specific objectives set by Sony.
A business report is meant to provide investors and other stakeholders with information that is important in running a particular business. Specifically, business reports give the stakeholders an idea on the status of their investment. These reports also highlight problems encountered by the business. They also contain the strategic plans that will be put in place to solve the problems in the future.
This paper is an evaluation of two companies’ annual reports. The paper takes into consideration all factors in business reporting, such as services, products, the environment, and the internal and external stakeholders. The paper will be based on the annual reports of Mitsubishi and Sony companies.
The two companies have come up with reports to create awareness among all the stakeholders. This is as far as corporate social responsibility (herein referred to as CSR) in the two companies is concerned. The reports also address the CSR strategies that the companies are planning to undertake
The Report
Scope and Limitations of the Report
This paper will focus on the differences between the reports of the two companies. This is in terms of the range of issues dealt with in the reports and how these issues are addressed. Specifically, the report will cover the following issues:
Explain the differences between the reports of the two companies in terms of such factors as country and industry of focus.
Assess the quality of reporting in the two companies based on Zadek’s 1997 criteria (Zhong 2009).
Evaluate the appropriateness of using standardised reporting procedures in the two companies.
Make recommendations on how each of the two reports can be improved. The need for such improvements will also be highlighted.
These are addressed below:
Identifying the Differences between the Reports of the Two Companies in Terms of the Range of Issues Dealt with and how the Issues are Addressed
In this section, the author will try to identify the issues addressed by the two companies in their respective reports. The author will also try to analyse how each of the two companies address these issues.
Mitsubishi Materials’ CSR Report for the Year 2011
A critical analysis of the report reveals that it was intended to provide information to investors and other parties interested in Mitsubishi Materials Group. It was also formulated to create awareness on Corporate Social Responsibility (CSR) activities undertaken by the Mitsubishi Materials Group.
The report was structured using clear, precise, and simple language. This is to make it easier for the stakeholders to understand (Mitsubishi Corporation 2010). It is also noted that the report covers nine different areas that were selected to highlight the best strategies to acquire materials in the 2008 fiscal year.
The report has gone a step further to elaborate on the company’s medium-term management plan, which was put in place on August 2011. Additionally, it addresses the initiatives taken by the group to deal with the damage caused by the infamous ‘Great East Japan Earthquake’ and its devastating effects.
The report is not a mere summary of the company’s CSR initiatives. On the contrary, the report is aimed at improving and diversifying these initiatives. To this end, the report is presented in a precise and accurate way to provide the reader with relevant and meaningful information that is significant for the growth of the company. The report meets the requirements of the Global Reporting Initiative (herein referred to as GRI). This is required given that the company is affiliated to CCMM (Mitsubishi Corporation 2010).
The disclosure of information touching on the company’s operations is not limited to the report on material CSR. It is noted that information about the company can also be found in the CSR section of the company’s website. This is all aimed at effectively reporting on the company’s extensive CSR activities.
An undiscerning reader may form the opinion that the report focuses more on 2011 fiscal year than on any other period. This is not the case, given that the report has incorporated information related to activities before and after that time.
Being a member of the ICMM, Mitsubishi has assumed the responsibility of publishing the Metals Company Supplementary Data Book, which is a significant online report that extensively reviews the undertakings of various metal companies. This is all aimed at enhancing full disclosure of information in the industry (Mitsubishi Corporation 2010).
The review also addresses the actions taken by the company’s three smelting subsidiaries. These are Hosokura Metal Mining Co. Ltd., Onahama Smelting and Refining Co. Ltd. (Sony Global 2012), and PT Smelting in Indonesia.
The company has adhered to version 3.0 of the Global Reporting Initiative’s (GRI) Sustainability Reporting Guidelines. The report contains a disclaimer to the effect that any individual wishing to invest in the company on the basis of the information provided in the report will be held liable to any damage or losses accruing thereof. This is given that such a decision should be personal.
Sony’s Annual Report for the Year 2012- Business and CSR Review
The report is structured in such a way that it provides the reader with information on the company’s activities during the 2011 fiscal year. The report addresses the company’s corporate social responsibility initiatives, as well as the business and investment initiatives taken. The report also introduces the new CEO and president of the company, Kazuo Hirai.
The company provides information on the three major businesses that it is running. These are electronics, financial services, and entertainment. The financial and entertainment sectors recorded a positive growth. It is also noted that the two sectors are expected to grow further in the future (Sony Global 2012).
However, the electronics market is unpredictable. The proceeds from the electronics sector were relatively low as a result of the effects of product commoditisation. This is in addition to the effects of the deteriorating foreign exchange rates. It is for this reason that the biggest task for the incoming CEO should be to reposition and reconstruct the electronics business. It is a matter of urgency as far as the stakeholders are concerned.
Sony Corporation has a reputation for ground breaking innovations and products, as well as high quality entertainment services. The company has over the years inspired many investors. Its scope of operations and methodology has made various stakeholders very curious.
However, it is noted that the group now aims at revolutionising its most valuable resource, which is the Sony’s DNA. This is the strong will, ability, and desire to come up with high quality products and services. This has been in place since the inception of the company. The group now aims at ensuring that every employee owns and expresses the Sony DNA individually so as to enhance growth of the company (Sony Global 2012).
In the fiscal year 2011, the company’s operations, especially in the electronics field, were adversely affected by the earlier mentioned Great East Japan Earthquake. This is together with the infamous Thailand floods of 2011. The situation was made worse by the economic crisis that negatively affected many foreign currencies.
This in turn led to a decrease in the prices of the goods and services offered by the company. The company recorded an operation’s loss of approximately 67.3 billion Yen. This is in comparison to the 199.8 billion Yen in the previous fiscal year. This was as a result of the decline in the net sales.
The company also reported on the measures put in place to address such situations in the future. This is especially so the measures put in place to revamp the electronics business. The directors expressed the need to act fast and decisively to restore the company’s lost glory and improve its performance.
Included in the report was the corporate strategy adopted by the company. This is in efforts to restore the entity. The company identified various core areas of operation. The main pillars that were identified included digital imaging, games, and mobile business. These were identified as the key areas in restructuring the electronics business.
The business highlights was another significant area that was addressed by the report. It was noted that consolidated sales were decreasing from one year to the other due to the unfavourable effects of the deteriorating foreign exchange rates.
This is in addition to the shrinking of the markets in developed countries, as well as the Great East Japan Earthquake and the floods in Thailand among other catastrophes (Sony Global 2012). There were also the operation losses incurred during that period. This led to a huge net loss on the part of the Sony Corporation’s stockholders.
As part of the company’s CSR initiatives, the management entered into an agreement with Stefani Joanne Angelina Germanotta, stage name ‘Lady Gaga’, a singer and song writer. It is noted that this artist had performed really well in the past. She received financial assistance from the company. The report also provides the reader with information on the performance of the company’s shares in the market. The figure below is an excerpt from the report:
Figure 1: Sony Global’s Stock Information
Adapted from: Sony Global 2012
An Analysis of the Differences between the Two Reports in Terms of Country and Industry Based Factors
Mitsubishi Report
The company mainly focuses on the manufacture and distribution of products that address the social aspects of the community. It aims at providing the most basic needs for individuals in the society. This is to help them survive or make their life better (Mobile Reference 2010). It is for this reason that the company has invested heavily by assisting the victims of the earthquake.
There is also the copper mining business that the company is involved in. The Copper Mountain Mine rejuvenation project was initiated in 2009. However, actual mining has been taking place since 1996. The corporation is aiming at mining as many minerals as possible. It has invested heavily in the sector (Mitsubishi Corporation 2010).
The company has also made initiatives to recycle waste materials and come up with products that are useful to the community (Tsimhoni et al. 2005a). At the company’s Kyushu cement plant, plans are underway to start recycling incinerated ash from the waste generated by the municipal council. The project was supposed to begin on April 2012.
This will solve the environmental crisis that is likely to result from the process of melting ash into slag. The company is also involved in the metal smelting business. It is currently putting in place plans to recycle scrap metal.
The company has also put in place measures to safeguard and protect the environment. It is committed to the creation of a self sustaining community. It is as a result of this that the company initiated the Eco Contest award scheme, which aims at recognising and awarding the most efficient and outstanding ideas and contributions in the development of a low carbon or recycling-oriented society. In the first Eco Contest Award Ceremony held in April 2011, there were a total of ten award categories (Mitsubishi Corporation 2010).
Sony Report
The Sony Company is known for its ability to manufacture and distribute high quality products. Moreover, the company is well known for the high quality entertainment services. The company has diversified its operations by coming up with innovative hardware. As a result, the company has a remarkable collection of film, games’ content, and music (Lyons 2006).
The Sony Group has vast interests in the electronics business. However, during the 2011 fiscal year, the business was facing many challenges. As such, the profits declined. This was largely instigated by the deteriorating foreign exchange rates and the competition brought about by product commoditisation. It is for this reason that the group finds it very important to act swiftly and restore the lost glory.
The group is also trying to put in place measures that will revamp the industry. The company has identified several key areas in the electronics business. These are digital imaging, gaming (Andresen 2002), and mobile operations. As a result of this, the company will focus its investments in these areas.
Sony is going a step higher by engaging in activities that are more innovative than those undertaken by the various competitors. The activities are likely to improve the performance of the company. This is through the growth of set apart technology, which is better placed to improve the quality of the products.
One of the company’s major undertakings is in the medical field. Currently, this involves the production and supply of printers, cameras, monitors, and other peripheral products specifically designed for the medical field (Hockerts 2008).
The Sony Group is also engaged in the provision of financial services. This sector is expected to record a positive growth. This is considering the performance of this sector in the recent past. In an effort to uphold high standards of operations and maintain a sound financial standing, the various companies under the group’s umbrella have continued to provide high quality financial products. This is through the adoption of an inventive business model.
The companies include Sony Financial Holdings, Sony Life Insurance Co. (Zhong 2009), Sony Bank Inc., and Sony Assurance (Tsimhoni et al. 2005b). Sony Life, for instance, has maintained its successful operations with a lot of ease. As a result, it has recorded an increase in its ‘policy sum in force’ (Ohga 2008).
The company has attained this through its enhanced interaction with the customers. It is also able to design and sell customised life insurance products that appeal to the clientele. According to Guerrier (1999), Sony Assurance enjoys a broad spectrum of customers as a result of its reasonable premiums. This is in addition to its segmented risk and high quality services that have led to increased market share.
Discussion
Inclusivity
An inclusive report focuses on all aspects of a given agenda. For instance, an inclusive report will take into consideration such factors as services, products, and the environment within which the company is operating. It will also take into consideration both internal and external stakeholders (Mitsubishi Zaidan 2009).
To this end, Mitsubishi has designed its report to create awareness among all stakeholders in an inclusive manner. This is especially so with respect to the CSR initiatives that the company is planning to take (Mitsubishi Corporation 2010).
In the report, the management talks about the employees and their overall approach to CSR. Moreover, the report highlights the framework used by the company to promote CSR and corporate governance.
In addition, the report talks about the company’s medium term management plan, which runs from 2012 to 2014 (Mitsubishi Corporation 2010). This adequately informs all stakeholders on what to expect (Mitsubishi Motors 1985).
The company has highlighted other issues in its report. The report addresses the important role played by the society in providing resources. In addition, the report highlights the importance of the environment. It also mentions the company’s efforts in combating global warming, as well as the company’s promotion of eco- friendly products and technology. At the end of the day, Mitsubishi report can be considered as inclusive, given that it mentions and takes into consideration almost all the aspects of an annual report (Mishima 2009).
However, Sony’s report is more inclusive than that of Mitsubishi. It starts by introducing the company’s envisaged corporate strategy. Though this can be compared to the strategic management plan adopted by Mitsubishi, Sony’s corporate strategy stands out. This is given that it features some of the company’s products. In addition to this, Sony addresses the issue of management and its overall approach to CSR.
This is under the internal stakeholders section. The report also highlights the major areas in the corporate strategy, which will transform the company’s future. Moreover, the report highlights the framework that will be adopted to promote CSR and corporate governance. This adequately informs all stakeholders. It also helps them appreciate the efforts made by the management (Choquette & Turnbull 2002).
Just like in the case of Mitsubishi, Sony highlights other issues in its report. The report takes into consideration the important role played by the society in enhancing the performance of the company. In addition, the report highlights the importance of the environment. It also addresses the efforts made by the company to improve resource management and address issues pertaining to climate change.
This is in addition to the company’s promotion of eco- friendly products and technology, as well as effective chemical- substance management (Barney & Griffith 2002). This being the case, Sony Company’s annual report can be considered to be more inclusive as compared to that of Mitsubishi (Wray 2004).
Comparability
In reporting, comparability can be conceptualised as the fair and balanced presentation of issues. It is important for a company’s report to be as comparative as possible by addressing all the concerns (Stout 2010). For example, it is important to mention the company’s corporate strategy, future management plan, and other issues affecting the company directly or indirectly. All of this should be covered adequately (Andresen 2002).
For instance, apart from providing information on the losses incurred by the company as a result of the Great North Japan Earthquake, the reports of the two companies are optimistic about the future. The reports also express support for environmental conservation. This is through the promotion of eco-friendly products and technology.
Sony has outdone Mitsubishi in comparativeness. As mentioned above, the report highlights the importance of the environment. It also addresses the efforts made by the company in improving resource management, as well as issues pertaining to climate change (Pfarrer 2010). This is in addition to the company’s promotion of eco-friendly products and technology, as well as effective chemical- substance management. In addition, the report takes into consideration the importance of the society in providing resources.
Completeness
In report writing, completeness is achieved through detailed description of the subjects addressed. Specifically, completeness describes the exhaustiveness of the subjects in question (Poitras 2011). Generally, it is not easy to ascertain the completeness of a particular report. This is given that such an analysis addresses the exhaustiveness of the subjects highlighted in the report (Sony 2000).
It is also important to note that completeness is different from inclusivity and comparability (Hays 1999). The Sony Company’s annual report may be ahead of Mitsubishi’s as far as inclusivity and comparability are concerned. However, both companies have effectively and exhaustively tackled the issues mentioned in their reports.
Evolution, Continuous Improvement, Management Policies, and Systems
It is important to mention the company’s vision and the strategic plans that have been put in place to cope with the changes in the world in the annual report (Thoreau 2007). On the one hand, Mitsubishi has put in place a solid management plan that runs up to 2014 (Cosans 2012).
The plan aims at reconstructing the company and improving its products by making them friendly to the environment. On the other hand, Sony reports on the measures put in place to address future issues and to revamp the electronics business. The management expresses the need to act fast and decisively in order to restore the company’s lost glory.
The company’s corporate strategy was also included in the report. This is the strategy aimed at rehabilitating the company. As already indicated in this paper, the company identified the core areas of operation. Digital imaging, games, and mobile operations were identified as core businesses in the company. These were identified as the major ingredients of the plan to restructure the electronic business.
Disclosure
Disclosure is important in report writing. It is meant to ‘inclusively’ create awareness among all the stakeholders (Wilcke 2012) as far as CSR initiatives are concerned. In the case of disclosure, information provided by the company is not restricted to the corporate social responsibility section of the report. This is given the fact that more information can be found in the CSR section in the company’s website. This is an indication of the fact that the company has embraced technology in a bid to effectively report on the various CSR initiatives taken (Atkin 2004).
The Need for a Standardised Method of Reporting
As earlier mentioned in this paper, a business report is meant to provide information that is crucial in making decisions in a given company. The management provides a highlight of the problems that were faced within a given period and how such problems were addressed. Recommendations for future operations are also provided.
However, it is important to note that it is difficult to compare investments made by different companies. This is given the different reporting strategies adopted by different companies (Frisch 2004). Therefore, a standardised reporting model will make it easier to determine the operational procedures (Chang 2008), commercial objectives, business management models, as well as the perceived enterprise viability in different companies (Fukasaku 2002).
Recommendations and Conclusion
In this section of the report, the author will make recommendations on how to improve the future operations of the two companies. The weaknesses and strengths will be identified. This is in addition to the strategies that can be adopted to address the weaknesses and exploit the strengths.
Recommendations for Sony
Repetition is very common in advertising. However, it is not wise to keep repeating information about products when writing a report (Barnett 2009a). Instead, the company should try to provide investors with information that is more important to them, such as cash flow strategy, debt market conditions, and acquisitions.
Recommendations for Mitsubishi
Mitsubishi should note that the compilation of annual reports needs inputs from various stakeholders. These are contributions and inputs from a wide range of stakeholders with varying reporting and operating preferences (Barnett 2009b). This being the case, Mitsubishi should make deliberate efforts to combine the contributions from both internal and external stakeholders. This is in order to come up with a comprehensive and highly integrated document.
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Considering the existing opportunities which Sony will use to follow a more environmentally friendly policy, one must admit that the differences between the units which are sold in the new markets and the ones which are provided from the markets in the rest o0f the countries. Hence, a reasonable solution can be increasing the control over the units which are sold in new markets.
Another good suggestion for the company will be to sell the newly developed TV sets in ample amounts, which will make the percentage of the units with high carbon emission levels lower. Finally, suggesting people to replace their old TV sets with new environmentally friendly models for a token fee can be rather costly, yet efficient and will most likely to pay off in the future.
In the light of the fact that SONY’s reputation is at stake and, therefore, its popularity among the general public is threatened (IMD), it is necessary to come up with other solutions which will help create the image of a company with a completely environmentally safe policy. Therefore, more productive ideas concerning the company products are required.
To start with, SONY can launch a new brand which will promote using environmentally safe technology and will help people become aware of the threats which commonly used technology poses to the world, while promoting the devices which are much safer and less threatening to the environment.
Hence, an action plan must be developed for the further course of the company. First of all, it will be necessary to get better control of the market and check that the technology which is nowadays considered harmful must be either eliminated to replace with its safer substitute. Then, the company must think through the advertising campaign for its further line of devices that will replace their usual harmful prototypes.
Finally, the rates of the CO2 emissions are to be recalculated and the data on the issue must be offered to the WWF. When putting the given plan into practice, the company must also take into account the competitiveness issue.
Before offering a certain product to the market, SONY must analyze carefully the technology which has already been established in the market and evaluate their chances, developing the devices which have not been introduced to the customers by any other company yet.
As for the devices which match what the rivals offer, specific marketing strategy must be developed; stressing the fact that the given technologies are completely environmentally friendly, in contrast to the ones offered ни the rivals, SONY is likely to win.
The issue of risks must be touched upon as well. It goes without saying that such radical change in SONY production as shifting from CO2-emitting to environmentally safe products will take a lot of time, resources and finances. In addition, the customers might not like the final product, preferring the traditional radiation-emitting devices to the environmentally safe technology offered by the company.
Moreover, calculating the exact amount of financial resources which the given venture is going to take is rather complicated, which means that the company will suffer considerable losses. However, in the light of the асе that SONY can improve its reputation and surpass the competitors, obtaining a reputation of an environmentally friendly company is well worth the risks.
Works Cited
IMD. “Lowering CO2 Emissions from Products: SONY’s Eco-Innovation for Televisions.” WWF Climate Savers 12 Jan. 2010: 1-2. Print.
Sony is the global leader in electronics industry with operation in over 140 countries. The firm is involved in designing, improving, manufacturing and sales of electronic equipment and instruments, marketing of softwares and game consoles to final markets. In addition, it is involved in distribution of recorded music both at business format and musical genre.
The company is also engaged in financial service provision in Japan where it provides non life and life insurance, internet banking services, rental and credit financing. Finally, through its subsidiaries the company provides network and advertising business services.
Industry analysis
In U.S.A., electronics industry is one of the leading and the fastest growing sectors with electrical and electronics subsector contributing an estimated 10 percent of all produced goods. In 2008, the total sales were valued at an estimated US $ 244 billion, annual growth of (3.2) percent and employment size of 389,257.
Telecoms was the most active sector recording an annual increment of 18 percent while computer line slipped 5 percent due to global drop in computer prices and weak demand from Asian continent (Raymond & Benedict 1999).
The main challenges revolve around economic and financial instability. To start with, financial instability has lowered sales and profitability levels of most firms. In addition, credit crisis witnessed in major economies have also impacted negatively on the firms’ sales values. Secondly, the high input prices like petrol have resulted in the massive rise of prices making most products expensive.
However, the future of electronics industry is still very bright. This is because, first, there is renewed interest in electronic products in the fields of health, security, environment, and transport. Secondly, there is much demand within industrial revolution sector where electronics are viewed as the second most important engine for growth after oil.
Finally, there is increased demand from poor and developed states which have since outweighed global demand. To achieve these prospects, efficient leadership, cross border standardization and collaboration both at local and international levels, shortening of value chains and adequate financial service provision are the key pillars.
Macro economic factors
The analysis of macroeconomic factors aids in monitoring of market signals thereby shaping the external environment, it supports detection of markets operating within the external environment and finally provides an excellent connection between competitive and general environment. However, these factors limit industry’s competitiveness and the achievement of company’s corporate strategy.
The first main challenge to Sony is the instability in most of its operating locations. Although the company requires an assurance of no sudden and harmful changes to its investment, no such assurance is in existence. In addition, the increased level of privatization in most economies has increased the level of competition within the industry which has in turn lowered prices.
The second issue is the exchange rate complexities which makes it hard to sell products to the global market but cheaper for importers to sell within the local market.
Ming-Chang, Zuwei-Ching & Wei-Ling (2011) noted that exchange rate and money supply had a negative influence on electronics industry share prices in Taiwan. Moreover, the current increased interest rates due to economic crisis have had a negative effect on the firms’ profitability.
Thirdly, there is a rapid change in the consumer taste and preference which the company has to adapt to satisfy its customers demands. These changes result in fast product obsolesce and high cost. Finally, technological advancements like the use of internet, design softwares and nanotechnologies usually result in emergence of new and efficient industries resulting in more competition and newer efficient channels of marketing.
References
Ming-Chang, C, Zuwei-Ching, T & Wei-Ling, K 2011, ‘The impact of non-macroeconomic events on Taiwan electronic industry stock index returns’, Global Economy and Finance Journal, vol. 4, no.1, pp. 80-101. Web.
Raymond, YC & Benedict, A 1999, ‘Electronic data and trends’. Web.