BA 3103 paper _2---.docx

BA 3103 paper _2---.docx - Christopher Anosike Professor...

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Christopher Anosike March 19, 2014 Professor Monos Situation Analysis Sharp Corporation (Sharp) had three major struggles, which included loss of revenue, loss of profit, and a reduction in cash flow. Sharp Corporation could not produce sales in the market of products within the sector of consumer and information products and electronic components. In Japanese currency, the company reported revenues of 2.5 trillion Yen during the fiscal year ended March 2012, a decrease of 18.73% from 2011. Additionally, Sharp’s profit problem stemmed from exchange rates in foreign market because it dealt with major competition from companies like Sony, which also sells consumer-focused electronics. Also, Sharp Corporation has a cash flow problem because it spent more cash than it is making. In actuality, the corporation had mentioned that it was difficult to secure short-term financing due to inaccurate and predictions. Lack of meeting consumer demand, increase in technological advancements, pricing with foreign rates and unsuccessful attempt to forecast inflow and outflow of cash and inventory all lead to Sharp’s financial losses in revenue, profit and cash flow. Internal Analysis Sharp Corporation revenue issue stemmed from changes in consumer demand and technological advancements from its competitors. The growth of smart phones and tablet computers have caused sales to suffer. With changing customer’s needs and industry standards, these products are highly vulnerable. Also, technological changes takes a drastic toll on sales. Sharp faces intense competition from multiple companies in the same product sector. Several of its opponents like Mitsubishi Electric Corporation, SANYO Electric Co., Ltd., Toshiba Corporation, and Seiko Epson Corporation have higher financial, technical and other resources than Sharp. Its rival battle on factors mainly linked to price, quality, brand value, after market
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service. To compete effectively with these companies within the same market, Sharp needed to
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  • Spring '11
  • WertherGuntram
  • Exchange Rate, Foreign exchange market, Sharp Corporation

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