Plans for better business performance of Sony in Japan - and suggestions for management and financial accounting transparency

Abstract

Through years Sony In Japan has shown success in bringing to the market high quality products, and via technical inventions. Today risk management is one of vital issues in Sony to maintain its reputation in global markets. The purpose of this study is to find out impacts of economic factors at macro level on net profit of a big technological giant like Sony. We found that movement of net profit in big firms such as Sony will reflect the business health of technology system and the whole economy. The results of quantitative research, in a seven factor model, show that the increase in inflation, GDP (increasing too much) and lending rate and reducing risk free rate has a significant effect on reducing Sony net profit with the highest impact coefficient, the second is decreasing the exchange rate. Last but not least, this study proposes risk management solutions and business management plans to lower business risks, cost and enhance its net profit.