Sonny Ericson's Evaluation of the Alliance and its Performance

Evaluation of the Alliance and Its Performance

IN A NUTSHELL, both Sony and Ericsson joined forces with the end in mind of generating more profits than if they had struck it out by themselves in the telecommunications business. The financial statements show a failure of the Sony Ericsson brand of company to cope with the aftershocks of the current depression enveloping the entire earth. However, this leader in the mobile phone industry is expected to bounce back to its old self after the depression evaporates into thin air probably by 2011. Conclusively, the company is on the right track in producing new mobile phone models each year to fill the needs of its current and prospective clients. The Sony Ericsson co opting alliance was mainly due to the pooling of the resources of both companies to derive economics of scale or limit its risk (Lorange & Chakravarthy 2007, 94).

Investment TIPS

Most of the people in stocks are not saying anything about the companies failure but instead their strength are being introduce in an investors like saying the big volume of the stock, the close price of the stocks well this is not the correct manner in investment. Here are some of the tips to be successful Investors.

1. Checked the company's profile. The companies profile will lead you on how the company succeeds in their business and also you can see their failure but you have to be careful because some company hides it. To be more safe go to their competitive firm then the other company will say their weakness.

2. Checked their chart for 5 to 10 years. The Chart tells you on how the company performance during the year. If the charts went down go and run away. And if the chart is going up then continue on checking.

3. Get a copy of their financial statement. Before investing get a copy of the company’s financial statement. Don’t invest yet! Tell the company that you going to study first if you going to invest or not tell them the truth that you are going to checked their performance.

4. Compute their performance. The performance can be computed using the formulas on finance book. You can use foundation of finance to get the performance.

Another tip if you don’t like to compute check their assets and liabilities but be careful because the company financial statements are somewhat manipulated but if you compute it thoroughly they can not escape.