Sharp suffered a record $5.6 billion loss for the fiscal year following a 75% decrease in company shares. 1 The company has admitted to saying there's "material doubt" regarding its ability to stay afloat. This report will conduct a situation analysis of Sharp Corporation, assessing the internal company and external environments, summarizing key issues that explain the company's current performance.
             In 2004, Sharp spent $6.6 billion building two factories in Kameyama, a town in central Japan in order to combat the rising demand for LCD TVs. At the time, Sharp dominated the industry with a 22 percent market share in LCD TVs. Error: Reference source not found Fast-forward to 2012, the company has seen its market share slashed to a mere 5 percent. 2 "When the market slowed, Sharp was saddled with excess capacity and the company's losses ballooned." Error: Reference source not found This "boom-and-bust" investment has forced the company to take on $4.6 billion in loans in order to survive with its headquarters in Osaka and factories in Kameyama being listed as collateral. This is the company's second straight year of record deficits which total more than $10 billion. The problem is simple: the company is burning more cash than it is generating.
             Sharp is now looking for ways to help the company stay solvent these include: foreign investment, reduction in workforce and subsidiaries. The company is looking to seek funding from various joint-ventures, however Sharp failed to secure a 67 billion yen investment from Taiwan's Foxconn Technology Group. Error: Reference source not found According to Bloomberg News, Sharp is planning on cutting nearly 11,000 jobs, approximately 18% of its workforce. This will be Sharp's first workforce reduction since 1950.
             Sharp Microelectronics of the Americas and Sharp Laboratories of America are two Sharp subsidiaries that rema
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