In today’s electronics market, liquid- crystal- display ( LCD) TVs are more popular than plasma TVs; organic- light- emitting- diode ( OLED) TVs are also rapidly gaining market share. As a result, Panasonic Corporation recently closed a plasma TV plant in China9 to allow it to focus its efforts on the more popular TVs.

Panasonic operates several segments in various markets and is continually assessing its product offerings in these segments. The following is an excerpt from Panasonic ­Corporation’s 2012 Annual Report and related DATA Book (Segment Information) 10

Questions

1. Go to Panasonic’s website and locate the information for investors. In its annual ­report, it describes each of the segments listed in the excerpt given in the case ­description. For each segment, write a brief description of what products and services are included in that segment.

2. For each of the segments in the Panasonic Segment Performance Report included in the case, calculate a profitability ratio for each year by using the following formula: Profit (loss) 4 sales

3. The plasma factory described in the case would have been a part of which segment? For that segment for the years 2010 through 2012, answer the following questions:

a. Did sales increase, decrease, or remain about the same?

b. Did profit (loss) increase, decrease, or remain about the same?

c. Did the profitability ratio (as calculated in question 2) increase, decrease, or ­remain about the same?

d. What observations can you make about the performance of this segment?

4. For each of the other segments for the years 2010 through 2012, answer the ­following questions: a. Did sales increase, decrease, or remain about the same?

b. Did profit (loss) increase, decrease, or remain about the same?

c. Did the profitability ratio (as calculated in question 2) increase, decrease, or ­remain about the same?

5. Of the eight segments, which three segments appear to be the strongest based on the limited information you have in this case? Support your answer.

6. Of the eight segments, which segments appear to be the weakest based on the ­limited information you have in this case? Support your answer.