Sony

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Category: Business and Industry

Date Submitted: 05/25/2014 10:26 AM

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“Strategy is the direction and scope of an organization over the long term: ideally, which matches its resources to its changing environment and in particular its markets, customers and clients so as to meet the stakeholder expectations” (Johnson &Scholes, 1993).

From the early 80s Sony has formed a strong brand name, synonymous with forward-looking know-how, cleverness and desirability. Over the years Sony undertook several strategies some to get over the fails and some to have higher profits. Restructuring and reorganizing strategy was adapted since 1994 in order to improve financial performance and competitiveness of the company. To achieve it, Sony went to many subsequent strategies as listed below:

Creating innovative and competitive with high quality product like PlayStation& Bravia band and LCDs and focusing on the resources that ensure high growth. The innovative strategy is the main strategy since Sony is a technological company in an unstable environment.

Downsizing and reduction in the work force strategy in order to keep low costs and reconsider the businesses that was not profitable. Also renewing and recruiting and revamp top management. To improve electronics, Sony determined to transfer and optimize the workforce (reassignment and outplacement), seasonable and temporarily employees were also to be removed.

Optimizing manufacturing infrastructure and seeking cost advantage through cost minimizing by reducing fixed costs (mingling the operating divisions and shifting component sourcing to low cost markets).

|From the beginning Sony Corporation addressed the Silo Culture by introducing the slogan Sony United and outlining numerous measures that might be applied to join the company and improve cross-company collaboration. “An attitude found in some organizations that occurs when several departments or groups do not want to share information or knowledge with other individuals in the same company. A silo mentality reduces efficiency...