Saving Sony

Topics: Change management, Sony, Change Pages: 12 (3136 words) Published: April 21, 2014
Saving Sony
1.“Change is the only constant” Evaluate the different types of change that have occurred in Sony? In Sony various types of changes occurred such as structural change, technological change, change in the number of employees, the environmental change outside Sony and so on. The financial losses and the existence of new goods like plasma televisions, Samsung’s LCD and Apple’s category killer- iPod informs Sony that it is in the wrong location in the market and needs to compete simultaneously with other competitors. Structural change and work division.

Structure is obviously necessary for any organization and the purpose of structure is the division of activities and responsibilities. In addition it provides the application of process of management and creates a framework of laws and orders through which the performances of the organization can be arranged. So one of the major changes that happened in Sony was the structural change; Stringer the Chief Executor officer of Sony shaped the business in to five major sections like Digital imaging, DVD recorders, Electronics, Portable audio and last one Television. Concentrating on these five sections and following the new structure speeded up the decision making process, decreased redundancy in Sony and provided it the ability to compete in the entire market. Up to that time each section had its own human resources, sales functions, planning, finance, and functioned with sizeable flexibility, so it was not that effective and efficient. So when the proper decisions are made in this regard, it was for the benefit of the organization such as saving time and money and moving toward productivity and profitability. Diverse Workforce

According to Devos and Willem (2006) demographic plays an important role inside and outside the organization, the customers should be targeted according to their age, education, gender, skill level, immigration, etc. since the technology is improved and people’s preferences and likes specially adults’ preferences are changed, so age is to be considered important while producing goods and services but Sony didn’t noticed that before the changes done by MR Stringer. Additionally, diverse workforce which is another part of the demographic and can bring many positive changes is a vital issue for improvement and creativity of the Sony Company. And if Sony manages diversity effectively and gives value to the workers contribution and ideas in firm’s progression, definitely production of goods and services will increase to a higher level, Which in this case Sony was able to give opportunity to such workers. Change in Sony’s Corporate Culture

In addition, the traditional way of engineering Sony’s products made it too complicated to use and customers didn’t like this. Sines a long time people in most part of the word are living in a technological era and they want things to be easier, simpler and quicker. Apple’s IPod is a good example of a technological electronic that the majority of people like this. Furthermore, television which was one of the Sony’s main products changed from cathode ray tube television to LCD television and rears-projection TVs were also produced by Sony. Technological change

Before restructuring of Sony, it was not moving with the time and people’s wants. Therefore the changes which were supposed to occur inside Sony didn’t occur and this resulted not existing in the right situation of the electronic market. But with the coming of Stringer; new CEO of Sony company the two major changes technological and structural changes completely streamlined Sony and made it more powerful in terms of producing new and creative products such as television, games, cameras, DVD’s, sound recorders and so on. Cost-cutting and changes in number of employees

Cost-cutting is clearly an important issue in organizations and mostly makes easier the work processes...

References: Bouckenooghe, D. Buelens, M. Cools, E. Debussche, F. Devos, G. Mestdagh, S. Van den Broek, H. Vanderhyden, K. Warmoes, V. and Willem, A. (2006) Organizational Behavior, pp 632-648, 3rd Edition, McGraw-Hill Education, Berkshire.
Mullins, L. J (2008) Essential of organizational behavior, 2nd Edition, Pearson Education limited, Harlow.
Pryor, M. Tanija, S. Hympherys, J. Anderson, D. and Singliton L (2008). Challenges Facing Change Management Theories. Dehli Business Review, Vol. 9, No. 1.
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