Restructuring Sony

1)

Sony restructured itself 5 times between 1995 and 2002.

2)

The major aim was to capture emerging market ideas, change organizational perspectives, and implement better management strategies. For instance, 1999 by introducing the unified-dispersed management model aimed at streamlining business operations (Gupa & Prashanth 2006).

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3)

Decentralized it decision making structure to reduce reliance on a single leader (Gupa & Prashanth 2006). Centralization techniques were targeted at reducing number of decision makers e.g. from six to four layers (Gupa & Prashanth 2006).

4)

Diversity was evident from its indulgence into the IT market through introduction of Corporate Information Systems Solutions. It introduced the compact mini-cassette player and compact disc player into the entertainment scene. It also had various enterprises focusing on insurance and financial markets. It entered the e-business domain by broadening consumer, music, component, and games divisions into network businesses (Gupa & Prashanth 2006).

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5)

Sony has a corporate structure focused on professional growth by nurturing young professionals into top management (Gupa & Prashanth 2006). Leadership style can be seen in the creation of several levels of management.  Work balance can be seen in role definition as seen in CEOs accountability to shareholders (Gupa & Prashanth 2006). Standard setting is evident through various restructuring campaigns.

SWOT:

Strengths

Emphasis on product innovation and high quality products

Introducing new product platforms.

Weaknesses

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Expensive restructuring efforts

Opportunities

Emergence of the IT business domain.

Threats

Appreciation of the yen against the dollar.

Competition from other alternatives.

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