case : is Sony turning around?

The company founded in 1955 by Masaru ibuka and Akio morito in the name of Tokyo
telecommunication Engineering.
Later in 1990s the company was in losses this lead to restructuring to slash the cost and reorganize
the structure and diversify the various electronics business profiles.
In Sony they introduced a company within a company system.
Thus Sonys operations were divided into a number of mini companies like playstation, walkman,
Sony mobiles, Bravia tv etc
They have appointed Nobuyuki Idei as the COO and group president of the company
in 1995
Record sale of US $45 billion
Majority of money coming from play station
He restructured 3 networks and 2 business units.
The Sony company decentralized and each of the companies has its own
Research and development.
Ide started value creation management has a way to manage sonys operation and maximize share
holder value.
Profit margins of Sony declined.
Sony walkman and Trinitron CRT Television lagged behind its competitors.
Sony saw a decline in music business
It also saw a decline of revenue in hardware sales and saw increase in sales of game software sales.
Convergent process within the electronic and entertainment and financial divisions.
Internal rivals and Sonys policy:
Conflict between Japanese and US divisions.
Lack of clear vision.
Pride and silo mentality.
Lack of Coordination.
Insider system and hierarchical cu
Stringer was appointed as the new CEO
STRINGER:
He was appointed has the head of marketing and after an year he was promoted has chairman and
CEO of SONY cooperation of America.
cost cutting was implemented by laying of people.
famous for diversity in his hiring as well.
Stringer along with Chubachi conducted a business review and formed various challenges in Sony
and to eradicate that they announced 3 year midterm structuring strategy.
He implemented a bottom up management approach in order to gain the acceptability of Japanese
employees.
Crisis management and organizational restructuring:
In 2006 laptop battery recall crisis and the organizationSony incurred a loss of $481 million.
Stringer was accused of hands of approach towards the crisis.
In 2008 another recall of 438000 Vaio laptops led to 4.2% shares declined .
Stringer took over chubachi position .
He dismantled isolated process within the electronic group and reorganized it into consumer
product group and network products services group.
Sony closed down more of its management sites and adopted outsourcing strategy.
Need to move beyond traditional focus on japanese engineering (making high quality products)
opposite results:
Clash of veterans and engineers
No profit recovery
operating loss
Japan VS usa cultural difference problem