SONY

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OUT SONY
W Sony was Iounded on 7th May 1946.
W It is a multinational corporation headquartered in Minato, Tokyo,
Japan.
W Leading manuIacturers oI electronics ,video, communications, video
game consoles, inIormation technology etc.
W Corporate Executive Officers
oward Stringer (Chairman, CEO and President)
Ryoji Chubachi (Vice Chairman)
Kazuo irai (Executive Deputy President)
ORGNIZTIONL STRUCTURE OF SONY
ivisional structure
W Divisional structure is one in which set oI relatively
autonomous units or divisions are governed by central
corporate oIIice, but each operation division has its own
Iunctional specialist who provides product and services
diIIerent Irom those oI other divisions.
W Corporate Structure oI Sony Corporation is a 2ulti- divisional
product structure, where the divisional structure groups
organizational Iunction into a division.
W Each division works as an independent section within the
company and the divisional structure contains all the necessary
resources and Iunctions within it.
W In the Multinational Structure oI the organization, a Iew
business units that are put together in order to increase their
responsiveness in the market.
W There are Iive committees created across all these business
units and business groups.
W This gives a better integration oI knowledge, Ilexibility and the
ability to analyze these units across its procurement,
technology, product strategy, sales and productive business
outcomes.
MULTIDIVISIONL STRUCTURE OF SONY
MULTIDIVISIONL STRUCTURE MODEL
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CONTROL SYSTEMS
With a multidivisional structure in place CEO, oward Stringer is able to
control and oversee each division Irom a distance by monitoring the
business perIormance oI each division.
Sony has a Ilatter structure. Management are made to be more involved
in each oI the business units oI the company. There are more
responsibility given to senior and middle management.
ll core businesses oI Sony are divided by products into separate units
that would report to the Corporate oIIice and setup a corporate R&D unit
to reduce the duplications and also brought in standardized engineered
products to help the reduction oI cost
Thus, most oI the units are directly reporting to the corporate oIIice. This
increases the responsibility and accountability oI each unit heads.
DVNTGES
Flexibility
The division`s become Ilexible as in the sense that they are able to
merge, add or close divisions.
Each division is able to work as its own company and the company is
also able to make the decision oI buying over another
Example:
Sony`s Mobile division merged with Ericsson to produce Sony Ericsson
range oI mobiles.
Sony`s Music Entertainment division had a 50- 50 joint venture with
ertelsmann Music Group naming Sony`s Music division
In Electronics group Sony placed centralized decision-making power over
key areas under the Electronics CEO. This change assures coordination and
Iocus across newly deIined business groups
Exact horizontal coordination in main areas- product planning, technology,
procurement, manuIacturing, and sales and marketing-will allow Iast and
streamlined decision making across product lines.
Concentration on particular business area
Specialization oI competence (Each division has actually become its own
company like the Sony Electronics Inc., the Sony Pictures Entertainment
Inc., Sony Computer Entertainment Inc.)
bility to give clear direction and make a working environment that draws
out the unique talents oI employees and helps them to reach their Iull
potential.
DISDVNTGES
DiIIiculty oI co-operation between business groups
Due to the large organization structure oI the company the knowledge sharing
and cooperation between the business units become very limited but CEO
oward Stringer has tried overcoming this by placing Iive strategic committees
across the business units)
ConIlicts between divisions
dditional cost oI the center
Divisions might grow too large
(Each division has actually become its own company like the Sony Electronics
Inc. or the Sony Pictures Entertainment Inc. and there is a risk oI them grow
too large)
Power is centralized