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In such a stiff market, it is understandable as to the measures taken to seize every opportunity. And we find that it’s not just functional value that people desire, but the deeper and more elusive emotional value.” Sony’s vision, then, is about making products which e… 291-305. The organizational chart of Sony displays its 703 main executives including Kenichiro Yoshida, Hiroki Totoki, Toru Katsumoto and Masashi Oka × We use cookies to provide a better service. May 19, 2020 . Vol. Announcement of New Sony Group Organizational Structure. There is a CEO in the headquarter and five main managers under the director. Available from: Business Source Complete. According to the Sony’s website, Sony’s top manager believes that communications between employees and manager is very important. Below are among the steps taken by Sony to beat the competition in the market: Partnership with Solectron Corporation in year 2000 and off-shoring to China were to aid the outsourcing process of production of electronics was a step to help the company meet fluctuations in demands, cost reduction, quality improvisation and customer satisfaction (Sony, 2003; Sony, 2000). News & Information . [Accessed 4 January 2010], Qureshi, S, Briggs, R & Hlupic, V (2006) ‘Value creation from intellectual capital: convergence from knowledge management and collaboration in the intellectual bandwidth model’, Group Decision and Negotiation. Available from: [Accessed 1 December 2010], Sony (2010) Sony Annual Report 2003 pp5-management discusses key issues [online]. Besides, centralization and decentralization depends on how organisational power is dispersed and is determined by the organization structure for decision-making and problem-solving (Schmidt, 2006). SGC will be dedicated to functioning as the headquarters of the Sony Group, and will lead and support the evolution of the Group's businesses through its array of talent and technology, to drive further evolution and growth across the Sony Group. Sony has innovative workers and they are centralized with their decision making. Then, the focus will move to structure 1999 follow with the restructuring of Sony in 2003 called “Transformation 60”. Therefore, to understand Sony’s corporation strategy (Graph3&4) is significantly important before discussing the structure and restructuring of Sony. The group announced the organisation’s restructure plan in March 1999 to seize further growth opportunities in the new century and the Internet era (Sony, 1999). Hierarchical corporate structure. Until now, SFH has maintained its position as a listed subsidiary in light of, among other things, its ability to flexibly procure capital for growth. If you need assistance with writing your essay, our professional essay writing service is here to help! In conjunction with the launch of Sony Group Corporation on April 1, 2021, Sony Electronics Corporation, which currently operates the electronics business that is the origin of Sony's business (the Electronics Products & Solutions segment in Sony's current financial disclosure), will succeed to the company name "Sony Corporation.". & Masaki, T. (2004) CSR Report 2004, [online]. 21, no. Graph 7 Sony organisational chart: electronics-related business (as of 1 April 2001) Source:, Press Release, 29th March 2001(a). Schwartz and Thompson (1986) suggested that the divisionalization form can facilitate the various divisions to compete fiercely among them, with effective operations to face rapid changes in external environment. �7!b���d�0��^��ּD��f��u+� A�l����������9'xt)����0J��R���R�R��@[{92ͤ�� With regards to SGC, in order to further reinforce the technological strength that empowers all of the Sony Group's businesses, Toru Katsumoto, Executive Deputy President, will be appointed CTO (Chief Technology Officer) of SGC, effective December 1, 2020. Unfortunately, both measures failed to bring positive impacts to the company’s fiscal positions. [Accessed 27 December 2010], Ravi, M., (2005) Sony in restructuring Mode: Stringer’s Challenge (B), ICFAI Knowledge Center, Sanchez, P (2004) ‘Defining corporate culture’, Communication World [online]. Company Registration No: 4964706. Besides, the group launched a “unified dispersed” management model to ensure that the business operate more efficiently and to be able to survive the rapid change of environment. [Accessed 30 November 2010]. Each aspects have different manager to manage the progress. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Indeed, the model brings competitive advantage to Sony (Jayaranam & Luo, 2007). There is little interdependence that exists between each other. 5, no. This social provides a forum for representatives of Management and employees that are from different country to meet and discuss the issues. Strategy and organisation structure are correlated to each other, even the debate of whether strategy or structure comes first is still in existence (Lynch, 2006). Sony Corporation currently has two functions, one as the headquarters of the Sony Group, and the other to provide overall management support for its electronics businesses. Free resources to assist you with your university studies! Each competitor seemed to have an advantage over Sony in different products. Due to the external environment effect such as the Asian financial crisis, the ever increasing competition, as well as the internal business issues like the low efficiency, the profits of Sony has been reduced dramatically since 1998. For details, please see the attached press release. Culture refers to “the way we do things around here” (Sanchez, 2004). Study for free with our range of university lectures! Indeed, Sony restructured its organisation in 1999 into a more divisionalized and decentralised form using the “unified dispersed” model as a means of a Value Creation Model. Two main recommendations should be taken into account: Firstly, the future of the organisational culture of Sony has to be determined from two aspects – based on the organization structure and the differences in national culture since the takeover of Stringer as CEO. MGMT²(2nd ed.). 35-47. Going forward, Sony Electronics Corporation will proceed with the realignment of its business entities and platform organizations and optimize its structure, talent and business portfolio, while further enhancing competitiveness and promoting new business creation. ( Log Out /  The press releases on this website are provided for historical reference purposes only. The electronic business consists of various subsidiaries (Graph 6). 691-703. Business 3.1 Structure of Sony in 1999. 6, pp. 197-220. The cost-benefit consideration was not given much thought before the outsourcing was done. Reference this. Sony Pictures The hub for your favourite movies and TV shows. Convergences in the three sectors saw power being more focused at the top management. Current executives of Sony Corporation in leadership positions at core Sony Group companies will be positioned as executives within their respective businesses from April 2021, and continue their focus on value creation initiatives in those businesses. The CEO has developed Sony into different departments such as electronic, music, movies, computer games and theatres. Going forward, the electronics businesses, including Imaging & Sensing Solutions, will also establish optimal executive structures for each business. 1/2 . The structure of the organisation is determined by its age and size, technical system, power and environment (Mintzberg, 1979). Outsourcing may be beneficial to the company as a whole but it could ultimately decrease the motivational level of employees, as there is a tendency of decrease of power of managers, and failure rate is between 40%-70% (Purse, 2009). Entertainment business displayed adhocracy due to its little formalisation of behaviour. ����DlHIŮ2f�aJ�t&5�1+�ʡ�u�(� nq:�r#9��⎕�\��Ь~zܸ~����k�k The largest internet retailer in the world by revenue employs more than 647,00 people worldwide. It helped accelerate the structural reform of the electronics business of Sony on top of the creation of synergy as a result of the merger. Available from: [Accessed 3 December 2010], Sony (2010) Technology: R&D Mission [online]. Azumi & Mcmillan (1975) found that both the U.S. and Japanese culture are quite highly centralized and company’s rules and procedures are abided.

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