Therefore the management had to execute some restructuring plan to respond to those concerns. … According to the PMBOK Guide, the matrix organization is a combination of the projectized and the functional organization structures.The authority of a functional manager flows vertically downwards, and the influence of the project manager flows sideways. BCG matrix is developed by Boston based private consulting firm, for the conglomerates like Sony which comprises of diversify divisions or segments. The matrix organizational structure provides an outline for a project that may demand a more global approach. The a1 is considered the Flagship of the Sony Alpha Line. 21, no. Ltd. AnimeLab Pty. Available from: http://www.sony.net/SonyInfo/News/Press_Archive/200202/02-0228aE/ [Accessed 5 January 2011]. Sony (2010) Sony Annual Report 2001, 2006, 2010- Five-Year Summary of Selected Financial Data [online]. Tokyo, Japan - Sony Corporation (“Sony”) today announced a series of changes to the Sony Group’s organizational structure, intended to lead the evolution of each individual business and further leverage the diversity of its business portfolio. The cut in employees due to the off-shore strategy to China establish the “Contribution equal to Compensation” principal of paying for performances, as Schein (2004) stated that employees “have worked well enough to be considered valid”. If you need assistance with writing your essay, our professional essay writing service is here to help! Sony did a mass of changes to adapt to the market changes; unfortunately, the pace of the latter was overtaking the management’s expectations. 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. Info: 4316 words (17 pages) Essay by Khushdil Kasi | Mar 23, 2017 | BCG Matrix Analysis. The analysis gives a clear picture of Sony's business structure. Sony Corporation is one of the leading electronic companies which hold the power of electronic market leadership. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Unfortunately, the management and shareholders are unsatisfied with the profits, since 1998 the profits reduced nearly every year, this might have been the trigger to ignite the restructuring of Sony. [Accessed 16 January 2011], Datamonitor (2010), Sony Corporation-Company Profile, pp4, 5 and 21, Publication date: 12 Mar 2010, Elkington, J. Following are the four components of the matrix; Question Mark, Cash Cow, Stars and dogs. 103-116. 446-458 Available from: Business Source Complete. 69, no. The internal structure of Sony is a tall hierarchical structure as Sony consists of three main business areas which are electronic business, entertainment business and insurance and finance business (Graph 5). Sony mobile communication division comes under the category of Question mark. 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. Although it is less dispersed than the structure in 1999, the pull to formalize by the technostructure of Sony could be seen in Transformation 60 (Mintzberg, 1981). Investment strategies link to the capability of top management of Sony. 21, no. Entertainment business displayed adhocracy due to its little formalisation of behaviour. Therefore, to understand Sony’s corporation strategy (Graph3&4) is significantly important before discussing the structure and restructuring of Sony. Inside the structure, there are three main core business : digital imaging, gaming and mobile. Figure 5.15 is an example of one type of a matrix organizational structure. Organisational restructuring and investment strategies were among the solutions in coping with technological changes. Use PDF export for high quality prints and SVG export for large sharp images or embed your diagrams anywhere with the Creately viewer. Those segments are included into the category of Dogs, which operates in low sales growth industry and have low relative market share. The rapid evolution of technology as pointed out by Idei (Ravi, 2005) has affected the electronics, entertainment and insurance and finance sectors of Sony. Sony today introduced the Alpha 1, the new flagship camera of its full-frame mirrorless system. Thus, the structure of electronic business was divisionalized form. BCG matrix is one of the tools for top level managers, which can be used to formulate strategies for each segment according to its need. Entertainment unit produce drama series and films and Sony studio was ranked third in entertainment industry in 2011, with 12.5% market share in box office. Sony Corporation is ultimate parent company of the Sony group. This report focuses on the structure of Sony in 1999 and the restructuring in 2003, as well as the analysis of difficulties faced by Sony and how the management responded to those issues. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. The following are the responses made by the company alongside with its underlying rationale: Investments: Sony invested heavily in R&D, capital equipment and facilities in order to meet demands and improve profitability. The company believes that technology is capable of linking ‘inspiration’ and ‘shared experiences’ on top of creating new values and capturing emotions of customers (ibid.). Available from: Business Source Complete. But it also involves much complexity and demands much communication so that all organizational managers--particularly the project and the functional--can effectively and efficiently work together. 6, pp. Corporation was invincible during 1980-1990, every product manufactured by the company was perfection, which made the company market leader in electronic industry. Some key figures of Sony from 1997 to 2010 are listed below (Graph1&2). Retrieved from.http://www.theverge.com/2016/7/29/12320782/sony-mobile-business-earnings-q1-2016Global unit sales of current generation video game consoles from 2008 to 2016 (in million units). Available from: Springerlink. Sony Corporation operates in multiple industries, multiple segments of company includes; home entertainment and sound, Pictures, digital imaging products and solutions, mobile communications, games and network services and music. Furthermore, in relation to the environment, the diversity of the environment will largely determine the structure of organization and directly affects the organisation functions into goal-seeking activities through the formal structure to achieve aims and objectives (Mullins, 2007; Mintzberg, 1979). Unfortunately, in 2001, the September 11 attacks caused the consolidated drop in sales, affecting the fiscal position of the company (Sony, 2001b). Each business division has the autonomous to make decisions in its daily operation. Mintzberg, H (1981) ‘Organization design: fashon or fit?’ Harvard Business Review [online]. Since these authorities flow downward and sideways, this structure is called a matrix organization structure.Employees may report to many managers in a matrix orga… Ok, Sony has done it now. Graph 1 Source: Sony Annual Report 2001, 2006, 2010- Five-Year Summary of Selected Financial Data, Graph 2 Source: Sony Annual Report 2001, 2006, 2010- Five-Year Summary of Selected Financial Data. All work is written to order. The Group headquarters concentrated on coordinating these business divisions to make a long-term business strategy. Most of the products mentioned was the innovation of Sony. Then, the focus will move to structure 1999 follow with the restructuring of Sony in 2003 called “Transformation 60”. Sony electronics division can be included into the category of stars. Prentice-Hall Inc. pp 169-175, pp 190-200, pp 215-222, pp 273. VAT Registration No: 842417633. Free resources to assist you with your university studies! This organizational structure is adopted by Sony mainly to compete in the worldwide economy with … There is little interdependence that exists between each other. Besides, an essential portion of the study of Sony’s actions is an understanding of the nature of business strategy for the Sony corporation as a whole (Mullins, 2010). However, the joint venture was a failure as a result of contract disputes.21 SONY CORPORATION IN EARLY 2012 Management and Governance Structure The Sony management team is made of key executives who are responsible for the past successes of Sony. The newly announced Sony A1 camera features a brand new 50MP Stacked BSI CMOS sensor and an ISO range from 100 - 32000 and an expandable ISO range up to 50 - 102400. They are … Retrieved from.http://www.sonyrumors.net/personalaudio/Annual Report. Justify Your Answer. Vol. If you’ve had a job, you likely worked in a functional organizational structure.The functional structure is based on an organization being divided up into smaller groups with specific tasks or roles. Available from: http://www.sony.net/SonyInfo/IR/financial/ar/Archive.html [Accessed 1 December 2010], Sony (2010) About Sony Group-Sony Corp. Info [online]. ‘Technology for Inspiration and Shared Experience’ and ‘Creating New Value’ are Sony’s R&D missions (Sony, 2011). Sony entered a joint venture with Sharp to produce and sell large-sized LCD panels and modules. The Sales figure remained in the reasonably floating level before 2007. Sony (2003) Press Releases: Transformation 60 – confirming Sony’s position as a leading consumer brand in the 21st century [online]. Perhaps, Stringer could consider integrating the Eastern and the Western cultures to obtain the best of both worlds. The key measures are outlined below. 291-305. Sony, a world class consumer electronics makers, was facing serious concerns since the late of 1990s, such as Asian financial crisis in 1997, the tech bubble and the terrorist attacks in America in 2001. Corporate Strategy, 4th edition, Harlow: Financial Times Prentice Hall, Mintzberg, H. (1979). It is also the most confusing and the least used. Sony A1 Press Release, Full Specification and Price Sony finally announced the new flagship FF Mirrorless camera. The Alpha 1 includes several benchmark-setting improvements over the company’s previous flagship, the a9 II, that make it an incredibly powerful camera for both landscape and wildlife photography. The matrix structure cancels out the extremes of the two structures to balance them somewhere in between. Graph 6 Source: www.HYPERLINK “http://www.sony.net/”Sony.net, Press Archive, March 29, 1999. On the other hand, Sony has announced that a new organizational structure called ” One Sony” is being formed. 4, pp. Graph 7 Sony organisational chart: electronics-related business (as of 1 April 2001) Source: www.sony.net, Press Release, 29th March 2001(a). For example, a company could have a group working in information technology, another in marketing and another in finance.Each department has a manager or director who answers to an executive a level up in the hierarchy who ma… 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). BCG matrix is developed by Boston based private consulting firm, for the conglomerates like Sony which comprises of diversify divisions or segments. [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]. We're here to answer any questions you have about our services. Available from: http://www.sony.net/SonyInfo/CorporateInfo/index.html [Accessed 3 December 2010], Sony (2010) Technology: R&D Mission [online]. The structure of Sony in 1999 displayed Sony’s trend to be decentralization to distribute the power yield. 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). 49, no. Study for free with our range of university lectures! This framework is the four quadrant graph each quadrant represent different category of segment, according to its market share and industry growth rate. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Culture refers to “the way we do things around here” (Sanchez, 2004). 1, pp. After the discussion above, the focus now moves to the structure of different divisions. According to the restructuring plan announced in March 1999, the structure of the group was divisionalized and more decentralization, in order to seize further growth opportunities in the 21st century. Ltd. Wakanim SAS (majority shareholder) Manga Entertainment Ltd. (UK) Sony … Akio Morita and Masaru Ibuka are the founders of this successful company; they established this company in May of 1946 in Japan. 2 The performance measurement system is capable of reflecting the current cost of capital of Sony. Retrieved from. Sony Xperia is not making half of sales compare to Apple iPhone. Vol. Available from: Business Source Complete. Our academic experts are ready and waiting to assist with any writing project you may have. Nevertheless, under the complex, diverse and dynamic environment, perhaps the more organic and decentralized structure is more suitable for Sony. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Sony (2002) Press Releases: Accelerating structural reform of the Sony group’s electronics business [online]. 1980-1990. The internal structure of Sony is a tall hierarchical structure as Sony consists of three main business areas which are electronic business, entertainment business … Sony Corporation is Japan based multinational company, it was founded on 7th May, 1946. Each subsidiary is responsible for its own different products and makes business decisions in different markets. Organisational Culture and Leadership 3rd editions, John Wiley & Sons, Inc. Schmidt, T. (2006) A review of Structure in Fives: Designing Effective Organizations. Sony entertainment have produced many famous movies like, karate kid, spider man and men in black 3. Copyright © 2003 - 2021 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Sony (1999) Press Releases: Sony announces new group architecture for network-centric era [online]. [Accessed 30 November 2010]. Sony as a world class player in a diversified high-tech market was challenged with the fierce competition during the late 1990s (Sony, 1999). Sony (2001a) Press Releases: A New Group Structure for the Next Stage of Integrated, Decentralized Management–Transforming Sony into a “Personal Broadband Network Solutions Company”. Graph 3 Source: Sony Annual Report 1998 pp6, 7 & Sony Annual Report 1999 pp26, Graph 4 Source: Sony Annual Report 2003 pp5-management discusses key issues. Vol. Groundbreaking Alpha 1 Camera Marks a New Era in Professional Imaging Vol. In such a stiff market, it is understandable as to the measures taken to seize every opportunity. 38, no. When a customer looks at a product they consider if it’s safe, if it they satisfy their needs, if the looks of the product is good and if the product is affordable before making a purchase. This is a PREVIEW of the Sony a1 Mirrorless Camera. According to the converging strategy, the new operation structure of Sony seems like a basic Machine Bureaucracy structure (Mintzberg, 1983). Sony (2000) Press Releases: Sony and Solectron announce cooperation in electronics manufacturing [online]. Constant improvements in technology have caused the company is located in Tokyo, Japan from 2008 to 2016 in! Those difficulties ( 2007 ) to make a long-term business strategy have different manager to manage the progress a1..., technical system, power and environment ( Mintzberg, 1979 ) company the. 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