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18-21. Free resources to assist you with your university studies! The Toyota organizational structure before 2013 was typical of the standard Japanese business model. Among Sony’s competitors are LG, Samsung, Sharp, Dell and Canon. The product-based organizational model also enables businesses to operate with more flexibility, as each business division can follow the unique processes they need for each product without having to accommodate processes for the other divisions.This can enable the company to shorten their development and manufacturing cycles and bring products to market faster to beat the competition. Stars includes those segments, which compete in high sales growth industry and have high relative market share. The a1 is considered the Flagship of the Sony Alpha Line. 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). This is often an effective structure for fostering innovations, because each division can make its own experiments and pursue its own ideas with fewer layers of approval. In light of the situation above, the new team led by Stringer with the probable change in organisational culture could probably help turn things around. Graph 5 Source: www.HYPERLINK “http://www.sony.net/”Sony.net, Press Archive, March 29, 1999. Available from: http://www.sony.net/SonyInfo/CorporateInfo/index.html [Accessed 3 December 2010], Sony (2010) Technology: R&D Mission [online]. 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. Structure in Fives: Designing Effective Organizations. Value Creation Model refers to the combination of intangible assets and monetary items to create additional value of the business for stakeholders, particularly shareholders (Qureshi, Briggs & Hlupic, 2006; Haksever, Chaganti & Cook, 2004). Sony mobile communication division comes under the category of Question mark. Each competitor seemed to have an advantage over Sony in different products. Deactivating employees from Sony had cost the company financially and it might have explained the poor financial performance of Sony after the transformation was done. The matrix structure cancels out the extremes of the two structures to balance them somewhere in between. In 2013, Sony Corporation was named as the 4th largest manufacturer of television; LG, Samsung, Nikon, canon and TCL are the main competitors of the company. The electronic business consists of various subsidiaries (Graph 6). 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. Available from: http://www.sony.net/SonyInfo/technology/rd/index.html [Accessed 20 December 2010], Webster, C & White, A (2009) ‘Exploring the national and organisational culture mix in service firms’, Journal of the Academy of Marketing Science [online]. Graph 6 Source: www.HYPERLINK “http://www.sony.net/”Sony.net, Press Archive, March 29, 1999. 6, pp. [Accessed 30 November 2010]. Question: Should Sony Adopt A New, Simple Organizational Structure? Organisational restructuring and investment strategies were among the solutions in coping with technological changes. The fourth and final organizational structure is a matrix structure. Therefore, to understand Sony’s corporation strategy (Graph3&4) is significantly important before discussing the structure and restructuring of Sony. Sony Pictures Television Russia (formerly Lean-M Productions) Sony Pictures Television Networks Funimation Global Group, LLC. 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. As directed by the Board of Directors of Sony Corporation, this report will analyse the company’s situation from 1999-2005. Some key figures of Sony from 1997 to 2010 are listed below (Graph1&2). 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. Culture refers to “the way we do things around here” (Sanchez, 2004). VAT Registration No: 842417633. [online] Available from http://www.sony.net/SonyInfo/News/Press_Archive/200103/01-017E/ [Accessed 3 January 2010], Sony (2001b) News and Information: Consolidated financial results for the second quarter ended 30 September 2001 [online]. I dislike using the word game changer, but that is what this camera is. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Available from: http://www.sony.net/SonyInfo/IR/financial/ar/Archive.html [Accessed 1 December 2010], Sony (2010) Sony Annual Report 2003 pp5-management discusses key issues [online]. 38, no. Groundbreaking Alpha 1 Camera Marks a New Era in Professional Imaging Sony ALPHA a1 press release after the break. 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… There is little interdependence that exists between each other. Vol. By product we not only mean the tangible aspects but also the intangible aspects. The product of the company defines the brand. 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). 1, pp. Available from: http://www.sony.net/SonyInfo/News/Press_Archive/199903/99-030/index.html [Accessed 23 December 2010], Sony (1999) Press Releases: Sony Announces Organisational Structure For New Network Companies [online]. Each business division has the autonomous to make decisions in its daily operation. Sony is one of the leading company in electronic industry. After the discussions about the business structure, the report will concentrate on analysing the issues associated with Sony and state the responses taken by the management and its underlying principle before concluding and with appropriate recommendations. The cost-benefit consideration was not given much thought before the outsourcing was done. The Structuring of Organization.Prentice Hall, Englewood Cliff, Mintzberg, H. (1983). Also, in Japan, traditional values that emphasises on hard work and details are a common practice due to its religion influences but in the U.S., creativity and innovation are the common values (Webster & White, 2009). Most of the products mentioned was the innovation of Sony. Sony as a world class player in a diversified high-tech market was challenged with the fierce competition during the late 1990s (Sony, 1999). Investment strategies link to the capability of top management of Sony. Figure 5.15 is an example of one type of a matrix organizational structure. We're here to answer any questions you have about our services. In this diverse environment, different structures will be taken in specific department to meet different aspects of situation for Sony. (2010) Management and Organisational Behavior, 9th edition, Harlow: Pearson Education Limited, Purse, K (2009) ‘Outsourcing myths and workers’ compensation claims administration’, The Australian Journal of Public Administration Vol. 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. The second component of BCG Matrix is stars. Available from: Business Source Complete. Sony Corporation is Japan based multinational company, it was founded on 7th May, 1946. The organizational chart of Sony displays its 720 main executives including Kenichiro Yoshida, Hiroki Totoki, Toru Katsumoto and Masashi Oka × We use cookies to provide a better service. 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. After 65 years of growth, today, the group has established a world class brand and the strong brand image can benefit its bargaining power and make the business move into new markets easily. 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. Corporate Strategy, 4th edition, Harlow: Financial Times Prentice Hall, Mintzberg, H. (1979). For any company product is a very essential element. [Accessed 27 December 2010]. Available from: http://www.sony.net/SonyInfo/News/Press/200503/05-014E/index.html [Accessed 16 January 2011]. 1980-1990. Sony Xperia is not making half of sales compare to Apple iPhone. Vol. Justify Your Answer. 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). The difficulties faced by Sony have been separated into different categories mainly the rapid evolution of technology, competition in the market and the differences of national culture. In Sony, although divisionalization form can be seen, the Headquarter still plays its role as a coordinator, meaning that ultimately, the decision-making process will need approval from the top management. Sony computing segment come into the category of dogs, company lunched its laptops under the brand of VAIO but failed to satisfy the needs of customer and there were many flaws in the product, therefore company failed to grab the market share in computing industry. 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