A Report analyzing current problems/issues faced by the Sony Corporation and suggested solutions

Presented to Ajay Kumar, Strategic Management Lecturer
Report researched and written by Adelina Abushaeva, student of Central Queensland University

Executive Summary

This report analyzes the problems/issues which Sony Corporation faces. The company is facing multi faced problems and its solution should also be multi faced. It requires a major over haul. Sony's current financial difficulties are tied to its corporate culture which begun over 30 years ago.

The key problems/issues of Sony are slowing down of sales and revenues, cost cuttings, moving factories in Asia, cooperation between divisions and efficient management. With such a …show more content…
Status is given instead of bonuses for superior achievement. There is also the strong seniority system such as the mentor and apprentice relationship that is typical of a Japanese firm. All this can be classified as the cultural school which sees strategy formation as a collective process. (‘Description of 10 schools of thoughts’ 2008) Collective vision and stress on human resource, which is typical of many Japanese, can be clearly seen in the mission statement, ‘to experience the joy of advancing and applying technology for the benefit of the public’ (Sony Corporation 2008). The approach of the cultural school tries to involve the various groups and departments within the company. Strategy formation is viewed as a fundamentally collective and cooperative process. (‘Description of 10 schools of thoughts’ 2008) There are limitations of this concept, such as it is vague and can feed resistance to change both of which apply to the case (Minzberg 1998).

With appointment of a new CEO the company may shift toward the Entrepreneurial school, which sees strategy formation as a visionary process. The visionary process takes place within the mind of the charismatic leader of organization such as Howard Stringer. (Mintzberg 1998) A sound vision and a visionary CEO can help an organization to sail cohesively through muddy waters, especially in these difficult years for the organization. (‘Description of 10 schools of thoughts’ 2008)