Stand-up slides Sony

BACKUP SLIDES SONY

The company Sony is known for all its inventions and innovations, and its development on the international market since the beginning.

The different competitors:

Electronic: Toshiba, Samsung, LG, Apple

Video Game: Nintendo, Microsoft Corporation

Phone: Apple, Nokia

Sony is divided in several structures, which are autonomous; it allows to give to its members some responsibilities.

Cultural Web

Stories:

 Sony has made numerousrestructuring to improvetheirfinancial position.

 The companyis not customerfocused.

 Sony hasn’tbe able to developits range of productsat the same time as itscompetitors.

 Reduce motivation of employeesafterthismanyrestructuring but the Stringer arrival constitue an hope for them (withhiscreativity and innovation from US culture).

Control systems:

 Importance budget plans, control system, not really importance in quality, the money spent on employees are low.

 Stringer brought more to middle management.

Power structures:

 The power comesfrom the top management and they are a strong impact on Sony (for decisions and employees).

 Stringer, new CEO, is the first non-Japanese CEO of Sony

Cultural Web 2/2

 Symbols:

With Stringer, the gap in the top management has reduced.

The former CEO resigned, nevermandatoryretired on japanese organisations.

 Routines and rituals:

Sony has respect the Japanese culture (never fired is high rank executives, importance of hard work and details for employees).

After Stringer, the engineers are the heart of the business, not the seniors.

 Organizational structure:

Sony is international company.

At the top level: most important personis the CEO.

The top management take all decisions.

The companyis an engineering culture.

Lack of communication and convergence betweenunits but with Stringer, apparition of delegative leadership.

SCHEMA LONG TERM – SHORT TERM

Business Strategy : Transformation 60

Performance : Aimat 10% margin + Achieved 1,6%

"Transformation 60" was a recovery plan aimed to achieve ¥ 300 billion cost reduction over 3 years. Support cooperation between companies increasingly creating a convergence between the products. The aim was a margin of 10 % of profits. Sony also plans to reduce costs by eliminating 13 % of its workforce (20,000 jobs).

(Here is the major problem of the management of labor:

Sony wants to create convergence between products. This means that the company needs to create new technology products that meet these requirements. As a result, Sony must maintain or increase its R & D, manufacturing and distribution capacity in the long term , that is to say , hire and train new employees.)

(Transformation 60 had planned to make 20,000 people for 3 years. This means that the production, R & D and distribution will face a decrease in their ability in a short time and that the technical and operational skills would be lost.)

=> We clearly see here that there is a conflict between ST / LT Consequently, transformation 60 was not achieving its objectives: the margin was 1.6%, whereas the target was 10% .

= > Restructuring "Transformation 60" was a failure

SCHema avec les 4 ronds Bleus

I talk you about the key elements in managing strategic change.

Managing change programmes:

Sony has tried various restructuring and organizational change.

With Stringer, the change was more radical than its predecessors

Levers for change:

Changes

...