INTRODUCTION Sony Corporation is a Japan-based multinational firm, which is engaged in electronics, entertainment, gaming consoles and software, music and financial services business. Over the years Sony has grown dramatically and obtained its status as a worldwide industry leader in technology, launching many unique products along the way (Reuters, 2014). In March 2005 to June 2009, 5.52% of the Japanese yen went through an appreciation against the US dollar. This was a situation where the company couldn’t do anything about it, as it was an external factor that was out of their reach, which played against them and caused absolute problem to the company. “The lost decade” as it is called, is know for its strong recession in the country that decreased the value of Yen due to the exchange rate. Though Japanese economy showed signs of recovery by 2006 onwards (Masaki, 2006). MERITS & DEMERITS OF SONY’S BUSINESS MODEL At this stage when the domestic economy of japan was progressing, Sony announced Howard Stringer as the first non-Japanese Chief Executive Officer of the company. This step of opting for a western style management from the usual Japanese style management could strengthen the business environment in the company in terms of external and internal factors that stimulate the company’s operations. Announcing Stringer as the CEO was a sign of change in the 50 year old company that has been noticeable by everyone in the world. The five main challenges that Stringer identified for Sony were the once which has been taken into consideration in reorganization since 1994 which failed in achieving the desired results and trying to improve the financial performance and competitiveness of the company. Expert analysts blamed that the ... ... middle of paper ... ...o contingency plan it faced challenges and had to undergo many restructuring plans. Sony in now focusing on innovations to meet the consumer demands and following the upcoming trends to keep itself ahead of its competitors. They are focusing on its core products that can help them achieve required profits. More emphasis should be given on focused segment, as they are the most profitable source for the company. Sony is focusing on its electronics and entertainment (focused segment) as they are the key drivers in the organisation and will help them in growth of their market share. They are focusing on reducing cost by removing the redundancies through business processes (ICRM, 2010 p.13). Now that Sony is alert with what challenges cause certain problems they are taking steps to overcome these challenges and improve its position once again in the electronics industry.
under a different name of the Top Hat. Tony Smith started the company as a
Sears has seen many different changes in business and has had to adjust to t...
However, during the 1990s, Philips and Matsushita both faced major challenges to sustain their position in the market. Changing profile of the industry and globalization forces made Philips and Matsushita’s organizational models and competitive advantages obsolete, and brought up the need for drastic actions. At the brink of a new century, the battle of two giants unraveled with CEOs from both sides implementing another round of strategic initiatives and restructurings. The pressure put on new CEOs was enormous – wrong st...
General Electric Company (GE) is a diversified technology, media and financial services company. With products and services ranging from aircrafts engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and industrial products, it serves in more than 100 countries. This analysis will use financial ratios to see just how GE is performing as a Fortune 500 company.
Sonic is the largest drive-in chain in the United States. Under the slogan "America's Drive-In," a Sonic features fast service by roller-skating carhops and unique menu items that cannot be found at McDonalds, Burger King, or Wendys. Sonic restaurants operate in 27 states so it is smaller than leading fast food chains however it is still a significant competitor. Founded by Troy Smith and Charlie Pappe in 1953, Sonic went from a single root beer stand to a popular franchise. In 1973, Sonic restructured as a franchise company and later became Sonic Corporation. The company experienced financial decline due to the lack of consistency from its franchisees so they were bought out by Sonic Corporation and restructured. In 1995, Sonic introduced "Sonic 2000," an aggressive multi-layered strategy to further unify the company in terms of a consistent menu, brand identity, products, packaging, and service. The campaign was successful and Sonic's brand recognition increased. Strengths include a strong competitive nature, flexible strategies, and employee/franchisor relationships. Weaknesses include lack of communication and domestic expansion. Threats in the external environment include company size, employee turnover, weak economy, rivals in similar industries, overseas expansion, and slow growth markets. Sonic can overcome these threats with opportunities such as global expansion, increase in the number of quick service consumers, and appealing investment opportunities. Alternative strategies and recommendations suggest that Sonic should concentrate on a low cost strategy and focusing on niches such as the health food market.
Top management had a high influence on the strategic decision made and had no doubt regarding the outcome, there was an unjustifiable presumption of perfect information and complete knowledge. The strategic decision to spend $40 billion to reinvent itself did not account for the new technology integration, which GM encountered many difficulties in integrating with existing technology. The implementation took place through the managerial hierarchy and budgeting mechanisms of the
For many years, IBM succeeded in holding a very good market position. In fact, the company achieved a very high market share and huge profits. However, this situation did not last forever. In 1990, IBM experienced its first quarterly loss of $2billion due to some unexpected accounting charges. However, revenues increased from $62.7 billion in the previous year to $96 billion. In 1991, the c...
Stringer aimed to unite cutting-edge technology with entertainment content while reviving Sony’s electronic business. To combat the price drops of rivals Stringer streamlined Sony, unveiling a sweeping restructuring plan that cut 10,000 jobs, shed a number of unprofitable divisions and products and attempted to centralize decision-making (Palmer, 2006).
On the other hand, most factors prove otherwise. The retail industry does not have high Economies of Scale to be exploited in general . Yet, it is impossible to run department stores like Metro on a small scale . A large retail space, inventory, and warehouse are necessary to host a specialized portfolio of brands and products to better attract both customers and suppliers. Heavy capital requirements and operational expen...
Toyota Motor Corporation is one of the largest automakers in the world. At its annual conference in Tokyo on May 8, 2008, the company announced that activities through March 2008 generated a sales figure of $252.7 billion, a new record for the company. However, the company is lowering expectations for the coming year due to a stronger yen, a slowing American economy, and the rising cost of raw materials (Rowley, 2008). If Toyota is to continue increasing its revenue, it must examine its business practice and determine on a course of action to maximize its profit.
Management Efficiency: During the 80s, the company’s refocus to manufacturing quality and technical leadership and profits reinvestments in R&D, state-of-the-art manufacturing, and supply chain activities helped the company to grow in a great extend. This management vision was not only upgraded the company’s products to compete in the high-tech electronics industry but also gave foundations of its global brand awareness.
Moreover, the context in which this book was written demonstrates that Japan is going through the financial affluence as well as the greatest boom since it is during the postwar period, much of the financial affluence had been caused by the consumerism in Japan. The author seem to be biased on this theme, despite the benefits consumerism has had on Japan, Yoshimoto goes ahead to give it a negative
The article provides examples of companies that have faced the crisis. For instance, the premium position captivity reason was among the main factors causing Levi Strauss to lose its share of market. ...
Japan’s rising yen and the decline of the US dollar, East Asia Forum, 2011. Available at: