Strategic Analysis

1568 words - 7 pages

Every organisation has business model to operate with, one of the function of business model is to identify what is business strategy to ensure long term growth of organisation. Baden-fuller & Haefligar (2013) defined business model as a tool that solves the problem of identifying who are the customers, delivering satisfaction align with customer demands and needs. Business models mediate the link between technology and organisation performance and by identifying the right innovation technology also one of the business strategy to ensure openness and user engagement in market. In the case of Sony Corporation, they implemented a few series of restructuring process within the organisation ...view middle of the document...

The selling price of certain products has been decreased against the production cost and cause huge losses to Sony Corporation (Gupta and Perepu, 2010). In examining social factors, Sony could take advantage from the population of generation Y which is the major users for electronic items such as PCs, laptops, and gadgets as a target market. With the high demands in technology items in this information technology age. The technological environment influenced users to be part of modern technology development, this open up an opportunities for Sony Corporation in develop new innovative products such as LED television that could promote sustainabilty in society. Nowadays we can see every house at least have one television, laptops and mobile users is everywhere. The environmental factors has forced Sony Corporation for restructuring to save the company from facing more losses and to respond to competitive market.
Major reorganisation in Sony Corporation was made in 2005, “the organisation reorganised into five business groups which is the electronics business group, the games business group, the entertainment business group, the personal solutions business group and the sony financial holdings group for the purpose to achieve coordination across different areas including planning, technology, procurement, manufacturing, sales and marketing” (Gupta and Perepu, 2010). Sony diversify the company model into the different strategic business unit or divisions, each strategic business unit will have responsibility for its own business strategy and business performance but they are required to cooperate in achieving company mission towards high profitability. The advantages of this model allow large corporation like Sony Corporation to vary their business strategies according to different needs or demands of the various external markets they serve (Johnson et al, 2014). Another advantages of strategic business unit are supports cooperation between the divisions of the company when they operate similar range of activities, improvement of business focus strategy, improvement of budgeting and accounting operations, and also easier planning across the divisions. However this may create unclear situation to employees with regard to the management activities (Encyclopedia Management, 2014).

Sony has appointed Stringer as a CEO in March 2005, several challenges for Stringer are to get rid of its 'silo culture'. “Stringer focused on mission in attaining profitability across businesses, making product in line with industry standard technologies, improving the competencies in software and services, and divesting the company of its non-strategic assets” (Gupta and Perepu, 2010). According to transformational leadership theory, transformational leaders succeed in instituting changes in structure, production, ethos, technology, and procedures (Van Wart, 2013). Transformational leader also tend to have characteristics of passion and determination,...

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