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Sony was caught off-guard and tried to revive itself under the guidance of its first non-Japanese head Howard Stringer, who took over as the CEO in 2005.
However, it remains to be seen whether the reorganisation can bring Sony out of its problems.
The case aims to achieve the following teaching objectives: (1) to examine the challenges faced by Sony in a competitive global business environment; (2) to understand the importance of organisational culture in effectively executing an organisation's strategy; (3) analyse how Sony can make its products competitive and foster innovation; (4) examine the efficacy of the reorganisation program initiated by Stringer in turning around Sony and solving its problem relating to the silo culture; and (5) analyse other measures that need to be taken by Stringer to restore the profitability of Sony.
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This case was the first prize winner in the 2009 John Molson MBA Case Writing Competition.
This item is suitable for postgraduate and executive education courses.
Over many years the innovation nature of Sony’s products delivered it competitive advantage.
This is no longer seen and thus Sony shifted away from innovative products, the reason that caused fluctuations and profit drop.
Sony, the Japan-based multinational conglomerate, is one of the leading manufacturers of consumer electronics devices and information technology products.
Sony was responsible for introducing path breaking products like the Walkman, the Discman, and the Play Station gaming console, among others.