Culture Clash Crimps Sony CEO
Inter-Cultural Management
Group Business Report
Culture Clash Crimps Sony CEO
Executive Summary
This report shall analyse the importance of cultural adaptation and cooperation in multinational companies. Focussing on the Sony Corporation of Japan and the appointment of a western corporate executive officer (CEO) we shall dissect selected cultural aspects to ensure that when implementing such a strategy there is maximum efficiency. As there are numerous management styles that derive from many cultures it is vital that cultural understanding have been thoroughly analysed to ensure that such a transition is accepted with encouragement. The report shall cover the appointment of Sir Howard Stringer an Welsh born American had been given the role of CEO of Sony Corporation in the attempt to turn many of its unprofitable divisions into profitable ones. As there are many areas that can be covered with such a transition we shall focus on three main issues that have been identified as crucial to a successful implementation plan. The three main factors include translation issues found in preparing financial documents, Japanese resentment towards foreign management approach and how the western management style has been fussed with Japanese business practices. The results of this study provide guidelines for incorporating a western management style into a traditional Japanese business. From the analysis conclusion we were able to provide recommendations of how to implement the proposed western management practises effectively.
Table of Contents
EXECUTIVE SUMMARY I
1. INTRODUCTION 1
1.1. PURPOSE OF THE REPORT 1
1.2. SCOPE OF THE REPORT 1
1.3. CASE BACKGROUND 1
1.4. REPORT OUTLINE 2
2. CASE ANALYSIS 3
2.1. IDENTIFICATION OF THE ISSUES 3
2.1.1. ISSUE A - IMPROVEMENT FOR THE CORPORATION TO BECOME MORE TRANSPARENT IN BUSINESS PRACTISES TO ACCOMMODATE WESTERN PRACTISES 3
2.1.1.1. Analysis 3
2.1.1.2. Solutions 5
2.1.1.3. Recommendations 5
Group Business Report
Culture Clash Crimps Sony CEO
Executive Summary
This report shall analyse the importance of cultural adaptation and cooperation in multinational companies. Focussing on the Sony Corporation of Japan and the appointment of a western corporate executive officer (CEO) we shall dissect selected cultural aspects to ensure that when implementing such a strategy there is maximum efficiency. As there are numerous management styles that derive from many cultures it is vital that cultural understanding have been thoroughly analysed to ensure that such a transition is accepted with encouragement. The report shall cover the appointment of Sir Howard Stringer an Welsh born American had been given the role of CEO of Sony Corporation in the attempt to turn many of its unprofitable divisions into profitable ones. As there are many areas that can be covered with such a transition we shall focus on three main issues that have been identified as crucial to a successful implementation plan. The three main factors include translation issues found in preparing financial documents, Japanese resentment towards foreign management approach and how the western management style has been fussed with Japanese business practices. The results of this study provide guidelines for incorporating a western management style into a traditional Japanese business. From the analysis conclusion we were able to provide recommendations of how to implement the proposed western management practises effectively.
Table of Contents
EXECUTIVE SUMMARY I
1. INTRODUCTION 1
1.1. PURPOSE OF THE REPORT 1
1.2. SCOPE OF THE REPORT 1
1.3. CASE BACKGROUND 1
1.4. REPORT OUTLINE 2
2. CASE ANALYSIS 3
2.1. IDENTIFICATION OF THE ISSUES 3
2.1.1. ISSUE A - IMPROVEMENT FOR THE CORPORATION TO BECOME MORE TRANSPARENT IN BUSINESS PRACTISES TO ACCOMMODATE WESTERN PRACTISES 3
2.1.1.1. Analysis 3
2.1.1.2. Solutions 5
2.1.1.3. Recommendations 5
References: Layne, N. (7 March, 2005). Sony to appoint first foreigner as CEO: Slumping earnings: Head of U.S. operations to lead Japanese company. National Post, Toronto. Laurent, A Pudelko, M., & Mendenhall, M. E. (2007). What Western Executives Need to Know about Current Japanese Management Practises. Organizational Dynamics, 36(3), pp. 274-287 Sony Global The Associated Press 1999, ‘Japanese workers find lifetime employment no longer guaranteed’, BNet, viewed 26 October 2008 Trompenaars & Hampden-Turner (1998, p70 – Riding the waves of culture:understanding cultural diversity in global business, 2nd ed