Sony Corporate

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  • Topic: Sony, Observation, Sony Computer Entertainment
  • Pages : 10 (4505 words )
  • Download(s) : 102
  • Published : January 1, 2013
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1 Introduction
Sony was a leading global electronics company but now is almost well-known by making losses. In 2012, Sony’s chief executive Kazuo Hirai announced that the firm will shed 10,000 staff which working in businesses that are being sold in major reorganization. Sony also emphasizes that it will focus its business on three core areas: digital imaging, games consoles and mobile devices. Finally, it also discussed the reasons why Sony needs to cut jobs and the layoffs will help Sony transfer their position from loss to profit. The first measure is researching the secondary data which can help managers to make correct decisions. Managers should collect and choose the valuable data from the massive database. Furthermore, questionnaire and observation are the other methods which assist manager to recognize the improving areas and make the objective and reliable decision. Finally, analyzing and evaluating the observation, secondary data, organization survey data, financial data and questionnaire can support to make the business decision. According to the decision by cutting the efficiency or unnecessary employees, the company will save expenses and reduce costs to be a more competitive position in the market and reverse their adverse situation. This assignment contains five main parts, which are introduction, literature review, methodology, finding presentation and conclusion. Executive summary and content pages are also in this assignment as well. 2 Literature review

According to Rubio (2012), the Japanese electronics giant Sony corporation has announced in April 12th, 2012 that it will cut 10,000 jobs which accounts for 6% of its global employee numbers (Jeff, 2012).This is the important step for Sony in order to reduce the cost and to reverse losses since New CEO Kazuo Hirai in office which is also the Sony’s largest layoff in recent three years. Oriental Morning Post (2012) has presented that Sony Corporation published announcement display expect fiscal 2011(ending March 31th) Sony has a net loss of 5,200 billion Yen (64 billion dollars) which is the highest loss record since company’s establishment. And according to the statistics, Sony Crop has successive four years deficit in total up to 9193 billion Yen (113 billion dollars) (Lin, 2012). Sony Chairman term of office 1995 to 2005 Dei Nobuyuki (2008) has pointed out that the world has entered the era of digital outbreak; digital is the future development direction of electronic products. However, although Sony has seen the develop direction of future electronic industry, face strong opponents as Apple company, Sony has no Innovation capability and high technology to compete with. (Wilson & Herrman, 2010) On the other side, Sony’s electronic products have no price advantages; its operation condition in major sales market America is poor because of price competitive disadvantage in contrast with Samsung. At the same time Yen goes high continuously has also affect the Sony TV revenue sales. Facing the task of resuscitation television departments but also to bear the market pressure from Apple Company and Samsung, Sony’s new CEO Kazuo Hirai decides to massive layoffs and publishes a series of reform measures in order to help Sony turn loss into profits. In accordance with information science and technology (2012), Hirai Yifu expresses, Sony will focus on the development of digital imaging, video games and mobile products the three major business areas, and strategic investment in the pharmaceutical sector. Sony favourably to speed development of the pharmaceutical business plans through acquisitions and other strategic investment in the field to achieve annual sales of 500 billion yen (about 38.45 billion Yuan) in 2014 or 2015 (Jeff, 2012). First of all, Sony aims to subtract the loss, low profits, negative cash flow, the lack of synergy, limited prospects, and independent operation business, small and medium-sized LCD and chemical business belongs...
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