School of Business and Law
Saving Sony (case study)
Student: Ramis Karamatov
Semester: Semester 2
Lecturer: Peter McGee
London 2013© Table of Contents
1.0 EXECUTIVE SUMMARY
3.1.0 Organisational Change and types of organisational change in Sony
4 3.1.1 What is Organisational Change?
3.1.2 Organisational Changes in Sony
3.1.3 Structural change
3.1.4 Operational change
3.1.5 Technological change
3.2.0 Internal and External Forces
3.2.1 External driving forces
3.2.2 Internal driving forces
3.3.0 Implementing the change through the various theories
9 3.3.1 “Calm water” and White-water” metaphors
3.3.2 Action research
3.3.3 Organisational development
3.4.0 Sources of resistance and tactics of overcoming it
3.4.1 Sources of resistance
3.4.2 Tactics of overcoming resistance
1.0 EXECUTIVE SUMMARY
The report will examine the Sony’s case study. The focus of the report will be mainly on Sony’s organisational change. What types of organisational change have occurred in Sony in terms of series of events through time? Organisational change will be evaluated as a process and will be analysed at different levels. Moreover, what are external and internal triggers of change, which initiated the need for organisational change? Furthermore, the paper will examine some useful theories of change, advocating the methods for managing the change at the implementation stage. In addition to that the sources of resistance will be evaluated which are possibly occur in Sony.
Sony is Japanese consumer electronics giant. Nowadays Sony Group is span into tree main businesses: entertainment, electronic and financial services. Today’s rebuilding the electronics business and repositioning it for the future growth are the most urgent tasks, which require the responsibility – says President and CEO of Sony Corporation Kazuo Hirai (Kazuo, 2013). Entertainment and financial services have stable future growth. However, the operating environment for electronics faces increasing pressure from its competitors: Samsung and Apple. Kazuo Hirai became President and CEO of Sony Corporation on 1 April 2012, overcoming Sir Howard Stringer. Even though Sony began preparing to implement some changes by Sony ex-chairman and chief executive Nobuyuki Idei in terms of restructuring plan strategy, company failed to execute the changes. From 2000 to 2003, Sony faced big challenges, the business seemed unprofitable and Sony planed to consolidate its production in fewer factories. Sony profit plunged 98%, indicating the total sales were down 6.9% to 1.6 trillion yen (BBC News, 2003). In addition, the value of shareholders shares declined from $150 to $25. Sony was far away from meeting its profitability goals and it was enough to force some major changes.
3.1.0 Organisational Change and types of organisational change in Sony 3.1.1 What is Organisational Change?
According to Appannaiah et al (2010), the change simply can be defined as “making things different”. Organisations need to change for variety of different reasons whether there is a necessity for improvements or maximize the productivity or accelerate organisational effectiveness. Ultimately, organisations need to be profitable and provide shareholders value. However, there are might be patters when changes are occurring by new products, new opportunities, expanding market or shrinking market. Those changes can be both within and outside the organisation: 1. Mergers;
3. Adapting new practices;
4. Upgrading technology.
The only thing is constant is change. Therefore, change should be seen as the rule rather that the exception in...
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