Sony - Organizational Behaviour
Introduction
This report has been prepared towards the completion of the Organizational Behavior Case Study 1. The report is an evaluation of the organization structure implemented in Sony when Howard Stringer joined as CEO in October 2005. The transition Stringer made of Sony’s organization structure was from Transnational structural to a multidivisional structure. Hence, this transition has been analyzed in detail. In conclusion, it can be seen that the stock share value has increased during 2005-2007, which means that Howard Stringer, both externally and internally, implemented the organizational structural change to everyone’s full satisfaction.
Brief information about Sony
Sony is a leading manufacturer of audio, video, communications, and information technology products for the consumer and professional markets. Its motion picture, television, computer entertainment, music and online businesses make Sony one of the most comprehensive entertainment and technology companies in the world.
Sony’s organizational change
When Howard Stringer joined as the CEO of Sony Global Japan he brought new strategies and used those strategies to restructure Sony’s organization to be in-line with these strategies. Firstly, Stringer changed Sony’s vision from: “make Sony cool again” to: “make.believe”.
Then, he looked at the core competencies of the corporation and focused mainly on the games, electronics, and entertainment sector. Stringer then established a growth strategy saying, “Our target is for the Sony Group to achieve consolidated sales of over 8 trillion yen and an operating profit margin of 6% by the end of fiscal year 2007”.
From the analysis on the organizational structure that Howard Stringer was trying to implement in 2005 we can see that it was clearly a multi- divisional structure (see Appendix 1).
Sony’s Multidivisional Organizational Structure
Sony’s multi-divisional structure is also known as the “product structure” where the divisional structure
This report has been prepared towards the completion of the Organizational Behavior Case Study 1. The report is an evaluation of the organization structure implemented in Sony when Howard Stringer joined as CEO in October 2005. The transition Stringer made of Sony’s organization structure was from Transnational structural to a multidivisional structure. Hence, this transition has been analyzed in detail. In conclusion, it can be seen that the stock share value has increased during 2005-2007, which means that Howard Stringer, both externally and internally, implemented the organizational structural change to everyone’s full satisfaction.
Brief information about Sony
Sony is a leading manufacturer of audio, video, communications, and information technology products for the consumer and professional markets. Its motion picture, television, computer entertainment, music and online businesses make Sony one of the most comprehensive entertainment and technology companies in the world.
Sony’s organizational change
When Howard Stringer joined as the CEO of Sony Global Japan he brought new strategies and used those strategies to restructure Sony’s organization to be in-line with these strategies. Firstly, Stringer changed Sony’s vision from: “make Sony cool again” to: “make.believe”.
Then, he looked at the core competencies of the corporation and focused mainly on the games, electronics, and entertainment sector. Stringer then established a growth strategy saying, “Our target is for the Sony Group to achieve consolidated sales of over 8 trillion yen and an operating profit margin of 6% by the end of fiscal year 2007”.
From the analysis on the organizational structure that Howard Stringer was trying to implement in 2005 we can see that it was clearly a multi- divisional structure (see Appendix 1).
Sony’s Multidivisional Organizational Structure
Sony’s multi-divisional structure is also known as the “product structure” where the divisional structure
References: Dr. Mohd. A. Salama, 2010, “Sony Corporation and its Organizational Change” Strategic Project Management, reviewed 11 December 11, 2010 NewsBlaze, 2005, “Sony Group Mid-Term Corporate Sony Corporation of Amreica, 2010, “Corporate Fact Sheet”, Sony Corporate of America, viewed 11th December 2010. http://www.sony.com/SCA/corporate.shtml Appendix 1.