Abstract

The case discusses the problems faced by Japanese electronics and communications company - Sony Corporation in the early 2000s and two of the restructuring exercises that Sony was subjected to in 2003 and in 2005. With all its previous restructuring programs not yielding the desired results, Sony adopted a new restructuring plan under the leadership of its first non-Japanese CEO Howard Stringer. There were mixed reactions for the new restructuring plan from several quarters. The case outlines the strategies which Stringer plans to adopt to achieve an operating profit margin of 5% by Sony in 2008 and debates the efficacy of these strategies.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Examine the implications of frequent restructuring by Sony
• Evaluate the strategies adopted by Sony to regain its lost market share
• Study the emerging trends in the consumer electronics industry.

Keywords

Sony Corporation, Restructuring, Transformation 60, Howard Stringer, Business Model, Convergence, Organizational structure, Decentralization, Management structure, Commoditization, Financial Performance