Sony Corporation - Restructuring Continues, Problems Remain
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Case Code: BSTR361 Case Length: 22 Pages Period: 1995-2009 Pub Date: 2010 Teaching Note: Not Available |
Price: Rs.400 Organization: Sony Corporation Industry: Consumer Electronics Countries: Japan Themes: Organizational Restructuring |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The Restructuring Efforts
In the early 1990s, in spite of a moderate increase in Sony's operating revenues, its operating and net income witnessed a decline. After the electronics business was restructured in 1994 under the then CEO Norio Ohga, the company's performance deteriorated further and Sony reported a loss of ¥ 293.36 billion in 1995...
The Outcome
After the reorganization announced in 2005, Stringer went on to revamp Sony. Sony's Aibo, a robotic pet, was discontinued after the Robotics unit was shut down due to its low revenue generation...
Problems Resurface Again
In mid-2008, Sony's management remained confident that its television unit would turn profitable. The sales of LCD TVs of Sony rose from one million units in 2005 to 15.2 million units in 2008. But with the global recession affecting spending on luxury products, Sony's fortunes took a turn for the worse...
Reorganization in 2009
In February 2009, Sony announced a major reorganization, which was to be made effective from April 2009. The reorganization concentrated on the electronics and game businesses of Sony, aiming to improve their profitability and strengthen competitiveness...
The Aftermath
In February 2009, Stringer became Head of Sony's electronics business and remained the company's President. This brought in a new control structure at Sony, which was expected to be operationally convenient and to unite the different silos that existed in the organization.....
Looking Ahead
As of June 2009, the proposed reorganization was progressing well and Stringer reaffirmed his intention of making the company's presence felt in the network electronics market...
Exhibits
Exhibit IA: Sony - Five Year Summary of Selected Financial Data
Exhibit IB: Sony - Operating Income/Loss by Business Segment
Exhibit II: Sony - Organizational Restructuring (2005)
Exhibit III: Sony's Organizational Chart (As of October 2005)
Exhibit IV: Sony's Organizational Chart (As of April 2007)
Exhibit V: Sony - Operating Revenue by Geographic Region
Exhibit VI: Sony - Sales and Operating Revenue by Business Segment
Exhibit VII: Initiatives to Improve Electronics Business
Exhibit VIII: Sony Organizational Chart (As of April 01, 2009)
Exhibit IX: Sony - Top Executives after Reorganization
Exhibit X: Sony - Consolidation of Electronics Operations
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