Sony: Transformation 60 & Beyond

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Case Details:

Case Code : BSTA018
Case Length : 14 Pages
Period : Late 90s to 2005
Organization : Sony
Pub Date : 2005
Teaching Note :Not Available
Countries : Global
Industry : Consumer Electronics

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Phase Two

During Phase Two, Sony planned to introduce major reforms. Some of them were:

Focusing Electronics Strategy
Engineering and development resources would be concentrated in strategic categories such as flat panel TVs, Home Servers and mobile products.

Mature categories such as Trinitron CRT TVs, analog video systems and analog personal audio systems would have their product engineering and development functions strengthened at Sony EMCS (Engineering, Manufacturing and Customer Services)...

Revamping Production System

Engineering and production technology would be strengthened globally for a higher added-value manufacturing system. Distribution functions would be integrated with the existing production, engineering and customer service functions of some factories to achieve advanced supply chain management...

Optimizing Human Resources
Sony planned to reduce staff strength (154,500 at the end of March 2003, excluding finance sector) by about 20,000 over a 3-year period. This included about 7,000 employees in Japan. Sony planned to integrate corporate/administrative functions, which overlapped with several organizations/work centers. It also planned to increase efficiency by consolidating work centers...

Looking Forward

In 2005, Transformation 60 seemed to be well underway. Attitudes were slowly changing inside Sony. Divisions that were run like silos with their own bureaucracies were becoming more vibrant and entrepreneurial. Sony moved a step closer towards Idei's digital dreams by releasing Airboard, a wireless television...

Exhibits

Exhibit 1: Sony - Key Figures
Exhibit 2: Sony - Income Statement (US $, Numbers in thousands)
Exhibit 3: Sony - Balance Sheet (US $, Numbers in thousands)

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