The following article contains about the Sony Businesses new strategy implementation called 'One Sony' which is a new structure for the very best management of the business where in fact the company is making changes to 'drive revitalisation and progress'. The report further discuss about the amount to that your strategy will fit the Sony Corporation's current features to face external obstacles and achieve the targets. Moreover, the suitability and the feasibility of the strategic decisions arising from the implementation of this strategy are also discussed.
In order to do the above the article is guided through three stages which is examination of proper position internally and externally which is the research content, strategic alternatives and decisions through the use of relevant theories and execution of the strategy. Finally considering every one of the above a crucial thoughts and opinions or a perspective will be produced with relevant justifications and according to the Sony Organization.
Analysis of strategic position
In order to identify the external environment where Sony works a PEST analysis could be done which is as follows;
When the politics aspects are viewed in to it is noticeable that they are changing all the time. The government gets the power as stated in Henry (2008) to impact the functions of Sony through changes in insurance policies and regulations. Alternatively better sales could be achieved by Sony because of the decrease in liquidity turmoil and recession. But in so doing the number of opponents Sony has increase significantly. In addition to that, the government can create laws which will have an impact on insurance policies in the global framework.
When economy is considered it happens to be not is an excellent position where they have faced recession lately and has a negative economic growth. For this reason there can be significant changes in the exchange rates and interest levels. Sony should ensure that they know about any government restrictions on trading and exchange rates as Sony can be an international company where these constraints would influence Sony negatively.
As for the communal factors Sony is expected to perform well. That's as a result of reputation they have developed through their quality products and services as per William and Green (1997). Sony should ensure that they develop innovative devices at regular intervals to retain and hold on the customer and could be attract clients. It is also important to understand the perspectives of the public where they can expose products which match the anticipations with their customers.
Towards technical aspect Sony Company should put more attention as they work for the reason that industry with high technical usage. The efficiency level of the corporation depends on the level of technology used. Therefore Sony should make sure that they use upgraded technology to acquire higher level of productivity and be efficient. Use of technology is also important to Sony Company to research and develop services which fits the objectives and selections of the clients.
Next would be to identify the internal environmental factors which should be looked at when developing a technique for Sony matching to Drejer (2002). Prahalad and Hamel key competencies model and Michael Porter's value string could be utilized to do the evaluation as follows;
Sony has created a reputation and a brand which has a high reputation in the scientific industry. But at the moment they are experiencing trouble which explains why they are coming up with a new strategy call 'Sony One'. The strategies carried out by Sony previously are outside in as well as inside out. Out of these one was to develop mini-series of these products to be able to grow their primary competencies where they might need higher level of technology, recruiting such as technical engineers and marketers. Moreover the client needs also needs to be looked directly into through market research for the success of a technique. Sony experienced required all the resources which allowed those to be success in virtually all the strategies they integrated. But the uniqueness of these resources or competencies as explained in Enders (2004) is questionable.
Sony also got an aim of manufacturing customer focused products that they believed will help the business to boost the competitive advantage and will also create more value adding activities. Sony also integrated a strategy of diversification which is to include value to the techniques of the organisation. Also taking risks and learning from problems is one of the unique factors done by Sony which is also an edge.
After both internal and external analysis is performed the internal advantages and weaknesses as well as the exterior threats and opportunities need to be recognized for the SWOT evaluation to be completed.
The talents as accepted above will be the fact that Sony is wanting out unique strategies as per Hitt et al. (2010) such as small products as they are available to the mandatory technology and engineering. Sony being varied is also unique to the organisation which creates key competencies. Moreover, taking chances when introducing new products and making flaws, additionally learning from these problems without breaking down the procedures is another major durability which is exclusive only to the Sony Company.
As for the weaknesses it might be an undeniable fact that the resources such as technological staff, engineers and marketers are not being unique to Sony in the today's technical industry. Sony not having the ability to differentiate the amount of skills required within the company is a weakness which would impact the company in the a long time. One reason is the technology being outdate very quickly at present and the industry being very competitive.
The opportunities that are due to the industry would be commercial political activities with the government where Sony works which will give the support of the government policies in favour of the businesses that is being carried out. Moreover, identification of new customer groupings and new customer objectives through the client oriented strategy according to Beloff et al. (2005) and providing products which suits those choices would allow Sony to exploit opportunities arising from the external environment.
Lastly the risks that are arising from the external environment could be revealed. The actual fact that the industry in which Sony is functioning is being impressive and fast paced is making the company to adjust to the situations and progress with a lesser time. Companies like Apple and Samsung is creating a rivalry where technology is now outdated almost every day. Furthermore, the rival companies are launching new products to advertise with lesser business lead time which raise the threat arising towards Sony.
Strategic options and decisions
The development of tactical choices is a critical stage for Sony where they need identify their capabilities, resources and requirements as per Johns and Saks (2004). You can find three main target areas under this stage.
Deciding how Sony could achieve competitive advantage
Identifying possible guidelines by which Sony would type in market and the types of products and market it should go into or leave
Deciding in methods of growth with in the market
Deciding based on competitive advantage
When deciding how Sony Corporation could be competitive in market or make a basis for the clients to need it their products the following options are obvious as explained in Daft et al. (2010). These are also called Michael Porter's generic strategies.
Be an inexpensive supplier of goods and services or quite simply providing products at a budget price. This isn't suitable for Sony as they might need high research and development cost to come up with new products where offering at a lower price would be difficult.
Being a higher value adding market player or a differentiator is another option. Matching to this type of a choice Sony can build in a higher-level of value in the products or devices they provide by the company.
Following a centered strategy is another option. An option made by Sony Organization to give a device targeting a smaller volume of customers, such as coming up with a special model of an existing product.
Strategic Direction
This is where in fact the Sony Corporation makes a decision how it would grow into the future coming into different marketplaces and using its strengths. When deciding on strategic directions designed for the company the Ansoff matrix can be utilized regarding to Ewy (2009).
The matrix identifies growth prospects for Sony based on the dimensions of market segments and products.
http://2. bp. blogspot. com/-XlYiqBsXMTc/ToKUCcTvkdI/AAAAAAAAASI/8klxx2iz5xQ/s320/Ansoff+Matrix. jpg
Figure 1. 1: Ansoff Matrix
[Source:http://www. marketing-equity. com/2011/09/few-examples-of-ansoff-matrix. html ]
Market Penetration: This is where the company would grow internally into existing markets by aggressively promoting its existing devices and products with in them. Sony could promote their Sony Xperia with in the united kingdom market.
Product development: This is where the company would develop services for the prevailing markets and produces more sales from them. Sony could develop new types of Sony Xperia to sell in the UK market.
Market development: That's where the business would develop new market segments because of its existing products such as Sony Xperia being launched in China
Diversification: This is where the company would enter a completely new market corresponding to Freeman (2010) with a completely new product or a tool. Sony entering into the Laptop market where it provided Sony Vaio would be diversification.
Strategic methods
With the selected growth guidelines the Sony Firm can use many different methods in order to increase and achieve their goals.
Internal development: This is where Sony growing through its own resources where in fact the circumstance of Sony Vaio made an appearance matching to Mahadevan (2009)
Takeovers or acquisitions: The Sony Organization might buy over another company and use its products and solutions for progress. Sony overtaking Colombia pictures is a perfect example
Strategic alliances: Sony Corporation would grow by linking and partnering with other organisations. Franchises also are categorized as this category. Sony building an alliance with Olympus would be a good example here
Out of the options that were generated the company should pick a number of options predicated on the SAF model which is the proper decision making
Suitability: Selected progress guidelines and methods should match with the Sony Companies brand image and reputation
Acceptable: Particular options should be approved by the shareholders and become consistent with their thinking and expectations
Feasibility: Strategic choices that were selected should be financially viable for the business.
As the above stated methods the strategic options will be made matching to Vos (2004) and chosen in order to implement the most appropriate tactical option or options.
Implementation - Placing strategy directly into action
Before a technique is being applied Sony should understand the culture of the organisation, the management as well as the control styles. McKinsey 7S Construction - 7S model
Figure 1. 2: Mckinsey 7S model
[Source: http://b4tea. com/information/mckinsey-7s-framework-7s-model/]
The 7S model produced by the Mckinsey consulting group recognizes seven varying elements that lie in the centre of any culture of the company.
Hard Factors
These identifies non-human type of elements as stated in Egan (2007) which has an impact on culture
Strategy: The way accompanied by Sony to be able to achieve the goals and targets of the business enterprise as described above
Structure: The organisation's structure or how the lines on specialist are organized with in the company, how decisions are created and whether the communication stations between top and bottom levels are long or brief will impact the culture
Systems: The amount of control that is present within the business such as the budgeting and management accounting adjustments as well as control buttons on procedures will impact on the culture of Sony
Soft Factors
These are definitely more of individuals related factors that have an effect on the culture of Sony
Skills: The talent and abilities of folks and whether all workers have equal degrees of skill as per Cole (2001) or a few members have a high degree of skill on whom others depends decides on the nature of the culture
Staff: The nature of the frame of mind of workers as well as their specific cultures will impact in the entire organisation
Style: The style of management by the superiors will have a direct effect on the culture of the organisation. Control style Sony's co-founder Akio Morita was pursuing was based after the beliefs, imaginations and values of his which is now being improved by the new strategy 'One Sony'
Share Values: Organisations will have a set of principles and beliefs that are followed by all the employees and it is given top priority when Sony will it operations
After considering the above factors and understanding them the execution of the strategy will achieve success.
In addition compared to that, knowledge of the command style with in Sony is also important. For the, the Likert four systems of management which recognizes four leadership styles as stated in Harrison and John (2009) which range from the extremes of being job centred and employee centred can be utilized.
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Figure 1. 3: Likert four systems of management
[Source: https://www. ncjrs. gov/policing/corr177. htm]
Exploitative Authoritative: This is where as explained in Waters (2006) the market leaders are highly exploiting the lower individuals and there's a very high distance between higher-level and lower level individuals
Benevolent or Relatively Authoritative: There would be still a higher distance between the more impressive range and the lower level management, however the leaders will be have confidence in that they are acting in the interest of the rest of the people with in the Sony Corporation
Consultative: That is a more staff centred approach whereby the leader would be listening to others but will not always follow their comment or ideas
Participative: That's where the leader will get the others included as well and the ultimate decision that is manufactured is one that everyone will abide by and no sole handily made by the leader. This is actually the most extreme employee centred leadership methodology corresponding to Daft and Marcic (2010)
Once strategies have been designed and options made also understanding the culture and leadership styles it needs to be implemented through a series of programs.
Tactical programs: Programs run at a middle management level such as training programs
Operational programs: This refers to the day to day activities happening with in an organisation with a target of realising the company strategy
The Sony Firm should now select one from the two above to put into action the strategy of 'One Sony' by taking into consideration the culture of the organisation and the management styles.
Review and control is also required as stated in Grunig and Gaggl (2011) where the company would check if the strategic path applied is correct one by looking into pursuing aspects;
Is the strategy allowing the achievement of the aims stated initially
Since the consumer electronics environment helps to keep changing dynamically and strategy execution is dependant on an environmental check out done earlier it ought to be checked out if current strategies match the environment
Conclusion
The above report has about the Sony Corporations new strategy execution called 'One Sony' which is a new composition for the very best management of the company where in fact the company is making changes to 'drive revitalisation and expansion'. The survey further has about the amount to that your strategy matches the Sony Corporation's current capacities to face external problems and achieve the objectives through PEST, primary competencies and SWOT examination. In addition to that, the suitability and the feasibility of the tactical decisions arising from the implementation of this strategy are also included with reference to the SAF model.
The article is guided through three periods which is analysis of strategic position internally and externally which is the study content, strategic selections and decisions by applying relevant theories and implementation of the strategy where theoretical as well as useful aspects has been applied.
Finally considering every one of the above it is clear that the strategy implementation of 'One Sony' would depend on the above explained factors and because of this the implementation is successful.
