Report on Sonys Case Study

Report on Sonys Case Study Major Question: Outline evaluate Sonys strategic position at the end of the case study, including its management change. What strategic changes (if any) would you now recommend to Sonys management? Minor Question: Analyse Sonys resources, Capabilities Competencies as depicted in the case, explain why it has grown successfully in the competitive consumer electronics industry. As an atypical Japanese Corporation, Comment in the role played by Sonys corporate Culture? Introduction. This report is based on Sony Corporation. The report below is structured focusing on the issues provided as question for the Case study in the seminar group. There is a brief History Culture followed by the SWOT Analysis Financial Analysis, followed by the management change at Sony. Finally there are a few recommendation followed up with conclusion references. This case study was Robin John, from London South Bank University. 2. Acknowledgement We as a team would like to thank Robin John Dr. Leslie Gadman for their support and providing excellent knowledge about the topic, the case study and presentation feedback which has enabled us to deliver this report in acceptable form. 3. HISTORY CULTURE. The Sony Corporation is now a $ 124 billion (2009) Company with approximately 180,500 employees (2008). Sony was formed in 1946 by Masaru Ibuka Akio Morita. It was initially know as Tokyo Tsushin Kogyo; in English language Tokyo Telecommunications Engineering Company. The name Sony was chosen as a strategy which would help them to Globalise as the Co-Founder Morita had the vision to see early that there was a world rather than pure Japanese market for their Innovations. The first Sony-branded product, the TR-55 transistor radio, appeared in 1955 but the company name didnt change to Sony until January 1958. The current Sony Corporation has a unique culture which is firmly rooted in its history especially in relationship to its two founders, Ibuka and Morita. They both were geniuses above their business talents. Both gave insights and visions in what the company should make and how it should be made. Ibuka, especially, gave constant advice and suggestions to the engineers involved in projects from the earlier on transistor radios to Walkmans. This created the umbrella strategy in which Sony operates under, where the top management gives the general direction in which the lower engineers actively learns, develops and improves on the vision/idea. Therefore, although there is a planned direction, the actual product development through launching is emergent with great flexibility. Although the research and development section of Sony differs greatly from other companies with its great flexibility, Sony, in its essence is still a traditional Japanese company in many ways. There is life-time employment, with strong norms and values which in turn create strategies through their actions. Status is given (the crystal award) instead of bonuses (not significant amount) for superior achievement. There is also the strong seniority system such as the mentor and apprentice relationship that is typical of a Japanese firm. All this can be classified as the cultural school in which strategy formation is of collective behaviour. Collective vision and stress on human resource, which is typical of many Japanese, can be clearly seen in the mission statement Management Policies. Sony Corp has retained good things of Japanese Culture hasnt been reluctant to adopt culture which is not atypical Japanese in nature, which has resulted in building these huge electronic giant sustain it for more than five decades, looks for a future which is very bright. 4. SONYS CAPABILITIES, COMPETENCIES RESOURCES Sony Corporation is considered one of the worlds most successful companies, operating in the electronics, games, music, films and financial services industry (Hanson et al, 2001). Sony is known for creating products that stimulate the senses and refresh the spirit (Sony, 2007). Effectively managing a combination of its resources, capabilities and core competencies, has allowed Sony to create a strong sustainable competitive advantage. Assessment of Sony Corporations Resources and Capabilities Sony Corporation is committed on its efforts to continuously develop original technology that generates a high appeal to the general public due to its quality and cost effectiveness. Over the years, Sony Corporation has been able to build a substantial base meant to boost the companys designing and manufacturing capabilities. This enables the company to bring to markets truly original and more importantly mobile devices that are reasonably priced. The research and development team of Sony Corporation also plays a crucial role in the achievement of this feat. The company also believes that making a positive impact in the society through their quality products is the very essence of being a manufacturer. Sony Corporations Competitive Advantage Economies of Scale and Scope in manufacturing and research and development arising from its numerous facilities situated in Japan, the United States and other countries worldwide. Unique Quality Technology owing to heavy emphasis on research Sony Corporations commitment to research development activities has always been one of its top strategies to remain competitive in the market. Differentiated Products Through the production and marketing of differentiated products originating from their research and development activities, Sony Corporation is able to create its own firm-specific advantages. The continuous pursuit of research and development processes enables Sony Corporation to produce a steady stream of originally differentiated products which makes it difficult for competitors to find substitutes. Because of this differentiated approach, Sony Corporation is able to market their products worldwide, which enables them in turn to maximize the returns on research and development expenditures. Sony Corporations competitive advantages could be sustained provided the company would continue to focus on its core competencies. However, the company also has to be aware of the latest technological. Sony Corporations Resources: Resources refer to factors that a company owns controls and uses for the purpose of creating value (Hill et al, 2007). Sonys numerous tangible and intangible resources help to determine its distinctive competency, thus leading to maintaining a competitive advantage. When identifying Sonys resources, both its tangible and intangible assets are included. Tangible resources include assets that are financial in nature, or have physical properties (Hill et al, 2007). In 2007, Sony recorded a sales and operating cash flow of $70,303 million, an increase of 10.5 percent from 2006 (Sony United, 2007), as part of its financial resources. Land, buildings, machinery, and equipment are also part of Sonys tangible resources, and are worth approximately $14 million (Sony United, 2007). Intangible resources include those non-physical assets that the company uses to produce goods or provide services, or expects to generate future productive benefits (Hill et al, 2007). The Sony brand is considered one of the worlds most recognisable and trusted brands and was ranked 21st in the Business Week/Interbred list of the Worlds 100 Most Valuable Brands with an estimated value of US$14 billion (Singh et al, 2005). The Sony brand is associated with superior quality, innovation and style (Sony United, 2007), in the minds of its customers. 5. Sonys SWOT Analysis. Opportunities Development of new technology Growing trend customer base (Focus on BRIC Nations) Target consistent profitability in core hardware businesses (TV, game and digital imaging) Diversify in game producing for its hardware. Listen to Voice of Customer. Easy to use products. Threats New substitute products emerging Price competition. Economic pressure. Losing the dominance in key product categories.(TV, P.S, D.I) Due to poor financial performance could have less money for RD. Strength Strong sales marketing capabilities Business location or product exclusivity High quality product Excellent customer service Cost advantage (Discount) Good distribution network Weakness Weak financial performance (Low Profitability Low ROCE) Lacking a customer viewpoint Products with many feature but difficult to use. Lack of hit products Development of similar products Patent problem in the whole Industry. Particular 1997 Millions of Yen 2009 Millions of Yen Total Electronically Business 3,930,292 (69.4%) 5,032,920 (65.1%) Music 570,119 (10.1%) 50,541 (0.6%) Picture 438,551(7.7%) 717,513 (9.3%) Insurance 227,920(4%) 523,307 (6.8%) Games 408,335(7.2%) 984,855 (12.7%) Others 87,917(1.6%) 471,398 (5.5%) Total Revenue 5,658,253 7,729,993 (+136.62%) 6. Comparing Sales Revenue by Business Area for 1997 2009. FINANCIAL PERFORMANCE. Particular 2008 2009 Sales 8,871,414 7,729,993 (-12.87%) R D Expenses 520,568 497,297 (-4.47%) Employees 180,500 171,300 (-5.1%) Profit Margin 4.2% -1.3% R D to Sales 5.9% 6.4% Current Ratio 1.25 time 0.95 time Gearing Ratio 21.04% 22.27% Return on Equity 16.4% -5.9% Roce 6.65% -2.13% 6.2 FINANCIAL ANALYSIS. Sonys financial condition is good but needs to be better for a matured Company like Sony which is in existence since 1946 more than 6 decades. It is acceptable but should be a top priority for the Management to make it better. Below mentioned are few observations: Majority of its earning in electronic Industry. Earning from music has reduced considerably could be because of piracy issues or Late M.Js bad public city. The best diversified product is gaming, so should look to diversify more in this area. (Game MFG.) Major problem with SONY is its low profitability. Gearing ratio is 22.27% which is good as has a scope for future borrowing if required. RD has just reduced by 4% ROCE Return for share holders are major concern for SONY. 7. Style of leadership and management The leadership style of Akio Morita the co-founder of Sony Corporation included the ability to imagine, design, implement and develop new products, marketing, brand management strategies and human resources skill as well. Akio Morita resigned from the post of the Chairman, during which he positioned Sony as the worlds most successful consumer electronics company. Sony was ranked 37 on the Fortune 500 global list. Under Moritas leadership, Sony developed many new products and technologies. One of the other key success factors of Sony was Moritas people skills and his trust in his employees. Sony continued its tradition of offering innovative products after Moritas death in 1999. Sony has been a modern Japanese company as they have promoted young Idei to President of Sony when he was 57 years small according to Japanese standard. It was under his leadership that they have recovered from the 1995 crisis have posted the highest ever profit. Idei also launched Transformation 60 which was not of a much success. The main purposes of Transformation 60 were: Reduce cost by 300 Billion Yen. Decrease workforce by 20000. Achieve profit margin of 10% march 06. By the early 21st century, Sony was facing several problems due to the slowdown in the global economy, but then they recovered well under the leadership of Sir Howard Stringer who was made the CEO Chairman of the Sony Corporation. A Non Japanese to senior management position was not a typical Japanese culture but has given them the desired result. So as a whole Sony Corporation has always been under a good senior management for all the years. 8. RECOMMENDATION Building of Strategy: Sony as a much international company with major branches in Europe and the United States and stocks listed in 23 stock exchanges, the Japanese cultural school strategy is not sufficient. Becoming a mature company, the strategy should also change to more profit orientated. There should also be greater emphasis on market share, especially in Japan where Sonys market is shrinking. Strategy should be aimed at greater control and communication between manager and workers, especially the engineers in the RD Department. Diversification: One direction which is possible is concentrating more on electronic know how in non-consumer business. Currently, the buyer has much more choosing power and competition is fierce. The competitors are also able to copy the product in a much shorter time. To create larger profit margins, Sony should concentrate on the business sector and industries, supplying high technology equipment and parts. This would make full use of the RD Department. Although the Sony name is often related to expensive, high-profit end of the market, the organization should also expand its product range by offering lower priced, simpler featured products that would compete head on with others. With the lower priced line, Sony can also increase its market shares in both overseas and Japanese markets. Alliance and Cooperation: Sony should try to become a leader instead of a maverick. The difference is great, the leader, besides a great innovator, should also be a great coordinator. Internally, the different RD groups should cooperate more. The product line should also be made more compatible with one another, i.e. no more secret projects. Products should be made with higher added value and longer life rather than making frequent model changes. This is also a shift from a manufacturer-orientated mentality to a consumer-orientated mentality, which is a way to save natural resources. The brand-line compatibility also builds brand loyalty for consumers. Cost Cutting: Cost cutting is important because RD plays an integral part in the success of Sony and cannot be cut drastically although it gobbles up 10% of sales. Therefore, the only way to improve profit margins is to cut cost. Sony is not fully making use of other lower cost areas in the world, especially Asian countries such as Malaysia, Thailand and the Philippines etc. By setting up factories in these countries, Sony can take advantage of their cheap labour and also get a head start in their budding consumer markets. Products should be refined instead of reinvented so that there would be less set up cost and greater automation could be achieved. This could also be seen as a long term strategy. Integration of production, design and marketing: In many ways, designing and developing of a product is separate from the production and marketing. RD should listen more to what the consumer needs and then innovate instead of always creating new product for markets. With great freedom, the designing team should also take on greater responsibility in making the product fit to the current production pattern and marketing aims. They should also be made more responsible to the profit and loss of the particular product. Empowering these three separate groups creates conflict, but it also brings these separate efficient groups together achieving synergy. Implementation: Internally, strategy should be reviewed beginning with renewing the corporate goals. It should integrate together both the Japanese work ethic and its western counterparts. This is possible, because Sony is a multinational corporation with employees and customers in many different countries. This involves writing the importance of profits and its responsibility to shareholders in the statement. Integration of the company, the designing, production and marketing should be encouraged, with increased communication between each group and the management acting as liaison and guidance. The management should be providing the organization with specific goals and strategies for the short and long term. These changes are intended to balance business Vs engineering. Setting up alliances with fellow electronic manufacturers / competitor is crucial to mutual benefit so should be pursued as soon as possible. 9. Conclusion. The reputed brand name is one the Sonys strength, but on the other hand, many competitors start to see Sony as their target and main competitor, which will inflict various threats against Sony. Sony also needs to concentrates on improving itself.   They collect Voice of Customer (VOC), which directly reflect the responses, expectations or suggestions from end-users. It could be observed that Sony is positively dealing with its competitors, through learning from failure and looking for room to further improve. Such strategy helps minimize the probabilities that their customers would turn to other competitors. It aims at retaining its present customers and keeping their Number 1 market position. Sony made full efforts to support the environment from 1989. Sony is using blue ocean strategy on the business. Toward this end, Sony has sponsored many package redesign projects and committed to considering the environment, not only to create environmentally-friendly design but also to reduce material use. Due to this heartfelt customer service, high-quality, reliable products that Sonys customers can use with confidence. At the end of this case study Sony is not in a very strong strategic position but it is also not in a very bad strategic position. The position of Sony is in between. The conclusion is that change is needed in Sony. However, even with strategically and structure change, the Sony spirit of Technovation(technological Innovation) should remain intact because that is what made Sony grow and would make it stay strong.

Csr Polytechnic Case Study Essay

Statement of the problem: Considering that polytechnic saving bank Inc. A thrift bank suffering from a cringe-evoking operational losses and capital deficiency due to its weak management, How would PSBI improve its unsatisfactory financial conditions and critically deficient performance? Objectives: -To ensure the fulfilment of BOD in their duties and responsibilities under BSP circular 283 -To hire 3independent qualified ethical and trustworthy workers in replacement of the terminated president and the resignation of its successor -To comply BSP the infused additional capital of P5 Million -To immediately infuse the 57.4Million in the new capital to comply with the minimum capital requirement for thrift banks -To Strengthen the Bank’s risk management function in order to regain the trust back from its depositors and investors Areas of consideration *EXTERNAL 1. Legal/political – in its failure in fiduciary trust and confidence in financial institutions rather to help the capital markets and the economy it causes a great effects on individual by the PBI’s disregard of such corporate governance principle -PSBI must meet its required amount to enable to continue its operation as a thrift bank but because of deficiency it can serve as a rural bank which has lesser minimum requirement that being a thrift bank – given under BSP circular 283 BOD fulfil their duties and responsibilities 2. Economy – Polytechnic Savings Bank, Inc. operating as an economy in the use of resources created to serve as a community focused which needed P82M to continue operation and save thrift bank from dwindling capital *Operating External factors a) Workforce –PSBI’s BOD had no banking experience, doing unethically acts or anomalies b)Customers- individuals and small businesses c) Competitors- Other banks B. Internal Aspects 1. Financial Aspects -It is said that PSBI has its unsatisfactory financial condition that the bank is unstable and cannot withstand adverse business conditions and fluctuations because of its poor financial ratios which it requires the amount of P55.2milion capital to gain and to fully continue its operations due to capital deficiency and loss. 2. Operational -PSBI’s operation resulting from memorandum of undertaking (MOU) turned from bad to worse 3. Management -the various financial anomalies undertaken by the management were found during the fraud and forensic audit of the bank therefore PSBI’s improving such weak management because of failure in oversight functions and supervision on affairs inside bank premises. -A complete failure in the fiduciary responsibilities of the officers swot STRENGTHS| WEAKNESSES| -Wayward Group of companies (mother of PSBI)| -failure in fiduciary trust-BOD had no experience in banking-Poor financial ratios| OPPORTUNITIES| THREATS| -Rehabilitation program-buyers, investors, depositors| -adverse business conditions and fluctuations-stop operation as a thrift bank| ALTERNATIVE COURSES OF ACTION A. Sell the bank instead working on the impression that the bank performance would not improve due to weak management Pros: -To save thrift bank from capital deficiency with four potential buyers (with an asking price of P10million to P30million) Cons: -considering that P1.00 selling price for the bank would not even be a bargain -Not one expressed any real interest to complete the purchase among these potential buyers B. Focus on Rehabilitation program Pros: Program designed to address the capital deficiency and operational  losses of the bank Cons: Considering that PSBI has no choice left because PSBI is undergoing from a cringe-evoking operational losses and capital deficiency due to its weak management C.Improve the importance of corporate governance principle in Fiduciary trust and confidence in financial institution Pros: -help strengthen the bank’s risk management function -To regain the trust back from other depositor’s and investor’s -To save the bank from its financial conditions and critically deficient performance -To help capital markets, economy, and each individual lives -To continue operation as a Thrift bank -To improve good governance, managerial and operational factors outside and inside bank premises Cons: -considering there’s a complete failure in the fiduciary responsibilities of the officers D. Conduct annual examination Pros: -to have an annual report on financial operations showed on investors -Must encourage and provide an accurate and timely information’s to their investors about financial status -To have a proper screening and access to PSBI bank’s employees and workers information in the internal management fields in actively oversight functions and supervise their affair of the bank -To avoid fraud and forensic audit of the bank Cons: -Considering that The Internal control system, which were supposed to provide a check and balance were all overridden to disregard

What Is Critical Race Theory

Critical race theory (CRT) is a school of thought meant to emphasize the effects of race on ones social standing. It arose as a challenge to the idea that in the two decades since the Civil Rights Movement and associated legislation, racial inequality had been solved and affirmative action was no longer necessary. CRT continues to be an influential body of legal and academic literature that has made its way into more public, non-academic writing. Key Takeaways: Critical Race Theory Critical race theory was a response by legal scholars to the idea that the United States had become a color-blind society where racial inequality/discrimination was no longer in effect.While race as a notion is a social construction and not rooted in biology, it has had real, tangible effects on African Americans and other people of color in terms of economic resources, educational and professional opportunities, and experiences with the legal system.Critical race theory has inspired various other sub-fields, such as LatCrit, AsianCrit, queer crit, and critical whiteness studies. Definition and Origins of Critical Race Theory Coined by legal scholar Kimberlà © Crenshaw in the late 1980s, the term critical race theory first emerged as a challenge to the idea that the United States had become a color-blind society where ones racial identity no longer had an effect on ones social or economic status. Just two decades after the accomplishments of the Civil Rights Movement, many politicians and institutions were co-opting the aspirational, color-blind language of Martin Luther King, Jr.—i.e., the idea that we should judge someone on the content of his character rather than the color of his skin—while omitting the more critical aspects of his speeches that emphasized discrimination and economic inequality. There were also beginning to be attacks on affirmative action policies, with conservative politicians arguing that they were no longer needed. CRT as a school of thought is designed to highlight the ways that supposedly color-blind laws have allowed racial oppression and inequality to continue despite the outlawing of segregation. CRT originated among legal scholars like Derrick Bell, Kimberlà © Crenshaw, and Richard Delgado, who argued that racism and white supremacy were defining elements of the American legal system—and of American society writ large—despite language related to equal protection. Early proponents argued for a contextual, historicized analysis of the law that would challenge seemingly neutral concepts like meritocracy and objectivity, which, in practice, tend to reinforce white supremacy. The fight against oppression of people of color was a major goal of early critical race theorists; in other words, they sought to change the status quo, not just critique it. Finally, CRT was interdisciplinary, drawing on a wide range of scholarly ideologies, including feminism, Marxism, and postmodernism. Derrick Bell is often thought of as the forefather of CRT. He made important theoretical contributions, such as arguing that the landmark civil rights case Brown v. Board of Education was a result of the self-interest of elite whites instead of a desire to desegregate schools and improve education for black children. However, Bell also critiqued the field of law itself, highlighting the exclusionary practices at elite schools such as Harvard Law School, where he was on faculty. He even resigned from his position to protest Harvards failure to hire female faculty of color. Other early important figures were Alan Freeman and Richard Delgado. Black feminists have been particularly influential proponents of CRT. Beyond coming up with the name of the field, Crenshaw is even more well-known for coining the now-very-fashionable term intersectionality, meant to highlight the multiple and overlapping systems of oppression that women of color (in addition to queer people of color, immigrants of color, etc.) face that make their experience different from that of white womens. Patricia Williams and Angela Harris have also made important contributions to CRT. Race as a Social Construct The notion that race is a social construct essentially means that race has no scientific basis or biological reality. Instead, race as a way to differentiate human beings is a social concept, a product of human thought, that is innately hierarchical. Of course, this does not mean that there are no physical or phenotypical differences between people from different regions of the world. However, these differences make up a fraction of our genetic endowment and do not tell us anything about a persons intelligence, behavior, or moral capacity. In other words, there is no behavior or personality that is inherent to white, black, or Asian people. In Critical Race Theory: An Introduction, Richard Delgado and Jean Stefancic state, That society frequently chooses to ignore these scientific truths, creates races, and endows them with pseudo-permanent characteristics is of great interest to critical race theory. While race is a social construct, this does not mean that it hasnt had real, tangible effects on people. The impact of the notion (as opposed to the reality) of race is that black, Latino, and indigenous people have for centuries been thought of as less intelligent and rational than white people. Ideas about racial difference were used by Europeans during the colonial period to subjugate non-whites and force them into subservient roles. This socially constructed notion of race, which was used to exercise and reinforce white supremacy, was the backbone of Jim Crow legislation in the South, which relied on the one-drop rule in order to separate people by race. Race as an idea continues to have a wide range of effects with respect to educational outcomes, criminal justice, and within other institutions. Applications of Critical Race Theory CRT has been expanded to various fields within and beyond law. Two offshoots are Latina/o Critical Theory—whose leading scholars include Francisco Valdes and Elizabeth Iglesias—and AsianCrit, whose proponents include Mari Matsuda and Robert S. Chang. LatCrit in particular has relied heavily on queer theory and feminism, and both of these variants address issues relevant to the Latinx and Asian populations in the U.S., such as immigration and language barriers. In this way, CRT has many overlaps with and is often a defining feature of Ethnic Studies programs in many colleges and universities. CRT scholars have also turned their attention to a critique of whiteness, the ways it is socially constructed (as opposed to the standard by which all other groups should be measured), and how its definition has expanded or contracted historically. For example, various European groups—such as Irish and Jewish immigrants—were originally racialized as non-white when they began arriving in large numbers in the United States. These groups were eventually able to assimilate into whiteness or become white, largely by distancing themselves from African Americans and adopting the Anglo mainstreams racist attitudes toward them. Scholars like David Roediger, Ian Haney Là ³pez, and George Lipsitz have all contributed important scholarship to critical whiteness studies. Sub-fields of CRT focusing on gender identity and sexual orientation have also emerged in recent decades. Some of the most important scholars fusing CRT with feminist theory are featured in the anthology Critical Race Feminism: A Reader. As should be evident, there are many overlaps between critical race feminism and intersectionality, as both focus on the overlapping and multiple marginalizations of women of color. Similarly queer crit, as theorized by scholars like Mitsunori Misawa, examines the intersections of non-white identity and queerness. Apart from the legal field, education is where CRT has had the largest impact, specifically in terms of the ways race (and often class) intersect to create worse outcomes for black and Latino students. CRT has also become a more influential ideology in the new millennium as the scholars of color who were its first proponents have been tenured at major American law schools. Criticisms Crenshaw (in Valdes et al., 2002) and Delgado and Stefancic (2012) detail the opposition to CRT in the 1990s, principally from neo-conservative opponents of affirmative action who saw CRT scholars as leftist radicals, and even accused them of anti-Semitism. Critics felt the legal storytelling movement, an approach focusing on stories by people of color and used by CRT law scholars to challenge dominant narratives, was not a rigorous method of analysis. These critics also objected to the notion that people of color were more knowledgeable about their own experiences and thus, better equipped to represent them than were white writers. Finally, critics of CRT were suspicious of the movements tendency to question the existence of an objective truth. Notions like truth, objectivity, and meritocracy are all challenged by CRT scholars, who point out the often invisible workings of white supremacy, for example, the ways whites have always enjoyed a form of affirmative action within higher ed ucation through policies like legacy admissions. Sources Crenshaw, Kimberlà ©, Neil Gotanda, Gary Peller, and Kendall Thomas, editors. Critical Race Theory: The Key Writings that Formed the Movement. New York: The New Press, 1995.Delgado, Richard, and Jean Stefancic, editors. Critical Race Theory: An Introduction, 2nd ed. New York: New York University Press, 2012.Hill-Collins, Patricia, and John Solomos, editors. The SAGE Handbook of Race and Ethnic Studies. Thousand Oaks, CA: Sage Publications, 2010.Valdes, Francisco, Jerome McCristal Culp, and Angela P. Harris, editors. Crossroads, Directions, and a New  Critical Race Theory. Philadelphia: Temple University Press, 2002.