Analyzing A Comprehensive Business Case: Pros And Cons Of Hirai’s Structural Changes

  • Sony is recognized as one of the fastest growing Japanese company which is operating throughout different parts of the world. The firm is utilizing different innovative and creative techniques to expand the business process by generating more profits. The case reflects the fact that Hirai is the CEO of the organization from 2012 which has helped in changing the structure execution of the business processes.
  • The primary aim of the business with respect to this structural change was to develop integrated business named as “One Sony”. The presentation will help in evaluating the pros and cons and its impact on the execution of the business procedures of Sony.
  • The firm has collaboration with many other firms throughout different countries. The presentation will also reveal few of the other initiatives adopted by the firm to increase its profitability and productivity.
  • The development of the latest structural change critically focuses on the five key strategic initiatives
  • It also helps in boosting and strengthen the main part of the business processes
  • It increases the overall productivity along with the profitability of the firm throughout the market segments
  • It also retains desired competitive advantage over the other competitors of the organization
  • The expansion of the business processes of the organization has helped in enhancing the television business of the organization
  • The launch of the latest and innovative products has successfully enhanced the overall market share of the organization
  • It provides tough competition to the competitors throughout the competitive market areas
  • The structural change off the organization facilitates the acceleration
  • It will help the firm in expanding the outreach of their business practices throughout various market segments
  • As compared with the new business the older one reflected two of the bigger groups which s divided into 12 standalone business
  • It also enhances the overall effectiveness of the concerned business procedures by attracting a large number of the customers
  • The development of the structures provides business portfolio advantage that can be effectively optimized with the resources
  • It helps in providing competitive advantage over the other potential threat from the substitutes
  • There was a negative impact on the employees the development of the structural changes
  • More than 10,000 of the employees were in order to make the changes suitable for the enhancement of the organization
  • The communication between the employees and the company got affected
  • The use of the poor communication techniques also generated great impact on the business
  • The collaboration with Ericson company got untied in the year 2011
  • Rise of the conflicts among the employees affected the growth of the firm
  • Lack of collaboration and cooperation among the employees after the implementation of this structural change
  • A sense of dissatisfaction and fear prevails among the employees which can reduce the performance of the firm
  • It also creates issues regarding the setting up of the priorities considering he employees of the organization
  • The bond between the employees as well as the firm gets weaken
  • The termination of the large number of employees critically reflected job insecurity with the present employees

Other initiatives beyond structural change to create ‘One Sony’

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  • Bringing up of new and latest innovative idea to boost the overall growth of the firm
  • Strengthening the primary business processes by increasing the reliability of core business processes of the organization
  • The focus of the organization should be to maximize the overall profitability of the organization by improving the key areas of the business
  • One of the other initiatives will be to enhance the sales of the products throughout the end of a year
  • Moreover, the firm can target more than 2trillion yen throughout the concerned competitive areas
  • The delivering of the superior quality of products with lower or differentiating prices is one of the other initiatives
  • The offering of the BRAVIA engine will boost the overall growth of the business
  • One of the other initiative is the turning around of the Televising business processes of the organization
  • The firm is using latest and motive products to enhances the growth of the organization
  • Wide range of features like Smart Television, 4K viewing angle for the respective customers
  • Expanding the business processes throughout competitive market areas
  • Collaboration with many other companies in order to increase the global outreach of the organization
  • Booming of the IT market share for the organization
  • The adoption of new modes of entry for the organization in different areas like North America and Europe
  • The use of the innovative and latest technologies promotes the long-term growth of the organization
  • Collaboration with other industry helps in expanding the business outreach of the organization like car manufacturing and medical industry
  • Development of the R&D improves the quality of research and promotes the efficient growth of the organization

Conclusion

  • Sony has been recognized for delivering superior and quality products
  • The presentation effectively reflects that the firm has implemented new structural changes
  • It also reflected the pros and cons of the changes adopted within the business process
  • Reduction of the large number of employees was a major change of this new structural development 
  • Moreover the structure provide few of the crucial advantages like improvement in the business outreach and getting competitive over the competitors
  • There are various other options available which needs to be utilized by the organization in order enhance the overall productivity of the firm

References

  • Dhillon, I. and Gupta, S., 2015. Organizational restructuring and collaborative creativity: The case of Microsoft and Sony. IUP Journal of BusinessStrategy, 12(1), p.53.
  • Li, L. and Qian, G., 2018. Strategic alliances in technology industries: a different rationale. Journal of Business Strategy, 39(2), pp.3-11.