Sony Corporation - Restructuring Continues, Problems Remain
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Case Details:
Case Code : BSTR361
Case Length : 22 Pages
Period : 1995-2009
Pub Date : 2010
Teaching Note :Not Available
Organization : Sony Corporation
Industry : Consumer Electronics
Countries : Japan
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Please note:
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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Sony in Crisis, Again Contd...
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Sony's announcement came after the company had announced a major reorganization plan in February 2009.
Sony had gone through a series of reorganization programs starting from the year 1994, the aim being to improve the financial performance and competitiveness of the company. However, most of them failed to achieve the desired results. Analysts blamed the silo culture, which prevented different divisions in Sony from communicating and cooperating with each other, for the company's problems.
Howard Stringer4 (Stringer) became the first non-Japanese CEO of Sony in March 2005 and he announced a major reorganization in September 2005.
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The reorganization focused on revitalizing the electronics business of the company and on improving profits by reducing business categories and product models. It also aimed at removing redundancies and overlaps in business processes by focusing resources only on the company's high growth business like HD products, mobile products, semiconductor/key component devices, and network-enabled products and appliances...
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