Question

A MANAGER'S CHALLENGE A Turnaround at Sony is in the Works Why is managing the global iPod, smartphones, and the Wii game environment so complex today? console that better met customer Sony, the Japanese electronics maker, needs than Sony's old-fashioned was renowned in the 1990s for using and expensive products. Finally, all its engineering prowess to develop these companies were working to blockbuster new products such as the reduce manufacturing costs, and Sony Walkman, Trinitron TV, and PlayStation. lagged behind because its bloated Its engineers churned out an average cost structure had made its products of four new product ideas every day expensive and uncompetitive. Why did something attributed to its culture, called Sony lose its competitive advantage in the "Sony Way," which emphasized both style and price? communication, cooperation, and harmony between its product engineering teams across the company.' Sony's SO engineers were given the freedom to pursue their own ideas, and its different product teams pursued their own innovations; but problems arose with this approach in the 2000s. Companies in Korea and Taiwan such as LG and Samsung made major innovations in technologies such as the development of advanced LCD screen displays and flash memory that made Sony's technologies obsolete. On the product front, companies such Sir Howard Stringer, flanked by two younger executives, Shows as Apple, Nokia, and Nintendo came Japan may help turn the flagging multinational around. ut with digital devices such as the off new Sony products Stringer's embrace of those outside importan

Answer 1

Ans1- Once Howard Stringer becomes the new CEO of Sony he cut Sony's Japanese workforce by more than 25,000 jobs and closed 12 factories to cut costs because Japan is a nation where large companies traditionally had a permanent employment policy, but stringer made it very clear that cuts were necessary. He also replaced some managers because they were ignoring Howard Stringer and to his current roles as Chairman and CEO, he adds the title of President. He also replaced four top managers with young managers with positions outside Japan and were comfortable with their virtual world. And in the future, according to the stringer, managers need to prioritize the latest products but only invest in those with the greatest probability of success so that Sony will reduce its R&D costs out of control.

Ans2- One factor was that the culture of Sony was no longer functioning in its favour. Its most effective divisions' top managers have worked to secure their own divisions. And they had been slow to understand the major technological changes taking place. When Sony's performance dropped, competition among managers increasing, making it more difficult for the company to take advantage of new product developments. Moving forward, when Stinger became CEO in 2005 and he helped Sony to regain its market, he was faced with the immediate problem of reducing Sony's operating costs, doubling those of its rivals even as it was losing its technological lead. Stringer had to make other decisions regarding radical approaches and he worked hard to bring the facts of global competition to the surface at Sony, along with the need to deal quickly.

Ans3- Environment forces that affect Sony ability to function in a global market such as Sony's engineers were given the freedom to follow their own inventions, and their numerous product teams were following their own developments, but this strategy posed a problem in the 2000s. Companies such as LG and Samsung have made major advances in technology such as the production of advanced LCD screen displays and flash memory which have made Sony's technologies outdated. Companies like Apple, Nokia come with digital devices like the iPod, smartphones that better meet customer needs than old-fashioned and expensive products from Sony. Ultimately, all these businesses worked to reduce the cost of manufacturing, and Sony lagged behind because it bloated the cost structure that made its goods costly and uncompetitive.