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“In 2005 Sir Howard inherited a company that was bloated and badly run and had missed the technology shift to flat-panel televisions. A Welshman with an American passport, he was hired on the assumption that a foreigner can make painful changes that a Japanese boss might feel culturally obliged to duck. (Carlos Ghosn, a French-Brazilian, has done something similar at Nissan, a Japanese carmaker.)” [Ibid]
Stringer has focused more on strengthening software and media in his drive to reinvigorate the company. The ultimate goal is to envelop consumers in an all-Sony cocoon of hardware, services, and content. His strategy is to use Sony’s vast resources and varied divisions to push the adoption of new, industry-altering technologies — without staking too much on proprietary formats, an approach that doomed the digital Walkman. And he thinks his plan is beginning to work. At the same time Stringer was appointed, Ryoji Chunbachi was named president of Sony, replacing Kunitake Ando. He was put in charge of the software business while Stringer became more responsible for the hardware side of Sony.
Sony produces large LCD television panels through its joint venture with Samsung. In 2008 it began obtain LCD panels from Sharp to meet demand. Sony’s alliance with Samsung and Sharp on LCD panels have allowed it to lower production costs and develop products faster than procuring parts from a third party. Sony and Samsung formed their joint venture, S-LCD Corp, in 2004. Sony, IBM and Toshiba have worked together to create chips, code-named Cell, that are powerful as supercomputers. The chips were made to be used in PlayStation 3s. It turned at that spies with IBM turned over secrets from the project to Microsoft so it could use the technology in its X-Box video games. In September 2007, Sony announced it was selling a chip plant to Toshiba for around $10 million. The selling of the plant, which producers chips for games, marked Sony complete exit from producing semiconductors for games, allowing it to concentrate on chips for video and digital camera. Sony and Sweden’s Ericsson produce cell phones together, mainly making mid- and highrange handsets, In recent years sales have suffered. It has profits have been around $300 million on around $4.5 billion in sales Sony and KDDI developed a Walkman brand cell phone that downloads music Sony and Toyota have formed an alliance to produce LCD panels for cars and are working together to develop a single-seat “transporter” vehicle called the “I-swing.” Sony, Toshiba and Hitachi are talking about forming a partnership to jointly produce LCDs.
Stringer promise to make Sony “cool again” when he took over the company in 2005. Stringer, analysts said, had easily redundancy
Sony is an international leader in electronics and the world’s top consumer electronics firm Optimize
“Today, everyone knows what changes are happening and what needs to be done in their own organization. But change seldom happens smoothly or in a planned manner. Even successful
Our aim is to fully leverage this uniqueness in aggressively carrying out our convergence strategy so that we can continue to emotionally touch and excite our customers. but we remain globally unique. and Financial Services (such as insurance and banking) sectors. We will achieve this through a reduction in the number of business categories and product models. games and online businesses. 1. In the past 10 years. Cost Reductions Our plan is to cut 200 billion yen in costs by the end of fiscal year 2007.Specific elements of the plan are as follows: -We have recognized 15 business class for which we are apply plans including economize. -We plan to reduce the number of models by 20% compared to fiscal year 2005. Game (such as PlayStation). movies. non-administrative staff 5000. stock and certain non-core assets with a view to making disposals amounting to 120 billion yen by the end of fiscal year 2007.Sale of Real Estate. we will reduce our global headcount by 10.organizations find that they do not change fast enough and get disrupted by smaller more nimble organizations The challenge of change to a business can seem overpowering to the individual Organizational change occurs when an organization restructures resources to increasethe ability to create value and improve effectiveness. These reductions will help streamline our operations and enable us to operate more efficiently. from 65 to 54. Entertainment (such as motion pictures and music). rationalization of our manufacturing sites. A declining company seeks ways to regain customers. 4000 in Japan. a growing organization designs new products. music. . over 50 percent of all Fortune 500 companies haveundergone significant restructuring Sony is one of the most comprehensive entertainment companies in the world with a portfolio that includes electronics. and creation of a more efficient administrative structure by eliminating redundancies and overlap in organization and business processes. and we expect that these charges will be recouped by the end of fiscal year 2008. Change isprevalent. Estimated charges for these structural reforms are 210 billion yen. -We plan to reduce the number of manufacturing place by 11. agreement and disposals. As a result. Stock and Non-Core Assets We will review our real land. The Sony Group is primarily focused on the Electronics (such as AV/IT products & components). Not only do we represent a wide range of businesses. 2. 6000 overseas).000 by the end of fiscal year 2007 (headquarters/administrative staff 5000.