Organization Design And Technology Of Sony Corporation Essay
Because of the fast-paced growth of Sony Company in the worldwide market, it gave means for the misalignment of its industry and interior expansion resulting in the damage of their rate of technological creation or the quality of the product lines, and the decline of the efficiency of its workforce as the number of responsibilities and tasks instantly increased brought on by the industry expansion from the said organization. With the aid of ICT Supplier Self-Assessment Questionnaire and balance scorecard, Sony Firm has been capable of improve the quality of the product and workforce efficiency.
By growing the labor force of Sony, it can resolve the deterioration of its rate of technological growth and ineffectiveness on labor force on a permanent basis. Among adding fresh position for the organization structure of Fiat and hiring more employees to broaden the labor force of the stated company, adding new location to Fiat Corporation is the one that fits to fix the above mentioned concerns of Volvo considering the cost of its rendering and effectiveness. Introduction While using growing competition in the intercontinental market, it is just a must intended for Sony Organization to secure competitive advantage regarding internal balance and technological development.
Most consumers at present provides even more premium around the most advanced goods in the market, and this is the principal reason why Fiat Corporation spend significant sum of assets to research and development to maintain the pace of their technological development. Furthermore, Sony offers designed their organization structure in such a way that it may easily respond to various new market problems. But the pushes of marketplace competition and globalization hindrances the scientific advantages of Sony as well as destabilized the internal steadiness through targeting their firm design because various departments and key person in the said business shoulders larger responsibilities while the company is constantly on the expand in the international marketplace.
Sony’s opponents, Panasonic, Toshiba, Apple, Ms, and Dell are just few of the many electronic devices companies also operating in the international industry with active technological development (Isuppli. om 2006: 1). Due to this situation, Sony’s goods appears to be much less technologically advanced when compared with its competitors leading to a rapid down start their revenue and income internationally his or her customers change to their competitors (Eetimes. com 2008: 1). Furthermore, through the peak of Sony’s worldwide operation, various departments and top level managers was bombarded with an increase of tasks and responsibilities in order to support their particular market development which presently lead to the deterioration of their performances.
Division of process and obligations is fragile and most of the organization type of Sony is already obsolete taking into consideration the present condition of competition and globalization inside the international marketplace. In this regard, this kind of paper should discuss the way the forces of competition and globalization deteriorate the organization style and technological advantage of Volvo as well as the potential alternatives that Sony must undertake to be able to solve the said disadvantages. At the end of this paper, anticipate for a advice that would greatest solve the down sides of Fiat concerning it is organization design and technology.
Classification of Organization Composition Sony Corporation has been applying divisional kind of organizational style as illustrated by their company chart, discover appendix (. During the early years of Sony’s operation on the market, the divisional type of organization design permits them to easily put into practice strategies and decisions to problems that need immediate answer. Since Sony was only on the development stage, they were capable to fully use the optimal increases that can be based on using divisional organization framework.
The quickly relay of information, decision making and implementation of strategies through the use of divisional firm design presented Sony with tremendous amount of gains inside the international industry as they start off successfully penetrating their target audience and out-performed their competitors in the market, thus, making them one of the effective multinational corporations around the globe (Goliath. ecnext. com 2007: 1). Furthermore, the divisional corporation design enables Sony to specialize its groups as thereby enhancing the quality of many in the market (Market Wire 2005: 1). Like for example, the Sony Ericson Cellular Communications Group concentrate just to develop and produce portable communication items in the market.
Your head of Ericson Mobile Marketing and sales communications Group is definitely directly under the CEO of Sony, therefore with their other groups (Sony. net 2008: 1). The direct relationship between the brain of Sony’s groups and its CEO supplies ease on decision making and distribution info as well as approaches on brand development. Yet this company structure starts to provide instabilities to Sony Corporation mainly because it continues to grow since electronics market superpower in the international marketplace.
As the corporation grew in the international industry, responsibilities of every single head of varied groups also increased up to the point wherein that they start carrying out inefficiently because their time being spent on every essential aspect of their operation turn into lesser and lesser. In this regard, the present status of divisional organization style to Volvo becomes ineffective and only delivers instabilities since the business owners of the business starts to conduct inefficiently issues respective areas. But divisional organization style fits Fiat than any other organization framework available in the business management sphere.
Since Sony have a diversity of goods in the market, every group is experienced into the development of their own product lines, then, divisional structure previously fits Fiat. The only issue lies on the fact that every executive of Volvo starts attaining more duties in his/her assigned group. In other words, the international development of Fiat in the recent years was not accompanied by expansion of internal responsibilities of various executives of the explained company, therefore leading to a down start up their overall performance.
In order for Sony to restore the stability of the internal affairs, it does not need to change it is organization style; rather, Fiat management could make improvements issues divisional structure by adding fresh positions or by getting executive assistants to important positions about various categories of the stated company. This strategy will provide sufficient space for the real key personnel of Sony to handle their tasks well and delegate these less concern tasks to their assistance or new positions in the group. In other words, this strategy will give means for the internal expansion of Sony while maintaining their very own original corporation design that was already proven to be effective and fit towards the business framework of Sony Corporation.
Deciding on organization composition other than divisional design gives great risk since Sony operates in various groupings with different catalog to produce in the market. Furthermore, each group has much less influence on one another many operates separately from other group while all their headquarters and CEO is the link between them.
In this regard, it is vital for Sony Corporation to implement the said internal expansion with their groups to make sure that they re-establish all their competitive benefit in the international market regarding internal stableness and labor force efficiency especially during these moments wherein the forces of tight market competition and globalization demands the acquisition of more potential sources of competitive advantages to keep the pace of Sony’s growth internationally. Key Determinant and Impact on on Organizational Structure One of the primary strategies of Fiat in growing its share on the worldwide market could be the diversification of its product line via electronics to B2B organization solutions, which in turn later on permits the company to tap different resources.
Since each products of Volvo needs diverse production processes compared to other folks, Sony chosen to use divisional organizational framework in order to easily manage the complete company devoid of compromising the quality of their product lines. For instance, Fiat Financial Cooperation Group gives business remedy services for the market and wishes different operational processes when compared to Sony Entertainment Business Group that provides tv, digital cameras, and video cameras in the market. Each of these groups requires different set of operational style, pair of skills and equipments, and set of strategies, thereby providing enough room to groups to control independently from one another might enhance their productivity and performance as they focus into their creation process.
This can be the main reason so why Sony decided to use divisional organization design and style in order to provide enough room for each product line to be created separately by simply workers specialized on producing it from all other product line. Regarding this, the technique of Volvo to shift its product line provided way for the utilization of divisional business structure. Furthermore, another element that serves to be the crucial determinant of Sony Corporation’s organization framework would be its growth rate. Sony Firm has about 4 percent sales progress rate internationally as of this month which is relatively higher when compared to its rival companies just like Panasonic with -2.
79 percent sales growth rate (Reuters. com 2008: 1). During the primary stage of Sony’s development in the foreign market, his or her product become more diverse ultimately causing a fast-paced growth, Volvo chose to use divisional organization structure allowing the company to cope up with the said growth rate seeing that divisional firm structure delivers enough room intended for Sony to increase develop all their diverse manufacturer product line through specialty area. At present, the fundamental of organization stability of Sony beginnings on the fact that they can were not in a position to accompanied their particular market growth and enlargement with interior expansion creating for the divisional firm structure to work inefficiently.
Once the inside growth rate of Volvo already aligned itself to its industry growth, in that case, that is the only time wherein Sony may fully use the potential profits of applying divisional firm structure. Regarding this, it is therefore vital for Fiat to keep track their market progress and inside growth in the event whether those two still align each other since these influences the efficiency of their corporation structure. The strategy and growth of Fiat is related to one another and this is the main good reason that these two factors greatly have an effect on its corporation structure. The strategy of Sony to diversify 4-seasons catalog provided associated with enough opportunity to increase their business in the intercontinental market.
The said products expansion and increase of market share enable Sony to simply penetrate its target market and outperformed their competitors. Furthermore, as Sony continues to effectively penetrate its target market and outperformed it is competitors, it starts to gain impressive progress in the market due to higher revenue and earnings. But the said market growth of Sony has not been accompanied by interior expansion which presently leads to tremendous losses as important personnel of its groups starts executing inefficiently and ineffectiveness with their organization composition.
Furthermore, as these key staff of Volvo perform slowly, the research and development of their products starts to drop, giving sufficient space for its competition to step-up in the electronics and organization solutions sector and provide economical losses to the company (Forbes. com 2008: 1). Consequently , at this point in time, it is vital to get Sony to cope with these instabilities on the workforce in order to restore their competitiveness inside the international marketplace with respect to their market approaches and technical advancement.
Organizational Effectiveness One way in which Volvo Corporation evaluates performance can be through the use of Information and Communications Technology Supplier Self-Assessment Questionnaire which aims to determine whether whether their particular suppliers uphold the Electronic Industry Code of Conduct. Since suppliers have an immediate impact on the complete performance of Sony with regards to product top quality, along with other gadgets companies world wide such as HEWLETT PACKARD, IBM, and Microsoft, Fiat Corporation came up with the Electronic Industry Code of Conduct which will encompasses the ICT Provider Self-Assessment Questionnaire. Through the ICT Supplier Self-Assessment Questionnaire, Volvo can monitor the product top quality of their suppliers.
By securing the functionality of their suppliers, Sony Corporation has been able to maintain its sincerity of producing superior quality products available in the market. There were instances wherein Sony Corporation was sued to get releasing substandard products in the market. Like what happened recently when a couple sued Sony when the battery of any Sony notebook computer exploded leading to injuries for the complainants.
Because of this, Sony were required to pull out all the batteries that had been being suspected as low quality and replace by a new one to be able to prevent having more accidents. In this regard, throughout the ICT Supplier Self Evaluation Questionnaire, Volvo Corporation can end the above mentioned incident caused to substandard products that they discharge in the market which will mostly originated from their suppliers. Dell, the maker in the said low quality battery of Sony laptop computer, is now producing collaboration with Sony in pulling out individuals substandard laptop computer batteries on the market.
Another way through which Sony examines their functionality is with the use of balance scorecard. Balance credit score card help every organization in the market to determine if whether their small scale functional activities are still aligned with their larger range activities. As for the case of Sony Organization, it uses equilibrium scorecard in determining the alignment operational processes of its groupings, e. g. Sony Ericson Mobile Marketing and sales communications, Game Organization Group, Entertainment Business Group, and Fiat Financial Holdings Group, towards the vision and strategy of the entire organization.
For instance, the total amount scorecard has been used by Sony Corporation in determining if perhaps whether the procedures used in generating Sony Ericsson in the market continue to be aligned together with the Corporate Sociable Responsibility of the entire organization. Through this, Sony Company can keep their particular various groupings intact towards the vision and strategies of their particular parent firm Fiat Corporation. Merely recently, Volvo Ericsson phone was awarded as the most Eco-Friendly phone on the market and the explained award is being attributed to the continues success of Sony Corporation to uphold the Corporate Cultural Responsibility upon minimizing the wastes getting emitted in producing the said item (Sayer 08: 1).
Thinking about the said success of Volvo Ericsson phone in the market, we have a great likelihood that it can earn confident balance scorecard by maintaining the CSR of Sony Corporation, that may eventually serve as the basis for further development of Volvo Ericsson cellphone in the market (Ericsson. co. jp 2005: 9). Therefore , stability scorecard delivers enough room intended for Sony Corporation to determine the conjunction of their product lines to their eyesight and approach especially when it concerns the integrity with their brand name.
At this point, the overall performance evaluation equipment of Sony Corporation, ICT Supplier Home Assessment Set of questions and Balance Scorecard, has been able to fix its trouble regarding retaining the quality of many in the market by securing the compliance with their suppliers and aligning the availability processes with their product lines to their Corporate Cultural Responsibilities. Consequently , ICT Dealer Self Examination Questionnaire and Balance Scorecard fit to the vision and strategies of Sony Corporation based from their powerful solution about the low quality standard of Sony’s products in the market. This matter on quality level and how the above identified evaluation tools of Sony Corporation solved it will be thoroughly mentioned in the next portion of the paper.
Important Analysis of Current Problems Actually, the key problem of Sony Organization would be the misalignment of its marketplace and interior expansion that eventually result in various branch-problems like low performance level from the staff of the company as well as the damage of the top quality level of their product lines in the market. The active growth of Volvo in the past years, while giving their inner condition to keep untouched, offered inefficiencies on the part of their workforce as the responsibility of one one other can no longer be performed while efficient since before, and low product quality because the stated inefficiencies on their workforce started to reflect on the quality level of their product lines.
This is the main reason for what reason Sony Company suffers from return on investment and income on its operation his or her customers change to the side with their competitors because the latter curently have relatively fresh product lines available in the market compared to Sony Corporation. To supply a long term solution to this problem of Fiat Corporation, it is just a must intended for the managing of the explained company to expand all their workforce possibly by adding new positions to boost the key positions in the business or seek the services of more staff to assign the tasks optimally among their labor force.
But presently, Sony Corporation is applying short term approaches to these complications through the use of evaluation tools because discussed within the previous a part of this newspaper. First, the ICT Supplier Self Assessment Questionnaire offered solution on securing the quality of their supplier’s products which usually later on be taken on the production process of Volvo. With the ICT Supplier Do it yourself Assessment Set of questions, Sony can monitor if whether the products of their suppliers are substandard or complies with the Electronic Industry Code of Conduct which creates the standards pertaining to electronic products in the market (Greenwald 2005: 2).
Sony Firm can now lessen the chance of product malfunction or perhaps substandard pieces of their product lines just like so what happened to the power packs of Sony’s laptop that exploded as a result of overheating. ICT Supplier Do it yourself Assessment Questionnaire will improve the caliber of Sony’s manufacturer product line even up to a small degree since it just solves their problem privately of their provider and not the main of the problem which even now lies on the internal steadiness of their workforce.
With the rise of ICT Supplier Home Assessment Customer survey and Electric Industry Code of Perform, cases of substandard digital products on the market will be reduced leading to get Sony to further improve the quality degree of its products (United Nations Environment Program 2005: 1). In this regard, through the use of ICT Supplier Self Assessment Set of questions, Sony Company manages to boost the quality of their particular product lines also up to a small degree. However, the balance scorecard of Sony Corporation gives enough room pertaining to the said company to enhance the quality of all their workforce’s efficiency since the organization can determine if whether a group or section already performs outside the limitations of their eye-sight and corporate approaches.
There are times in which the misaligned Sony Corporation’s products to their vision and corporate strategies origins on the ineffective performance of workforce of your given department or group, and stability scorecard may determine if whether a given band of Sony Company performs slowly, based in the evaluation in the products getting produced by that given group. Through this kind of, Sony Company can easily decide which group among the companies has to undergo workforce expansion to fix the explained inefficiency with their workers.
In this regard, the balance scorecard provides two services to Sony Organization, evaluation of their product’s performance in the market as well as its alignment for the vision and company strategies of the company, and on which usually group of the corporation needs workforce expansion to be able to improve the quality of their catalog just like what happened to Sony Ericsson cellphone in the market (Esato. com 3 years ago: 1). Solutions In order for Volvo Corporation to have long term solution to their difficulty regarding the misaligned their market and inner expansion while the consequence of their fast-paced expansion, it is advisable so they can expand their workforce either by adding new positions to their organization framework to optimally delegate the tasks among the employees of the company; or, the management can hire more workers that could handle the extra responsibilities provided by the market expansion of the company.
Furthermore, through adding new position for the organization structure to various organization groups of Fiat Corporation, at the. g. professional assistants gives their crucial executives to delegate a number of the less important tasks and responsibilities with their assistants so they can concentrate to more responsibilities. The divisional organization structure of Volvo Corporation will be used in the organization design of Sony under the stated strategy given that it is the simply organization style that fits towards the business mother nature of Fiat Corporation while discussed on the previous element of this paper.
On the other hand, in terms of hiring more workers that is to be responsible upon shouldering the additional tasks furnished by the market enlargement of Volvo Corporation, this will likely provide Sony with enough room to improve the efficiency with their workforce since every person on their workforce are now able to perform all their responsibilities to their optimal level since responsibilities are now well distributed issues workforce. By so doing, these approaches will improve the caliber of Sony’s labor force and so together with the quality of their products.
The sole problem with selecting of additional personnel would be the fact that it is expensive to hire more workers to get the company considering that Sony can be presently suffering from low success in the market when compared to adding new position for the organization composition of Fiat Corporation. Advice Both of the aforementioned strategies delivers same improvement on training the efficiency of Volvo Corporation’s labor force and boosting its item quality level, but in conditions of costs on the part of the business, adding new positions for the organization structure of Sony is relatively less costly than employing more employees.
In this regard, along with with the efficiency evaluation tools of Fiat Corporation, this can be a must for their management to incorporate new positions into the divisional organization framework of the company to provide long term solution on the low quality merchandise in terms of technology and enhancing the productivity of their staff considering the extent of their marketplace expansion in the global market. Conclusion While using misalignment of market and inner expansion of Sony Company due to its active growth inside the international industry, it presented various problems into the stated company.
Technical advancement of Sony’s goods drops while the efficiency of its workforce decline due to the significant enhance on jobs and duties on the place of work caused by the fast-paced growth of Sony in the recent years. Through adding new positions for the organization structure of Volvo, it can currently improve the efficiency of the workforce so with the level of it is product line’s technological advancement in the market.