The paper “ The Global Leadership Issues and Leadership Demonstrated in the Nokia” is a dramatic example of a case study on management. When Howard Stringer was appointed as the CEO and chairman of Sony in 2005, he inherited a poorly performing company which had negative growth. The company missed on flat-screen television opportunity and lost the war to Sharp (IBS Case Development Centre, 2007). After six months, Howard Stringer started adopting the first phase of his turnaround strategy for Sony. Braun, Wilcox and Sparrow (2007, p. 25) posited that the CEO spent the first years his sidelining the deadwood executives who had attempted to interfere with his reform agenda, and instead promoted some young talented employees in their place.
He also cut up to 10,000 jobs, closed down 12 production facilities out of 65, created new business outlets and transferred the production overseas. IBS Case Development Centre (2007) reported that just after five years, the computers’ sales increased by 28%, TV sets sales increased by 45% whilst games and mobile phones became profitable. Sony’ s situation when Stringer took over demonstrates a conflict between status quo and change.
At one spectrum, Stringer wanted to change at the other end there were deadwood managers who wanted the status quo (IBS Case Development Centre 2007). Another issue exposed by the case study lack of transformational leadership which could make the company compete in the market. The case also demonstrated a lack of vision, lack of innovation and lack of performance evaluation. Creating a new strategy by Stringer showed a situation where a company lacks the vision to drive it forward. In such a situation, managers are likely to be comfortable with the status quo and not to care about performance.
It is evident that the company did not have a performance evaluation system. The company had several redundant managers and employees on its payroll, which were absolutely not contributing to positive performance.