The paper “ Leadership and Changing Environments at Sony” is a motivating example of a case study on management. Over the years, Sony Corporation has enjoyed massive growth in the ’ 90s to early 2000 (Mariko & Shunichi, 2012). However, the company has struggled to perform to the expectation from 2000 to around 2005 when the new CEO was appointed. According to Schermerhorn et al. (2014, p. 430), the changing business environment characterized by a communication failure, interpersonal failure, and poor leadership, earthquake, online database hacking, economic global crisis was blamed for the company’ s poor performance.
Even though leadership and management style has been questioned, competition and globalization have happened rapidly prompting the CEO to change his strategies to sustain competition. The rapid change has overturned good times when Sir Howard Springer led the company to positive results; Sony TV set sales increased by 44%, computer sales increased by 28% while mobile phones and games also became more profitable (Schermerhorn, et al. , 2014, p. 430). In the period from 2011, the company has suffered from a series of losses that has been blamed on poor leadership.
Schermerhorn et al. , (2014, p. 430) argue that this is because these challenges such as database hacking, earthquake attacks, and economic globalization are affecting Sony Corporation yet no proper response has been put forth by Sir Howard Springer. Hence the issue has resulted in a renewed interest in transformational leadership. Based on the information, this case study will evaluate the need for transformational leadership for Sony to strengthen its brand. Issue identificationThe issue identified at Sony is the inability of the leadership to create the company strategy that can improve its performance in the changing environment (Schermerhorn et al. , 2014, p. 430).
Some changes which Howard and has tuned to hurt his tenure are sidelining the deadwood employees, shifting the production oversee, outsourcing operations, developed new business units after selling old ones and neglecting research and development. Mariko & Shunichi (2012) contend that his tenure led to the company’ s stock declined by 75%. Howard failed to observe that consumer electronics could have become commodities, which most of them were cheaply manufactured in China and Korea. Shifting most production abroad was both a good and a bad move.
In a foreign country, the company faced stiff competition and government regulations. Sony’ s Corporation brand has not been strong enough to counteract quality and new products manufactured by other market players at low prices (Mariko & Shunichi, 2012). Howard also was not able to get Sony Corporation into the Smartphone platform which was lucrative from 2007 (Schermerhorn et al. , 2014, p. 430). The Smartphone market was market by launched by iPhone by Apple Inc. instead the company opted to form a joint venture with the Ericsson so as to capture a larger share of the market.
In a nutshell, it did not make its own Smartphone. It later bought Erickson but it was late for it to gain a competitive advantage in a market that was already influenced by Samsung, Apple, and Nokia. Similarly, Sir Howard was not able to push Sony Corporation to enter the computer market when it just took off (Mariko & Shunichi, 2012). He, however, pushed the sale of Sony computers but it did not last since it was already flooded with cheap computers from Dell, Hp, Samsung, Apple, and other companies.