The paper “ Leadership and Changing Environments at Sony” is a thoughtful example of a case study on management. The survival of any organization needs that the methods used by leaders to convey operational knowledge have to change faster than the changes in the environment that threaten feasibility. The leaders’ novel strategy must be about continually familiarising to change in an environment that is ever-changing as evidenced in the Sony case study. So as to achieve this, the emphasis should be to look further than market share and competition to more important questions of sustainability as well as survival in an environment that is continuously changing and turbulent.
In this report, we seek to examine Sony’ s leadership and changing environments, through analyzing a management issue that needs to be addressed within the organization and work. Leadership and Changing Environments at SonySony Corporation is an international company with its headquarters in Tokyo, Japan, and remains to be the largest media conglomerates in the world with huge profits, such as US$88.7 billion in 2008. Sony is still the world’ s top producers of video game consoles, video communications, electronics, as well as IT products for the professional and consumer markets.
However, Sony’ s margins and prices are facing extreme pressure considering that the electronics industry by 2004 experienced double-digit price drops concerning products like flat-panel televisions, digital cameras, and DVD recorders. The increasing the digitalization of almost all electronic devices from TVs, audio devices and handsets has as well resulted in shorter lead times for products’ replication by competitors. The report will provide a brief introduction; highlight the issue facing Sony; provide a critical discussion and recommendation, and a conclusion.
According to Simoes and Esposito (2014), for an organization to be well managed, there must be well-defined plans, organized processes, systems and structures so as to function efficiently and effectively. Therefore through effective leadership, employees must be able to perform activities, assess, and monitor the outcomes. Still, the leadership must enable the organization to cope with the external environment which as mentioned by Manz et al. (2011) is naturally dynamic. As it will be evidenced in the report, lack of creativity attributed by poor planning is the major management issues facing Sony. 2.0 Issue IdentificationSony is without a doubt an example of what ensues when an organization blindly becomes in love with its brand; considering that Sony utilizes its brand on every product: TVs, computers, cameras, video games, toys, among others.
In an extraordinary move, some years back Sony made the decision to utilize its brand on a music label and a movie studio; thus, making Sony’ s high-end products as well as low-end products to all carry the same brand. As a result, the brand became weaker; losing meaning, and making the company become an undistinguishing player in the world of electronics.
Evidently this is an issue and is attributed to lack of creativity and innovation among the managers. Numerous developing issues, attributed to lack of innovation, forced Sony into an aggressive pricing approach, poor performance of Sony films, and increased competition. This can as well be blamed on lack of leadership bearing in mind that in the last two decades Sony has had just three CEOs. The changing environments, especially in Sony’ s core electronics business, that makeup almost 70% of its profits experienced intense pressure from the competitors and the management failed to find any innovative and creative gadgets that could boost revenues.
Lack of creativity, ill-advised decisions are to blame for the downfall of Sony considering competitors such as LG and Samsung have overtaken Sony in mobile phones and TV markets.