The paper 'Sony- a Japanese Multinational Company" is a good example of a management case study. The reduction of production costs is given significant importance in contemporary organizations and has been a major point of focus for most organizations. The cost of production is dependent on a number of alternating factors and may be affected by varying levels of performance of quality, dependability, speed and flexibility. Subsequent studies indicate that by varying the factors identified above, it is possible to reduce or increase the cost of production. This is of great importance for modern organizations where a reduction in costs of production is highly emphasized in a bid to improve productivity and consequently improve the level of profitability.
This paper will analyze the impact of these factors on the cost of production through a study of Sony, a Japanese multinational company. Analysis Brief description of Sony Sony is a household in the field of electronics and is ranked the globe’ s fifth-largest media conglomerate. Sony has managed to capture a large market share for its electronics products including TVs, music systems, HiFi systems, radios, play stations, personal computers, camcorders and digital cameras among other products (Sony website).
The company also invests in Financial Services, music, pictures, networking and the production of semiconductors. Sony’ s endeavors to reduce production costs have led to increased profitability within the firm as indicated by the financial reports. Sony recorded over $77.20 billion in revenue in the 2010 financial year. In the year 2009, the company recorded revenues worth $78.9 (Sony website). The reducing revenues can be attributed to reduced demand following the global economic crisis but it was significantly high as compared to competitors. The effect on the cost of operation resulting from changes in the performance of quality speed, dependability and flexibility Changing the level of performance of quality plays a significant role in determining the cost of production.
High quality is associated with lower costs while poor quality leads to higher costs (Hakes 1991, p. 87). The production of high-quality products ensures that there are fewer returns; which in turn reduces the production costs.
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