• Posted on April 17, 2023
• Unique Submission Team

MSc Management Business Project Assignment Sample

Section 1: Introduction

Business project management can be defined as a process in which the manager is responsible for planning different activities or strategies that could be utilised to resolve any particular problem.

Sony is a Japanese multinational conglomerate corporation engaged in manufacturing consumer and professional electronic products to the customers. Currently, the firm has around 109,700 employees that are continuously working to offer qualitative services to the customers.

The three in the context of the consultancy report which has been provided importance are challenges faced by the company, stakeholder analysis and thirdly, suggestions related to the way issues could be overcome (Antony et. al. 2022).http://MSc Management Business Project Assignment Sample

The company since covid-19 pandemic situation is encountering supply chain disruption issues, high competition level, shortage of material and drivers. All these issues have resulted in disruption of local operators and global giants likewise, Sony Group Corp.

Furthermore, there are many manufacturing plants of the company that have closed down in Malaysia and China. This has resulted in challenges in offering services to the customers and meeting their expectancy (Silvius and Schipper, 2019).http://MSc Management Business Project Assignment Sample

Due to these different issues, the company has to face shortage of material as well as logistic disruption in the context of PlayStation 5. Another concern is declining user activity on the playstation 5 and its subscription that has led to causing a lot of financial losses to the enterprise.

This report will highlight key issues that are encountered by Sony while operating its function. It also includes the impact the issues have on stakeholders and the way companies could tackle them through engaging the key stakeholders. Furthermore, the SWOT, pestle and other secondary data are being utilised to understand and analyse the challenges faced by Sony. Finally, a recommendation is being added related to the way the company could overcome its issues related to supply chain disruptions and many more.

Section 2: Challenges / problems the client is facing 

Challenge face by Sony

Sony is a large multinational company that is facing challenges in keeping growing with changing market conditions and maintaining an effective supply chain that could be used to offer services to customers within a specific time frame. There are different challenges that are faced by the Sony Group Corp while operating its business that could be illustrated as follows:

Supply chain disruption: In and after the pandemic firm has been facing issues related to supply chain disruption that has resulted in production of flagship PlayStation 5 hardware. Company has to close down its manufacturing site that has led to delay in manufacturing of products to be provided to the customers.

At the same time, there is limited availability of skilled employees that are engaged in designing effective software, Smartphone’s and other products to be offered to the customers at reasonable price (Sony et. al. 2021).http://MSc Management Business Project Assignment Sample That is, there was a lack of drivers that were responsible for promoting the transportation of the raw material and other products from the warehouse to the customers.

High competition: Secondly, Sony has been facing issues of high competition from Apple, Samsung and others that are engaged in offering innovative products to their customers at premium price.

These companies have an appropriately visible supply chain that has contributed in maintaining track over the place, time where the products had actually reached to the end demand of customers could be satisfied (Antony et. al. 2022).http://MSc Management Business Project Assignment Sample On the other hand, Sony has been making use of old techniques only that has acted as a challenge for the enterprise to have proper track and management of the supply chain of the firm.

Rising price of material: Another issue borne by companies is continuously increasing the price of raw material and cost of wages with inflation. The reason is, with covid-19, the people have started demanding more prices for the material due to its limited availability, inflation all over the country and more demand.

Similarly, due to safety and security issues, lack of job opportunities in lockdown, after its removal the employees have started demanding more wages that has acted as a challenge for the company to bear the same.

Restriction of government: It is also analysed that Sony has been facing issues of restriction implemented by the government on import and export of products as well as movement of human beings. Companies have to bear additional cost to export or import the material in order to manufacture and offer them to customers at a reasonable price (Lantano et. al. 2022). http://MSc Management Business Project Assignment SampleTherefore, abiding to legal regulation has increased complexity for the firm to operate effectively.

Decline in use of play station 5: The Company has planned to introduce the play station 5 but due to covid-19, the manufacturing site is being shut down that has led to delay of implementation of the plan and attainment of the enterprise goals. Moreover, the company profitability has reduced to much extent as it is not able to effectively grow and sustain the business as other competitors through improving its strategy to induce customers. Therefore, the company’s share has dropped by 27%.

Section 3: Purpose of the report

Aim of the research

The main purpose of the report is to accumulate information related to the several types of challenges that are being faced by the company like Sony while expanding its business in a global competitive environment.

Such as, supply chain disruption, situation of inflation, increasing price of raw material, delayed or decline in use of play stations, restrictions imposed by the government and many more (Stocker et. al. 2020).http://MSc Management Business Project Assignment Sample So, through the research, there are different solutions that will be found in the context of the way Sony could be able to ensure supply chain management, ensure play station demand and get material at a reasonable price.

Section 4: Impact of research on stakeholders

Stakeholders are the individuals that may or may not be interested in the operation of the company. Generally there are two significant types of stakeholders, such as, internal stakeholders are top management, owners, It team and employees.

On the other hand external stakeholders are suppliers, customers, government and many others (Silvius and Schipper, 2019). http://MSc Management Business Project Assignment SampleSo, they could be analysed through making use of the stakeholder’s matrix, as it is the framework that contributed in determining the key actions and the way they are aligned with set objectives of the project. Such as:

High power and low interest (Keep satisfied) Customers	High power, high interest: (Managed closely)
Low power, low interest (Monitor or minimum efforts)	Low power and high interest (Keep informed)

Stakeholders matrix

High power and low interest: Customers are the stakeholders which have high power but low interest so that Sony enterprise needs to focus on satisfying their needs in the best possible manner.

These stakeholders are affected as due to supply chain disruption and increase in price of material, the cost of devices has also been increased that acts as a challenge for the company (Hörisch et. al. 2020).http://MSc Management Business Project Assignment Sample

So, it is the duty of the project manager to find alternative sources from which the firm could be able to get material at a reasonable price so that it could introduce new products like play station 5 at a price that customers are ready to pay.

High power, high interest: There are some of the stakeholders which have high power as well as high interest like top management, owners of the company. So, they are being closely managed by considering their view point, suggestions related to the way the issue could be overcome and company could achieve competitive advantages.

These will help in taking decisions related to the manner in which Sony could be able to strengthen its supply chain, improve strategy to grow its business successfully (Richards-Schuster and Plachta Elliott, 2019). http://MSc Management Business Project Assignment SampleTop management are held responsible for the operation of the company so this issue has pressured them to find alternative techniques to eradicate them.

Low power, low interest: This segment includes all the stakeholders which have low power as well as low interest in the operation of the entity. Minimum efforts are being laid by the manager to handle these types of stakeholders. That is, suppliers, competitors are one which has low power and interest as they are responsible for just supplying the material to the company while competitors are other firms engaged in offering similar products.

The suppliers are not able to offer material as they are limited in quantity so they have increased the price of material that has benefited them (Oroceo et. al. 2022). http://MSc Management Business Project Assignment SampleTherefore, this has a positive impact on competitors as Sony is facing challenges and they can easily expand their business operation.

Low power and high interest: It is the last segment that includes stakeholders which have low power but high interest in the business operation. That is, the employees of Sony are very interested in the way the company performs different operations and meets the expectations of customers.

However, has given less power to take any decision that has led to influencing them to charge significant wages for performing assigned responsibilities (Dat et. al. 2020).http://MSc Management Business Project Assignment Sample But the manager has tried to make the employees informed about the issues, tried to get their suggestion to help the Company in attaining its respective goals.

Therefore, through the stakeholder matrix it is being analysed that the stakeholders are being positively and negatively influenced by the issue faced by Sony. Likewise, the employee’s have demanded an increase in wages, suppliers to get more prices for the material and many more that have positively impacted.

While, there are some of the negative impacts on the stakeholders such as- top management, owner as it has created pressure on them to find a particular solution to the problem.

Section 5: Evaluation and analysis of secondary data 

Secondary data

From the secondary data accumulated it can be interpreted that Sony is one of the major global players in three different sectors which can be said as: gaming, entertainment and consumer electronics.

There are different competitors of the company such as, Apple, Panasonic, Philips, Samsung and LG electronics. Company is a multi dollar firm with extremely complicated structures that are utilised to offer services to the customers.

Sony has been widely impacted due to the outbreak of covid-19 as it has negatively impacted on the supply chain operation and electronic business. On February 9, the company shut down its manufacturing plants that are located in China and Malaysia.

But even after its restart the company is facing issues in maintaining an effective supply chain in the Chinese market (Sony Struggles to Make Enough PlayStations as Supply Disrupted, 2022).http://MSc Management Business Project Assignment Sample Moreover, the imaging and sensing solutions segment of the company are being suffering from “material impact” that has gradually decreased the sales of firm.

The statistical data has indicated that the overall company has planned to sell around 18 million units of products in the current fiscal year however it is able to sell only 11.5 million units to the customers of the $500 device. Since November 2020, since the release of PlayStation 5, the company has suffered from supply constraints of components shortage as well as logistic disruptions.

Another challenge being encountered by the enterprise is declining in both monthly active users as well as play station subscribers (Sony Discloses Supply Chain Impact, Theatrical Window Focus for Tentpoles, 2022).http://MSc Management Business Project Assignment Sample So, the company cannot miss the chance of PlayStation 5’s momentum.

Japanese currency has plummeted as the cost of PlayStation and smartphone hardware units has significant cost in foreign currency.  Therefore, it can be evaluated that the company is behind its initial target of 14.8 million and 22.6 million units.

Pestle and Swot framework

Furthermore, it can be stated that the Pestle, Swot framework could be utilised by the firm to understand the key issue faced by the firm. Such as:

Pestle framework

Pestle framework is a model that contributes to analysis of key external factors such as policies of government, economic condition of the country, social taste and preferences of customers and legal factors that have influence on the growth and smooth operation of a firm.

The key issue encountered by Sony could be illustrated by making use of pestle analysis. Such as:

Political factor: It can be said that many countries in which Sony has its operation are suffering from political instability due to the impact of covid-19. The firm is unable to decide a particular set of strategies that could be used to promote its operation in the international market.

Furthermore, in the context of covid-19 and after it, the trade and tariff has significantly increased by the enterprise that has made the electronic products more costly as compared to others (Sony’s electronics supply chain impacted by COVID-19 instability, 2020). http://MSc Management Business Project Assignment SampleTherefore, all these government regulations have acted as a complication for Sony to promote its operation in an external environment.

Economic factor: Secondly, the economic factor that has influenced or acted as a challenge for the firm is the price of raw materials increasing at a rapid rate due to inflation. This has led as an issue for the company to get material at a reasonable price that could be utilised in designing of the electronic and other products offered by the firm to its customers (Li et. al. 2021).http://MSc Management Business Project Assignment Sample

Furthermore, there is a lack of drivers and employees that are ready to work for Sony which has created challenges for the firm to have sufficient individuals that could work for the enterprise. So, companies have to face the issue of increased prices of raw materials as well as shortage of labour and other things. The market share and profitability of the company has decreased, that is, a total 27% decrease.

Social factor: Apart from this, there are some of the social factors that influence the company operation. Such as, most of the people were excited about the launch of play station 5 but due to covid-19 and supply chain disruption the company was not able to offer services to the customers.

At the same time, there are many big giants that are engaged in offering electronic products and have strong visible supply chains (Polyviou et. al. 2019).http://MSc Management Business Project Assignment Sample So, it acts in attracting customers that want to be part of firms which have integrated new technology in supply chain management.

Therefore, the changing taste and preferences of the people across worldwide has resulted in issues for the company to grow its operation in a competitive environment.

Technological factor: Furthermore, there are some of the technological factors that act as an issue. Apple offers more innovative, uniquely designed electronic goods and has a strong brand image in the minds and hearts of the customers. Apple has well integrated new technology that has acted as a challenge for Sony to manufacture as well as designed innovative products which could be offered to the end individuals (Sony Struggles to Make Enough PlayStations as Supply Disrupted, 2022).http://MSc Management Business Project Assignment Sample In context of the covid-19 scenario, the company was unable to promote the movement of engineers that are required in order to manufacture the play station 5.

Now it has integrated AI and machine language in the supply chain that could provide visualisation to the customers about the actual place at which the electronic products are available.

Legal factor: The Company has been overcharging for its play station games since the six years that has led in enforcing the company to face legal issues of £5bn. The enterprise charges a flat 30% fee to developers that are interested in selling games in the stores.

In the current scenario, the entertainment sector has become very popular but the firm is engaged in offering products at high cost (Sony could face £5bn in legal claims over PlayStation game charges, 2022). http://MSc Management Business Project Assignment SampleSo, with covid-19, the consumers are having less disposable income thereby enterprise by charging high cost to customers for electronic products has to face legal issue of Consumer Rights Act 2015.

Therefore, it can be stated that as per the law, companies should offer products at reasonable prices so that they can afford this, creating challenges for companies to bear additional cost and find alternative methods to reduce the price.

Environmental factor: In the current scenario, both the governments as well as customers have become concerned about the environment’s safety. This has influenced Sony to invest some amount of capital in ensuring optimum use of available resources, less wastage and other activities (Shekarian et. al. 2020).http://MSc Management Business Project Assignment Sample This has acted as a challenge to arrange and invest funds for environment management of the country to promote smooth operation of firms in competitive markets.

SWOT analysis 

Swot analysis is another useful analytical tool that helps in effectively evaluating the issue or key different challenges that are faced by Sony in the context of promoting its business in an international environment. It includes key elements such as, strength, weakness, threat and opportunities, all these are explained in much detailed as:

Strength: The Sony has some of its strength, like:

Varieties of products range: It has a broad range of products and services from electronic to mobile devices as well as home applications that are utilised to cater the needs of diverse individuals. So, due to plenty of options, the customers are able to select the specific products which could contribute in meeting their desire (Niu, 2021).http://MSc Management Business Project Assignment Sample

Innovative: Company has always tried to be innovative and creative through offering a range of products from Crystal LED TV, compact disc, VCR to many more. Firm by engaging itself in innovative products is able to attract a loyal and existing customer base in the enterprise for many years.

Brand value: As per 2020, the Sony has gained the top most position as #39 in top companies and #47 on the World’s Most Valuable Brands. This has led to influencing other customers to select Sony products for satisfying their wants in the best way (Shahed et. al. 2021).http://MSc Management Business Project Assignment Sample

Weakness: On the other hand, there are some of the key weaknesses of the firm which needs to be overcome by Sony for its smooth operation. Likewise, there are two weaknesses, such as:

Lack of affordability: It can be evaluated that the electronic and other products being offered by Sony are not at all affordable. There are many countless individuals that are not at all interested to buy the products of Sony as they are mostly costly so they prefer Apple more as compared to Sony (Dat et. al. 2020).http://MSc Management Business Project Assignment Sample The reason is Apple offers unique experience to the customers through integration of innovative techniques in the products.       

Trady product launch: Secondly, it can be said that a lot of time is being spent by Sony to release new products resulting in losing a number of customers. Likewise the company due to the pandemic situation was not able to introduce the play station 5 which has resulted in decreasing the overall profitability of the company to more extent and its revenue share (Kovács and Falagara Sigala, 2021). http://MSc Management Business Project Assignment Sample

Threat: There are some of the threats which act as an issue for growth and development of the company in an external environment. Such as: 

Facing supply chain disruption: Firstly, the enterprise is facing the issue of supply chain disruption due to covid-19 impact that has resulted in challenges for the company to procure material and utilised them in designing of the product and services (Messina et. al. 2020). http://MSc Management Business Project Assignment SampleDue to ineffectively supply chain additional raw material cost and other expense has to be borne by Sony that has directly impacted on its overall operation.

High competition: Furthermore, it can be stated that Sony has been facing issues of high competition, such as; Apple and Samsung are two competitors of Sony. Similarly, they have a strong visible supply chain that contributes in continuously tracking the actual location at which the products and services are being available (Katsaliaki et. al. 2021). http://MSc Management Business Project Assignment SampleHowever, Sony does not have integration of new technologies that could provide real time information about the place at which the electronic and other services or products are present.

Opportunities: It can be critically evaluated that there are some of the opportunities that could be utilised by Sony to continue its business for many years. Such as:

Lay focus on emerging economy: Sony needs to lay emphasis on entering into the new emerging market, where the customers are demanding for electronic products and services. There are many economies that are growing at rapid stages that have resulted in increasing purchasing power so Sony through entering this could earn high profitability.    

Expansion through acquisition: The firm has the opportunity to expand its business in different countries through acquiring different small local companies. These will contribute in providing knowledge to Sony about the local taste and preferences of customers and alternative strategies utilised to attract them (Shekarian and Mellat Parast, 2021).http://MSc Management Business Project Assignment Sample

Through the above model, it can be interpreted that after covid-19 also the Sony has been facing challenges in the context of maintaining a strong supply chain that could be utilised to offer a range of services to the customers. Due to limited availability of financial and other resources, the company was not able to promote its operation and encountered plenty of challenges (Dolgui and Ivanov, 2021).http://MSc Management Business Project Assignment Sample Therefore, the suppliers have started demanding more prices for the material, the government imposed high trade and tariff costs and employees demand more wages for their efforts or performance.

Section 6: Recommendations and conclusion

Conclusion

From the above analysis and evaluation, it can be stated that there are plenty of issues that are encountered by the Sony while performing its business. Such as, supply chain disruption, high competition, rising price of material, restriction imposed by the government and declining in use of play station 5. Covid-19 is pandemic situation that has adversely impacted on the Sony as it has lead in supply chain disruption, increasing in price of raw material, rise in competition level and many more.

At the same time, it is learned that the inflation and restriction has lead in limited availability of resources which finally lead in increasing manufacturing cost of electronic products. Furthermore, due to high unemployment in covid-19 scenario, the employees has started demanding more wages that has lead in increasing expenses for the company.

Through the stakeholder’s matrix, it is being learned that there are several stakeholder associated with the project, such as, customers, government, top management, employees and owner of investor of the company. All these have positive and negative impact on the different stakeholders so project manager needs to effectively handle them by satisfying their needs, monitoring them and informing about the key issue.

Through the model applied, it is being evaluated that the profitability of firm is also decreased and it has face several legal issues that has impacted on overall operation of firm. Therefore, it can be stated that there are some of the suggestion that could be applied by the Sony to eradicate its key issues and attained the set objectives.

Recommendation

Sony Group Corp. is dealing with a variety of supply chain issues, including disruptions in the supply chain, fierce competition, rising raw material costs, government restrictions, and a drop in PlayStation 5 customers.

1. The corporation can employ online distribution techniques or online marketing and advertising to increase demand and make things easily available to clients at their door while resolving these problems and challenges. By putting more things online and raising demand through online marketplaces, businesses may attract more customers.Online sales have increased as a result of COVID-19, which will help this business grow by hiring skilled team members and providing them with the proper training and development programmes to advance their learning so that they can work more productively and effectively to boost sales within the company (Craighead al. 2020). http://MSc Management Business Project Assignment SampleThe issue of transportation activities will be less of a problem with online selling and online techniques and good team management.
2. Furthermore, high competition is a different problem that Sony is dealing with. With effective supply chain management strategies or processes, it causes issues in the supply chain regarding the items’ availability to the customers. By correctly tracking and controlling the supply chain within the company, businesses should utilize the most recent technologies and methods for distributing items to final consumers. Today’s world is becoming more and more competitive, so this business needs to make use of all modern technologies to increase customer demand (Chanchaichujit, 2020).http://MSc Management Business Project Assignment Sample It should also employ a variety of creative production techniques to deliver future products to customers at affordable prices while also remaining competitive in the market. Due to cheaper items attracting more clients with the same features and services offered by the company, highly inventive products with cutting-edge features and affordable costs attract a significant number of customers. This corporation must make sure that all the products or electronic things it develops are modern and cutting-edge.
3. Moreover, to ensure that the earnings made by this company are sufficient to pay all of its costs, this corporation must increase all of its suppliers in the global market while decreasing its negotiating strength. If a company’s suppliers are, it can bargain for lower pricing and lower manufacturing costs, both of which will boost the company’s earnings or revenue. Due to restricted availability, the corporation should use substitute products or can design different alternatives to control production costs (Remko, 2020). http://MSc Management Business Project Assignment SampleTo ease the burden of a larger compensation demand by the corporation, the company should adopt remote working and hybrid employment to provide employment to employees across the world. This business should provide sufficient training to its current staff members so that, with proper upskilling and development, the expense of hiring new staff will be decreased and productivity will be maintained. With the aid of highly qualified workers who will use creative production techniques to create items that are competitive, the corporation must lower its overall costs, which will inevitably lead to an increase in demand for Sony’s goods and services.
4. Offering competitive prices on the domestic and international markets will encourage customers to purchase the company’s goods, and by utilizing highly trained and skilled personnel to make products more innovative, the company will automatically increase both its productivity and its level of innovation. Employees are crucial to the supply chain management operations that ensure items are delivered to the final clients as well as to enhance the innovation and productivity of the product (Sharma al. 2020). http://MSc Management Business Project Assignment SampleA strong supplier-organization relationship is crucial for lowering the total cost of raw materials and raising earnings, therefore keeping good ties with your suppliers will naturally lower your production costs. The cost of import and export activities can be decreased with thorough market analysis by using a variety of tools and models to analyze the domestic and international markets. Government restrictions also generate a number of obstacles that can be overcome.
5. Lastly, Judicious innovation Strong supplier ties and the production of goods in line with consumer demands and needs will naturally boost a company’s earnings as demand rises. Because electronic items need to be updated and innovated, the Sony corporation must do so with its products in order to compete with those of other businesses like Apple, Lenovo, and others in the global market. Strong supply chain management enables the business to deliver goods and services to the ultimate customers efficiently and effectively.

 

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