HR7002 Organisational Behaviour And Global Strategy Assignment Sample 2023

Introduction

Sony is an international business organisation, which focuses on the technology, development, and management of its electronic product. Some of its products are mobiles, televisions, headphones, and cameras (Sony, 2022). Moreover, this has an entertaining network, which is effective for its product development. Furthermore, this company manages both its online and offline stores, which are effective for the development of its competitive advantages.

On the other hand, this company had some major issues such as less revenue and lower sale of this company. Furthermore, this report is going to present the issues of this company’s organisational management during this pandemic situation. Every issue or challenge in business needs to be managed to develop an effective organisational culture.

In this case, this report is going to present the way the challenge management practices in this organisation have influenced its business management and revenue growth.

As an electronic products manufacturing company, Sony UK focuses on the development of technology and its disruption. In order to improve its competitive advantages, Sony focuses on product development and the improvement in organisational culture.

Furthermore, this is also necessary to assess the impact of challenges in this organisation so that it can evaluate the issues, which create those challenges. Finally, the impact of existing as well as new challenge management strategies will be analysed here, to understand and assess their effectiveness.

Strategy of Sony for Competitive advantages

Sony follows the trend of electronic products and focuses on the needs and requirements of the customers. This allows them to develop customer-required features in its products. Furthermore, this is necessary to mention that this company has online stores, where the products are mentioned along with their price and the star-based ratings.

This is effective enough to attract the customers as they can have product reviews and understand the quality. Furthermore, the development of the business processes is effective enough with its communication with customers. According to Nayak et al. (2022), industrial organisational theory is associated with the resource-based view. Hence, Sony’s culture to enhance technology-driven culture is effective for Sony’s competitive edges.

According to Chebet and Muturi (2018), Sony focuses on increasing competitive advantages through collective economic strength. In other words, this tends to develop its intellectual property in a way so that the competitors, as well as its customers. It focuses on its internal market and available resources.

This is also associated with the resource-based view for the development of the business processes and the management of the equilibrium or balance between internal capabilities and the business environment. Hence, it can be said that Sony’s focus on internal management is aligned with its leadership theory of transformation and resource-based view for the development of the business processes.

Again, Sony focuses on using sustainable technology for the development of its technological disruption. This allowed this company to develop corporate social responsibilities or conduct CSR activities. In other words, Sony’s competitive edges not only allow this to have effective participation in the sustainable tax payment process but also invest more in some beneficial purposes, such as local area development and educational health.

Sony conducts these through sponsorships and donations (Kalnāre, 2022); this is associated with the Philanthropic view of supporting society by the contribution of resources to their wellbeing. Furthermore, the ethical activities of this company allowed this to promote sustainable technology for manufacturing electronic products (Cws.cengage.co.uk, 2018). Hence, innovation, technology, and R&D are increasing its competitive advantages, giving this company a good rank in its international market.

Significant event of Sony under the light of pandemic

As an international electronics company, Sony has a high focus on internationalisation and innovation. In order to internalise its business, this company increased the number of its subsidiaries in the target regions. This is effective enough for its increasing focus on innovation.

An event can be mentioned that this organisation has faced the failure of Betamax, which developed an insight that continuous innovation practice is necessary for the development of the business processes, especially the manufacturing processes (IPL, 2022).

In this concern, the internalisation strategy is developed with innovative technology and its disruption. Hence, this organisation developed a “continuous learning” and risk-taking atmosphere. However, the mismatch between strategies and existing administrative capabilities was increasing risks and issues for Sony.

During the pandemic situation, this company faced high issues in its business processes. Some of those are less supply of raw materials and delay in product development. As a result, Sony had a delay in manufacturing music products and gaming software. All these things let this organisation face financial issues in this pandemic situation.

As a result, this company focused on “plan”, “forecast”, “strategy”, “execution”, and product development (Sony, 2020). Hence, this is necessary to focus on the management of internal culture to promote effective product development. Moreover, this company started to analyse the local markets and the needs and requirements of the local people in its international markets.

The report of Middleton (2020) mentioned that this organisation took the necessary initiative to protect its employees from the negative effect of a pandemic; when one of its employees was caught having covid-19 infections, this organisation closed its physical stores in London. Furthermore, its stores in Poland and Japan were also closed temporarily.

This company faced an almost 54% fall in profit for the decrease in the business management approaches. Furthermore, it can be mentioned that this organisation had more than 213 billion yen in profits in July and August 2020, which indicated a fall in profit from almost 500 billion yen.

However, in 2021, the report of Kageyama (2021) mentioned revenue of this company increased by almost 13% than the previous year. In addition, this report forecasted that March 2022 would fetch revenue of 730 billion yen, which is an increase from 700 billion yen in the previous year, which is 2021.

However, the covid-19 pandemic resulted in chip shortage for gaming activities due to less effective supply chain management; on the other hand, this company performed well for its other electronic products, such as digital cameras, televisions, banking activities, and movies.

Despite the issues in entertaining sections of Sony’s business processes, this company performed proudly in its technology-based services. In the pandemic situation, the whole world observed an increasing need healthcare system; in that case, Sony technology services developed Pencoed-based technological services, which empowered the healthcare services with innovative and strong technological services.

Sony’s focus on digital cameras and its focus on the development of health-oriented development of treatment processes (Sonypencoed.co.uk, 2020). Furthermore, the isolated and home-based education processes also require good technology and systems to conduct effective and efficient educational services. Sony’s support for technology and technological disruption was effective enough with such innovative and disruptive technological management.

Challenges managed by Sony

Leadership Capabilities

The co-founder Akio Morita, who has been successfully leading the diverse and large team with his ability of imagination, innovation, and new brand management strategies, has led Sony Corporation. As highlighted above Sony has faced a reduction in sales and revenue as the after effect of Covid-19. In this emergency, effective leadership strategies such as motivating employees to implement effective technological changes have helped Sony to lead the consumer market effectively.

The leaders have focused on the creativity of the employees and building partnerships with the competitors. According to Antony et al. (2021), Sony uses “Quality 4.0” technology for the development of its employee management and communication management, and develops a knowledge-based activity here. In this regard, the leaders have followed a democratic leadership style, where the employees have been recognised and given the flexibility to adopt innovative ideas for mitigating the issues.

Further, it has been found that the remuneration arguments and incentives of the organisation have helped the employees to stay motivated through the challenge period through leadership style, coordinated control, resource allocation, and objective setting (Sony and Naik, 2020). It has been understood that leadership skills such as motivation of employees, review of employees’ basic needs and fulfilment of those needs have been practised in Sony.

The leaders of the leading consumer market believe that bureaucracy has to be eliminated from the organisational structure in order to lead the company for gaining competitive advantages. Despite the hierarchical organisation structure of Japan, Sony in the UK has followed a more flexible approach for leading the diverse team that resulted in challenge mitigation after the Covid pandemic.

Communication

Sony focuses on communication management through increasing focus on sustainable practices and stakeholder management. This company develops its planning for sustainable technology and increases communication with its stakeholders and customers. In that case, it can be mentioned that this organisation has ISO 14001 certification for its “Sony Network Communications Europe” from 2002 (Sony network, 2022)

. It has an increasing focus on its increasing use of renewable energies by 2040, and a decrease in plastic usage for the “Green Management 2025” focus. In other words, this company focuses on the development of communication with the stakeholders so that it can successfully implement its innovation and technological disruption in the post-Covid situation and manage sustainable production.

This company focuses on customer management and supporting customers through its products for both electronic purposes and entertainment. Furthermore, the communication manager of this company uses Communication AI to increase its communication with stakeholders, such as partners, employees, customers, and shareholders (Ai.sony, 2022).

Sony focuses on information management for the development of its business processes and the management of production. In its internal organisational culture, this company uses information and communication technology or ICT tools for an effective flow of information (Sony, 2022). On the other hand, this organisation uses a strong website, online stores, and data management to provide customers with enough data

Organisational culture

Sony has a hierarchy-based organisational culture, where, tasks are divided into different groups. Moreover, the organisational culture of “continuous learning” is effective enough for the development of internal organisational culture. Its organisational structure is divided into two groups, which are the product or business division and the function-based group (Cuofano, 2022).

It is the result of the transformational leadership style of Sir Howard Stringer, who promotes a multi-divisional structure in this company. Hence, cooperation among efficient management and other divisions is effective enough for the development of internal culture.

HR7002 Organisational Behaviour And Global Strategy Assignment Sample

Figure 1: Organisational hierarchy of Sony

(Source: Cuofano, 2022)

Another important aspect is Sony’s technology-driven culture; moreover, the incentive strategy and generic corporation strategy are also effective to promote innovative culture in the organisation. This company understood the importance of an effective culture of innovation and technological disruption for its production management, and increase competitive advantages (Meyer, 2018).

In order to complete the external culture, this company is required to manage the internal culture with a technology-driven and continuous learning environment for change management in critical situations, like the covid-19 pandemic.

5. Impact of Sony organisation’s existing strategy on challenge management

At present Sony, company has worked with a long-term corporate strategy, which has been seen as the entertainment creativity for this company. As stated by Héraudet al. (2019), the focus of Sony’s long-term corporate strategy is to create values in organisation focusing on the creative management of the company. This strategy also focuses on technology management and community management in the organisation.

In last five years, Sony has faced several challenges in operation and management of the company. Therefore, discussion on this point has been made based on whether the existing strategy of Sony helps in challenge management in organisation or these remains inactive during the time of challenge. Podgórska (2022) has described that long-term corporate strategy is associated with differentiation, which helps in challenging management in organisation.

In recent times, Sony has faced challenges in innovation as they shift their operation to manufacture from hardware to software. However, Sony failed to create any kind of innovation in software market, which led them to failure. During this time differentiation strategy, help the organisation to integrate new features that help make its product attractive and profitable.

On the other hand, this also has been seen that Sony also faced challenges of openness and security in their movie and music business. Spiny has a movie and music business instead of an electronic company. Though the movie and music are a natural combination, this company faced challenges in making this content available in electronic gadgets.

They have faced problems of openers and security. On the other hand, this content is complex to handle. Its long-term corporate strategy helps Sony to diversify the group’s strength to create new values that can help in the long-term view of business as well as further growth of the business (Kunz et al. 2018).

Sony faced challenges also to emerge new technology in the organisation. This has been seen in collaboration with Toshiba, and IBM Sony works in organising the next generation play station. Sony has declared to make the processor for the play station; however, this has been proven Sony has weakness in making of reluctant technical specification.

During this period, the long-term corporate strategy of Sony also helps to manage these challenges. This has been seen that this organisation used long-term corporate strategy and helps to emerge technology by making the CMOS image sensor, which has been needed for smart phones and PlayStation. On the other hand, this strategy of Sony also helps to create crystal LED that helps in light reflection very well (Möller and McCaffrey, 2021).

Therefore, this can be stated that the long-term corporate strategy of Sony has helped them to create sustainability as well as this strategy also helps to manage the challenges faced by the organisation in the operational and management areas of the organisation. This also can be stated from the above discussion that the Existing strategy of Sony focusing on creative management helps in value proposition in the organisation.

6. Impact of challenges on Sony’s organisational management

Sony has faced challenges in operation management in their organisation. Therefore, the company in future also faced challenges in organisational management. Operational practices of Sony have focused on the mass production of the P65 and ramp-up production in recent times. As the organisation face challenges in production, therefore, the organisational structures also faced issues due to these challenges (Sony and Naik, 2020).

These organisations have seen issues in employee management due to slow production in the company. Therefore, organisational management has been associated with the challenges faced by Sony. On the other hand, this also has been seen that a rapid decline in sales is also a challenge faced by Sony. Sony has used to manufacture frames and network services. This has helped to decrease the sales by 47.1 million of Sony’s video game4. On the contrary, 63.6 million people have faced handling change due to complex system software in Sony.

Therefore, this can be stated that organisation has effects on the management due to the challenges she faced in real life.

HR7002 Organisational Behaviour And Global Strategy Assignment Sample

Figure 2: Decline of sales in Sony

(Source: Di Vaioet al. 2021)

This figure has represented the declaiming of sales in mobiles manufactured by Sony. In the year of 2018, this has beenseen Sony sales decreased to 5.4 million compared to 12.5 million in 2010 (Di Vaioet al. 2021). Decline in sales helps to understand the weaker areas of that organisation and help to improve this organisation as well. Reduction of turnover rate has to achieve in the organisation.

However, the complex organisation structure increases the turnover rate in the organisation, which leads to degraded growth of the organisation as well as also reduces the rate of employee efficiency in an organisation. As Sony fail to adopt innovation of the latest trends, therefore, the market shares of Sony led down to 13%, which is also an error in organisation management.

HR7002 Organisational Behaviour And Global Strategy Assignment Sample

Figure 3: Decline of market share in Sony

(Source: Antony et al. 2021)

The above pictures has depicted the market share of Sony has been reduced from 2012 to 2020. In these 8 years, Sony has emerged a different kind of technology that does not provide any facilities and some of them are partially beneficial. Therefore, the market share growth of Sony has reduced from 40% in 2012 to 1% in 2020 in the market smart phones (Antony et al. 2021).

Additionally, this also can be seen that human resource management also find to be impacted by the increase of challenges in Sony and they have declared to establish the human resource department of the organisation. The long-term corporate strategy of Sony has helped in challenging management in this organisation; however, this does not contribute to the organisation’s management (Chebet and Muturi, 2018).

The leadership failure only has been seen as the Mismatch between strategy and executive ability of the organisation. This decay of Sony has steamed down their management powers as well as a lack of clarity about executive ability also has been seen in the organisation. Therefore, this can be stated from the above discussion that challenges have a significant impact on Sony’s organisational management.

Conclusion

This report presents the way Sony, as an international electronic company, uses change management in its organisational culture. This company faces several issues such as the closure of stores, delay in manufacturing, shortage in storage, and inefficient supply chain management. In this aspect, this company focuses on the development of the business processes and internal culture through the development of a transformational culture, a culture of continuous learning and technology-oriented culture for implementing changes.

These were effective enough for change management and increasing competitive edges in an organisation. This is also necessary for the development of the business processes and the focus on the local market for product development, which is the prime focus of this electronic product manufacturing process. Moreover, its increasing focus on sustainable management and sustainable technology promoted its ways of disruptive technology.

In this case, the technology group of Sony performed well with their technology services for healthcare and educational organisations. In addition, the combination of Industry 4.0 and Quality 4.0 was effective enough for the change management in this company.

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