26. Sony Portfolio History
Introduction Problem Change Conclusion
Audio Video Music Movie Games Phones
1955 1968
1975
1979
1982
1968
1989
1994
2000
2001
27. Sony Portfolio History
Introduction Problem Change Conclusion
Audio Video Music Movie Games Phones
1955 1968
1975
1979
1982
1968
2004
1989
1994
2000
2001
28. Sony Portfolio History
Introduction Problem Change Conclusion
Audio Video Music Movie Games Phones
1955 1968
1975
1979
1982
1968
2004
1989
2005
1994
2000
2001
29. Sony Portfolio History
Introduction Problem Change Conclusion
Audio Video Music Movie Games Phones
1955 1968
1975
1979
1982
1968
2004
1989
2005
2006
1994
2000
2001
30. Sony Portfolio History
Introduction Problem Change Conclusion
Audio Video Music Movie Games Phones
1955 1968
1975
1979
1982
1968
2004
1989
2005
2006
1994
2000
2006
2001
31. Sony Portfolio History
Introduction Problem Change Conclusion
Audio Video Music Movie Games Phones
1955 1968
1975
1979
1982
1968
2004
1989
2005
2006
1994
2000
2006
2001
2012
32. 1.2 Sony Product Portfolio
Introduction Problem Change Conclusion
33. 1. Sony Corporation
Introduction Problem Change Conclusion
•Work-life balance
•Hierarchical
•Centralized
•Think globally! Act locally!
37. 2.1 External Forces
2.2 Internal Forces
2. Problem Analysis
Introduction Problem Change Conclusion
38. 2.1 External Forces
Massive Corporate Financial Losses
Global Recession and Strong Yen
Strong Competition
Introduction Problem Change Conclusion
39. Massive Corporate Financial Losses
2.1 External Forces
Loss of 2,8 billion USD
Introduction Problem Change Conclusion
40. Massive Corporate Financial Losses
2.1 External Forces
Loss of 2,8 billion USD
Introduction Problem Change Conclusion
41. Massive Corporate Financial Losses
2.1 External Forces
Loss of 2,8 billion USD
Introduction Problem Change Conclusion
42. Global recession and Strong Yen
2.1 External Forces
Introduction Problem Change Conclusion
43. Global recession and Strong Yen
2.1 External Forces
Introduction Problem Change Conclusion
44. Global Recession and Strong Yen
2.1 External Forces
Mr. Nobuyuki Oneda (2008)
Chief Financial Officer and Executive Vice President
Introduction Problem Change Conclusion
45. Global Recession and Strong Yen
2.1 External Forces
Mr. Nobuyuki Oneda (2008)
Chief Financial Officer and Executive Vice President
“Sony loses 7.5 billion yen in operating profit
for each 1 yen gain against the euro…”
Introduction Problem Change Conclusion
706 million EUR
46. Global Recession and Strong Yen
2.1 External Forces
Mr. Nobuyuki Oneda (2008)
Chief Financial Officer and Executive Vice President
“Sony loses 7.5 billion yen in operating profit
for each 1 yen gain against the euro…”
and “... loses 4 billion yen for
each 1 yen gain against the dollar.”
Introduction Problem Change Conclusion
487 million USD
706 million EUR
47. 2.1 External Forces
Strong Competition
Introduction Problem Change Conclusion
Digital Camera Market 2010
Game Console Market
Smartphone Market 2011
Television Market 2011
48. 2.1 External Forces
Strong Competition
Introduction Problem Change Conclusion
Digital Camera Market 2010
Game Console Market
Smartphone Market 2011
Television Market 2011
60. Taking Advantages of the
New Technology
Creating Partnership
Cost efficient policy
Restructuring the organization
Developing American-Style
Corporate Governance
3.1 Sony’s CEOs
Nobuyuki Idei
1998 - 2005
Introduction Problem Change Conclusion
61. Taking Advantages of the
New Technology
Creating Partnership
Cost efficient policy
Restructuring the organization
Developing American-Style
Corporate Governance
3.1 Sony’s CEOs
Nobuyuki Idei
1998 - 2005
Introduction Problem Change Conclusion
CATASTROPHE !
62. 1. Sense of Urgency
Action
Result
3.2 Leading Change
Introduction Problem Change Conclusion
63. 1. Sense of Urgency
Reviving Sony Consumer Product
Service Business
Failed to restructure the TV business
Action
Result
3.2 Leading Change
Introduction Problem Change Conclusion
64. 2. Creating the
Guideline Coalition
Action
Result
3.2 Leading Change
Introduction Problem Change Conclusion
65. 2. Creating the
Guideline Coalition
Combine cutting-edge technology with
entertainment content
Launch PS3 and PS Network. Some
hacker breach the customer credit card
data on PS Network
Action
Result
3.2 Leading Change
Introduction Problem Change Conclusion
67. Restructuring plan
Cut 10,000 jobs and shed a number of
unprofitable devision & product
Action
Result
3.2 Leading Change
Introduction Problem Change Conclusion
3. Developing a
Change Vision
69. Focus on three core sector: Electronic,
Games & Entertainment
Success at Blue Ray Disk, PS3 and
Movie Picture
Action
Result
3.2 Leading Change
Introduction Problem Change Conclusion
4. Communicating
the Vision for Buy-in
71. Centralization decision-making and
Develop “top-down leadership”
Sony start to respond faster to change in
the operating environment by focusing
software & service
Action
Result
3.2 Leading Change
Introduction Problem Change Conclusion
5. Empowering
Broad-Based Action
73. Reinventing the Consumer Product
Service
Developing the software environment to
support electronic device (hardware)
Action
Result
3.2 Leading Change
Introduction Problem Change Conclusion
6. Generating
Short Term Wins
75. Focusing on Kaizen, continues
improvement to incrementally increase
their market share
Sony is too slow to adapt to new market
opportunities and changes
Action
Result
3.2 Leading Change
Introduction Problem Change Conclusion
7. Never Letting Up
77. He is not creating radical change
No internal resistance regarding
“Foreign” CEO
Action
Result
3.2 Leading Change
Introduction Problem Change Conclusion
8. Incorporating
Change into the Culture
78. Vision of “ONE SONY”
Restructuring the organization
Focusing on Mobile, Entertainment
and Digital Imaging
Building Partnership with Google
3.3 Current CEO
Kazuo Hirai
Feb 2012 - Present
Introduction Problem Change Conclusion
81. 4.2 Recommendations
Headquarter and Operation Centers should be
coordinating with each other.
Developing communication network technology like
Google.
Outsource Research and development for a short term
period or decentralize R&D.
Introduction Problem Change Conclusion
82. 4.2 Recommendations
Limit their product lines and focus on core business
product like P&G did it.
Use of command and control leadership.
Developing new communication network management
decrease top to bottom& vice versa.
Introduction Problem Change Conclusion
83.
84. Thank You!
November 30, 2012
Cagri Can Kaynak
Mahesa Krishna Raditya
Muhammad Umer Razi
Nils Niederheide