Change Management in Sony Corporation

Running head: CHANGE MANAGEMENT
Change Management
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Introduction:
The organization in the competitive world of the business market often fails to run
their business with the desired level of acceleration and in those cases the organizational
change needs to be implemented in order to make sure that the organization gets back on
track (Cameron & Green 2015). The need for the change for any organization lies in the
background of the formation of the change. The paper analyses the background of the
organizational change of a chosen organization Sony Corporation.
Company Overview:
Sony as a firm has been operating since 1946 for about a period of around 72 years. It
operates in the hardware industry and manufactures electrical products primarily. Over the
last few years, the firm has altered the prices in relation to the fluctuating economic market
conditions.
The products of Sony are diverse and includes a wide range of goods namely –
computer accessories, digital cameras, home theatre systems, home audio and video
instruments, storage and recording gadgets, games and even portable audio and video systems
(Sony.co.in, 2018).
Although Sony has been efficient enough in creating better technology improvisation,
the firm’s major competency has been in the field of obtaining higher degrees of product
differentiation over the years of operation. In fact, the company has continuously been able to
reduce the size of its goods thus increasing the efficiency and ease of carrying these gadgets
as compared to gadgets from other firms.
The business strategies being used and currently implied by Sony include
international expansion of the business at hand. The company is also increasingly trying to
improvise the designs of its products. The other most important strategy of the firm include

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investment in the sections of gaming. In addition to these, the company has also started
increasing their attention and focus on the corporate social responsibilities.
Background of the Change:
The organization was a major market dominant force in the electronics field and with
the presence of the quality of their product, they had the potential to reach significant heights.
The organization generally faltered in acknowledging the importance of the technological
advancement in gaming, television industry and in the mobile products. Sony, being a leading
organisation, in the electronics market was expected to be one of the early risers but it was
proved wrong when they were unable to introduce iPod even when they got the concept
before Apple just because of their incapability of finding the small inexpensive hard drive.
This was a significant proof of the fact that the organization was not doing justice to their
spirit of innovation. This was evident with no increment in the allotted budget of the
organization in the research and development sector in the financial year 2010 to 2012
(Sony.net, 2018). The organization completely lost the innovative edge of it and became a
mere follower of its competitors. The organization was observed to have no effective
communication between the parts of the organization like Sony Network Entertainment, Sony
Computer Entertainment, VAIO and the mobile business group, Sony Mobile
Communications, Digital Imaging Business group, Professional Solutions group along with
Home Entertainment and Sound Business group (Naganathan 2013). The silo-mentality of the
different parts of the organization was also responsible for the downfall of the organization.
The organization was significantly falling behind the market competitors in the television
market, smartphone market due to the limited focus on the part of the gaming and
digitalisation from the part of the organization. The CEO of the organization Kazuo Hirai had
to make some painful decisions of probable job cuts of 10000 over the three-year span