Sony's Change Management and CSR

This assignment delves into Sony's approach to change management and its commitment to corporate social responsibility (CSR). It utilizes a range of academic sources to explore key concepts related to both topics, analyzing how they intersect within the context of Sony's operations. The analysis draws upon various studies and frameworks on CSR and change management, providing insights into Sony's effectiveness in implementing these principles.

CONTEMPORARY
ISSUES
(Sony)
1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1. Implications of force field analysis on the operations of Sony................................................3
2. Key characteristics of leader needed by Sony that will assist the organization in making
changes.........................................................................................................................................6
3. Description of methods that will assist Sony in increasing innovation in their organization..9
Task 4.............................................................................................................................................11
Meaning of Corporate Social Responsibilities..........................................................................11
Benefits of Corporate Social Responsibilities...........................................................................12
Role of CSR in competitive long term position.........................................................................13
Ways in which Sony can enhance its level of CSR...................................................................13
CONCLUSION..............................................................................................................................14
REFFERENCES............................................................................................................................15
2

INTRODUCTION
The contemporary issues refer to those ideas, thoughts or current topic that is in question
or dispute to the present day. The main objective of discussing contemporary issues is to find out
solutions to the present problems and facilitate change. For this aspect, organization can take
assistance of change management. It is an organized approach that is used for dealing with
change in the context of organization as well as individual (Anderson & Anderson, 2010). To
ensure continuous progress and to survive in the long run, it is important for the business entity
to make changes that are corresponding to modification in business environment. In the present
report, various aspects of change management in Sony Corporation will be studied. Sony is a
giant conglomerate that was found in Japan by Akio Morita in 1946. The company has expanded
its operations in several countries by offering valuable services with regard to consumer
electronics, financial services, media, cell phone and other digital products and services. The
firm is also listed at 116th rank in the list of Fortune Global 500 Best companies (2015). In the
present report, by considering the provided case scenario, contemporary issues faced by Sony
will be discussed. With the help of Kurt Lewin’s model, various forces that drive and restrain
changes in company under study will be described (McMurray & et.al., 2010).
TASK 1
1. Implications of force field analysis on the operations of Sony
From the provided case scenario, it is clear that company is going through downturn
where its sales are dropping. Further, in 2014, Sony was incompetent to declare the dividend to
its shareholders (Appelbaum & et.al., 2012). Thereafter, the global market share of company has
also declined to 3.1% as compared to last year that is 4%. Further, the organization is also
suffering with a net loss of ¥230 billion and operating loss of ¥26.5 billion. However, it has been
identified that main reason for the downfall is due to intense competition faced by company with
Samsung, Apple and other Chinese company like Xiaomi, Lenovo and Huawei. Thereafter, Sony
is also facing disadvantage of entering late in Smartphone market. Therefore, it is becoming
crucial for business entity to conduct restructuring that will further ensure its survival in the
future. In this aspect, Sony can take assistance of change management approach that will
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facilitate change and restructuring. Therefore, organization can take the help of Kurt Lewin’s
approach in terms of Force field analysis. The description of this is as follows:
Change model by Kurt Lewin’s
Kurt Lewin’s is psychologist who developed a three stage change model that facilitates
change (Graetz, & Smith, 2010). The main objective of this model is to provide guidance to the
manager of organization for facilitating and implementing change, for employing new processes
and re-allocation of tasks and duties. However, the model states that change is only possible for
making changes in behavior, learning and working styles of employees. The three stages
involved in change model are unfreezing, movement and refreezing (Kurt Lewin’s method of
change, 2014). The unfreezing refers to procedure with regard to identification of new methods
and processes so that employees would let go the traditional working style that was unproductive
for business. It is an important concept that helps in overcoming the problem of change
resistance in organizational members. Thereafter, movement with regard to procedure of change
in thinking, belief and behavior of employees is productive and profitable for business.
Thereafter, refreezing refers to implementing the change as a new custom so that it would
transform into standardized functioning procedure for the organization.
Force field analysis
Considering the change model developed by Kurt Lewin’s, force field analysis of Sony’s
current situation can be done. The force field analysis will help in determining the factors that
are leading to change and those restraining change in business under study. The description of
this is as follows:
Factors driving change:
1. Technology: Since, it is alleged that due to late adoption of technology, Sony is facing
downturn; therefore, it is important for company to make changes in its technology and
processes (Vahs & Weiand, 2010). The up-gradation of new technology and processes
will help company in rebuilding its market share and position. The firm can use its
technical competence in terms of miniaturization that will assist company in designing
thin, compact and elegantly styled cellular devices. Further, Sony can use the latest
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technology to develop sophisticated portable consumer electronics. With this aspect,
company will be able to design new range of HD LCD, LED's, refrigerators, etc.
 Innovative managers and executives: Sony can hire young individuals from top
business schools or employees working in rival company. Thereafter, it can also take the
help of creative ability and experience of its existing executives and manager that will
give innovative ideas that will further assist the organization in designing new and stylish
products and services (Grant, 2010). The creative ability and innovative thinking will
give new direction to company that is likely to generate fruitful outcomes.
 Workforce diversity: Being a global organization, Sony is operating in different
countries and employ diversified range of individuals. Therefore, the human inventory
comprising of diversified staff assist firm in understanding the local market and needs.
Thereby, company is able to develop new products for meeting the demand of customers.
 Research and Development: The intense market research and development will assist
the organization in developing new technology and tools (Choi & et.al., 2011). The R&D
will assist company in upgrading the present technology and in making modifications.
These changes will further assist company in getting competitive advantage to
organization. Globalization: Due to integration of economies, company is constantly forced to make
changes. The organization is not only facing competition from local company but also
from international firms like, Apple, Samsung, Xiamoi, Lenovo, etc. Therefore, firm can
monitor the strategies adopted by foreign company and align it with its strategy. This will
help the enterprise in sustaining competition. Thereafter, company can develop new
products and would enter in developing countries and expand its operations through
assistance of globalization (Kleingarn, 2013).
Factors restraining change:
 Poor financial performance: The firm is running into losses, thus, the expected
operating loss in March, 2015, was ¥26.5 billion thereafter, the net loss was ¥230 billion.
Therefore, the poor financial performance of Sony is the major obstruction in its path of
5

success. Therefore, company does not have enough funds to invest in research and
development which is very important for facilitating change.
 Internal crisis: Due to shortfall of revenue, company is not able declare dividends to its
shareholders (Benn, Dunphy & Griffiths, 2014). Therefore, there is dissatisfaction among
members and many shareholders are withdrawing their investments from company and
Sony is losing its market share.
 Change in expectations of employee: The expectations of employees are changing.
They are not getting enough monetary rewards that are also obstructing their creative
ability. Further, due to declining market reputation, company is also not able to hire new
competent personnel for managing its operations and facilitating change.
 Poor business decision: The joint venture of Sony with Ericson of Sweden is poor
business decision taken by the management of organization. Therefore, huge capital of
company is blocked in this joint venture. Ericson is also not generating profit and
therefore, it is just a liability for the organization (Anderson & Anderson, 2010).
 Market conditions: The firm is working in dynamic environment which changes rapidly.
Thereafter, various political, legal, economic, social and environmental factors impact the
functioning of Sony. These factors control the operational activities of organization in
different manner and further, restrain the ability of company to adopt new changes.
Hence, there are many factors that facilitate change and those that restrict the change.
However, to restructure its operation and thereby, to enhance the market performance and
productivity, it is important for the business organization to implement the identified changes.
Further, these changes will assist company in developing new position in the market and to
survive in the long run.
2. Key characteristics of leader needed by Sony that will assist the organization in making
changes
Since inception, it is clear that company is going through bad economic downturn and it
is becoming crucial for the organization to implement changes. Therefore, firm is also planning a
corporate restructure in this respect (McMurray & et.al, 2010). The restructuring will assist Sony
in developing a new image in the market and in enhancing proficiency and productivity. The
6

corporate restructure will further assist organization in improving its falling market share and
negative cash flow. However, to facilitate change, Sony needs a leader with dynamic personality
that will help in implementing new change. It is identified that individuals normally restrict
changes and therefore, to facilitate the change, leader will play an important role. Effective and
efficient leader will help in resolving the problem of change resistance in members. Further,
leader will also boost the morale of members and that stimulate them to attain the goals of
organization (Graetz & Smith, 2010). Thereafter, company has reduced the staff and cutting
salaries and other incentives provided to employees. The effective leader will help in overcoming
the insecurity faced by existing employees of Sony. Furthermore, the key characteristic that are
required in the prospective change leader of organization can be further explained as follows:
 Good motivation skills: The leader should have strong motivating skills that will assist
him in encouraging the employees of Sony to work hard for the success of organization.
Since company cannot afford to give monetary incentives to employees for their
outstanding performance, a good leader will make an effective use of non monetary
incentives and motivational power to influence employees to attain the overall goals of
business enterprise.
 Communication skills: It is important for the leader to communicate effectively with the
members. Therefore, leader will represent the organization in world outside the
organization. Therefore, it is important for the leader to have strong verbal and written
communication skills. These skills will also help leader in understanding the needs of
workforce.
 Organization skills: Since the resources of Sony are limited, effective leader will assist
in optimum allocation of resources. Thereafter, organizational skills will further assist the
leader in making effective business strategies and plans that will help in improving the
performance of company (Vahs & Weiand, 2010).
 Influencing skills: It is the key factor that is very important for the change leader. The
change leader will help in influencing the organizational members to adapt to the changes
proposed by management. Therefore, to manage the change in organization, leader will
gain confidence from members and thus, encourages them to adapt the organizational
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changes. Influential skills will further help the leader in inspiring employees to work hard
to accomplish the goals of organization (Grant, 2010).
 Flexible and Facilitator: The change leader should be flexible himself so that he can
adapt itself first with the changing business environment and need. Thereafter, he will be
able to adapt the changing policies, market conditions, etc. Further, change leader should
be a strong facilitator so that he can assist staff members in understanding the objectives
of company. Therefore, change leader plays an important role in facilitating the change.
 Responsible: The leader should understand its responsibility towards company. The
leader should be responsible and ensure that other members also understand their duties.
Further, he should understand the reason for which company has hired him and therefore,
attain the overall goals of Sony (Choi & et.al., 2011).
 Innovation skills: It is important for the leader to have creative thinking so that new
strategies can be designed for the organization. Further, innovation skills will assist the
leader in finding new and innovative ways of proposing changes in Sony.
 Risk takers: The change leaders should possess capability to handle the risk involved in
the process of implementing change. Therefore, it is important for the leader to consider
its duty of facilitating change as new challenge will enhance the growth opportunities for
Sony and they amend the role of leader in organization.
 Valuing the human resources: It is required for the change leader to acknowledge that
human inventory of Sony is the greatest asset and only they can help the leader in
bringing change in organization (Kleingarn, 2013). Therefore, it is very important for the
leader to value the significance of human resources. Further, he should also realize the
same value to employees so they would understand that they are the important part of
organization. This will further help in inculcating the sense of belonging among
members.
 Action orientated: To ensure the adaptation to changes, it is important for the leader to
be action oriented so that he can smoothly attain the goals of business enterprise.
Therefore, it is important for the leader to take new challenges that will modify the
operations of Sony and ensure its success.
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 Empathy: Change leader should have the ability to appreciate other workers. Therefore,
change leader should appreciate the creative ideas, fruitful suggestions and
knowledgeable advice given by workers or organizational members (Benn, Dunphy, &
Griffiths, 2014). Therefore, leader should not consider himself to be superior and develop
sound listening skills that will assist him in considering the viewpoints of others.
Therefore, an effective change leader having aforementioned characteristics will not only
assist Sony in implementing change but also support the employees and workforce that are likely
to get affected by the proposed changes. Further, it will encourage the organizational members to
adapt the changes and attain their personal goals with the overall objectives of Sony.
3. Description of methods that will assist Sony in increasing innovation in their organization
It has been identified that Sony is struggling badly with innovating new products. Many
of the products developed by company are failed. Tablets and Walkman produced by Sony were
big flop, thereafter, laptop VIAO also failed. In addition to this, many products of Sony Ericson
also failed in the market as customers could not get value for the money paid. The major reason
for the failed mobile sets is that company was unable to make effective innovation and to provide
new attributes to its customers (Change management in Sony, 2010). The customer's complained
regarding slow operating system, software and battery issue. Further, some handsets from Xperia
range also faced the problem of camera and display. Therefore, the dissatisfaction among
customers is high. Therefore, lack of innovation and falling ability of company to inspire people
are some reasons for the falling market share of company. Therefore, it is becoming crucial for
Sony to make change in technology. This will further help company in improving its innovating
competencies. Thereby, firm will be able to develop new products and services (Characteristics
of Change leader, 2010). Therefore, company can adopt new methods that will assist company in
creating innovation in their organization. The description of this is given as below:
Methods that help in enhancing innovation:
 Technology: The use of latest technology will prove to be very successful for Sony and
will assist company in developing new and innovative products demanded by customers.
Further, technology will also assist the organization in adding new features in its product.
Earlier, company has successfully used its technological factors to gain success in the
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market. For instance, Sony was first to introduce water resistant phone Sony Xperia Z1
which was costly but gained a lot of market attention (Improving innovation, 2015).
Likewise, new technology will assist company in developing innovative products with
improved features and processes. Thereafter, firm can also use technological aspect in its
promotion and distribution. Therefore, Sony can take assistance of e-commerce website
for distribution and online promotion. With the help of technology, company can design
new software, applications, etc. that will help the brand in gaining popularity in the
market. Presently, there are two leading software, android and iOs. Therefore, Sony can
take help of technology and research to develop new software which is more effective.
Therefore, Sony can gain first mover advantage in the market (CSR Report of Sony,
2015).
 Human resources: The organization can use creative ability of its personnel to develop
new innovative products and services. Further, company can also hire experts that will
help Sony in developing products with new features and techniques. The creative ability
of company assisted business in designing range of consumer electronic products and
promoting them on social networking sites.
 Structural: The structure of company will also play an important role in the functioning
of organization. Therefore, it is important for the firm to have well defined structure.
Therefore, the changes proposed by company should not be hypothetical and they must
be properly supported by planning (Kleingarn, 2013). The flexible organizational
structure will help in implementing new changes that will result in innovation in products
and services. Thereafter, proper structure will help in proper division of roles and
responsibilities of members and tasks will be properly allocated to each member. This
will further result in lower burden on manager so he can take innovative business
decisions and further, stimulate employees to give creative ideas and suggestions.
 Cultural factors: The positive culture of work environment in Sony will stimulate the
organizational members to facilitate and implement changes. Further, there will be lower
conflicts in positive culture and every member will carry positive and challenging attitude
towards work and duties (Change management in Sony, 2010). Therefore, Sony can
develop an organizational culture that will permit to imagine, innovate and develop the
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products that will assist the organization in getting fruitful outcomes. Further, while
providing services and developing new products, the culture of target country should also
be studied by the organization.
 Market research: The intense market research will help company in identifying the
needs and preferences of customers. Thereafter, these needs and preferences will assist
the organization in developing products as per the wants of customers. Therefore, firm
can use innovation to design customized handsets for public. This will further help the
organization in boosting the sales of products.
However, to ensure creativity and innovation, it is important for Sony to give prime
consideration to expertise, creative thinking skills and motivation. In this aspect, it is important
for organization to make the best use of knowledge of its personnel. Along with this, proper
degree of freedom should be given to employees (Choi & et.al., 2011). Thereafter, continuous
motivation should be provided by company to its members to bring new and innovative ideas.
Furthermore, teams should be designed in such as way that it involves personnel from different
levels. Thereafter, there must be proper support from top executives. All these factors will assist
company in creating new ideas, processes and products that will further improve the productivity
and profitability of organization.
TASK 4
Meaning of Corporate Social Responsibilities
Corporate Social Responsibilities can be defined as the responsibilities of an organization
towards society. Moreover, it can also be depicted as the continuing commitment by company to
contribute for the economic development while improving the quality of life of employees and
their families along with the lifestyle of community and society at large (Caroline, 2010). In
other words, CSR can be defined as the voluntary activities undertaken by enterprise in order to
operate its business in an economic, social and sustainable environment. There are different ways
through which CSR can be promoted in which the most common way is of using those materials
for the manufacturing of a product which harm the environment less. Further, land, air and water
pollution should not be done by companies while manufacturing and decomposing the wastage
created by production of goods. Moreover, firm can bring those products which can contribute in
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the protection of environment that is reusable and recyclable and also, the Eco-friendly and
organic products.
Benefits of Corporate Social Responsibilities
In the present world, any organization cannot survive if they are not responsible towards
the society in which they are operating its business activities. It is because, the customers who
are a part of society will not accept their products until and unless the organizations are
responsible for their welfare (Manning, 2013). That is the reason because of which it is very
important for the organization to become socially responsible in order to get success in the
competitive environment. There are several benefits for company if they adopt the activity of
corporate social responsibility. Some of the advantages are discussed as follows:
 Innovation: Company can get many opportunities for doing innovation in products and
can become the most innovative firm. For instance, an organization can introduce such
electronic products which use less battery and thus, through this, electricity can be saved.
This is also a kind of CSR which will help company to bring innovation in the products
(Arthur and et.al., 2007).
 Cost-Savings: If organization would not be keen towards the adoption of CSR then the
products which are manufactured will not be purchased by the customers and thus, it will
lead to the wastage of production and all the products will get decomposed. However, it
will lead to the losses for company. On the other hand, those firms which are producing
goods by consulting the customers and concerning about the issues of buyers, there will
be fewer chances for the modifications and thus, goods will be manufactured at lower
cost which will eventually save the cost of organization (Moir, 2001).
 Employee Engagement: If the firm is responsible for enhancing the quality of life of
people or workers and also, for improving the life of their families then support of
employees will be more. Those employees will be highly motivated and they will engage
themselves completely in the production and thus, they will perform in an effective
manner.
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 Customer Engagement: Firm that is responsible towards society; it can easily get
engagement from the customer's side. Buyers will buy more products of company than its
competitors which will lead to the generation of more profits.
Role of CSR in competitive long term position
Benefits of CSR lead to the creation of competitive edge to company. It is true that CSR
is becoming more important source for enhancing the competitive edge for the organization.
Basically, competitive advantage can be created by introducing differentiated products,
employing highly skilled people, doing Corporate Social Responsibilities, etc. The major factor
contributing in the creation of competitive long term position is CSR because until the customers
will purchase the product, company cannot bring competition in their business (Potluri, Batima
and Madiyar, 2010). This is the reason, it is being said that CSR plays major role in the creation
and maintenance of competitive advantages for Sony Corporation. Moreover, if the firm is
producing goods which are Eco-friendly, recyclable, benefit the customers and highly society
acceptable then this company will be highly differentiated from its competitors. This will create
the mindset of customers that this organization is keen towards CSR. Thus, buyers will buy more
products and thus, company will generate more profits and also they will bring more innovative
products which will satisfy the needs of customers at its best (Kotler and Lee, 2011).
Ways in which Sony can enhance its level of CSR
Sony is highly responsible towards society and they have adopted many ways in which
they can contribute for the welfare of society (Gottschalk, 2011). There are some of the
recommendations which have been suggested to Sony Corporation for enhancing the level of
CSR which are described as below:
 Sony can introduce such products which consume less battery or electricity which will
help in saving resources of the world.
 Company can also create innovation in the products such as those mobile phones and
microwave oven which emit less harmful rays so that global warming can be reduced.
 Moreover, firm should give charity out of its profits to the lower section of society so that
their welfare can be done.
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 Moreover, company should introduce such welfare activities for the employees of firm so
that their living standard can be improved such as providing education to their children at
free of cost and giving high bonus for the improvement of family standard.
 Firm should clean the society and also plant trees for reducing the effect of greenhouse
gases which are done by releasing harmful gases while manufacturing the products
(Hopkins, 2012).
CONCLUSION
From the above report, it can be concluded that in order to survive in the long run, it is
very much important for company to do corporate restructuring. Kurt Lewin’s method of change
will assist company in employing change in the organization. However, there are some factors
that restrain the firm from implementing change. Therefore, proper steps should be identified by
Sony to overcome the change restraining factors. Further, by appointing an effective change
leader, company can easily overcome the problem of change resistance among employees.
Thereafter, for innovation, firm can use the latest technology, creative human resources, flexible
structure and intense market research.
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REFFERENCES
Journals and Books
Appelbaum & et.al., 2012. Back to the future: revisiting Kotter's 1996 change model. Journal of
Management Development. 31(8). 764-782.
Anderson, D., & Anderson, L. A. (2010). Beyond change management: How to achieve
breakthrough results through conscious change leadership. John Wiley & Sons.
Arthur, L. and et.al. (2007). Corporate Social Responsibility in Your Own Backyard. Social
Responsibility Journal. 3(2). 32–38.
Benn, S., Dunphy, D., & Griffiths, A. (2014). Organizational change for corporate
sustainability. Routledge.
Caroline, D. (2010). From corporate social responsibility awareness to action?. Social
Responsibility Journal. 6(3). 452–468.
Choi, S. & et.al. (2011). Executive management in radical change—The case of the Karolinska
University Hospital merger. Scandinavian Journal of Management. 27(1). 11-23.
Gottschalk, P. (2011). Corporate Social Responsibility, Governance and Corporate Reputation.
World Scientific.
Graetz, F., & Smith, A. C. (2010). Managing organizational change: A philosophies of change
approach. Journal of change management. 10(2). 135-154.
Grant, A. M. (2010). It takes time: A stages of change perspective on the adoption of workplace
coaching skills. Journal of Change Management. 10(1). 61-77.
Hopkins, M. (2012). Corporate Social Responsibility and International Development: Is
Business the Solution?. Earthscan.
Kleingarn, H. (2013). Change management: Instrumentarium zur Gestaltung und Lenkung einer
lernenden Organisation. Springer-Verlag.
Kotler, P. and Lee, N. (2011). Corporate Social Responsibility: Doing the Most Good for Your
Company and Your Cause. John Wiley & Sons.
Manning, L. (2013). Corporate and consumer social responsibility in the food supply chain.
British Food Journal. 115(1). 9–29.
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McMurray & et.al (2010). Implementing bedside handover: strategies for change management.
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Moir, L. (2001). What do we mean by corporate social responsibility?. Corporate Governance:
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Potluri, R. M., Batima, Y. & Madiyar, K. (2010). Corporate social responsibility: a study of
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Vahs, D., & Weiand, A. (2010). Workbook change management. Schäffer Poeschel, Stuttgart.
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