Organizations in Global Context - SONY

Organizations in Global Context - SONY
Name of the Student
Name of the University
Author Note

Q1. Organizational Purpose:
Sony is a Japanese multinational corporation which focuses on various business
products like electronics, gaming, and entertainment as well as financial services. Sony also
possesses the most significant music entertainment industry and the most extensive video
gaming console and publishing business in the world (https://www.sony.net/). The company
started in 1946 as an electronics shop in a departmental store of Tokyo named as Tokyo
Telecommunications Engineering Corporation. They made first take recorder in Japan,
named as Type-G. The company formed by two people, an engineer, called Masaru Ibuka
and his co-worker, a physicist, Akio Morita. They started the company with an investment
capital of $1600 and 20 employees to repair electronic equipment in the initial stages. Over
time, the small company becomes one of the largest electronic organization in Japan.
However, the sole purpose of Sony remains the same from the beginning, to make people
feel, laugh, inspire, excite, amaze, curious, and empower them with their technological
advancements. Like other business organizations, Sony also follows the principle of creating
a sustainable and developing culture in their organization. The organizational structure of
Sony evolves in a way to accommodate to a corporate structure, to determine and sort out all
the functions provided by their organizational members. Therefore, planning and creating
new business strategies can help to create a robust working culture and ensures the impacts
on the environment become very less.
Q2. Organizational Structure:
a. What form of organizational structure has Sony adopted?
Sony adopted Divisional structural form in its business organization. Hence, the
organizational functions are divided within its own division. Therefore, each division

possesses the necessary resources and functions that are needed to support the production
line and the management board as well.
b. Explain 2 advantages and 2 disadvantages of this structure for Sony.
Large organizations like Sony implemented Divisional organization structure to
operate and achieve the organizational goals. The Divisional Organization structure helps
Sony to organize and execute the authorization of decision making to the respective
divisions of the organization. Henceforth, this structure has some advantages and
disadvantages; they are as follows –
Advantages:
Clear Chain of Authority – Divisional structure helps to establish a transparent and
sustainable authority for the working culture in the departments (Falk & Kello, 2017).
Therefore, managers in their respective fields are authorized according to their level
and possess the power to allocate the resources, reward, and give orders to the
subordinate employees.
Clear Vision of Advancement – The divisional structure offers evident and
transparent advancement in careers. The respective field may not be secure. However,
the fabric provides a constant flow in the replacement of superiors (Low, 2018).
Disadvantages:
Lack of Flexibility – Divisional Structure tends to adapt with changes very slowly.
That may result in finding difficulties with adapting to the new market changes or
technological advancements (Falk & Kello, 2017).