Strategic Management for Toshiba Corporation

This report discusses the significance of strategic management for Toshiba Corporation to overcome poor performance. It includes a case study on Toshiba's corporate scandal, analysis of the issues, recommendations, and a theoretical model to reflect upon the reality of the situation.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN ANALYSIS .........................................................................................................................3
Theoretical model to reflect upon the reality (practice) of a situation. Use theory to predict the
outcomes of practice. Use practice to reflect upon / modify theory. .........................................5
CONCLUSION ...............................................................................................................................8
RECOMMENDATION...................................................................................................................8
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management is one of the ongoing process which includes the planning,
monitoring and analysing of all necessary activities for an organization to achieve organization
goals and objectives. Changes are very much crucial part of every organization which requires
constantly evaluate or access strategies to gain success. Respective report is based on the
Toshiba corporation's case study which faces the adverse effects of poor performance over recent
years. Toshiba corporation is a Japanese multinational conglomerate company in Japan. They
deals in diversified range of products such as information technology and communication
equipments and many more. This report is based on the significance of strategic management for
an organization to overcome from the poor performance over last years by using models and
practices.
MAIN ANALYSIS
A Recovery Plan:
Recovery plan is very much important for an organization in order to resolve the concern
faces by an organization. In context of Toshiba which is one of great contributor in economy of
Japan as they are pioneer in their fields. There are some issues or concerns take place which
proved hazardous effect in reap important kinds of outcomes. In year 2015 it was revealed that
there are USD 4.1 billion inflated profits over the three fiscal years by biggest corporate scandals
in history of Japan. To probe respective issue of fraudulent accounting they established a third
party committee of lawyers certified with accountants to closely observe the whole scenario in
proper manner. After research it is found that Toshiba's top executives, senior officers and
employees pocketed funds from their clients so it is very much necessary for an organization to

move towards to improve their corporate governance system (Ansoff And et.al ., 2019.).
Governance is in any shape or form which ultimately make ineffective if top management not
committed towards to adopt it in proper manner. It is estimated that practices which are accrual
based accounting method to record needs more information and accuracy.
The major issue behind the scandal that many profitable businesses hind their loop falls
over many years by using tools and techniques that legally known as Percentage of completion.
The researcher described that sales and expenses reported in their accounting period which based
on their progress completion by project in a specified period. The another major reason behind
respective scandal within the Toshiba corporation that in their internal business environment
competition is very much fierce with in the senior managers and leaders to gain higher level of
profitability in order to they choose wrong path. In that respect leaders of departments forced
staff members under them to show profitability or inflation in records as business perform well.
From respective activities they earn lots of profitability illegally that proved very much
hazardous for Toshiba in both financially and on their brand value. The most important aspect
that within the organization culture is full of fear and threat to occupy the targets in opposed to
productivity and innovation in an organization.
Focusing on the role of top executive:
In context of Toshiba they are very quick to adopt the company with committees
structure when revisions of commercial code take place in April 2003. under that law firms
conducting the audit and compensate by majorly using outsider directors (Copacino, 2019. ).
Respective organization made crucial moves when kinds of Japanese top executives criticise the
US style governance system in order to heavy use of outside directors.
The reasons behind respective scandal:
Culture plays very important role in an organization as to achieve goals and objectives by
working in the self interest of an organization. In context of Japan, where the employment
culture is very much positive person who hired after completing graduation programme from
direct to the universities and expected from them to take retire from the same organization. It can
be only possible with help of positive work culture and wide spread network within organization
as people are very much loyal for organization (Why obedience and loyalty could be downfall of
your organisation: New study, 2019). So in that respect it can be said that against the positive
work culture which discourage various kinds of malpractices that same happened with Toshiba

corporation. In respective organization there are huge competition within the employees and
every one work for self interest of oneself.
The another major cause behind failure of Toshiba corporation that they pay at lowest
level of their auditors and accountancy fee. While they paying the lowest charges for auditing
services simultaneously they also get in back the lowest services. Auditors not show their loyalty
towards their work and not reveals the whole scandal before the higher authority. So it is very
much potential to pay best prices for services an organization availed from others which not only
contributes in getting desirable outcomes but also build loyalty of service providers.
Redress and recovery:
After occurring respective scandal in the Toshiba corporation there are various
investigations and lawsuits took place and company was fined very heavily and banned from
taking the expansion in Japan over many years. An liberal kind of investigation helps to take out
many steps or recommendations to improve the situations in order to gain potential outcomes
(Lewis, 2019. ). They restructure and senior managers forwarded the audit processes to closely
observe all activities and actions in order to reach at outcomes. At initial level the organization
lessen down the no. of board of directors from 15 to 11 in which 7 are from outside the Toshiba.
Outside board of directors take place in management including nomination committee for the
board so that any kind of biased activities not take place. The traditional support of directors in
corporate scandal in Japan does not fundamentally change the structure of culture in company.
After all respective proceedings organization sold their CMOS senior division to gain
restructured to ensure the stability and profitability.
Theoretical model to reflect upon the reality (practice) of a situation. Use theory to predict the
outcomes of practice. Use practice to reflect upon / modify theory.
For an organisation it is is very much important to use theoretical framework which
proved useful to limit the scope by using the relevant data by relying on specific variables and
elaborating the view points that used by researcher use to analyse and interpret the data and
information to gain outcomes (David and David, 2019. ). In context of Toshiba case study they
faces poor performance that some organisation associated with them hides losses and shows
prosperity that hinders the organisational financial strength and its brand value that are one of
major loss for an organisation. The major reason behind respective kind of discrepancy that the
organisational culture is not positive and kind of pressure directly affect on performance and

create greed in heart of employees. So it is very much potential for an organisation to build
positive work culture in an organisation so that respective kind of circumstances never occurs
again. With the help of Handy's model of organisational culture helps to maintain positive
atmosphere within the organisation in order to remain always competitive in business
environment that are as follows:
A leading authority on organisational culture which defines four major factors that are Power,
Role, Task and Person culture to show the difference in various culture and choose one of best
out of it to build best environment within the workplace.
Power culture:
In power culture the power and strength resides in few hands or individuals whose
decisions influence to the whole organisation (O'brien, 2019). There are few rules and
regulations in respective culture in which activities takes place as higher authority wants. In
context of Toshiba corporation in which few individuals forces the other staff members to reap
illegal advantages and forced to achieve the target, because higher authority also wants to take
advantages to fill their pockets so they by using power culture plan the whole scandal. So it is
very much potential for an organisation to maintain healthy culture so that every one can
contribute one of their best efforts in achieving organisational goals and objectives in positive
manner. Although it is a strong culture, but sometimes swiftly turn toxic that same happened
with the Toshiba Corporation.
Role culture:
Organisation with role culture based on the rules which are highly controlled in nature
and each and every individual know their roles and responsibilities by giving one of their best
efforts. Respective kind of organisational culture based on detailed organisational structure
which is tall in nature with long chain of command. In context of Toshiba they have to by using
respective kind of organisational culture hand over tasks and responsibilities to each and every
individual in bureaucratic manner. In context of Toshiba Corporation if they follow long chain
of command then respective kind of scandal might be not occurred in their organisation as every
one in the chain passes the roles and activities they occurs so at initial level the scandal and its
loop falls gained.
Task culture:

Task culture forms in which teams should be formed to solve out the specific issues or
concerns to solve specific projects. So task is very much important for an organisation as per
which organisation deliver tasks and responsibilities to employees after identify their skills and
capabilities in order to comply with changes within organisation (Pearlson and Saunders,
2019.). Task culture proved beneficial for determined by team dynamics by right mix of skills,
personalities and leadership style to gain incredible productivity and creativity. While scandal
take place in context of Toshiba they use task culture by assigning roles and responsibilities both
inside and outside of organisation to investigate the whole scandal. They appoint the Board of
directors out side of the organisation to grab important information.
Person culture:
In an organisation person culture, individual seemed themselves as an important source
of organisation as they existed due to contribution of employees which also provide motivation
to them. With help of person culture which is just only the group of individuals existed to
working for the same organisation. In context of Toshiba they trust on their employees and
consider one of most crucial assets of organisation by giving proper roles and responsibilities
after using their skills and capabilities in proper manner.
Strategic framework:
In context of Toshiba to overcome from the concerns or issues they have to properly
build strategies and tactics in order to remain always competitive in business environment that
are as follows:
SWOT analysis
Factors
Strength Toshiba has the multiple industry presence including in consume
durables, telecommunication, information, tool and techniques so
they have wide product portfolio. They as a technology leader
large no. of R&D and patents possess.
Weaknesses In context of Toshiba they not have green machines as their
energy concentration is very much less and ranked very bottom
where energy conservation is major concern. Also they faced the
debt issues that affect on their revenue growth in negative way.

Opportunities They are the market leader and increase the overall consumer
durable footprints in consumer durable industry. Respective
industry have the lot of scope that give major opportunities to
remain competitive in marketplace.
Threats In context of Toshiba major kinds of changes occurs in the
technology so it forced them to align respective changes to
remain competitive in marketplace.
PESTEL analysis:
Factors
Political factors The political factors most of the time one of most influential factor in
progress of the organisation such as Toshiba. They are away from the
political scenario as the state in which they are operated. Recently they
face certain things such as peace of state and political instabilities that
impact on organisational profitability. For an example the recent
conflicts in Korea impacts on their market.
Economic factors Respective factor is one of most important dimension in context of
Toshiba. They by expanding in more nations increase the chance of
company to develop the zones. The Good GDP of the nation which
means country has people with more income and eager to buying
advance products and services. Respective activities increase the
profitability of the organisation.
Social factors Social factors consist of change in taste and preferences of consumers,
in context of Toshiba they closely evaluate the consumers needs in
proper manner. In context of UK marketplace consumers become very
much trendy and always demands advance products so in context of
Toshiba they by conducting proper R&D build products accordingly.
Technological
factors
Toshiba known for their innovative products and services into the
marketplace. In context of UK marketplace they always give

preferences to companies that are use advance tools to gain competitive
advantage and raise standard of living.
Legal factors There are many rivals exist in market of Toshiba such as Samsung that
are very much vigilant about the legal issues such as copy and pirated
concerns. They also face accusation due to not paying fairs in
comparison to their rivals.
Environmental
factors
With the advent of globalisation people more aware about ethical and
legal oriented. They expect their favorite brand remain involved in
socially responsible activities. As they always want that their brand play
vital role in betterment of society. In context of Toshiba they feel
pressure from side of consumers to apply environmental factors to
protect their self interest in positive manner.
The another major reason behind respective scandal that organisation not follow the
proper chain of hierarchy, if they follow proper chain of hierarchy then each and every activity
judged at every level of organisation (The Importance of Hierarchy in the Workplace, 2019). By
using the hierarchy head instructs and evaluates the various parts of body about how it moves
and react in unison even in simplest task. Respective kind of decisions passes from top to the
down level of organisation to execute various business activities.
The another major factor that financial mismanagement and pressure of top management
on the subordinates that create the major cause of scandal within the organisation. In that respect
organisation have to audit each and every aspect in proper manner as auditing plays crucial role
to examine data and statistics very closely. There are some important kinds of standards that set
up by the higher authority such as Key performance indicators, benchmarking and many more
that give guidance to higher authority and subordinates to set standards so that no one can
pressurize to people that not increase level of greed at work place.
So from the above discussion it has been observed that organisation needed to take some
necessary steps to overcome from respective kind of scandals to build healthy culture in which
each and every individual can give one of their best efforts and the remuneration system also
plays very major role to satisfy the wants in proper manner ( Schermerhorn Jr And et.al ., 2019).

They have to comply that each and every human being by giving equal opportunities to them in
order to remain always competitive in business environment. Hence measures plays very major
role for an organisation to demonstrate the activities in proper manner in order to get crucial
outcomes.
CONCLUSION
From the above report it has been concluded that strategic management is one of the most
important business tool for an organisation to plan and coordinate the plan and coordinate within
the organisation in order find out the major gaps in performing well. Firstly organisation have to
identify organisational activities and loop falls and then find out the best strategies and tactics
accordingly. In context of Toshiba Corporation they faced scandal which spoils their brand
image which directly impacts on their profitability and sustainability in the marketplace. In that
respect organisation have to comply in proper manner the goals and objectives with their
subordinates to comply with positively while change occurs within the organisation.
RECOMMENDATION
From the above report it has been recommended that strategies and tactics plays very
major role in organisational sustainability and profitability. There are majorly issues in front of
Toshiba that they faces financial discrepancies as some organisation shows the profitability in
organisational proceedings but actually it is loss. The major reasons behind the whole procedure
that higher authority pressurize the subordinates to achieve the targets and when they found
themselves to incapable to persuade the same they shows the false profitability but actually its is
losses. As per the research it has been evaluated that organisation pay very less to their auditors
which hinders their level of loyalty in giving one of their best efforts to check the reports. So it is
very much necessary for an organisation to set appropriate standards in so that no one can
pressurize any one to reach to them (Simandan, 2019). There are various tools and techniques
which enables to reach at potential outcomes that are key performance indicators which is an
kind of performance measurement that helps to evaluate the success of an organisation in which

they engaged. In context of Toshiba corporation as they deals in large products so that they have
to by setting standards evaluate their performance so that desirable objectives and goals should
be achieved. For an organisation it is very much essential to evaluate the performance of
employees, organisation, department and processes to manage the particular task and roles
(Teece, 2019.). Performance management is the chain of activities to ensure that set of activities
and outputs meet organisational goals and objectives in proper manner so in context of Toshiba
by using performance management they set standards to remain competitive in business.
In context of Toshiba, employees are not loyal towards the organisation and auditors also
suffer from lower wages so it is the responsibility to identify the needs of employees in order to
enhance their level of satisfaction.
Theoretical framework for employee loyalty:
The independent variables in context of employee loyalty that are financial benefits,
organisational commitment and owner attitudes (Stewart and Brown, 2019. ). It has been found
that financial benefits enhance the employee loyalty and organisational commitment. As
financial benefits plays key role in enhancement of employee loyalty.
Relationship between employees loyalty and manager attitude:
There are the direct relationship in employee loyalty with the manager attitude, when
manager not force employees illegally to their employees to do work and value their norms then
it enhances their level of loyalty (Steiss, 2019. ). In context of Toshiba they have to put efforts to
improve the culture within organisation so that employees can give their one of best efforts. The
another major factor which is organisational commitment in which organisation takes care each
and every aspect related with an employee by focusing on financial aspect, career aspect and
cultural aspect that all are important for them.
So from the above discussion it has been concluded that for an organisation it is very much
essential to focus on respective factors to build loyalty level of employees.
The another major recommendation that Toshiba have to follow the chain of command so
that participation, profitability and performance of every individual can be easily determined. By
using chain of command in organisation can evaluate scandal and individuals who responsible
for it.
So from the above discussion it has been summarised that strategies and command over people
in right direction plays very important role within the organisation. As it enhances motivation

and satisfaction level of employees that are very crucial for an organisation to remain always
competitive in the marketplace. So by considering employees as one of best assets of
organisation they have to plan and manage their development to give level of satisfaction to
them.

REFERENCES
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concepts and cases. Pearson.
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business profitability. Kogan Page Publishers.
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approach. John Wiley & Sons.
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Teece, D.J., 2019. A capability theory of the firm: an economics and (strategic) management
perspective. New Zealand Economic Papers. 53(1). pp.1-43.
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<https://bizfluent.com/info-8623691-importance-hierarchy-workplace.html>.
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