Strategic Management for Toshiba Corporation

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