Business Strategic Management: Sony's Planning Techniques and Analysis

This report provides a comprehensive strategic analysis of Sony, a leading mobile manufacturer, focusing on its business strategy and planning techniques. It delves into Sony's mission, vision, objectives, and goals, highlighting its core competencies in innovation and talented staff. The report identifies issues involved in strategic planning, such as resource limitations, understanding business conditions, workforce management, and cost control. Planning techniques like the BCG matrix and SPACE matrix are discussed, along with a SWOT analysis revealing Sony's strengths, weaknesses, opportunities, and threats. An environmental analysis covers economic, political, social, legal, and technological factors impacting Sony's business. The significance of stakeholder analysis, including customers, suppliers, shareholders, and government, is also emphasized. Desklib provides this document and other solved assignments to aid students.

Task 1 and 2

INTRODUCTION
Sony is a well known brand in the world and it is forth
largest mobile manufacturer. Over the years, Sony has
developed its distinct image on basis of innovation and
premium pricing of the products. This report is prepared on
business strategic management. In this report, techniques used
for preparation of strategy is described in detail. Along with
this, PESTEL analysis is also done that is most frequently
used to understand change in business environment deeply.

Mission vision statement of Sony Ericsson or Sony mobiles
Basis Brief explanation Detail explanation
Mission Mission of Sony clearly
reflect that, it believes
in creating a curiosity
about its product among
the public.
Sony since its inception
believes in creating
innovative products for its
customers. By making
innovative product available
firm make an attempt to
maintain existing customer
base and create new
customers for its products.

CONT
Vision Vision of Sony is to keep
its employees unified by
using and creating a
common set of beliefs
and aspirations regarding
employees
Sony is running its operations
in several countries of the
world. As a result, its
workforce is diversified in
terms of caste, creed and
religion etc. In today era , it is
very difficult to manage such
kind of workforce and issues
related to them which steadily
comes on surface at the
workplace. In order to reduce
number of discrimination cases
at the workplace Sony is
following a common set of
beliefs and aspirations for its
employees.

CONT
Objectives The main objective
of Sony is to
consistently upgrade
its product in terms
of features.
Sony is operating in a
market where numerous
firms are operating and it
is continuously adopting
measures that enhance
their market share. In order
to remain ahead relative to
rival firms Sony is
focusing on resource and
development or innovating
of its existing product line.

CONT
Goals Goal of Sony is to enhance its
R&D cells
In order to achieve objective of
bringing innovation in existing
products firm develops a goal under
which it will develop its R&D cells in
various nations of the world.
Core
competency
The two main core
competency of Sony is
innovation and highly
talented staff in its R&D cell.
Innovation is core competency of
Sony which it strive to bring on its
products on regular basis. Apart from
this, it also employed talented and
intellectual people in its R&D cell.
These are two major strength of Sony
on the basis of which it maintains
leading position in the relevant
industry.

Issues involved in strategic planning
There are many factors which need to be considered while preparing a
strategic planning. Often, resources are limited and firm has to prepare and
implement its strategic plan by using these scarce resources.
Understanding business conditions- For preparing strategic plan, it is
imperative for the firm to comprehend movements in business environment in
which it operate its business. Lack of importance to the surrounding business
conditions may lead to preparing of ineffective strategic plan for the business.
Workforce- Preparing a strategic plan is not sufficient its effective
implementation at ground level is inevitable to achieve desired results. Top
management can prepare a strategic plan but how it will get implemented at
the ground level depends on middle level managers and employees. Many
times, due to lack of experience or failure to create consent among employees,
plan is not implemented properly. So in order to avoid this situation, good
leadership from middle level manager is necessary condition.

CONT
Cost- During implementation phase, lot of activities
are performed and for performing these activities
huge finance is required. It is evident that, finance is
scarce resource and its proper utilization is must.
Therefore, middle level managers needs to prepare
appropriate plan under which budgeted amount will
be allocated in the legitimate manner. After this,
manager need to assure that all expenses will be
made in line with budgeted amount. Due to these
concerns, cost is one of the most common issue that
firm face in implementation of their strategic plan.

Planning techniques
Following are the planning techniques which company mostly employed for
preparing their strategic plan.
BCG matrix- BCG matrix is also known as Boston consultancy group
matrix and it is use to measure firm condition in respect to the industry. In this
technique, company can classify its business into four categories namely cash
cow, dog, star and question mark. In this technique, firm market share is
compared with industry growth rate. On the basis of results business portfolio
is classified into mentioned categories.

CONT
SPACE matrix- This matrix is commonly known as space position and evaluation matrix. By
using this matrix, firm can get an overview about its position and can select an appropriate
strategy out of available alternatives like conservative, aggressive, defensive and competitive
strategy.

SWOT analysis of Sony Ericsson
Strength
•Sony has huge customer
base all over the world and it
successfully retain its
customer.
•Consistently focusing on
R&D and planned to enhance
percentage of R&D to its
revenue.
•Consistently introducing
innovative products.
•Prestigious image of brand
in eye of people across the
world
Weakness
Distribution channels are limited.
Less focus on promotion of products.

CONT
Opportunities
•Income level and demand of people is
increased in emerging market economies
(EM). By customizing product as per their
needs Sony can increase its market share
in these countries.
•Demand for high featured mobiles is
increasing among youngsters in country
like India. By expanding operations firm
can grab market share in India where
ample opportunities are available to mobile
manufacturers.
Threat
•Strong competition from companies like
Samsung and other companies.
•New companies are entering in country
like India in order to capitalise available
opportunities.