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APA SET UP
Q- 1) To implement a corporate strategy, a firm needs to have a strong set of capabilities to “parent” the set of business units that the firm has established or acquired. Given Sony’s history and organization structure, what would you argue are Sony’s strongest parenting or corporate capabilities? How will the new strategy utilize these capabilities?
ANSWER: Sony Corporation is one of the world’s highlysuccessful companies that operaties in the electronics, games, music, films and financial services industry . it is is known for creating high quality quality products while effectively managing its resources, capabilities and core competencies, Its strongets cor[orate startegy is the innovative product designs which is very important element of itsscuccess. the company also has an edge to improve the existing product. The Corporation continuously develop original technology with high appeal to the general public due to its quality and cost effectivenes.Tthe company’s designing and manufacturing capabilities makes it possible to deliver truly original and reasonably priced products. The research and development team of Sony Corporation also plays a crucial role in the achievement of the company along with extended facilities of production t achieve economies of scale. the innovative edge makes its product highly differentiated. To utilis all thes ecpabilities the company has to focus to use more integration of its diverse resourcs. To stay competitive Sony need increased integration of other businesses besides the hardware and content businesses . Internally, strategy should be reviewed beginning with renewing the corporate goals.Sony is a multinational corporation with employees and customers in many different countries so integration of the company, the designing, production and marketing should be encouraged. The management should be providing the organization with specific goals and strategies for the short and long term
Sony’s strongest corporate capabilities are its innovative product designs and its ability to quickly to improve the existing products. Innovation was critical to the success of Sony in all of its product lines. It used these innovation and product improvement capabilities in its multiple product areas. Innovation in its products has been the foundation for the organizational structure changes at Sony. In order to share its resources and its capabilities across all of its business units, Sony continued its operations by linking its business activities across its multiple departments. Thus, innovation in product development and product/process improvement has been the strongest corporate capabilities for Sony.
Sony parent capabilities lie solely in their global brand image, first-mover perception, innovation and technology disruption as key strengths, being ever-evolving and meeting customer satisfaction. The new capability of mergers and integration can help Sony leverage latest video sizes and video quality and enter into multiple sectors and multiple domains with high profitability.
Q-2) Do you think that Sony has the right organization structure to foster the necessary integration among its electronic and entertainment content businesses that its revamped strategy seems to entail?
ANSWER: A firm’s corporate structure shows the design and system used to determine the relative positions and functions of company members. Sony has changed its organizational structure to adjust to changes in the industry and supports improvements in competencies to address competitive rivalry. The new corporate structure of the company is set to focus on its key business segments and the most profitable products.Research & Development functions are grouped together and tis integration will sure support goal of the company.The linkages among function-based groups and business type divisions enable the company to responsively address market demand.
The revamped strategy for Sony is that it divided its core business units into three segments such as entertainment, electronics and of course finance. Under each category, the business functions such as research and development, accounting, HR, sales, marketing, etc are enlisted. Prior to this strategy, Sony had a multidivisional structure as its SBU (Strategic Business Unit). In the revamped strategy, Sony requires more integration than its previous strategy because each core business unit has its own performance criterion which would make it highly difficult to integrate the business functions.
Sony has Strategic business unit nased multidisciplinary and multidivisional structure causing confusion and rifts and conflicts of interest. To curb this we musts have flatter hierarchy and low office politics and removing redundant levels to better integrate and orchestrate collaboration.
Q-3) What additional organizational structure and/or process adjustments will Sony need to make to realize its revised strategic objectives
ANSWER: sony shall incorporate more flexibility in its geographic units by giving more autonomy to its business subsidiaries.
Sony needs changes like flater hierarchy, open door culture, easier feedback mechanism and higher compensation based to revamp entire the process whilst business needs revamp. Also adopt Transformational and Collaborative Leadership to remain strong and devote back to society. Implementing strong corporate governance, IT ethical audit, Sarbanes Oxley Act should become must.