GROUP#2

ADRIAN FRIANDA - 29111336

SUFIAN - 29112017

HENDRA WINATA - 29111328

IS SONY TURNING AROUND?

UNIQUE QUALITY SPEED COST

What is the problem facing Sony?

What happen with Sony’s perfomances, why did it happen?

How could stringer overcome internal

barriers and improve sony’s

competitive position?

What would be the cultural implication

for stringer in restructuring sony?

Had a decade of restructuring made a difference at sony?

Lesson Learn related to Strategic Leadership

Sony in Glance

Source: : http://www.sony.net/SonyInfo/csr_report/issues/report/2007/qfhh7c00000dltji-att/CSR2007_08_09.pdf

Sir Howard Stinger

• Born February 19, 1942 (age 71)Cardiff, Wales, United Kingdom

• Master of Arts from the University of Oxford in Modern History

• President of CBS News(1988 – 1995)

• Chairman and CEO of TELE-TV (1995-1997)

• SONY (1997-2013):o President and COO of SCA(1997)

o Chairman and CEO of SCA(1998)

o Chairman and CEO of Sony Corporation (June 2005)

o President Sony Corp. (April 2009)

Sources: http://www.sony.com/SCA/who-we-are/leadershipteam/howard-stringer.shtmlhttp://en.wikipedia.org/wiki/Howard_Stringer

Chairman of the Board of Directors, Sony Corporation

What is the problem facing Sony?

Sony Problem Fishbone Diagram

What happen with Sony’s perfomances, why did it happen?

What would be the cultural implication for stringer in

restructuring sony?

• Stringer faced dilemma of striking balance between the Americans and Japanese vision.

• The communication process was another major hurdle

• Strong internal resistance from the employees

• Threat to their legacy

Had a decade of restructuring made a difference at sony?

• 1999: developing networks companies, management decentralization, value creation management and cost cutting

• 2001: reorganization plan, headquarters was revamped into 3 units

• 2003: transformation 60 strategy (reshape)• 2005: abolishing network companies &

centralizing authority• 2007: all the restructuring targets set for 3 years

period were fulfilled• 2009: breaking down internal silos

Yes the restructuring surely made changes and difference at Sony in their strategy but not in a satisfactory way

How could Stringer overcome internal barriers and improve sony’s competitive

position?

Overcome Internal Barriers

Improve Competitive Position

Maintain the Base of Corporate Culture (Align with new business environment)

Dismantle silo in internal Electronic Division

Make closer communication with Veterans and Engineers

Periodically control the whole unit status, report, challenge/issue(especially the unit of production) and make refreshment of the strategic to each of chief/head.

Dealing with Change on Core business Base: Customer, Industry (Rivalry)

Developing a vision and setting a direction for the organization Convergence “Sony United”

Aligning Stakeholder with the organization’s vision: Organization Restructuring, Hardware to Software Development

Formulating Strategy Mid Term CS (Exhibit 11) + (Short Term + Long Term Strategy)• Structural Reform• Strengthening Current Electronic

Business• Focusing Resources on Growth

Strategy• Group Convergence Strategy

Motivating and Inspiring Employees: Bottom-up Management approach

Lesson Learn related to Strategic Leadership

Source: Class Material Strategic Leadership. Dra Nurul Hermina MM

Understand your core business Understand your organization

culture Understand your Shareholder

(Internal & External)

Formulate Vision Formulate Mission

Formulation of Strategy (Corp. Buss. Func. Strategy)

Implementation of Strategy (Breakdown Functional

Strategy)

Eff

ect

ive

Com

munic

ati

on

Analyze & Review the Result

Feedback

AligningAdoption

Breakdown

Action

Output

Financial Performance 2008 - 2009

Sources: http://www.sony.net/SonyInfo/IR/financial/fr/09q1_sonypre.pdf

Sources: http://www.sony.net/SonyInfo/IR/financial/fr/13q1_sonypre.pdf

Financial Performance

2012 & 2013 2001-2005

CAPEX

R&D Exp.Sales & Op. Inc

Q2 2012 Q2 2013

1604 1712

31 36

Sales & Op. Income

Sales Op. Income

Sources: http://www.sony.net/SonyInfo/csr_report/issues/report/2007/qfhh7c00000dltji-att/CSR2007_08_09.pdf

2007

Sources: http://www.mediadb.eu/en/data-base/international-media-corporations/sony-entertainment.html

2010

Sources: http://www.sony.net/SonyInfo/CorporateInfo/Data/organization.html

2013