Sony business problems and decision making

Sony business problems and decision making

Decision making and problem solving are important skills for any business. Sony is a leading company in innovation but they gradually lost their superiority in the new competitive world of innovation and the presence of new technology to solve business problems.

In this report, we discuss the current procedures adopted to analyze and solve the problem and also the tools used by Sony to get these problems solved. We also identify the best solutions and new opportunities which helps Sony to become a leader again.

In this report, I would like to perform SWOT (Strength, Weakness, Opportunities and Threats) analysis on the existing model (Plan-Do-Check-Act Cycle- PDCA Cycle) of Sony. I will compare the existing model with other available models in the market and suggest the recommendations to the company by findings and comparative results.

Finally, I will implement the best strategy adopted by Sony to solve their problems in the future.

Sony lost its magic formula from last decades. Company lost it high position in the market. By seeing continuous downfall in the sales of Sony, the management finds the solution to this problem and plans to reorganize the company “ONE SONY” to prioritize the business. But this solution didn’t help the company at all. The downfall in the sales continues and Sony lost its position in the World market day by day.

From last several months, Sony is facing an expected loss of $640 million in financial year 2011 (Jeff Blagdon, 2012) due to increase in tax charges and restructuring costs. Sony also incurs a loss of $312 million in Q1 of financial year 2012 (Daniel Copper, 2012). Sony is continuously losing money and its position in the market and don’t have any chance for its growth in recent years due to its problem solving strategies.

A reputed business magazine reports that the shares of Sony is at its lowest price in 31 years of period and incur a net loss of 456.7bn yen at the end of March, 2012 (NEWS Business, 2012). Sony’s movies, music and financial proves to be profitable in the quarter but regular loss from television, personal computers and mobile phones bring the company to its bottom line.

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