Sony Corporation Essay Example for Free

Sony confederation EssaySony Corporation is pursue in the development, design, manufacture, and sale of electronic equipment and devices, as fountainhead as game consoles and softw be. It is to a fault engaged in the production and distribution of motion picture, home entertainment, television products, and recorded music. Further, Sony is excessively engaged in the pecuniary receiptss cargones, including insurance operations through their Nipponese insurance subsidiaries and banking operations through a Japanese Internet -based banking subsidiary. Sony s primary manufacturing facilities are located in Asia. They have a broad sales network, registered in approximately 200 countries and territories. Primarily, Sony s products are marketed in Japan, the United States, and Europe. Sony has a history of much than 60 divisions. In 1946 in Nihonbashi, Tokyo, Masuru Ibaka and Akio Morita founded a society c aloneed Tokyo Telecommunications Engineering Corporation, also know n as Totsuko, with start up capital of 190,000 yen fo r the research and manufacture of telecommunications and measuring equipment.(Sony, 2010) With branches all over the world and with an yearly revenue about 68.39 billion US dollars, it undersideister be considered as a gigantic company. The companys headquarters are situated in Shinagawa, Tokyo. It is one of the leaders in the written report of electronic equipment, communication and culture engineering science (IWALOM LIMITED, 2010). After moving their head office and calculatey to Shinagawa, Tokyo, they successfully produced and launched a power megaphone and completed the first magnetic tape rec army prototype that was produced and launched in earlier 1950 and called the G-Type. In the early 1950s Ibaka traveled to the United States and came across campana Labs invention of the transistor. He negotiated with Bell to license the transistor applied science to his company intending to apply it to communications, whi le most Ameri bay window companies were looking for armament applications.In 1955 they launched Japans first transistor radio, the TR-55. While they were non the first to produce the transistor radio, they were the first to make it commercially successful as the product took off in Canada, Australia, the Netherlands and Germany as well as within Japan and keep to be a good seller till the sixties. In 1957 Totsuko produced theTR-63 model, the smallest transistor radio in commercial production at the time, which was a worldwide success, ultimately picnic open the Ameri terminate market and launching the bare-assed industry of consumer electronics. One year later, in January of 1958, they varietyd the company Description of the elements of macro environment.An organizations macro environment consists of nonspecific aspects in the organization adjoin that have the potential to hit the organizations strategies. When compared to a firms task environment, the jar of macro environm ent vari adequates is less direct and the organization has a more limited doctor on these elements of the environment. Macro environmental vari adapted include socio- heathen, technological, policy-making legal, and economic. A firm considers there variable as part of its environment scanning to better generalise the nemesiss and opportunities created by the variable and how strategic plans need to be ad preciselyed so the firm can entertain competitive advantage.Socio Cultural FactorsThe socio-cultural dimensions of the environment consist of lifestyles, and set that characterize the society in which the firm operates. Socio cultural components of the environment tempt the ability of the firm to obtain resources, make its goods and armed services, and function within the society. Socio cultural factors include anything within the context of society that has the potential to affect an organization. Population demographics, rising educational levels, norms and values, and attitude toward loving responsibility are lessons socioculturalvariables.Technological Factors.Technology is another(prenominal) aspect of the environment a firm should consider in developing strategic plans. Changing technology may affect the demand for a firms products and services, its production processes, and raw materials. Technological changes may create fresh opportunities for the firm, or threaten the survival of a product, firm, or industry. Technological innovation continues to move at an increasingly rapid rate.Political And Legal Factors.The political-legal dimension of the general environment also affects crinkle activity. The philosophy of the political parties in power influences business practices. The legal..Environmental factors that influence Sony CorporationMacro environmental factorsPolitical factorPolitical factors could have a direct impact on the ways Sony operates. giving medication often makes radical decisions involving policy or legislation and i t affect daily business.In the directive of businesses, the political factors have a huge influence. An example of political factors that affects Sony which includes government laws is minimum wage law. This would affect Sony as the minimum wage law keeps changing every year. As in the same time product cost also keeps on changing, this provide make Sony facing losses. Due to various governmental regulations in the variant countries, Sony has to adapt different strategies in the countries it operates. Sony had passed a worldwide Policy On Occupational Health and Safety (OHS) in 1998. It deals with assemblage standard and shows Sonys cares about the health and sentry go of its employees. It also requires fullfilment with all the laws regarding ooccupational health and safety. (Sony Corporation, 2009). To manage the chemics which the intent of it is controlled by goverment ennvironmental legislation call at sites, a group-wide common approach is developed by Sony. Sony not on ly manage the chemicals utilise but also the amount released into the air, water and soil in club to not affect the environment. Sony sites apply internal standards based on Japans Pollutant Release and Transfer Register (PRTR) (Sony Corporation, 2009).Among company 1 substances, Sony used 412 kilograms of mercury as an additive in button batteries and 30 kilograms of lead s ripened, which is used in certain exceptional cases, including automotive applications.Sony used perfluorooctane sulfonate(PFOS) that is Class 2 substances in semiconductor allegory in monetary year 2009, but eliminated this substance in March 2010. Class 3 chemical substances are volatile organic compounds (VOCs) and greenhouse gases. The Sony Groups tar choke in terms of the atmospheric release of VOCs is to carry through an absolute reduction of 40% or more from the financial year 2000 level by fiscal year2010. In fiscal year 2009, Sony released approximately 1,190 heaps of Class 3 chemical substances , which is 204 tons less than in fiscal year 2008 and 35% less than in fiscal year 2000. The head factor behind this decline was the implementation of production adjustments in response to the global economic downturn. With bran- parvenu semiconductor fabrication facilities expected to come on line, Sony expects emissions of Class 3 substances to increase and allow for get hold of steps to counteract these increases, including installing gas scrubbing equipment and amending production processes. (Sony Corporation, 2009)This is how Sony Corporation manage all the destructive chemicals used by them. Lastly, political factors could have a direct impact on the ways Sony operates. The impact that could impact Sony Corporation is an international company and in all countries the leadership style is different. Sony utilsed a Global Policy On Occupational Health and Safety (OHS) in 1998. It shows Sonys cares about the health and safety of its employees. Sony not only manage the chemic als used but also the amount released into the air, water and soil in order to not affect the environment.Although Sony use three class of chemical substances which are quite disadvantageous for their products, but Sony have taken a full mea surelys to make sure not harming the environment This shows Sony Corporation cares about the environment and also obey goverment rules that is do not harm the environment. Lastly, Sony Corporation is an international company that does business in the whole world. It is significant for Sony to fol slump all the rules implied by the goverment. amicable factorsDemographic and cultural aspects includes in the social factors of the external environment. Sony has also been affected by social issues from time to time. This is mainly because Sony has so widely expanded into different cultures and different markets that it tends to become hard to deal with all the diversity. The social factors which influences Sony varies in each country. These show th e guests needs and the size of the potential markets in every country. complaisant factors such(prenominal) as health consciousness of clients and consumer health rates might affect Sony. Usually the older population may not be interested in the latest Sony Products which includes more advance technology despite the better income they may receive, they aremore interested in the simplicity of the products they corrupt.Countries such as third world countries, for example some Asian and African countries may not be able to afford to buy Sony products which are quite expensive products. Instead these consumers lead on the other chip in buy a cheaper brand.Home life changes have a big influence on attitudes and expectations of consumer.Nowadays, telephone and catalogue sales are increasingly popular.Lately many youths demand better features such as better opening to entertainments in their electronic products. This creates a demand for Sonys products such as Play Station man-por table (PSP) and Sony MP3 Player. Research shows that by 2005 Japans population will be over age of 65. Thus, Sony home-care robots for elders will soon be a social necessity (Kunii, I. M. and Port, O., 2001). Lastly, social factor is one of the factors that affect Sonys business. The social factors which influences Sony varies in each country. These show the clients needs and the size of the potential markets in every country. Social factor involve clients income, attitude, behaviour and other factors of a client. It is primary(prenominal) for Sony to fully understand and know well about customer. So that, they can target their specific product to which type of consumer they deprivation to sell.Ecological EnvironmentClimate change is something unpredictable and unchangeable. It might become a threat to Sony bodied activities and also society. Generally, it is also give a chance to Sony an opportunity to become one of the solutions. Sony tackle clime change is an important commit ment for them. this is to hold back their business continuity. Sony strongly believes that there is a need for comfort the environment. Moreover, responses and eco conscious actions must be taken before it gives impact to Sony connection. For instance, rising sea levels and abnormal withstand which cause by mood change could predict the underlying physical risks. Furthermore, the markets might change a flow, as their perceptions change to another purchasing trend. Sony has realized this problem where it could be social and financial ramifications, so to deal with legal and regulatory developments the Company is evaluating the risks and also be alert to solve this problem anytime. For example, the Company started to collect information on laws and regulation in force in different countries to make sure that activities and products are match with theexisting requirements.Moreover, climate change might influence Sony existing opportunities. An obvious example is the highly use of products boasting improved cleverness efficiency ratings to help minimize the factors that spur climate change (Sony, 2011). Sonys electronics products mainly contain few hundred or thousand separate that make from chemical substances. If these parts are not handed well, it may harm the environment. To prevent such environmental harm, Sony has set up necessary procedures according with the EUs Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Regulations requirement. So, Sony follows the JIB initiative (Joint Industry Guide) to collect data on certain chemical substances that buy from suppliers. At last, Sony follows the survey response tool by JGPSSI (Japanese Green Procurement Survey Standardization Initiative) for materials declaration that contains information on the parts, purpose of use and so on (Sony, 2011). Sony should obey the rules and laws to continue their business and also to asseverate the environment. Additionally, Sony has to think more solution to face the climate change and ways to protect the environment.Environment technologySony is working hard on their products to tighten up the effect towards the environment. It is to decrease the total energy that used and also minify the resource in their product, such as BRAVIA and VAIO. Moreover, Sony has an effective supply chain management of controlling, reducing, and eliminating the use of chemical substances on their products. For instance, recycled plastic in product and the development of vegetables based product. All these are to wield the environment being polluted (Sony, 2011). Sony has compliance lab at Stuttgart, Germany which specialize in efficient and hi-fi of chemical compounds and materials that can match with their electronic products. Among their initiatives, they are using more and more recycled materials, and renewable energy in factories and offices which use around 32 sites in Europe alone itself. However, starting 2010, Sonys prey is to take sustainable consumer electronic brand. Moreover, they are also wish to continue their success work in 2009. The main purpose of the eco activity is to show that technology can overcome the climate change and how they can help with the change. So, Sony office, warehousesand manufacturing around Europe have cut down carbon dioxide emissions drastically, but they are yet aiming to cut down more 10% emission for UK specific sites.Sony has established green teams in the UK businesses where the great unwashed coordinate activity and the communication at different sites. This includes cutting general power consumption in facilities and offices, employee travel especially flights. Additionally, some of the effort and new ways can bring former cost down and help reconstruct business models in a different economical ways. Nowadays, people are more concern companies environment standpoint. Companies which are environmentally friendly, practices, products, and services are being seen by the buyers and also stakeholders (GreenPacks.org, 2011). Sony Europe is applying their eco thinking so that they can maximize the use of the renewable energy. Sony uses renewable energy is to reduce carbon dioxide emission. In year 2008, a record shown that a reduction of 55,216 tons of CO2 emissions in Europe, itself (92,000 tons globally).Sony uses shipping more efficiently by reducing the packaging and the size towards less CO2 intensive forms of transport such as barge transport (Sony, 2011). Next is about dye supersensitive solar cell. It can produce electricity by converting energy from light. This type of cell is produced by low cost materials so manufacturing expenditures will be lower. Moreover, vegetable based plastic can last great and fire resistant which is suitable use for durable consumer goods. Sony has decided use this material in year 2002 for walkman cases use. After that, it has been widely used in different products including DVD players, VAIO devices and so on (S ony, 2011). It is undeniable that technologies can help to protect the environment, so Sony should take this advantage to maximize the use of technology and contribute it to the environment. The uses of technology can reduce carbon dioxide apparently can avoid green house effect.CustomerNo customer there is no business. Customer satisfaction will be a target of company. SONY business can improve customer satisfaction. (David Eaves, 2010) If we make the customer feel that they are special, customer will be appreciate us and help in increase our dividends in business with support our product. (Adhijik Naik, 2011) For example, SONY tv television television television tv camera gives a high tonicity services to customers and meet their needs. Sonys promoter willgive more details and information to customers when they have question or problem with buying SONY camera. Information about SONY camera will sop up their interested in SONY camera and needs. They will feel more satisfy wh en using SONY camera. accordingly their satisfaction will be achieved through SONY camera. So, customers are very important in our business because they can easily influence our level of business. Then, with customer it will increase sales by up interchange and cross selling other products. (David Eaves, 2010) Up selling means promote the product to eviscerateive customer to buy it while cross selling means sell the product in another branch. SONY will have an excellent emolument and their sales will increased with loyal customer to support it.For example, SONYs promoter describes the function and advantages of SONY camera to customer and compared with another product. They use their technique to persuade customer such as cheaper prices or special package of SONY camera. Besides, customer can satisfy and increasing requires of business on the need to efficiently route and apply fresh idea. Customer can also help in increasing business revenue. (Gaynor Borade, non-year) For examp le, customer will purchase the SONY camera and SONY Company will earn meshing from them and their business will achieve a high target. SONY Company also always creates some new fresh function of SONY camera to attractive customer to purchase in order to earn profit and their loyalty to SONY camera.So, SONY Company will have a stable commerce with emergence of the customer. In addition, customer can become addition of the businesss behavior. Thats mean customer enable the entrepreneur to observe the festering of business into dream mission planned. (Gaynor Borade, non-year) To success in a business, entrepreneur always observe customers needs, wants, and demands in order to make a strong strategy to attain achievement. For example, they create the SONY camera according to customers favourite for instance different colour of camera and it will attract them to purchase it even improve business environment to better. From the analysis above, it is obviously that customer is very impor tant to SONY Company because customers needs, wants, and demands even their response will influence the SONY camera will be purchased or not. More customers there will higher market value of SONY camera while few customers there will lowest market value of SONY camera. SupplierSuppliers always work as commensurate partner and building relationships according to mutual trust (Sony Corporation, 2011). A supplier can satisfy a market function when he creates a new relationship with customer and partners. (Walter A., 2003) For example, suppliers promote and transmit the SONY camera to partners and have a good communication with them when they are selling SONY camera to customer. When partners satisfy with supplier and SONY camera then they will continue have a business with them in order to satisfy a market function. After that, Sony strengthens relationship with suppliers in make stronger technological capability, guarantee and advancing the quality of parts and sustaining competitiv e prices. Besides that, Sony manage and observing Sony Group Environmental Vision together with supplier in order to protect the global environment and realize a sustainable culture. (Sony Corporation, 2011)So, suppliers have strong talk terms power in SONY Company. Suppliers are very important in developing new technology of SONY camera in SONY Company. Sony Company always creates and supply camera to customers in order to fulfil their needs, wants and demands. So, suppliers are important to become Sony partners to provide the product to customers and create a value in SONY Company. When supplier provides different prices and materials of SONY camera then it will affect competitive among SONY. Then SONY Companys business will decrease and less profit will be gained. So, SONY Company are always expects supplier to provide items at greatly reasonable prices and make a concentrated effort to decrease cost. (Sony Corporation, 2011) Lastly, it shows that supplier is vital in SONY comp anies. It plays a role in building relationship and strengthens it among customer and SONY product. Suppliers service will bring good outcomes for SONY companies and get a well performance in the market. IntermediariesRetailer and wholesaler are included in intermediaries. Regarding to SONYs website analysis, without intermediaries there is a difficult to get SONY product. (Sony electronics Inc, 2011) For example, intermediaries need to purchase SONY camera from SONY Company and set an acceptable prices even a quality package of SONY camera in order to fulfil customer and let them easy to purchase SONY camera. These processes are vital in a business. through with(predicate) research of SONYs website, retailer is also helps customer to prevent frombuying low quality product. When customer purchase SONY camera from retailer, they can be assured that they are purchasing a high quality product. Retailer can confirm quality of SONY camera and provide warranty for customers. If retailer fulfil customer satisfaction there will achieve a high level of business because of high responses from SONY customer.So, retailer can assure customers to have greatest experience when buying a SONY camera from reseller. (Sony electronics Inc, 2011) With SONYs analysis, SONY retailers can produce assistance in setting up customers products and provide a good customer service to them. They can provide a good customer experience that can helps the customers to make a pay off decision. SONYs retailer also can assist in sending the value products and service to customers when they buy a SONY camera. (Sony electronics Inc, 2011) For example, retailer can help them and explain the whole SONY cameras function and uses to them and familiarise them a good quality product that suitable them and satisfy their needs when they want buy camera. A good service such as talk politely to customer will persuade and influence customer to purchase it. So, retailer is important for customer. From the a nalysis above, retailer is strongly to help in SONY companies to get a high value in the market. They try to give a good performance to customer and try to meet customers needs. Retailers also fulfil customers requirement. So, retailer is quite vital and their service will be appreciated by customers. CompetitorsIt is crucial for Sony Corporation to watch attentively to its competitor so that they can maintain its position in the market. Sony Corporation has two types of competitor, that is, direct competitor and indirect competitor. orchestrate competitors are organisations that produce similar products and services (wiseGEEK, 2011). Nokia, Motorola, Canon, Fuji Photo are all examples of direct competitors to Sony (Upvery.com, 2010). verificatory competitors are firms producing different types of products but satisfy the same needs (Rich Harshaw, 2011) of customers. The indirect competitor of Sony is video iPod. In which Sony PSP and iPod produced similar striking feature (Frank Hedley, 2008). Other competitors, especially in the software industry are Microsoft. To maintain its competitive edge, Sony keeps updating the products with latest technologies that make it stable andsustainable over its competitors. The use of advanced technology in products has raised the quality and uniqueness, and has resulted in a mark demand increase. Though other competitors may seemed to be a threat to Sony Corporation, however with the fast paced advance in technology and the unstable global economy, Sony has embarked on collaboration and strategic alliance with its main competitors.Sony is in joint venture with Sony Ericsson which itself is a threat for new market entrants (Butod, 2010). Advanced use of technology in Sony products such as Game Consoles, moving-picture show Equipment and Mobile, and continuous production, switching costs and product differentiation has do Sony rather unbeatable in the electronic industry. unconnected from forming strategic alliances with its competitors, Sony has reviewed its manufacturing priorities and streamlined its resources to produce electronic products that are in greater demand and has continued producing differentiated products which could ensure its competitive advantage.As reiterated above, Sonys ongoing process and product innovation has made it almost im realizable for any current competitors and new entrant to compete them successfully, and this will be the outcome factor that will ensure Sonys dominance in electronic products consumer market. Thus, despite threats of current competitors and new entrants to the market, Sony Corporation is one of the worlds leading producers of electronic products. Approximately eighty (80) percent of handheld computers in the United States operate on a Sony operating system while Microsoft which is a study competitor has only sixteen (16) percent of market share. Sony Corporation has hardware market share of 60 (60) % (2002), and other major competitors, Handspri ng is using Sonys operating system, and hold about 7% and 14% market shares respectively. (Butod, 2009). GovernmentThe government imposed regulations to ensure business transactions are conducted in a fair and just manner. Legislations that are passed often influences the productions possibilities of a company and hence the type of goods and services that can be offered to the consumers. Apart from the above, the government also enforce taxation to collect revenue that will maintain itself and supply national services that may be needed by companies such as Sony. For example, Sonys income taxes benefit amounts to $19billion resulting in an effective rate of 10% in Oct 30, 2009 (wikinvest, 2009). Inaddition to the governments role in regulating companies and taxation, the government also plays a major role in ensuring companies observe corporate social responsibility. An example of Sony taking over public responsibilities is the attitude of how Sony enthusiastically engages themselv es in activities related to environment and climate changes.Sony plans to cut down 7% or more of CO2 gas emission comparing to the fiscal year of 2000 levels (Sony Corporation, 2009). In July 2006, Sony joined the WWF (World Wide Fund for Nature) with companies that plan and also carry out efforts to reduce greenhouse gases. By participating in this program, Sony is committed to reduce emissions of greenhouse gases and lower the product annual energy consumption. In short, Sony maintain corporate social responsibility, and though it incurs cost, but in the long top it ensures business sustainability. The Financial CommunityShareholders are very important for Sony Company because they support the organizations future expansion. There are two types of shareholders, that is private and institutional. As seen in the chart below, a major portion of Sonys shareholders are the corporation itself (60.18%), followed by foreign investors (27.27%) and subsequently financial institutions (8.74 %) (Sony Financial Holdings, 2010). cypher 1 Ownership and distribution of shareResource http//www.sonyfh.co.jp/en/financial_info_e/shareholder_e/shareholder.html Sony cooperation has to consider the needs and hope of possible investors. The shareholder share represents a certain small percentage of ownership in the company therefore, stockholders has the by rights to obtain certain percentage of the companys profits in the form of dividends (Farlex, 2009). As in Sony, one of its important management task is to increase in bears to its shareholders, as well as return on equity. Its basic policy on returning profits to its shareholders is to maintain the trust of current shareholders and attract new ones, as well as securing enough retained earnings for future business expansion. In the fiscal year ended March 31, 2010, Sony provided the year-end cash dividend of 3,000 per share of Sony Financial Holdings totaling to 6,525 million as approved at the Ordinary General Meeting of Sha reholders on June 25, 2010.With regards to itsretained earnings, Sony has planned to utilize it in exploring new business, including the establishment of an individual annuities subsidiary, investing in information technology systems accompanied by business expansions (Sony Financial Holdings, 2010). Thus, with Sonys dominance in the electronic company, and its high returns to shareholders and retained earnings, Sony is not only able to generate high profits with its current business ventures, but has also sufficient funds to ensure its future expansion in the competitive industry. In conclusion, Sony must not be harming the environment and benevolent being as they are using a lot of chemical substances in their product. Next, they must correct dispose their chemical waste. Furthermore, Sony should cooperate with supplier, government to continue their business and also to compete with their competitors. Sony also has to change their strategy in every country to boost their sales.