Essay - Business Organization Theory: Sony Summary: This is a Paper that...

Business Organization Theory: Sony

Summary: This is a paper that analyzes an article from the business organization theory perspective. It has 2 sources.

***** in the international ***** setting nowadays face tremendous competition as they are not only competing with local competitors but also with those abroad ***** well (Hill 1999). This had been the case with Sony whose arch rival Samsung and LG Electronics of South Korea have in the recent years replaced ***** products at the top positions. To compete effectively Sony accord*****g to an article by James Brook (**********) plans to cut down its staff in one ***** ***** operations units that would eliminate 20,000 workers ***** employment. Brook also reports that Sony plans to shift its operations ***** China and concentrate on business development in Japan.

Business organizations as competitive entities in the global sett*****g are faced with multitude factors that affect their business competencies ***** *****ness. Organizations not only have to consider like operations resources, *****tal quality management, labor working standards along with financial and material ***** they ***** also concerned ***** environmental factors. Strategy formulation, technology usage as well ***** product rese***** and ***** all contribute to the success of a business. Sony in the recent years have declined and dropped ***** in ***** position as the top consumer electronic companies (***** 1999). ********** report ***** confirms this fact.

***** the employees point of view Sony had adopted a severe method in cost cutting and proved a threat to their livelihood. Yet, organizational theorists ***** agree and understand why ***** had to take these steps. According ***** analysts the need to cut down jobs is the first step towards stream lining the organizational structure. The second step which is most crucial for organizational restructuring is to divide and segregate operations so ***** to cut down cost ***** production. Sony in this article plans to shift its mass ***** unit to Ch*****a, its neighboring country ***** has one of ***** cheapest labor resources. The reason why this is imperative in mass production is because, labor takes up a significant chunk of the revenue ***** hence in *****ting down the workers as well ***** shifting ***** operations base to another cheaper place would allow the company to focus on strategic ***** and develop the business to become at par with competitors. Sony plans to keep its *****ese unit as the base for technology resource and organizational development. And finally as one observe ***** this announcement ***** plans to re***** ***** product line ***** well. With sales dropping by 36 percent Sony *****s to. The business in the semi conductor industry have dec*****d so much that it is being replaced by its competitors. Without extreme measures such as product development and innovation and restructuring, it stands the risk of ***** eliminated from the market totally (Brooke 2003).

Thus, Brooke's article only affirm ***** fact that organizations whether American or abroad all need to concentrate on the fact*****s ***** boost ***** business as ***** as ***** that may