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Sony Corp The Walkman Line Case Study Analysis

Background and Facts

Sony Corp The Walkman Line an office products seller for small and moderate sized businesses has actually lately been associated with preparing for a merger with its competitor House Deport, which has impacted performance levels in departmentswith the elderly supervisor involved in legal problems presented by the government Profession Compensation. With the Advertising and marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the near future. With obstacles in the form of a possible cultural adjustment and reduced worker morale, the company is in need of a full reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising department of Sony Corp The Walkman Line is increasing uncertainty in the working environment resulting in different obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing strategic choices because Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Profession Commission's intervention at the same time. Provided the reality that the store has a worldwide visibility with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these nations may have the ability to affect efficiency or calculated objectives. Federal Trade Payment's antitrust match against the merging used up beneficial time of the organization's elderly monitoring suggesting that 'political' factors can have major implications for a worldwide organisation.

Economic Factors: Financial factors such as the appearance of local business in the global circumstance suggest that Sony Corp The Walkman Line is thriving in an environment where there is possible development of companies. Fact that store clients are primarily looking for workplace supplies for residence workplaces suggests that the market has a rising trend of entrepreneurs as well as residence based services.

Social factors: Social trends in the economy show that clients are seeking comfort in addition to appealing costs. Market research demonstrates how the consumer for Sony Corp The Walkman Line lacks understanding about finding services which can provide a mix of convenience and low costs.

Technological factors: Innovation plays an important role in Sony Corp The Walkman Line's business approach especially as the company is piloting Innovation centers which would offer technology sales and also assistance in the kind of memory upgrades, outer installations. (Recap of INSECT in appendix 2).

OB Issues and Effects.

Numerous underlying Organizational Behavior issues can be seen in Sony Corp The Walkman Line's case as highlighted in this section.

Concerns concerning social change: There is uneasiness about a social change that would certainly occur as soon as Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with the majority of the team member currently showing discontent over this possible relocation. This predicted modification has actually created stress in the workplace which has actually been coupled with the past anxiety of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Stressful Task Setting for Newcomers: There is lack of employees that can match the stressful setting of a fast-paced company. Not just does this bring about trouble in discovering the ideal individuals, it places stress on new hires as can not withstand the speed as well as pressure that the company anticipates them to birth.

Double Reporting Lines: Newcomers find this business society cumbersome as well as difficult to manage specifically as dotted line partnerships are meant to be weaker generally as well as objective setup as well as efficiency assessment is still done by the solid line supervisor. This suggests that novices can shed clearness regarding their particular duties as well as purposes especially as dotted line reporting does not maintain them in straight communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had been hypothesized that the last would take Krasnow's placement came as a strike to her spirits. Lewis may have been qualified and also suitable for the work however the reality that Kransnow's separation would make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Fear & Job Insecurity: Anxiety as well as insecurity can be determined as 2 major problems that Lewis would be dealing with particularly as the merging has currently be terminated and also two senior executives of the marketing division would be leaving. The whole duty of the division would be dropping on Lewis's shoulders who would not simply supervise of brining regarding a cultural modification yet would certainly likewise need to prove herself in her new role.

Incompatible Administration Design of Leader: Lewis's monitoring style as well as its conflict with the advertising and marketing division's role can likewise be seen as an OB difficulty especially as she has been utilized to handling issues in the procedures department where employees are taught to focus on procedures and obtain them. The advertising and marketing department on the various other hand can be seen as a team of people that are used to being supported by Krasnow who concentrated a lot more on output than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between three divisions, advertising and marketing, merchandizing and also procedures respectively over the allotment of the advertising mix can be recognized as another OB concern. Although the advertising division does not share the same vision as the other 2 divisions pertaining to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and also operations departments do not concur over the advertising and marketing mix allotment among each other either.

Fragmentation in Marketing Division: Disintegration in between the marketing and advertising departments can be recognized as one more OB concern which could require more attention. The fact that the marketing and advertising sections in the advertising and marketing division are separated is preventing both departments from obtaining from each various other's experience as well as competence. Combination of advertising and marketing with merchandising and also operations would certainly end up being more difficult if the advertising department itself is disintegrated which can be one more prospective OB issue.

Sony Corp The Walkman Line Analysis

Numerous concepts have been made use of to discuss the circumstances to obtain more clarity concerning the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers believe that staffs are passive and also lazy, have little ambition as well as stand up to adjustment. The hard version of this theory highlighted coercion, tight controls, risks and also penalties. In time it generates reduced performance, refined sabotage as well as rivalry (Offer, 2003). Although the scenario at Sony Corp The Walkman Line is not completely following Concept X, it can be seen that new hires are finding this setting instead stressful which may ultimately bring about a higher inclination of the monitoring in the direction of Theory X. As per McGregor's promoted sight, which he called Concept Y, the vital task of the administration is to arrange business conditions to make sure that people can achieve their very own objectives best by routing their efforts towards business rewards. If people discover no satisfaction in their job, the monitoring would certainly have little selection yet to rely upon theory X and external control (Offer, 2003). Also while analyzing Lewis's management design, theory X might have appropriated in the procedures department somewhat yet the Advertising division would need dependence on Concept Y to get the creativity as well as originality from the groups.

Tuckman's Synergy Theory: As much as Lewis's problem regarding bringing consistency in between the marketing and also advertising and marketing division is worried, this would initially lead to contrast as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By combining the advertising and advertising division's work, there may be the same preliminary disconnect which can lead to the second phase of 'storming' where the groups test one an additional.

Bridges' Shift Version: According To William Bridge's theory (appendix 4), people are fairly unpleasant with adjustment, which is evident by the circumstance at Sony Corp The Walkman Line The situation can be viewed as a typical training course of life if is examined as per Bridge's concept where he discusses that individuals experience three phases of change when they experience modification. 'Ending, shedding as well as Releasing', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When people exist with change, they go into stage one therefore there may be emotions like sadness, uncertainty, disappointment, anger, concern, denial and also disorientation.The scenario at the advertising division of Sony Corp The Walkman Line is comparable so Lewis can get comfy with the concept that it is not amazing habits. In the second phase, there may be a requirement to link the void between the new and also old culture so Lewis may have to face this challenge once Krasnow leaves. There might be reduced spirits and reduced productivity at this phase which ought to not be taken as a problem. It is throughout this phase that Lewis will certainly have to offer guidance to the department so that they can find an orientation. It can be seen how Krasnow has actually already made this transition simpler by making Lewis obtain associated with the division a year prior to his actual separation. According to Bridges' Model, stage three will cause openness to understanding, High power as well as commitment as individuals will welcome the change (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB issue pertaining to instability at the office has been caused firstly by the change in administration as well as second of all by the truth that the merging will no more be started. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has reviews the significance of 'protection requires as being a lower level demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel safe and safe' is at the second degree of needs. Before a worker can be made to create psychologically, he requires to have his 'Physiological 'and also 'Safety and security' requires met. This shows that unless the employees are made to really feel secure concerning their present employment standing in Sony Corp The Walkman Line they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Sony Corp The Walkman Line Case Study



Implication of Analysis.

The OB analysis has actually checked out numerous theories to recognize just how to manage the current scenario at hand. The following three options have been proposed to aid Lewis handle the organizational difficulties in the marketing department. Each of these choices has been suggested for reducing the transition required to bring the advertising department in line with the needs of the market as well as for making the cultural modification that would certainly follow as soon as the existing leader leaves.

Integration of advertising and marketing features. Separating Adverting and also Production functions. Combination of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has knowledge in business-to-business advertising and marketing along with firm as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both advertising and marketing and advertising and marketing functions.

The advantage of this strategy is that it will certainly incorporate both features while minimizing the demand for working with an additional resource for advertising and marketing. Lewis would certainly be heading the marketing division and also in any type of case her substitute would certainly be required for the present role that she is executing. The disadvantage of this option is that exterior hiring may cause animosity from internal employees that may be eying the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Production: Provided the competitive pressures as well as excellent quality job required from the ad agency, it is recommended that Lewis must enable the manufacturing unit to be a separate function from the advertising and marketing system. Considering that many advertising agencies had these 2 functions as different systems, it makes more feeling to comply with the norm. Along with this, both features might have the ability to concentrate on their core triggers more successfully. The negative aspect of this approach would be that extra prices would certainly have to be birthed for establishing up different manufacturing functions. In addition to this, a production head might need to be hired which might enhance overheads for the organization.

Combination of Marketing with Operations: Since Lewis is already taking care of the advertising and marketing and also procedures departments all at once; it makes feeling to incorporate the two features given that she has been efficiently taking treatment of both ends. The reality that Lewis has to adapt her monitoring design for the advertising department recommends that these 2 departments would be culturally diverse.

Recommendation.



An analysis of the 3 choices indicates that assimilation of advertising and operations would certainly not be a feasible step because of the substantial distinctions between the two divisions although that presently Lewis is handling both. While splitting up of the production feature might have been a desirable action for the advertising department, the truth that it would certainly mean positioning a third feature under Lewis's wing indicates this ought to be prevented as well. The combination of the advertising and marketing department is the very best alternative in regards to obtaining the ideal arise from the division. An activity prepare for this alternative is reviewed below.

Action Strategy.
Recommendation
Lewis will take over the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

Judith Shapiro will be worked with to take Lewis's area as SVP of advertising and marketing.

Manufacturing function will certainly stay part of advertising under advertising feature.

Lewis will certainly separate herself from procedures.

A democratic leadership style with employee empowerment will certainly be utilized in advertising division.

Open door plan as well as emphasis on cross departmental communication will be aimed at removing discord.

Contingency plan.

If the combination does not exercise as intended, a contingency plan would certainly follow which would certainly divide the production function from the advertising and marketing function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the marketing department without an SVP. In that case the manufacturing feature will definitely be separated by placing it under an SVP manufacturing.