Sony - Restructuring Exercise Continues*



Mini Case Code : CLIM035
Publication date : 2005
Subject : International Marketing
Industry : Electronics
Length : 06 Pages
Price : Rs. 100

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Key words:

Sony Corporation (Sony), globalization, financials, profitability, video games, semiconductors, electronic industry, restructuring, Chief Operating Officer, Broadcast Products, Semi Conductor and the Information Technology Company, Corporate Information Systems Solutions (CISS), Internet, decentralizing, privatizing, subsidiaries, CoCoon (Connected Community on Network), power line communication (PLC), Personal Broadband Network Solutions Company, Global Hub, Ubiquitous value Network.


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The caselet details the expansion of Sony Corporation's operations throughout the world. It discusses the decline in Sony's profits in the 1990s and explores the reasons for the periodical changes in the organizational structure of the company. It focuses on how the restructuring influenced the operations of the company and on the cost-cutting exercises that the company undertook.


» Globalization of Sony
» Organizational restructuring of Sony
» Did Sony Corporation benefit due to the decentralization of its worldwide operations?
» How restructuring affected the financial performance of Sony
» Constant restructuring of the organization


On March 27, 2005, the Japanese electronic and entertainment giant, Sony Corporation (Sony) announced that it would spin off some of its businesses to simplify the company's complex structure.

Founded in 1946, Sony Corporation was known for its innovative and high quality products. In 1960, the company started its globalization initiatives and established plants in various parts of the world.

Soon, Sony diversified into other industries like entertainment and financials. And till the 1990s, the company was very successful in the global markets.

However, in the 1990s, Sony found itself in the midst of several crises. The company’s profitability came down between 1990 and 1994...

Questions for Discussion:

1. "Sony's financial performance did not improve even after millions of dollars were spent on restructuring." Comment.

2. Discuss Sony's restructuring of the company from the divisional model of organizational structure to the network model.