BUSINESS

Sony Corporation - Restructuring Continues, Problems Remain

Sony Corporation - Restructuring Continues, Problems Remain

Introduction

Strategy for business is a comprehensive and combined framework. It is prepared by uniting various goals and tactics to obtain business objectives. A business plan includes all the characteristics of a company's performance; establishing overall ambitions (for instance, decreasing the high turnover rate of the company). Various analyses are conducted to outlook a 360 view of the firm. These analyses include, “SWOT”, “PEST” and “Competitive plan.” On the basis of supply and demand of resources available in a firm; a resource based theory is implied to view the present and projected arrangement of the company (www.credoreference.com, 2006).

Discussion

Question 1

Critically apply Cyert and March's analysis of organizational decision making to the Sony case. Compare/contrast your analysis with Brunsson's view of organizational decision making.

The study of decision making in an organization, particularly those made by top management is observed in Cyert and March's analysis. It's a kind of theory can be applied to gauge a firm's behavior. The six decisions examined in this analysis are implied on Sony case. It will provide the effect of participation of several departments and levels in decision making, the two-sided negotiation between project makers and managers will be liable to evaluate tenders, the reflection of advance technology and overall doubtful environment will be involved in proposal assessment, the influence of an energetic spur for search encouraged by corporate level than the more inactive and incentives introduced in crisis is recommended by Cyert and March. The idea of threshold system through which progress is assessed rapidly on several characteristics. Another effect; the Pollyanna-Nietzsche effect can implemented to employees would tolerate the impression of historical losses and think positively to improve future performance. According a behavioral theory of the firm, the problem statement is to be perfect competitive market and objective is to maximize profits, while maintaining constant price and productivity. Same should be applied in Sony's case. In terms of figure, this scenario can be viewed as

Max (profit) = f (input opt, output opt, …)

The behavioral insight basically focused on decision make of the firm. The outcome of its behavior depends upon the interests and conflicts of people working in the firm and this reflects from the culture and adopted by the top level managers. This is the actual parameter, which should be applied on Sony's case. If managers would bring a change in culture from silo to collaboration, the decisions taken would be effective and productive. The theory also states about collective aims of all individuals. A company has its mission statement and objectives, an individual also has some goals to achieve in life, however, the goals of all the individuals working in Sony should be analyzed and reviewed as the collective goal of the firm. As the business grows, the aims and objective also alters, likewise, disputes come out among people. Cyert and March have also given analysis of four relative concepts i.e. “quasi resolution, avoid ambiguity, problemistic search and knowledge organization (Cyert & ...