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Presentation on Sony Organization
by FERDAUS
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Introduction of Sony Organization
Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its four operating segments – Electronics Motion Pictures , Music and Financial Services. The founder of Sony is 2 Japanese man which are Masaru Ibuka and Akio Morita on 7th May 1946. They complement each other and invent the unique product which achieve the people needs.
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Introduction of Sony Organization
Sony continues to fuel industry growth with the sales of innovative and unique Sony products, as well as with the company’s convergence strategy. Sony Corporation is involved in the developing, designing, manufacturing and selling electronic equipment and devices, game consoles and software. The primary manufacturing facilities of Sony Corporation are located in Asia.
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Headquarter: The headquarter of Sony organization is located at Minato, Tokyo, Japan.
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A Brief Description of the Organization
In 7 May 1946 at Nihonbashi, Tokyo, Masaru Ibuka and Akio Morita gave birth to Tokyo Tsushin Kogyo K.K. (Tokyo Telecommunications Engineering Corporation), otherwise known as Totsuko. Four years after, the “Sony tape”, the first magnetic-coated and paper-based recording tape of Japan, was introduced in the market.
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A Brief Description of the Organization Itself
Then in 1955, Totsuko made a decision to change the logo of its products, by labeling them as Sony. In January three years after, the company shifted its name from Totsuko to Sony Corporation; By the end of the year, Sony was registered in the Tokyo Stock Exchange.
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A Brief Description of the Organization Itself
The year 1960 marked the beginnings of Sony Corporation’s expansion, in the United States of America, to Hong Kong, to China, and to the different countries across the globe. Different electronic products were introduced in the market. Until now, Sony is one of the leading electronics brand.
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A Brief Description of the Organization Itself
Sony is synonymous with consumer electronics. It's especially big in TVs and game consoles like the new PlayStation4. Officially named Sony Kabushiki Kaisha, the company designs, makes, and sells a host of electronic equipment, instruments, and devices for consumer, professional, and industrial markets. Professional products include semiconductors and components.
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A Brief Description of the Organization Itself
A top global media conglomerate, Sony boasts additional assets in the areas of music (Sony Music Entertainment), film (Sony Pictures Entertainment and Sony Digital Production), smart phones (Sony Mobile), DVDs (Sony Pictures Home Entertainment), and TV (Sony Pictures Television). Sony also has several financial services businesses and an advertising agency in Japan.
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A Brief Description of the Organization Itself
Company Name Sony Corporation Founded May 7, 1946 Headquarters 1-7-1 Konan, Minato-ku, Tokyo , Japan Representative Corporate Executive Officers President and CEO Kazuo Hiraiaazq
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A Brief Description of the Organization Itself
EVP and CFO Kenichiro Yoshida Major Products Televisions LCD televisions Digital imaging Interchangeable single-lens cameras, compact digital cameras, video cameras
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A Brief Description of the Organization Itself
Audio / Video Home audio, Blu-ray Disc™ players and recorders, memory-based portable audio devices Semiconductors Image sensors and other semiconductors Electronic components Batteries, recording media, data recording systems Professional solutions Broadcast and professional-use equipment
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A Brief Description of the Organization Itself
Medical Medical-related equipment Locations of Major Offices and Research Centers (in Japan) Tokyo, Kanagawa, Miyagi Headcount (Consolidated) 140,900 (as of March 31, 2014) Consolidated Sales and Operating revenue(2013) 7,767,300 million yen
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History of Sony Organization
Behind the phenomenal success of Sony are two men. Masaru Ibuka was an engineer and Akio Morita a physicist when they decided to create a company repairing and building electrical equipment. Tokyo Telecom Engineering First Japanese tape recorder First transistor radios First pocket-sized radio Name change to Sony (from "sonus," Latin for "sound," and "sonny," meaning “little man”)
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History of Sony Organization
Intro of Trinitron color TV – explosive growth Walkman personal stereo 1980’s Major Producer of computer disks/ floppies Bought CBS Records for $2 billion. Bought Columbia Pictures for $4.5 billion. Sony Playstation released to great success. JV with Philips (inventors of the CD) to make Super Audio CD
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History of Sony Organization
Launched Wega flat-screen TV JV with Philips, Sun Microsystems to develop networked entertainment products Walkman with MP3 capabilities Formed PlayStation.com games/software Restructured all entertainment units under Sony Broadband Entertainment
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History of Sony Organization
JV Sakura Bank and JP Morgan Chase for online bank. Howard Stringer replaced Nobuyuki Idea as chief executive officer aimed to increase cooperation between business units. Sony introduced a slogan known as “make.believe” Hirai outlined his company-wide initiative, named "One Sony" to revive Sony from years of financial losses. The company announced it was forming two joint ventures with Shanghai Oriental Pearl Group.
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Brand logo History 1950 1957 1962 1961
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Brand logo History 1969 1973 Present Logo
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Sony’s Profile Sony has always been an international company.
Sony is the combination of two words “Sonus”- “Sound & Sonny”- “Little son.” Sony is the Japanese company and known all over the world. Akio Morita recognized from the beginning that his company needed to regard the whole world as its marketplace. Sony’s headquarter is located in Tokyo.
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Sony’s Profile In 1947 Company name was TOKYO TSUSHIN KOGYO
(Tokyo Telecommunications Engineering Corporation). In 1958, company formally adopted Sony Organization as its corporate name. First Product - First Tape recorder called Type – G.
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Presenting Different Department
There are many department of Sony Organization. As like: Electronics: Audio, Video, Televisions Information and Communications. mmm, Sony Computer Entertainment: Hardware and related software
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Presenting Different Department
Sony Music Entertainment: Sony Music Entertainment Inc.: Columbia Records, Sony Classical, Sony Discos, Sony Disc Manufacturing, and Sony Music Nashville. Sony Pictures Entertainment: motion picture - production, acquisition and distribution television – programming, production, acquisition and distribution
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Presenting Different Department
home video - acquisition and distribution television broadcasting operation of studio facilities Sony Life Insurance
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Presenting Different Department
Other: Sony Finance International, Inc. Sony Trading International Corporation Sony Broadcast Media Co. Ltd. Other local entertainment businesses in Japan, U.S., and Germany.
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Profit Performance of Sony
During the years , the Sony Corporation has seen a steady increase In sales and operating revenue from $45,670 million in 1997 to $58,518 million in In contrast, the company experienced inconsistent growth in net revenues evidenced by a noticeable decline for the years A review of Sony financial performance for the years
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Action that was taken from Sony Corporation in 2011, we are showing all those activities by a chart . All financial action.
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SONY’S PRICE /BOOK VALUE (1997-2011)
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As the table shows, Sony’s sales declined almost 20% in 2009, and continued to slide thereafter. This decline in sales, as we discuss in the competitive analysis section, can be attributed to a combination of external factors (the Yen appreciation and the economic downturn) and internal factors (the increasing competition in the industry). While Sony’s revenue has been declining, their operating income has recovered since This can be attributed to their restructuring plan7 that effectively reduced their manufacturing overhead and SG&A costs.
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We should note that while the net income in 2011, -259 billion yen, seems to be far lower than zero, it is actually because Sony recorded billion yen of income taxes, primarily resulting from recording a non-cash charge to establish a valuation allowance of billion yen against deferred tax assets. 8The earnings-before-tax figure for 2011 is positive, shown in the table below. Their cash flow from operating has recovered to the pre-crisis level.
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Source of Income Today, Sony Corporation develops and manufactures consumer and industrial electronic equipment. The Company's products include audio and video equipment, televisions, displays, electronic components, computers and computer peripherals, and telecommunication equipment. The Company is also active in the worldwide music and image-based software markets. Sony conducts insurance operations through Sony Life, a Japanese life insurance subsidiary, and Sony Assurance Inc., a Japanese non-life insurance subsidiary. Sony is engaged in a leasing and credit financing business in Japan through Finance International Inc.
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Source of Income It also conducts an internet-based banking business in Japan through Sony Bank Inc. which is an eighty percent directly owned subsidiary of Sony Financial holdings. The new company will be called Sony BMG, and will control 60 percent of the worldwide market. Overall, this company seems to be expanding in every step of their existence and this is just the beginning to an even more successful company. The products are beginning to expand over the years and as long as they keep coming, this company will remain on top.
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CSR Activities (Corporate Social Responsibility)
Sony's social responsibility (CSR) activities reflect ongoing commitment to innovation and sound business practices and to creating products and services. Also CSR are assisting the communities in which operate and helping to shape a better, more sustainable society. Sony believes that these activities both benefit society and enhance corporate value. Sony currently promotes CSR initiatives in line with its CSR agenda.
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CSR Activities (Corporate Social Responsibility)
It sets seven key areas of focus - corporate governance, compliance, human resources, responsible sourcing, quality and services, environment and community.
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CSR Activities (Corporate Social Responsibility)
Sony's CSR section is tasked with monitoring the progress of initiatives and disclosing information. Sony recently conducted a CSR materiality assessment with BSR (Business for Social Responsibility), an independent organization with expertise in global CSR trends and international standards. In the CSR materiality analysis, they first identified global CSR issues of particular relevance to Sony .
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Criticisms of Sony Organization
Criticism of Sony during the breach was for several reasons: The delay between discovering the problem and notifying customers, Stringer's lack of public comment. the lack of meaningful updates as to when service would be restored. the seeming confusion over exactly what information had or had not been stolen from PSN's or Sony Online Entertainment's servers.
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Criticisms of Sony Organization
There are three majors criticism for the Sony play station: Sony failed to show the PS4 at the unveiling event. Some gamers felt like they were being deceived with the absence of the gaming console. Due to the unfinished gaming console hardware, consumers were further upset since the Sony PS4 release date and price is still undetermined. Jack Tretton, CEO of Sony Computer Entertainment of America, admitted that the console price has not yet been decided.
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Criticisms of Sony Organization
3. Sony received another gaming criticism when they announced that the PS4 will not allow games created from the previous PlayStations despite the existence of a Blu-ray disc drive. According to Sony, the gamers can stream their desired old games to the PS4 with the use of the Internet.
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Recommendation Of Sony Organization
Review of strategies. Improve its supply chain. Improve its management. Should observe competitor strategies along with its own innovation. Should never compromise on its quality. Sony should review its strategy so that it could again be a market leader. Sony should focus on innovation to compete in the market.
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Recommendation Of Sony Organization
Sony must immediately focus on increasing sales in order to meet their short-term liabilities. Sony must find ways to utilize their increased leverage and other asset items more efficiently to generate sales. Sony’s increasing reliance on international consumers made their operating results very sensitive to exchange rates and the global economy.
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Competitor Analysis South Korea's world leading electronics company, especially in Asia. Founded by Lee Byung Chul in 1969, Daegu, South Korea. It operates in about 65 countries around the world. One of Japan's oldest and largest producers of consumer and industrial electric products. Headquartered in Tokyo, Japan. Founded by Hisashige Tanaka.
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Competitor Analysis Competitors:
Basically they have one strong competitors at this point in time, the Sony Memory Stick Walkman. At the same time, however, they are their target customers as well Computer hardware manufacturers with brand name in building audio-related equipment Portable MP3 player manufacturers Music equipment markers
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Conclusion Sony has faced many difficulties for several years and has now been able to properly identify many of its real problems. The latest strategy will lead to address them to some extent. The basic reason behind it is that Sony is not a market leader now. Resultantly it does not have that old power to influence the direction of the market and follow its own plan. Moreover, the policy of defending its own interests has proved to be exigent. The strategies need not be deliberate always, they can emerge as well. This strategy is good in many aspects and can lead to revive Sony Corporation but still Sony needs to work hard if it wants to survive and regain its market-leading position again.
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Thank you
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