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Essay / Research Paper Abstract
Sony has undergone a series of restructures in order to try and rectify organizational problems that were seen in lost sales and a disproportional drop in profits. The paper examines a range of theories and applies these to the case of Sony. The paper looks at the reasons behind Sony's restructuring arguing it was needed due to the loss of the compnaies competitive advantage. The paper then looks at the problem of frequent restructuring, how restructuring should be planned and the way in which it ma or may not result in better performance. The bibliography cites 30 sources.
Page Count:
17 pages (~225 words per page)
File: TS14_TEsonyrest.rtf
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Unformatted sample text from the term paper:
company became known as Sony and the company grew with a culture of new products and innovation. However, as time progressed and increased competition was seen the company started to
struggle. By 1994 there were falling sales and profits. The company then embarked on a programme of restructuring. Since that time several ore programmes of restructuring have occurred, each have
extensive short and long term costs. Whilst many commentators have argued Sony needed to change other have also argued that the almost constant reorganisation has been too costly and has
become a source of problems. 2. The Reasons Behind Sonys Restructuring. If we look at the time prior to the first restructuring there is a worrying trend of decreasing
operating and net profits. Sales are falling but there is a disproportionate decrease in the profit levels. Sales only fell in 1994, but the operating profit had been falling since
1992 and the net income since 1993. It was only in 1989 when Nori Ohga took over as the Chairman and CEO form the founder Morita. It is as this
stage there ma have been a difficulty that impacted on Sonys later performance. As a founder it is likely that Morita retained his entrepreneurial style even though the company had
evolved past the structures and strategies associated with entrepreneurial companies. This not only looks at the way communications and control takes place, but also in terms of innovative culture, which
we see was a very clear culture as Sony (Grant, 1998). The difficulties that Sony had been facing with the fall were the catalyst and Sony need to try
and recapture what they had lost. Looking at the figures with the disproportional decreases in profit levels it was apparent there were difficulties internally with the company and the way
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