- Free Business Plan On Principles Of Organizational Development
- Develop diagnostic skills to identify OD issues, problems, and opportunities;
- Issues and problems encounter by Sony for organizational development
- Efficiency in operation:
- Huge product line:
- Reliance on international consumers:
- Opportunities available in Organizational development:
- Movie and Music Business:
- Effective portfolio:
- Demand of Electronic products:
- Identify organizational situations that require professional assistance
- Describe and explain the steps involved to effectively manage organizational change in a variety of contexts and settings
Free Business Plan On Principles Of Organizational Development
The organizations and institutions play a crucial role in the economic growth process directly and indirectly. Numbers of economists have been traditionally concerned with determining and studying the factors that enhance the economic growth process (Lewis, 2011). Through the economic growth process, the rate of unemployment is reduced, increase in goods and services are supplied to economy and social welfare of country is improved. These all activities are provided to company by the organizations. Numerous researches have stressed the relevance of the role of organizations in supplying the necessary resources to increase such economic growth. Thishelps country to increase its economic wealth. Organizations role is to facilitate one or more factors that directly affect economic growth. Some of the effects of organizations have not direct impact on economic growth. The main perspective of this assignment is to analyze the different problems related to a particular company and the company which has been chosen for the same is Sony Ltd. There are three problems which need to be complete.
Develop diagnostic skills to identify OD issues, problems, and opportunities;
Every company is being suffered from numerous forms of problem which are the crucial barriers in between the productivity and sales. Likewise, the problems that company envisage may reflects certain repercussions over different fragment such as minimize the production when internal hitches take place in terms of employee’s insecurity, lack of motivational factors, production system, unprofessional technical staff and financial accountability (Cawsey, Deszca & Ingols, 2011). The occurrence of problem may also reflect negative impacts over company’s brand recognition to a greater extend. Moreover, the goodwill which company has already gained is on stake if proper solutions have not been identified to resolve concerned problem. Sony Corporation which is generally denoted as Sony is a multinational organization whose center of operations is carried out from Japan. The company has its own recognition throughout the globe in terms of number of diverse products which predominantly consist of consoles, games, device; consumer based electronic items and several ultimate financial solutions. Song can also be considered as one of the dominating multinational brand that deals in electronic products across the world. Sony has its reputation among millions of consumers in every region that preferred Sony as their first and ultimate option in the world of electronics (Anderson, 2011). Sony is a public limited company and is listed in Tokyo Stock Exchange (TSE). The company has reported annual revenue of US$72.34 billion in the fiscal year 2013. The annual report has divulged net income of US$ 458 during the similar year.
Same like Sony is also encountered with certain problems which consequently have an effect on market good will and losing customers. These problems and issues of Sony will be further discussed in next section.
Issues and problems encounter by Sony for organizational development
Inevitably, Sony Corporation has been experiencing difficulties in maximizing their profitability margin after analyzing the financial performance of the company. The improvement needs to be executed by placing intense focus towards the net income entail by Sony. When the revenue of Sony was declining in past few years, the company came up with effective strategies to get hold over the operating expenses since 2009. However, the company needs a re-enactment plan to further reduce the cost of manufacturing, operating cost and other operational cost in an effective manner to amplify their profitability.
Efficiency in operation:
This refers to how effectively; the company is making use of available resources in generation of profits. Financial statement of Sony divulges that in last few years, Sony has issued more debt or debt to equity ratio is increasing overtime, but they do not seem to utilize additional funds efficiently in order to generate income. Due to this issue, the company will face serious obligations with this ratio of debt in equity which will ultimately become reason of breaking stakeholder’s trust and more additional expenses would take place.
Huge product line:
Sony operators provide much entertainment value chain of the many product lines. The company acts as a content providers, content aggregators, broadcasters, manufacturers of hardware, and manufacturers of the “value-added products.” The influence of strategy known as “Empire State Building” that greatly prevent the innovation approach that company is going with and decelerate the business practices. Despite of this, it also weakened their competitiveness in different in parts of market sections in which they are dealt with.
Reliance on international consumers:
Sony increasingly dependent on international consumers present their results of operations are sensitive to exchange rates as well as the global economy. The company should uncover some ways to hedge against the risk of this macroeconomic crisis.
Opportunities available in Organizational development:
Low Stock price:
The share price of Sony is not stable and it has been declining since 2009. However at someplace, it is sign of risk for the company but there are more opportunity chances which the Sony must consider to take advantage of it. For instance, if the level of share holder’s expectations is low then it would be a great chance for the company to outperform its competitors.
Movie and Music Business:
With the experience in the world of games, providing value-added content to support and integrate its product line, the company can leverage its film and music business. The company can achieve this goal by means of implementing strategy named “Four Screen” which is supposed to be good concept in order to achieve synergic and fruitful results.
The company’s portfolio is comprised on huge range of product line; the company is competent enough to launch their products even in economic crisis as they have strong belief in their innovative products.
Demand of Electronic products:
In this era, the demand of electronic goods is increasing with a rapid pace. The company should be taken this opportunity as a core element which will not only raise the level of revenue but also help to enhance the brand image.
Identify organizational situations that require professional assistance
When it comes to organizations, then there are certain things which needed to be considered accordingly. Organizations are always meant to earn economic profit from different viewpoints and angles; however there are certain things which are important for the companies, which require professional based assistance in total (Auster, 2012).
Professional assistance and consultancy would have been applied on a company, when there are number of weaknesses encountered by a company during a fiscal year. Sony, which comes once under the most effective companies of the world, is now encountering number of financial and non financial based problems. The problem associated with Sony, which has been identified in the above section, which was all about high Debt to Equity and consistent net losses in four years. Practical demonstration of the same would be analyzed and presented in this particular section as a whole. Analysis of both of these things will identify the current situation of the company that requires professional based assistance.
Likewise the GPM, the Net Profit Margin (NPM) of the company was also in negative figures. The net profit margin of the company was in negative terms for four consecutive years by 1.28%, 0.566%, 3.61% and 7.03% for years (FYs) 2009, 2010, 2011 and 2012 respectively. The average NPM of the company is -2.37%, showing that in five years, average the company earned a small amount of money in total, which is not at all effective from the viewpoint of the company. This is thing that really needs assistance from the company because the company is not doing the right job as far as recognizing the net income and gross income is concerned. Management should intervene in the action and focus on the problem, that why so much cost is incurring in different parts of the company.
Professional assistance could be found by Sony from the external auditors as well as the management professionals because they are the one who knows every discrepancy in the accounts of the company and in other important and effective things as well. The other important issue or problem, which has been identified in the above section is having high amount of debt to equity (D/E) ratio in total. This particular aspect is demonstrated in the below mentioned table,
Describe and explain the steps involved to effectively manage organizational change in a variety of contexts and settings
The most common department which can be found in any type of organization is given below;
– Production Department is responsible for producing the product by converting inputs into outputs through the different stages of production processes. The concern of production manager is to make sure that raw materials are available and converted into finished goods effectively (Huber, 2010). Manager supervises processes to make work more efficient and secure. Production department has five sub units which are production and planning, purchasing department, stores department, design and technical support department, and works department.
– Marketing and Sales department is responsible to promote and sale the product of organization. This department makes research of market and testing of new products to ensure that product is suitable before distributions. It is also responsible for the distributions of the product in different regions of market.
– Finance Department is the backbone of business also known as accounting department. There are two main areas of finance department. One is known as financial accounting which has financial data that organizations make available for use of general public i.e. shareholders, suppliers, customer and creditors. Another part is managerial accounting which provides financial information to managers, supervisors and head of the departments.
– Human Resource Department is responsible for managing the people of organization. The main role of department is recruiting, training and dismissal of employees in organizations. Recruiting and selection activities are performed by department to meet the need of people in organization. While training is held to improve the skills of employees and motivate them.
In order to bring economic propensity towards the company, it is extremely important to apply the effects of changes on all of the above mentioned departments because, it is important for the companies to bring change in almost every department in total (Paine, 2008). When it comes to Sony, then the arrival of change is important from every aspect in total.
Production Department: Sony is a big company, but there are some serious drawbacks envisaged with the company. The production department is Sony is not as strong as the other consumer electronics companies operating in the same line of business. There is a serious need of enhancing the production department of the company, and should come up with effective products in the market. If the effective products would have been launched accordingly, then effective results would have been get by the company
Marketing Department & Sales: It is one of the most important departments from the viewpoint of an organization, whose recognition and importance could not be derailing from any viewpoint. Sony is a company which don’t have effective marketing and sales department, because the company is not allocating enough capital on their Research and Development (R&D) based things. This problem needs to be change by the company, if they really wish to compete with the peer companies.
Finance: Financial department is one of the most important departments from the viewpoint of an organization. The financial department of Sony is not strong because the company is currently operating on high debt environment, hence there is no enough space is there for economic expansion of the company.
Human Resources Department: There is a serious concerned is found in the HR department of the company. Sony has to apply effective strategies in terms of enhancing the employee’s responsibilities like Management Bi Objectives (MBO).
Profitable businesses tend to charter more employees than those posting a decrease. Trade can also be a catalyst for larger effectiveness and productivity. This is because businesses have get access to a broader variety of high-quality, inexpensive inputs. They furthermore have access to expertise and know-how they could not get in a shut economy. Access to expertise and quality inputs can increase discovery and creativity in the workplace. The main perspective of this assignment is to analyze the different problems related to a particular company and the company which has been chosen for the same is Sony Ltd. From the analysis, it is found that the company is not doing a good job as far as enhancing its productivity is concerned and significant changes is required.
Anderson, D. L. (2011). Organization Development: The Process of Leading Organizational Change. New York: SAGE.
Auster, E. R. (2012). Strategic Organizational Change. Houston: Palgrave Macmillan.
Huber, G. P. (2010). Organizational Change and Redesign. London: Oxford University Press.
Lewis, L. K. (2011). Organizational Change: Creating Change Through Strategic Communication. Chicago: John Wiley & Sons.
Paine, J. W. (2008). Organization Change: A Comprehensive Reader. New York: John Wiley & Sons.
Tupper F. Cawsey, G. D. (2011). Organizational Change: An Action-Oriented Toolkit. Miami: SAGE.