CASE : SONY CORPORATION
Never has Sony that exceptionally innovate of Japanese companies been in greater need of money-spinning new products.
Worldwide recession and cut-throat competition in its prime TV and video recorder markets have depressed its sales and slashed its earnings.
If it had not been for the continued success of its four-year-old "Walkman" cassette player, Sony`s profits plunge in the first half of 1963 would have been steeper than the ignominious 66 per cent it revealed in the summer.
Recovery to its customary "star" status clearly requires a whole raft of new successes. Yet, several of the company`s innovative projects are not doing well.
Its much-hyped "Mavica" camera is in the technical doldrums, and a number of office products are taking off disappointingly slowly.
Enter Mr. Yasuo Kuroki, industrial designer. While Sony`s development engineers were doing their bit over the last few years, by perfecting the technological wizardry of compact digital discs, video cameras, and floppy disk system, Mr. Kuroki`s 130-strong design team was injecting a rather different approach – what he calls "software thinking" – in order to come up with adventure, .:..Is about future social behaviour, and some appropriate new products.
Questions:
(a) Which elements of the 7-S framework can you identify in the case`s description of events at Sony? Illustrate each element you recognize with quoted material form the case.
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(b) Are the 7-S`s in harmony with each other? Suggest strategies by which this harmony can be maintained.
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