Expanding On The Work Of Sony Commerce Essay

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"Decision-making is the act or process of choosing one course of action from among several alternatives. Decision-making is the process of sufficiently reducing uncertainty and doubt about alternatives to allow a reasonable choice to be made along with them. This definition stresses the information gathering function of decision-making. It should be noted here that uncertainty is reduced rather than eliminated. Very few decisions are made with absolute certainty because complete knowledge about all the alternatives is seldom possible. Thus, every decision involves a certain amount of risk." [1] (Brunsson, 1982, p. 108) "

" Those who argue that business organizations cannot involve any political practices are, to a far extent, unable to understand to the deepest part what a business does when a decision is there to be taken. "

Expanding " on the work of Sony, Cyert and March (1963) have placed their focus on the processes of organizational decision making. They seek to answer the question: how does a firm behave as an information-processing and decision-making system? To start with, an organization is not monolithic, but acts like a continually shifting multiple-goal coalition. Managers, workers, shareholders, suppliers, customers, bankers, tax collectors, and so on all have a stake in the firm, but their goals or preferences about what should be done differ. Organizational goals are set by a negotiation process that occurs among members of the dominant coalition. An organization consists of various groups, each seeking to further its own interests or goals, without any single group being able to completely determine what goals the organization should pursue. Group members thus look for allies in those groups whose interests are similar, and they negotiate with those groups whose interests are divergent but whose participation is essential. The decision making process itself is characterized by four concepts which together form a theory of how these decisions are arrived at: (1) quasi-resolution of conflict, (2) uncertainty avoidance, (3) problemistic search, and (4) organizational learning."

"Because an organization is a coalition of conflicting interests, it has to resort to a number of methods to resolve conflict. These methods do not actually achieve consensus, but enable the organization to continue to operate despite unresolved divergencies. The devices for the quasi-resolution of conflict are: 'local rationality' (the subunit solves problems rationally within its own specialized domain); 'acceptable level decision rules' (rules that are acceptable to all interests rather than being optimal overall); and 'sequential attention to goals' (organization attends first to one goal, then another in sequence)."

" All organizations must face uncertainty - uncertainty about the market, suppliers, shareholders, government agencies, and so on. Organizations act to avoid uncertainty by two main strategies. They use decision rules that emphasize short-run reaction to short-run feedback rather than try to anticipate long-run uncertain events. They arrange for a negotiated environment through the imposition of plans, standard procedures, industry tradition, and contracts on the environment. (Cyert and March 1963: 119)"

"Problematic search is the means by which organizations determine what choices are thought to be available. "

"Finally, organizational learning takes place in the decision making process through the individual members of the organization. Goals are adapted by assessing past experience and comparing with other organizations. Changed goals lead to adaptation in attention, whereby different sets of events or problems would now need to be addressed "

" "The Sony decision making process involves proper and efficient implementation of strategic plans and methods to achieve desired business objective. ""

" Often one difficulty facing a Sony is that multiple divisions are involved in the overall decision making process. Making a decision can have different implications for each respective division. "

" Key strategic evaluation and planning is crucial. This planning needs to address the overall strategic goals of the organization but also the end effects that impact workers outside of the decision chain. "

" Sony change management and planning processes seek to address the implications that a change in one input can have on the corresponding output. The evaluation and process evaluation that comprises part of the change management approach seeks to measure and anticipate the effect strategic decisions will have on company resources and labor. "

" Finally, the decision making process that was just described has inherent problems. It is often slow and frustrating to executives accustomed to making firm decisions based on professional judgment. Negotiation and compromise can lead to the least common - denominator solution, especially if the decision-making process is poorly managed. Groups and organizations tend to develop official "definitions of situations" that discourage diverse views and can fall into a malaise described as "groupthink" (Randy Hirokawa, Dennis Gouran, and Amy Martz, 1988). [2] "

Question 2

"Zimmerman illustrates the inadequacy of the rational decision making approach, It was mentioned in the decision making module that Decisions are made by Staff in Sony for their organizations, so it was important for me to tackle issues that affecting the people themselves not just the organizations. How the inadequacy of the rational decision making approach. "

"I also believe that when Staff in Sony are about to decide on something or when they are in a situation that required a decision they have a general tendency. A tendency to rush for that decision they are about to take. He wants to understand how organizational members actually make sense of and understand what these rules mean in practice. Zimmerman Thus many Staff in Sony comes up with irrational, ad hock style, spontaneous decisions. This rush tendency, "I believe" are caused or facilitated by two main reasons:

"Urgency feeling" to feel that you are on the edge, and feeling the sense of very limited time. This state of mind that people inherited once they are faced with a situation that they are about to decide on something "a matter of a tiny moment" that he /she is urged to take a decision within. "

" Staff in Sony then takes decision making as something to get red off Sony so they can carry on without someone or something on their back. Maybe this urgency pushy feeling is one basic reason for why we have many irrational decisions. It is of course developed with time starting from our early years due to other people are pushing you to make a decision (a choice), cause is the human brain ability to take fast decisions, relatively in a very short time (again this could be developed and inherit through long experiences with other Staff in DHL and situations in life since the early years), sometimes in less than a second, they do that with their own believe that their decision was the right decision. In addition it became habitually inherited by people according to the repeating of this fast decision making style every day. "

" This approach is likely to lead to irrational decision making, unnecessary Sony and unrealistic expectations regarding risk. Instead of using the concept of a safe discharge, we should take a more rational approach to decision making, weighing the benefits, risks and costs of Sony against a default option of discharge home. Sony admission should be recommended only if the expected benefits outweigh the risks and can be accrued at an acceptable cost. "

" In addition to that decision making and analyses are influenced by a membership of organizations through shared values, assumptions, mindsets and the power of group processes. Legitimate power is allocated positions of authority in the hierarchy and the ability to control the access of resources that directly affecting the organization's functions. Sometimes power has great effect on the taken decisions as the contradict face of the power that the power-holder may shape the decisions to serve his interests or block other interests this will create negotiations among the employees and then conflicts. This can happen for example if one of the staff has the power to access into Sony data and learn about the mistakes his superiors such as mistakes or using his knowledge in illegal practices by this he/she will control their superiors and grant themselves the power to follow the rules of the healthcare unit or disobey it and in this case all the implemented decisions against them will be irrational. "

Question 3

Apply Bate's model on normative factors and decision-making to the Sony case. (500 words - 15 marks)

Organization culture. [3] (Bate, P. (1984)) includes organization ideology and product of experience and perspective of the past and present members of organization. Organizational culture affects the type and quality of interpersonal relationship, which in turn affect the approach to joint problem solving process and decision making.

There are certain characteristic in organizational culture such as Unemotionality, Subordination, Isolationism, Depersonalization, Conservatism and Antipathy that cause the deviation of decision making away from rationality that is:


Avoid showing or sharing feelings or emotions there appeared to be a hidden dictate that display of feeling and emotion were not permitted or were somehow bad for the individual and bad for the organization, unemotionality in this sense is therefore closely connected with the issue of low trust.


Do your own thing and avoid treading on other people's toes. One should be able to stake out a personal territory in the organization in which one could do one's own thing. In return one was expected to let others do likewise.


Never challenge those in authority and always wait for them to take the initiative in resolving your problem.

Subordination also symbolized not taking responsibility for solving problems- even if they were your own problems.


Managers and workers had ingrained conservatism about organizational life & skeptics view that things will never change or situation might become worse than current situation, Antipathy:

On most things people will be opponents rather than allies

The superficiality of relationships, low trust and isolationism, many of groups were engaged in protracted hostilities with each other, relationships between them were belligerent, distant and untrusting, meanings attached to inter group relations were firmly rooted in a 'them' and 'us' tradition.

There are sophisticated innovative customers who are part of Sony life with the following implications:

Work will be restructured in a way resembles the relationships between the Siemens and its customers

Customer's choice is regarded of high importance in work structure and even total change in the Siemens Company.

Internal departmental and employees' relationship are managed as if they were suppliers and customers. Customers then are treated as managers.

" Leaders in Sony need to understand their role in the psychological dynamics behind the culture and make adjustments that will move it to the next level; organizational culture has been stated to be of five levels:"

The Blame culture

"This culture cultivates distrust and fear, people blame each other to avoid being reprimanded or put down, this results in no new ideas or personal initiative because people don't want to risk being wrong. "

Multi-directional culture

"This culture cultivates minimized cross-department communication and cooperation. Loyalty is only to specific groups (departments). "

Live and let live culture

"This culture is Complacency; it manifests Mental Stagnation and Low Creativity. People here have little future vision and have given up their passion. "

Brand Congruent Culture

"People in this culture believe in the product or service of the organization, they feel good about what their company is trying to achieve and cooperate to achieve it. People here are passionate and seem to have similar goals in the organisation. "

Leadership Enriched Culture

"People view the organization as an extension of themselves; they feel good about what they personally achieve through the organisation and have exceptional cooperation. "

Question 4

Sony" also has a trade problems include the fact that it is difficult to penetrate the Japanese market, has also been allowed to enter the U.S. markets are Japan with few barriers. The U.S. government has done too little too in an attempt to stop Japanese rivals and help U.S. companies after much research they decided to fight back and restore the company, the position of the market. Learn from the Japanese, and then compete with "them.

Sony "Corporation customer more than he wants, and she is happy, the more become loyal to the brand Samsung Electronics. Created all this preference to the Sony name, which leads to improved reputation, increase sales, and increased profits, increase revenue, and increase market share, each of which is a vital part of a company such as Samsung Electronics Company's current and future"

"As in any industry, and there is a decline and tend profits. These officials are supposed to be very talented and skills required in the field of technology and GE. Other internal factors that should be focused company Sony is developing new competencies and core competencies. Capabilities for Sony is that it has a staff of experienced managers who are experienced in the field of technology and well laid out marketing plan, and financially stable. This will allow Sony Corp. through its widespread network across many countries to be able to offer the loyalty of customers who return always to high quality products that meet their demands. Innovation is the competence of Sony Corporation as it brings competitive advantage. Through the creation of new products and development brings differentiation. Can lead to process innovation, reduce costs and improve customer satisfaction, and this will make Sony achieve a significant market share in the world. Sony also has to build core competence to provide strong brands that rely on the mind or the mind of consumers to become a desirable audience in the target market."

"Sony to be the superiority of the new market should be universal in the field of research and development. This means to be able to access the knowledge and new capabilities anywhere in the world, and the development of attractive products and services at the global level that can produce on a competitive basis in the world. Company should focus on maximizing the World Wide Web, and solving global usually means a network of sources and contract production in different countries. Using global marketing and sales approach, should seek Sony for an appropriate balance of global standardization and local adaptation in all elements of the marketing mix, but with the presence of a possible bias in favor of unification, unless a good case can be made for local exception."

"Moreover, Porter (1991) strongly believe that making choices about how to organize the company's position in the competitive environment is what it is all about strategy and emphasize the importance of considering the GPS. He says that the organization can maintain competitive advantages through the implementation of common strategies of positioning itself either cost leadership, differentiation or focus (Porter, 1985). Sony put them differentiation strategy, which seeks to provide products or services that offer different interest from those of competitors and are evaluated by the buyers on a large scale (Johnson et al, 2005). Sony are rewarded at an excellent price with its uniqueness (Dwight and Meyer, 2004) that will help them to get more competitive privileges."

"However, Bowman Ashe (1996: P36) critics that "recent criticism of the approach Porter stems from our experience of trying to use these concepts with the senior management teams wrestling with organizational strategies. Addition to the lack of clarity general strategies surrounding, and general strategies to provide a consistent approach primarily to compete" . Hamel and Prahalad (1994) also argues that "traditional competitive strategy model (such as Porter, 1980) with the focus on the product in the market positioning, and focuses only on a few hundred meters last of what could be a marathon build skills."