Sonys Evolving Human Resource Challenge Essay Example

help them utilize their skills effectively. Unfortunately, in 2003, Sony faced a decline in profitability and local labor unrest which led to significant workforce layoffs. The company had to let go of 1000 workers in Indonesia and shut down an audio-equipment plant and fired 4000 employees in Britain due to a loss of competitiveness.

The firm endeavors to uphold workplace standards that foster integrity to expand into new markets and maintain a favorable company reputation. In 2005, there was a management overhaul that resulted in the appointment of Sir Howard Stringer, the company's first non-Japanese CEO and chairman. Stringer implemented critical decisions, which included shutting down eleven factories, trimming the workforce by 10,000, and moving the firm's primary production component to cheaper locations like China. This initiative was aimed at reducing production costs and increasing profits since it was more cost-effective to manufacture in low-cost nations, given the stiff competition from other multinational corporations operating in China. Consequently, many companies face a scarcity of new hires. The key challenges facing the firm are stiff competition from rival firms, labor shortages, and high production costs that hamper the company's profitability.

Moreover, the firm encounters diverse surroundings such as culture, technology, economy, and legislation. It also confronts significant challenges related to economic modifications and reorganization. As a solution, Sony must efficiently handle its human resources to acquire a competitive edge over competitors. By presenting innovative products that cater to buyer preferences, the company can secure a considerable portion of the market share.

Sony's primary objectives should be to gain cost advantage and product differentiation. The company needs to offer comparable products and services as its competitors, but at a

lower cost. To reduce per unit costs, Sony must increase the value of units produced to total production costs by utilizing new technology, efficient work methods, and reducing overhead expenses. Additionally, Sony should enhance service and product quality by selecting better locations, promoting and packaging products effectively, and creating a perception of premium quality.