Strategic Management - Stakeholder analysis Essay

Strategic Management - Stakeholder analysis - Essay Example (Drucker 1973:140). Sony Corporation also had its strategy firmly rooted in the Japanese style of management which was based on long term orientation and planning, collective decision making, accountability and responsibility, bottom up process of decision flow and informal organisational structure. (Koontz 1974. 58). This strategy had also dictated its culture based on informal, familial, traditional relationship between the various stakeholders. However in the new economy this was losing its relevance. In line with the changing business environment Sony Corporation has had to transform its strategy, announced formally in 2005, it identified a few core sectors as electronics, games and entertainment. (http://www.sony.net). Thus the company is no longer only in the, â€Å"business of electronic information†. In line with this approach, the company has also adopted the new organizational model of business groups, abolishing the company system for better horizontal coordination and synergy for specific products. This organizational structure is said to be designed to eliminate, â€Å"corporate silos† and generate better cross functional support for business decisions. (http://www.sony.net). In line with this the culture has grown to a more formal, demanding and result oriented one of accountability. The key stake holders of Sony have been identified as shareholders, customers, employees, suppliers, business partners, local communities and other organisations. (http://www.globalreporting.org). Considering the interests and demands of the stake holders, both long and short term, their influence on Sony’ s strategy will determine its overall organizational effectiveness. Sony keeps the interests of all its stakeholders uppermost. The corporate governance policy ensures a uniform approach towards stake holders across the company. (http://www.coursework.info) Considering the stake holders one by one, we find that