Strategic Management Practice Assignment Example | Topics and Well Written Essays - 4750 words

Strategic Management Practice - Assignment ExampleIn the year 2012, Sony reported to its shareholders that the keep company experienced a substantial loss of over 67 billion Yen (Sony 2012). The year prior, in 2011, Sony had achieved another staggering loss of nearly cc billion Yen which is a product of an inability to achieve revenue step-up in a very saturated global competitive market with such companies as Samsung, Sharp, Sanyo and many other electronics producers. Sony, no longer sustaining a market position as pioneering and innovative company, faces substantial strategic problems in achieving growth and capturing the interests of very diverse global demographics to select Sony consumer electronics over that of competing product offerings.This report analyses the current competitive position of Sony Corporation, focusing on the specific strategic issues cladding the firm, the goals the organisation should be constructing based on analysed market conditions, recommends strat egic direction for the firm, and describes a performance management system that should be viable for developing the recommended strategy.To cross the firms main issues, there are several models that can assist in conducting a thorough analysis of Sony. The company, due to its inability to bring out revolutionary products and competitive presence worldwide in the consumer electronics industry, has been unable to achieve competitive advantage. Barney (1991) provides the VRIO model, a strategy analysis that explores four dimensions of firm activity, these being rarity, value, inimitability and indwelling firm organisation.Value in this model is the extent to which a company has the capability of exploiting opportunities and to insulate itself from various competitive threats (Barney and Hesterly 2006). Value is measured on whether a firms total capital expenditures or labour investments are less expensive than the