CROSS CULTURAL MANAGEMENT PROJECT ON SONY CORPORATIONS PVT.LTD.

Submitted in partial fulfillment of PGDM-IB program 2009-11

Submitted by

UMESH RISHI

Faculty Guide

Mr. Amit Sareen

Apeejay School of Management Dwarka,New Delhi Jan 2011

ACKNOWLEDGEMENT

My special thanks goes to our project guide Dr Mr. Amit Sareen for giving me valuable suggestions and guidance without which this report could have never been completed successfully. I am very grateful to them for their support and encouragement at all stages of the project. They were a source of guidance and encouragement to me.

I would like to thank all those people who directly and indirectly contributed towards the development and completion of this project.

UMESH RISHI Apeejay School Of Management

Introduction
Sony Corporation (Son Kabushiki Gaisha) is a multinational conglomeratecorporation headquartered in Minato, Tokyo, Japan, and one of the world's largest media conglomerates with revenue exceeding US$99.1 billion (as of 2008). Sony is one of the leading manufacturers of electronics, video, communications, video game consoles, and information technology products for the consumer and professional markets. Its name is derived from sonus, the Latin word for sound. Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its five operating segments electronics, games, entertainment (motion pictures and music), financial services and other. These make Sony one of the most comprehensive entertainment companies in the world. Sony's principal business operations include Sony Corporation (Sony Electronics in the U.S.), Sony Pictures Entertainment, Sony Computer Entertainment, Sony Music Entertainment, Sony Ericsson, and Sony Financial Holdings. As a semiconductor maker, Sony is among the Worldwide Top 20 Semiconductor Sales Leaders. The company's slogan is Sony. Like no other. Sony India is one of the most recognized consumer electronics brand in the country, with a reputation for new age technology, digital concepts and excellent service. In India, Sony has its footprint across all major towns and cities in the country through a distribution network comprising of over 7000 dealers and distributors, 210 Sony World & Sony Exclusive outlets and 22 direct branch locations. Sony India also has a strong service presence across the country with 21 company owned and 160 authorized service centers. The first thing that comes to peoples minds of the company and products of Sony is its high-technology-filled-with-gadgets electronic goods and innovation. It was also this innovation that makes Sony the greatest company that started in post-war Japan. Sony has used its innovation in building markets out of thin air, created a multibillion, multinational electronic empire with products such as the transistor radio, the Trinitron, the Walk-in and the VTR. That changed everyday household lives forever. However, this consumer targeted quest for excellence and constant innovation instead of targeting mainly at profit also has a lot to do with current crisis Sony is facing sales and profits are down or are slowing down, capital investment cost and R&D are climbing, competitors are moving in with copycats, the battle between VHS and Beta and the search for a smash hit product such as the Trinitron or the Walk-in.

History
Masaru Ibuka, the co-founder of Sony. In 1945, after World War II, Masaru Ibuka started a radio repair shop in a bombed-out building in Tokyo. The next year, he was joined by his colleague Akio Morita and they founded a company called Tokyo Tsushin Kogyo K.K., which translates in English to Tokyo Telecommunications Engineering Corporation. The company built Japan's first tape recorder called the Type-G. In the early 1950s, Ibuka traveled in the United States and heard about Bell Labs' invention of the transistor. He convinced Bell to license the transistor technology to his Japanese company. While most American companies were researching the transistor for its military applications, Ibuka looked to apply it to communications. Although the American companies Regency and Texas Instruments built the first transistor radios, it was Ibuka's company that made them commercially successful for the first time. In August 1955, Tokyo Telecommunications Engineering released the Sony TR-55, Japan's first commercially produced transistor radio. They followed up in December of the same year by releasing the Sony TR-72, a product that won favor both within Japan and in export markets, including Canada, Australia, the Netherlands and Germany. Featuring six transistors, push-pull output and greatly improved sound quality, the TR- 72 continued to be a popular seller into the early sixties. In May 1956, the company released the TR-6, which featured an innovative slim design and sound quality capable of rivaling portable tube radios. It was for the TR-6 that Sony first contracted quot;Atchanquot;, a cartoon character created by Fuyuhiko Okabe, to become its advertising character. Now known as quot;Sony Boyquot;, the character first appeared in a cartoon ad holding a TR-6 to his ear, but went on to represent the company in ads for a variety of products well into the midsixties. The following year, 1957, Tokyo Telecommunications Engineering came out with the TR-63 model, then the smallest (112 71 32 mm) transistor radio in commercial production. It was a worldwide commercial success.

SONY PROFILE
Company Name - Sony Corporation Founded - May 7, 1946 Headquarters 1-7-1 Konan, Minato-ku, Tokyo 108-0075, Japan Chairman and CEO- Howard Stringer President and Electronics CEO- Ryoji Chubachi Executive Deputy President Officer in charge of Consumer Products Group Katsumi Ihara

Sony India Pvt. Ltd. Company

Managing Director: Mr. Masaru Tamagawa Date of Establishment: November 17, 1994 Location: A-31, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi 110044, India. Staff Strength: 636 (as at March 31, 2007) Share Capital: Rs. 550 million Share Holding: 100% subsidiary of Sony Corporation, Japan Branch Offices: Delhi, Haryana, Ludhiana, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Vijayawada, Jaipur, Chandigarh, Lucknow, Pune, Ahmadabad, Indore, Cochin, Coimbatore, Ghaziabad, Guwahati, Hubli and Ranchi Business Activities: Marketing, Sales and After-Sales Service of electronic products & software exports

Major Products
Audio Home audio, portable audio, etc. Video Video cameras, digital still cameras, and DVD-Video players/recorders, and Digital-broadcasting receiving systems Televisions LCD televisions, projection televisions, CRT-based televisions, etc. Information and communications PC, printer system, broadcast and professional use audio/video/monitors and other professional-use equipment Semiconductors LCD, CCD and other semiconductors Electronic components Optical pickups, batteries, audio/video/data recording media, and data recording systems

Sony culture
Sony culture emphasizes "a spirit of freedom and open-mindedness," and a fighting spirit to innovate. Founder Masaru Ibuka crafted this vision in Sony's Founding Prospectus, and the philosophy is embedded in our company DNA, embodied in our employees, and seen throughout our history. Since its founding in 1946, Sony has always sought to create innovative products that inspire new lifestyles. The Sony founders Ibuka and Morita instilled a spirit of challenge for making unique products that had not yet existed and a strong will to give happiness and excitement to people. This is Sony's DNA which still thrives after 60 years. Sony aims to create a workplace that inspires employees to pursue new challenges and grow by realizing their creative and innovative potential. Sony also strives to further enhance motivation and encourage personal growth through on-the-job learning, as well as access to a variety of programs tailored to different regional needs, including education for next-generation business leaders, management skill improvement training, and training aimed at enhancing the abilities and skills of individual employees.

GOOD Work Environment

There are a number of employee programs and policies in place designed to make employees feel valued and appreciated which in turn, amount to happy and motivated employees. They offer a stimulating, challenging and highly supportive work environment with an outstanding reputation for exceptional quality and services.

Diversity
With the dizzying pace of change in the operating environment, including the rise of global competition and the diversification of customer needs, companies are under increasing pressure to provide products and services that accurately reflect the customer's viewpoint, offer innovative ideas and create new value. Sony recognizes that nurturing the diverse characteristics and ideas of its employees-irrespective of nationality, culture, race, gender and the presence or absence of physical limitations-is crucial to the evolution and growth of its businesses and is actively promoting the creation of a diverse workforce worldwide, as well as to create work environments conducive to mobility. In addition to efforts to encourage diversity tailored to regional and local needs, Sony has established a dedicated section, the Diversity Development Department. Guided by the concepts of diversity and inclusion, the department not only promotes diversity but also seeks to create working environments in which diversity is embraced, respected and accepted. This department promotes activities at Sony Corporation and assists and coordinates activities at Sony Group companies.

Gender
Japan
In 2005, Sony Corporation launched DIVI@Sony*1, a project aimed at stimulating the creation of a corporate climate that enables a wide variety of employees with diverse backgrounds to optimize their individual capabilities. With the majority of employees in the electronics business being engineers and most of those male, there is a pressing need to encourage more women to join and excel in these vocations. As a first step in addressing the wider issue of employment diversity, the project is focusing on gender diversity, with the aim of fostering greater employment of women, creating a framework for advancing the careers of female employees, promoting information-sharing internally and with parties outside the Sony Group, and building employee networks. For example, project members arranged training and events for female employees in managerial positions, and a symposium and seminar on career issues for female employees aimed at enhancing opportunities for women by building and expanding employee networks, and further increasing the awareness of employees. The project members also organized ongoing roundtable meetings for general managers aiming to promote management understanding and support. An increasingly well-established part of Sony's effort to provide career support for female employees is the DIVI@Sony mentoring system. Women in management find that the higher they rise in rank the fewer role models there are, and fewer people with whom they can consult. The aim of the system is for women to set their sights higher and

gain more confidence through discussing work- and career-related issues with experienced mentors.

Female Employees and Female Employees in Management Positions by Region

* Data based on a basic statistical survey of salary structures for fiscal year 2008 by the Ministry of Health, Labour and Welfare Sony Group (Japan) Female employee ratio Female management level ratio '06 '07 '08 '09 '10 29.0% 25.6% 24.8% 24.8% 20.9% 2.90% 3.10% 2.90% 3.10% 3.60%

* Data based on a basic statistical survey of salary structures for fiscal year 2008 by the Ministry of Health, Labour and Welfare Overall industry (corporations with 1,000 employees or more) Ratios of Female Employees: 25.6% Ratios of Female Employees in Management Positions: 4.1% Manufacturing industry (corporations with 1,000 employees and more) Ratios of Female Employees: 13.2% Ratios of Female Employees in Management Positions: 13.2% Sony Group (U.S.) '06 '07 '08 '09 '10 Female employee ratio 38.0% 38.6% 37.8% 38.2% 39.3% Female management level ratio 32.5% 31.4% 31.6% 32.2% 35.6% Sony Group (Europe) Female employee ratio Female management level ratio '06 '07 '08 '09 '10 38.0% 39.3% 40.3% 42.3% 40.5% 17.0% 17.4% 17.2% 18.0% 17.9%

Sony Group (Asia Pacific) Female employee ratio Female management level ratio Sony Group (China) Female employee ratio Female management level ratio Sony Group (Latin America) Female employee ratio Female management level ratio '06 '07 '08 '09 '10 40.6% 25.6% '06 '07 '08 '09 '10 78.8% 68.2% 36.5% 33.5% '06 '07 '08 '09 '10 51.8% 52.9% 26.6% 22.6%

Collaboration with External Organizations:

Sony actively participates in the Japan Women's Innovative Network, which was founded in 2005 and became a nonprofit organization in April 2007, and of which Sony is a sponsor. In addition, Sony is a participant in the Support Forum for Women in Business, a project of the Japan Institute of Workers' Evolution.

Human Rights and Equal Opportunities

Sony strives to create workplaces where human rights are respected and equal employment opportunities allow individuals to make the most of their capabilities. In light of the increasing diversity of human rights issues and initiatives in corporations, Sony believes it is important that all employees function at work while being aware of each issue they may face.

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Basic Policy on Human Rights and Equal Opportunities

The Sony Group Code of Conduct, enacted in May 2003, contains articles related to respect for human rights and maps out global policies that guide human rights-related rules and activities throughout the Sony Group. As an example, the article in the Sony Group Code of Conduct which concerns equal opportunity in employment lays down a policy of recruiting, hiring, training, promoting and otherwise treating applicants and employees without regard to non-business-related characteristics, including race, religion, skin color, nationality, age, gender and physical limitation. These provisions are based on existing international standards, including the United Nations Universal Declaration of Human Rights.

Systems and Practices for Promoting Human Rights

Sony Corporation's Diversity Development Department spearheads initiatives throughout the Sony Group aimed at promoting awareness of human rights. Each Sony Group company in Japan has a human rights officer who promotes information sharing and familiarity with basic policies through regular liaison meetings. A considerable number of employees enter the annual human rights slogan competition, which is held to raise awareness of human rights issues among individual employees. Regular programs implemented by Sony Corporation include an e-learning program called "Human Rights and the Company" for new employees and a comprehensive training program for management-level employees that focuses on human rights. Sony organizes a human rights forum prior to Human Rights Week, which is held every year from December 4 through 10. Participants include individuals in charge of human rights-related training and personnel staff. The forum features presentations on recent newsworthy human rights issues, as well as the awarding of prizes to Sony Group

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companies

for

outstanding

human

rights-related

initiatives

and

slogans.

To ensure a healthy work environment, Sony has prepared a handbook on harassment issues and actively develops and conducts training programs for employees. Sony Corporation has also introduced the EEO*1 Counseling Service, which provides support to employees while ensuring a high level of privacy and a swift response. *1 EEO is an acronym for Equal Employment Opportunity.

Work-Life Balance
Seeking to maintain work environments that cater to different lifestyles and enable employees to fully express their abilities, Sony has introduced support systems and versatile working styles, among others, to emphasize the importance of achieving an optimal work-life balance.

Flexible Working Styles

Sony not only follows the laws and customs of the countries and regions in which it operates, but also offers versatile working styles designed to help its employees achieve an effective work-life balance. In Japan, Sony Corporation has introduced the "flex-time system" and the discretionary work system, enabling it to offer employees a variety of flexible options. Sony employees have used a high percentage of their allotment of annual paid holidays, which in fiscal year 2009 averaged 18 days.

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Measures Used By Sony to Promote Work-Life Balance

Working Mothers' Meeting
In addition to establishing work-life balance systems, Sony promotes measures to assist employees combining child care and work with the advancement of their careers and to create a supportive workplace culture. More specifically, Sony holds forums and seminars for employees featuring messages of support for work-life balance initiatives from senior management. A notable example is the "Working Parent Forum", which includes a session during which female and male employees with experience in combining work and child rearing share their personal experiences and an event that provides participants with the opportunity to exchange information. Other such events include "Fathers' Forum", which provides an opportunity for male employees to consider how they can participate in child rearing and features a panel discussion by male employees who have experience in this area; and "Working Mothers' Meeting", in which female employees who have returned to work can attend a lecture from guest speakers,

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participate in panel discussions and exchange information with other participants. In April 2007, Sony was recognized by the Tokyo Labor Bureau as a company that actively supports parenting initiatives in line with the Law for Measures to Support the Development of the Next Generation. Sony earned this designation once again in May 2010. In 2008, Sony received the grand prize in the 3rd (2008) Nikkei ParentFriendliness Awards, sponsored by Nihon Keizai Shimbun, Inc. The award recognized the fact that Sony had established systems to support child rearing and a healthy work-life balance, and a high percentage of employees made use of these systems. It also acknowledged the fact that Sony encourages its male employees to participate in child rearing.

Measures Used By Sony to Promote Work-Life Balance

Electronics (Latin America)

In Latin America, Sony has held a number of events aimed at promoting work-life balance since fiscal year 2008, including family days, family picnics and company tours for employees' families. Sony Brazil Ltda. has declared Wednesday a "no overtime" day, and turns off the lights at 5:30 p.m. to encourage employees to return home early.

Electronics (Asia Pacific)

In Singapore, Sony has established a committee that is charged with considering the recreational needs of employees. Each year, the committee asks employees to vote on 15

proposals for the following year. As of fiscal year 2009, employees are able to participate in the planning of related activities. In recognition of efforts such as these to plan activities that incorporate employees' wishes, Sony received the HRM Worklife Harmony Award from HR Media.

Biblography

1.http://www.sony.co.in/section/home?referer=http%3A%2F%2Fwww.google.co.in%2Fs earch%3Fhl%3Den, 6th jan,2011 2. http://www.sony.co.in/section/product, 6th jan,2011 3. http://www.hrotoday.com/content/570/sony%E2%80%99s-hr-transformation, 6th jan,2011 4. http://www.docstoc.com/docs/7195534/Sony-HR-practices, 6th jan,2011 5. http://www.scribd.com/doc/14964689/sony-HR-practices, 7th jan,2011 6. http://www.sony.co.in/productcategory/vaio-laptop, 7th jan,2011 7. http://www.sony.co.in/section/experiencesony, 7th jan,2011

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8. http://www.sony.co.in/section/events, 7th jan,2011 9. http://www.sony.co.in/section/pressroom, 7th jan,2011

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