Essay: The TOC applied to Sony Corporation

Sample Essay

Sony Corp. is global corporation with HQ in Tokyo, Japan. It is one of the pioneers of “audio, video, communications, and information technology products for the consumer and professional markets.[1]”

As explained earlier in the report, one of the ways to ease a constraint is to outsource part or whole of that constraint. This is what is being planned at Sony. The CEO Howard Stringer announced that Sony, which previously focused too much of its resources on manufacturing, would consider the move to outsource television manufacturing to cut costs and place vital resources elsewhere in the value chain, such as core processes including product design, and research and development[2]. This is in line with what competitors such as Apple and Cisco are doing, who have a history of focusing purely on the core features such as product design and delegating the manufacturing processes to outside vendors. This is a great example of the TOC applied at Sony. The CEO as seen from the above example realizes that the employees are an important resource that is being tied up in manufacturing and cannot focus on the more important aspects of design and research, which are crucial for the industry that Sony Corporation is operating in.

[1] Sony Corporation of America (2009) “Overview” Retrieved March 19, 2009 from http://www.sony.com/SCA/index.shtml

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