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Sony Company Macro And Micro Environment Analysis

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Analyze the macro and micro environment of the chosen company and discuss how different factors have influenced the company

 

Answer:

Introduction

Sony Corporation is an international company which engages in diversified business such as electronics, financial services, gaming and entertainment (Grayson, 2013, pp. 78-79). The company is headquartered at Minato, Tokyo, Japan. In the whole world, the company owns the biggest music entertainment business. Also the company has a good share in the market in video game business with also the company being the largest manufacture of electronics.  On this piece or work am going to analyze the macro and micro environment of the Sony Company and discuss how different factors have influenced the company. 

Macro environment

The company continues to perform well in global market by addressing its external factors which affects it appropriately. The PESTEL analysis identifies those macro-factors which try to affect the company in one way or the other. Those internal factors include political, economical, social and culture, technological, ecological, ecological/Environmental and legal factors. The analysis determines how the said external factors create opportunity and threats to the company in the market. In the company decision making it must always put the above factors into consideration (Kumar, 2014, pp. 74-78).

Political factor

Politics affects the company in different ways. In some cases, this aspect might consider the influence of the government activities on the company. Some of the external political factors which affect the company are political stability which provides the company with perfect environment to sell its products. For instance, due to their political stability the USA, Japan, China, Germany, France and England Sony have done extremely well in those markets. However, political instability provides hostile environment for doing business. Some of the countries which the company does not do well because of instability are Yemen, Afghanistan, Syria, Pakistan, Iraq, Somalia and Libya.

Economic factor

The company performance depends on the economic trends. For example, the growth of developing market creates the opportunity for the company. Also, the instability in economics of the developed markets in the environment also creates opportunity for the company.

 

Social cultural factor

Like any other company also Sony Company is affected by the social trends of the consumers. Some of the social culture which creates opportunities to the company includes an increase in online gaming, improved in wealth distribution and increasing openness toward the leisure.

Technological factor

The company has advanced technology which helps in innovation which helps the company to sell more products in the market.

Ecological/Environmental

The conditions of the natural environment affect Sony and the market it operates in. The ecological/Environmental analysis covers the effects of ecological trends and the conditions on firm’s remote or macro-environment. Some of the ecological/Environmental which provides opportunity to the company includes an increase in emphasis on the business sustainability, an increase in demand for environment friendly products and lastly an increase in availability of recycled facilities.

Legal factors

The government can come up with rules and regulations which can affect the company either positively or negatively. Laws are designed to govern the company but sometimes it can hinder the company operations.

Micro environment

In micro-environment the company deals with all the internal groups such as financial, management, research, development among others.

The company

The company has very highly trained research team which comprises of different financial advisors, technicians and managers who are supposed to keep the company as a giant from the inside in the market (Städtler, 2015, pp. 206-251).

The suppliers

Sony Company is as good as its suppliers. The good suppliers in the market help the company to compete competitively in the market.  Also, the suppliers help the company in producing quality and reliable products.

Consumers

The primary purpose why the company exists is to deliver quality and reliable products to the consumer who consumes it. Consumers are the most important factor in the Sony Company.

 

References

Grayson, R., 2013. Sony : the company and its founders. 2nd ed. Minneapolis, MN: ABDO Pub.

Kumar, V., 2014. Business Environment. 3rd ed. London: Bloomsbury.

Städtler, R., 2015. Strategy Coursework - Sony Corporation. 4th ed. Mu?nchen: Mu?nchen GRIN Verlag GmbH.

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