Business Operation And System - Essay Example

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Importance of External Environment to Sony Ericsson
Sony Company is one of the leading manufacturers globally. It manufactures products such as information and communications technology products, video and audio products. The company believes in technology power. …
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Business Operation And System
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Download file to see previous pages Through technology power, the company has come up with new ideas and brand new experiences. The company is recognized due to its variety of products such as online businesses, game, music and picture. It is ranked among the leading company in the globe due to its customer brands.
Sony-Ericson mobile phone segment serves a global communications market with original mobile phones, PC-cards and accessories (Worthington and Britton, 2006, p. 37). The company was established following a merger of Sony and Ericson in 2001. Its corporate functions are based in London although the company has a multinational workforce and has research and development centres in Japan, China, Europe and America (Lewis and Slack, 2011, p. 85). Mobile phone products produced by Sony-Ericson have to compete with other products from other major mobile phone manufacturers such as Nokia, Samsung and Alcatel among other manufacturers. Firms vary in many ways, but the common feature is that they are all involved in transformation of raw materials into output by combing various resources such as labour and technology (Worthington and Britton, 2006, p. 30). The transformation process occurs within a setting being influenced by external factors which affects the operation of a company. The external environment is usually volatile, complex, and interactive which cannot be ignored in the analysis of business activity. In the external business environment, PESTLE analysis is critical for it indicates the various external influences the company is facing. PESTLE is an acronym of political, economic, social, technological, legal and environmental factors in the firm’s macro-environment (Worthington and Britton, 2006, p. 38). Following a PESTLE analysis, Sony has been able to respond accordingly to technological advancement to come up with Sony Ericsson Smart Phone. This demonstrates the influence of technological advancement on the operations of a company. Previously, Nokia and Sony had the most superior phones in the market. However, iPhone and Android introduced the smart phones in the market. In addition, there is increased demand for phones in the market and the lifestyle and level of education of the mobile phone users is changing with more users demanding smart phones. This influenced Sony Ericsson to turn to manufacturing smart phones in order to meet the customer’s demands. Legislative and prevalence of stability within the market it operates in allows Sony Ericsson to market its products in different countries and to decentralize its research and development offices to Asia, America and Europe (Georgiou, 2006, p. 450). Sony Ericsson never led the way in the manufacture of smart phones but only responded in a similar way to the way its competitors were moving as based on the CATWOE model. CATWOE is based on a principle where a company involved in systems development waits to be given a transformation and information on others involved in the transformation and they way they are involved (Georgiou, 2006, p. 450). Moreover, CATWOE seeks to know why transformation is important and the restrictions when planning to implement change. Sony Ericsson should carry out a CATWOE analysis where using a knowledge database it can analyze the proposal to transform its operations to manufacture smart phones. CATWOE analysis takes into consideration the external environment of the company and demonstrated that production of smart phone would benefit its customers whose demand for phones able to access the internet faster and run various applications could be met. In addition, Sony would be able to increase its sales. The company in developing its smart phone outsourced the ...Download file to see next pagesRead More
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