Essay on Business Environment: Sony

What have you been able to discover about your client’s internal business environment?

My client’s internal business environment is focused on the internal factors which are controllable because Sony Corporation controls all these factors which include the company’s personnel, some physical facilities, as well as some functional means, such as marketing.  For example, Sony’s brand helps to increase sales, launch new products, etc. Moreover, Sony’s vision and mission statements have enormous impact on internal business environment. It says, “To experience the joy of advancing and applying technology for the benefit of the public”. Besides, an important role is played by Sony’s management structure and internal relationships, human resource management and some miscellaneous factors, such as Sony’s technological advancement, financial factors which include different financial policies and the company’s financial position. It is known that today Sony implements many new technological innovations which are represented in the new tech product line, such as mobile communication products, computers, video cameras, televisions, etc.

What have you been able to discover about your client’s external business environment?

My client’s external business environment depends on the market situations and government policies as well as on a number of other factors. Sony, as a leading manufacturing company, is affected by its competitors who want to hold Sony’s position in the competitive market. Among them are Samsung Electronics, Panasonic Corporation, SANYO, Philips electronics and others. The company is influenced by certain changes in law, government policies and regulations, etc. They are focused on product and testing standards, regulatory controls, investment controls, local-purchase agreements and etc.  Sony can be found in many countries of the world that is why different political factors can reduce the sales of Sony in this or that country. Economic factors are focused on changes in exchange rates, tax rates, etc. For example, inflation provokes higher wages. The economic situations in the UK and in some other western countries are rather complex for Sony because of huge economic trade deficits. Besides, rather low growth in the national income of many countries results in the low demand of Sony’s products. All the above mentioned factors can be regarded as barriers to the market entry. Today Sony has a great deal of opportunities in the global market which include launching new products, the use of new technologies, expending business, but there are also some threats which are focused on the increased competition, and severe environmental regulations (pollution issues, reduction of the use of hazardous substances in manufacturing process, waste management, and etc.).

How does the business environment influence their current marketing strategy?

Business environment has enormous influence on the current marketing strategy. Business environment gives an opportunity to find out external forces and different factors that are out of the company’s control. These forces include Sony’ customer and creditors, Sony’s competitors and different national and international organizations, that prevent Sony to hold the leading position in the competitive market. Business environment helps to identify the company’s risks and opportunities and to incorporate the major findings into annual plans. In addition, such social factors as changes in the tastes of people influence Sony’s success in the market. It means that demand conditions and factor conditions of Sony are of great importance. Sony provides great customer satisfaction due to well organized functioning of the company in the market.