sony-organizational-structure

Sony organizational structure

Sony has a matrix organizational structure primarily based on function-based groups and product/business divisions. The structure also incorporates geographical divisions. In 2021, Sony announced the overhauling of its organizational structure, changing its name from Sony Corporation to Sony Group Corporation to better identify itself as the headquarters of the Sony group of companies skewing the company toward product divisions.

Understanding Sony’s organizational structure

Sony, formally known as Sony Group Corporation, is a Japanese multinational conglomerate headquartered in Tokyo.

The company has interests in several consumer and professional electronics markets, such as video games, digital cameras, televisions, audio equipment, music production, digital storage, and healthcare biotechnology.

At the peak of its powers, Sony was dubbed the “corporate octopus” for its sprawling and diverse number of ventures across many unrelated industries. With that said, the rest of this article will explain how the company structures these various pursuits.

What is Sony’s organizational structure?

Sony has a matrix organizational structure primarily based on function-based groups and product/business divisions. The structure also incorporates some geographical divisions. 

Function-based groups

To support function-based efficiency and effectiveness, Sony is driven by the following functional groups:

  • Research & Development.
  • Finance.
  • Legal, Compliance, Corporate Communications, CSR, External Relations, Information Security & Privacy.
  • CEO.
  • Engineering.
  • New Business (Strategy).
  • Human Resources & General Affairs.
  • Sales & Marketing.

Product/business divisions

As of October 2021, Sony has the following product/business divisions:

  1. Game & Network Services – Sony Interactive Entertainment.
  2. Music – Sony Music Group (Global), Sony Music Entertainment Japan.
  3. Pictures – Sony Pictures Entertainment.
  4. Electronics Products & Solutions – Sony Corporation.
  5. Imaging & Sensing Solutions – Sony Semiconductor Solutions.
  6. Financial Services – Sony Financial Group.

In most cases, each division contains a few holding companies that themselves contain related businesses. For example, Columbia Records is part of the Sony Music Group.

Each division is also headed by what Sony calls an “officer in charge”.

Geographic divisions

Geographic divisions are most relevant in terms of finance, planning, and strategy. These include:

  • Asia-Pacific.
  • Europe.
  • China.
  • United States.
  • Japan.
  • Other Areas.

Revisions to Sony’s organizational structure

In April 2021, Sony announced that it would be overhauling its organizational structure.

As part of the overhaul, the company changed its name from Sony Corporation to Sony Group Corporation to better identify itself as the headquarters of the Sony group of companies. Coinciding with this move was the renaming of Sony Electronics Corporation to Sony Corporation – a product-based division we mentioned earlier.

Sony also announced that it would be changing the executive structure of each of the businesses contained in its six product-based divisions. For example, all businesses under the Imaging & Sensing Solutions division would establish their own executive structures. The executive teams were comprised of existing functional group leaders, with each team handed some degree of authority to promote more efficient decision-making within the company.

Key takeaways:

  • Sony has a matrix organizational structure primarily based on function-based groups and product/business divisions. The structure also incorporates geographical divisions.
  • Function-based groups include CEO, Research & Development, Finance, Engineering, and Human Resources & General Affairs. Sony also operates six key product-based divisions: Game & Network Services, Music, Pictures, Electronics Products & Solutions, Imaging & Sensing Solutions, and Financial Services.
  • Sony also has six geographic divisions and made some changes to its organizational structure in 2021. Chief among these was the renaming of some business units and the establishment of executive teams for each holding company.

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