Howard Stringer, the Sony CEO working on a "100 day plan" for the company, just earned a 'C+' grade on the plan
so far. Sony announced 10,000 job cuts
or a 6% reduction in its global workforce. Restructuring costs
associated with the cuts caused Sony to drop their fiscal year
forecast from a $90 million profit to a $90 million loss.
Controlling costs is one way to turn a company around, but if its the
only way then it's a short term fix at best. Sony can't afford the
trend of losing market share to rivals such as Matsushita, Samsung and
Sharp. The new Bravia LCD line
is a step in the right direction, but Sony needs to add some truly
innovative products and features in both the HDTV and the portable
digital media space to regain their crown. If they can do that within
the next six months, we'll move Stringer's grade up to a "B."
What do you think Sony needs for a successful turnaround?