On March 7, 2005 the Board of Directors of the giant multinational Sony Corporation created history by appointing a non-Japanese, Howard Stringer, to head Sony Corporation as the Chairman and CEO. Stringer took over at a time when operating margins of the Electronics division, which contributes to nearly two-thirds of Sony's total revenues, was showing negative growth. Sony's product segments were also beset with problems with the company losing the television wars to Sharp, its Walkman line crushed by the Apple iPod and the PlayStation games console threatened by Microsoft's X-box. Stringer realized that reducing costs was just one of the many parameters that could affect the bottom line. What was required was new projects and strategies covered by timely decision-making. The article gives details about product groups such as games consoles, audio systems, digital cameras and television. It examines the performance of these groups and studies the downslide in sales over the years, especially in the new millennium. It also analyzes the initial results of Stringer's turnaround strategy when operating margins rose from 1.3% in 2004 to 2.6% in 2006.

"The key to success for Sony and to everything in business, science and technology for that matter is never to follow the others. Our basic concept has always been this—to give new convenience or new methods or new benefits to the general public with our technology."

"Sony has an unparalleled legacy of boldness, innovation and leadership around the world. Together we look forward to joining our twin pillars of engineering and technology with our commanding presence in entertainment and content creation to deliver the most advanced devices and forms of entertainment to the consumer."

On March 7, 2005 the Board of Directors of the giant multinational Sony Corporation appointed Howard Stringer as the Chairman and CEO. The appointment created history because it was the first time an `outsider' a non-Japanese was selected to head a Japanese electronics conglomerate. Stringer formally took over in June the same year replacing former Chief Nobuyuki Idei who had been Chairman from 2000 and also Group CEO from 2003. Consequent to the appointment, some board members resigned taking responsibility for the poor performance, over the years, of Sony Electronics, a business that made up 70% of Sony's $64 bn annual revenue. Moreover, when Stringer became Chairman, Sony Pictures was passing through one of its worst slumps in years after acquiring MGM, in partnership with three private-equity firms, and Comcast, a cable television company. Tensions were on the rise between Sony Music and German partner BMG in the merger of Sony BMG Music Entertainment. Stringer commented that it was a little unfortunate that it was not a more tranquil time for the two entertainment companies. He felt that jobs like his come during difficult times and that the early years were going to be demanding.

Global CEO Magazine, Howard Stringer, Sony Corporation, Decision-making Process, PlayStation Games, Private-equity Firms, Japanese Electronics, Sony Electronics, Sony BMG Music Entertainment, Entertainment Companies, Digital Entertainment, Financial Services, Internet-related Services, Digital Electronics, International Markets, Organizational Structure.