Activist investors argue that Sony is spread too thin over too many businesses, and that its corporate

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Question:

Activist investors argue that Sony is spread too thin over too many businesses, and that its corporate strategy needs a major refocus. These activist investors request that Sony should combine its music and movie businesses into one entertainment unit, and spin it off as a standalone company. Sony Pictures Entertainment has music artists such as Snoop Dogg. Kelly Clarkson. Justin Timberlake, and Pink under contract. The movie Skyfall, Sony's 2012 installment in the James Bond saga, topped the rankings and grossed over $1 billion since its release. This corporate restructuring would allow Sony to focus on its core business in electronics, while unlocking hidden valuecreating potential in its entertainment unit, activists investors argue.

a. What is Sony's organizational structure? Do you agree with the assessment that "Sony is spread too thin over too many businesses"? Why or why not? Explain.

b. What would be the benefits of splitting Sony as proposed? What would be its drawbacks?

c. Which recommendations do you have to restructure Sony? Explain