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Case study about Sony Music Entertainment : new worldwide organizational structure and the marketing, planning and budgeting of Pink’s new album Essay Example

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Question no. (1)

The change in Sony music entertainments organizational structure from a geographical structure to an artist-driven organization.

The new organizational strategy introduced in Sony music entertainment was aimed at creating music superstars globally. The new structure could assist enabling the artists to reach outside geographical boundaries making the artists known at the international level. The new organizational structure could be one of the ways of streamlining the company in its various regional corporate groups like Latin America, Europe, and Asia. The new organizational structure of the company can ensure that the management of the various regional groups of the company do report directly to the chief executive officer making the management of the groups centralized. As a result, the management of the different groups of the company can easily be managed and controlled hence ensuring standardizations of the services and products in the different regions.

The change in the organizational structure to the artist-driven organization can be crucial in the process of strengthening the relationships of the artists in various regions globally. Through the new organizational structure, the top management, and the chief executive office can be able to be closer to the artists. Besides, the new structure can be important in ensuring that the managers can support the CEO through providing creative options to the executives. The new organizational structure is expected to assist in improving the sales as the sale in the music industry has been dropping since the year 2000. This can be achieved through ensuring efficiencies and effectiveness in the process of operating in the industry.

The management and control of the music industry can be made easier due to the resulting centralization of the management of the activities in the industry. For instance, music licensing and production can be made easier where the intellectual property rights can be effectively managed. Previously, the intellectual properties in the music industry could not be managed to result in a serious problem. Besides, through the use of the new organizational structure, the artists can be able to access better terms of contracts as the new organizational structure advocates for favorable contract terms. The artist-driven organization structure assists the artists in distribution due to the increased adoption of technology making it possible for the artists to use YouTube and other internet supported means of distribution.

The centralization of the management of the music industry is likely to assist in ensuring that challenges facing the industry are eliminated. This can be possible due to the closure relations established between the artists and the top management. For instance, there has been an increase in online piracy that has been affecting the music industry hence the new structure can assist in ensuring that these challenges are solved. Also, the engagement of the various stakeholders in the industry can be made possible through the adoptions of the new organization’s structure. This is because the new artist-driven organization structure ensures that the top management establishes close relations with the stakeholders. Therefore, the CEO of the company can easily involve the stakeholders like the artists in finding the best solutions to the problems that have been facing the industry.


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