Sony: a Transnational Corporation

2942 Words12 Pages
Joe Bonazelli
Final Project: Part 2
Due: 4 December 2012

Sony Corporation: Globalization Meets Localization

What is a transnational corporation? Select any one and present a short essay on what the company produces, where are the facilities located, and refer to aspects of capital, labor, and markets of its final product.

A transnational corporation is a nationally based company that manages production units or provides service in two or more countries. They are corporations that make decisions from a global prospective rather than one centralized headquarters. Typically the corporation will have its headquarters in one country, while it operates in one or more other countries. Sony is a Japanese transnational
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Morita believed that if the two wanted to enter manufacturing and sales of electronic equipment, it must create a market presence in the United States where product quality had a good standing. In 1951, Ibuka decided to travel to the United States where he learned of the creation of the transistor by a man named Bell Lab. He was able to convince Bell to license the transistor technology to his Japanese company for uses in communication. (Gurshun & Kanayama, 2002) Masaru Ibuka and his team of engineers made the first commercially effective radio transistor called the ‘TR-63 Radio’ (Schiffer, 1991) By the late 1950s, Americans had begun to buy portable transistor radios in massive numbers, causing an a great enhancement in this novice industry from intitial sales of approximately 100,000 units in 1955 to nearly five million units by the end of 1968. (Chang, 2008) In the meantime, Masaru Ibuka and Akio Morita renamed their company to Sony Corporation, which was a combination of the Latin word sonus, meaning sound, and sonny, a nickname for a small boy. This name was a reflection of the company’s ambitions to grow and correspond to an image of vibrant youth. (Chang, 2008) Two years later Akio Morita founded the Sony Corporation of America, officially transforming Sony into a transnational corporation. Following their invention of the transistor television, Sony offered American Depository Receipts (ADRs) on the over-the-counter market of the New York Stock

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