Should Sega implement these recommendations, its business performance, as measured through both financial and non-financial indicators will experience discernible improvement.
The Chief Executive Officer (CEO) of Sega Corporation has decided to transform the company into a learning organization, believing that in so doing, Sega will eventually be in a position to confront its competitors and regain the market shares it lost throughout the past decades. Indeed, Sega's persistent failure to accurately gauge and effectively respond to changing trends in the electronic home gaming market has resulted in the almost complete loss market shares, not to mention yearly net losses on sales from the mid-1990s to the present.
Sega's inability to confront its competitors or to reclaim its lost market shares reflects a problem within the organization itself. More specifically, it is expressive of Sega's inability to adapt itself to its changing market environment and train its workforce towards more effective and efficient responsiveness to that environment. It is in the hope of addressing, even reversing this problem, that Sega's CEO has hired an Organizational Development consultant, with the view of transforming the corporation into a Learning Organization.
The particular problems confronting Sega, the extent to which OD tools may aid in their resolution and whether or not the company can benefit from its transformation into a Learning Organization are questions which the below report seeks to answer.
2 Sega: Background and Problems
Prior to determining the nature of the OD intervention strategies required for the transformation of Sega into a Learning Organization and, indeed, whether or not this particular organizational change will benefit the company, it is imperative that the OD practitioner closely analyze the company and identify both the nature and source of its problem(s).
2.1 Company Background
Originally a jukebox importer, Sega Corporation moved on to developing arcade machines, and then on to developing videogames consoles and software in the early 1980s. After enjoying considerable sales and success with their early consoles the Master System and its follow-up the MegaDrive, Sega then began to make a series of costly errors that have finally resulted in their announcement to pull out of console development altogether (Gantayat, 2000).
Following that, Sega decided the time was ripe for a new generation of videogame system, named the Saturn. This was a console based on their existing arcade hardware, but included less memory and was CD based. The CD drive, however, was slow in comparison with what was available for PCs. The