Sony Pictures Entertainment (SPE) Company Analysis | Get Homework Help

Risk Mitigation Strategy

Adopting a risk mitigation strategy demonstrates a company’s level of preparedness to overcome emerging problems that interfere with its performance in the business environment. In 2014 when Sony Pictures Entertainment (SPE) was hacked into by the “Guardians of Peace,” the significance of adopting a risk mitigation strategy became visible to the global film leader (Sharp, 2017). From this realization, envisioning a risk mitigation strategy at SPE will increase the preparatory efforts adopted by different individuals and reduce the impact of the emerging problems in the corporate scene. In the same vein, developing an effective risk mitigation vision will enhance SPE’s business continuity plan by exposing various stakeholders to different approaches that can be used to influence the nature of outcomes in the contemporary business environment. Some of the techniques that SPE can adopt include risk avoidance, limitation, and transference to create a competitive edge over other industry players in the film industry.

Strategic Goals and Objectives

Increase project value and manage growth

Quality Products

By developing authentic film products, SPE will remain competitive in the movie industry, a move that will define its attitude towards the realization of desired outcomes in the contemporary business environment. Likewise, many individuals will align their interests with the product catalogue generated by SPE because of its ability to meet their desired outcomes.

Continued Growth

One of the benefits of effective growth management is sustainability, which results to increased project value because of consistency in production among other processes. In this case, realizing continued growth will enable SPE to focus on developing an effective contingency plan that influences outcomes in the contemporary world.

Improve Employee Satisfaction

Employee Satisfaction

When organizations meet the interests of their workforce, it becomes easier to enhance their perspectives towards life and create an enabling environment where individuals can align their goals towards the company goals. Given that SPE’s hack was an inside job, promoting employee satisfaction will reduce the probability of experiencing similar incidences that compromise the company’s risk management strategies.

Client Satisfaction

Meeting the needs of consumers increases brand loyalty, which discourages individuals from developing a distant attitude towards the company operations. In this regard, SPE’s ability to meet the interests of its target audience will reduce the chances of future attacks towards its operational performance.

Restructure Organization

Goals oriented management

Company restructuring allows organizations to review their market approach and focus on a more viable outcome that meets their changing needs. In this regard, restructuring SPE will incorporate the introduction of various aspects that are critical to its handling of emerging issues, which undermine its performance in the business environment. Introducing new goals through company restructuring is an important process that SPE can use to overcome emerging challenges, which interfere with its focus in the business environment.

Financial Strength

It should be noted that financial strength is realized through change management processes because of their ability to introduce new approaches that influence the outcomes of events in the contemporary business environment. Even though SPE’s financial records demonstrate its profitable nature, there is a need to diversify the company’s operations to increase the nature of outcomes that can be realized by the corporation.

Lower production costs

Managed Risks

By lowering the production costs through effective management of risk, it becomes easier for SPE to venture into profitable market leads that increase the returns realized by the corporation. Managed risks yield to an enabling environment where an organization suffers limited damage from emerging issues in the macro business context. Gaining control over the external business environment allows organizations to focus on company growth and develop approaches that can be used to increase its competitive advantage in the corporate world.

Strategic Goal Metrics

Revenue Generation

The profitability of an organization is the most critical metric that is used to measure its growth in the business environment. In this regard, SPE’s ability to develop authentic and quality film products over the years is an essential aspect that demonstrates the company’s profitability in the competitive film industry. Likewise, the company’s ability to sustain the growth overtime is important to the development of values that depict its performance against other market players.

Overhead costs

If SPE has high overhead costs, it is impossible for the corporation to associate with partners who support its vision in the business environment. From this realization, this business metric allows company managers to identify their corporation’s ability to accomplish stipulated goals in the market.

Employee Happiness and Customer Retention

When employees are satisfied, it becomes easier to balance their expectations and expose them to an environment where they can pursue their desired goals. Likewise, customer retention and satisfaction are easily achieved because of the high input and dedication from the workforce towards resolving issues that undermine the overall customer experience.

Threat Actors and Methods of Attack

In 2014, Sony’s decision to promote its film, The Interview, exposed it to a wide range of risk factors that interfered with its global image and operational performance. Given the context of the film, SPE found itself in a tricky situation where it was answerable to different parties that were affected by the shared content. Firstly, the North Korean government felt that SPE was promoting terrorism by promoting the events surrounding the assassination of its head of state (Weisman, 2014). Secondly, SPE’s network was infiltrated by a hacking group called the “Guardians of Peace,” who accessed its secret database, exposing its competitive edge to the rest of the world. From this observation, SPE’s threat actors undermined its performance and ability to maintain relations with its global stakeholders in the global business environment.

Pending an intensive investigation by the Federal Bureau of Investigations (FBI), it was established that the online Sony attack originated from the inside, demonstrating the existence of a possible collaboration with the hacking group. From this perspective, Sony’s relations with its employees posed a challenge to their commitment to safeguard the company’s operations and processes from any infiltration by external groups. Although the malware could have been introduced as a bait, meaning that the target was unaware of its existence, there is a need to point out various weaknesses surrounding the company’s digital framework (Aldawood & Skinner, 2019). On many occasions, company invest in effective online security systems that safeguard their data against any digital attacks that target their organization. The lack of an effective security system in Sony’s online network demonstrates the opportunity that was explored by the hacking group to advance its agenda.

From this realization, SPE should monitor its digital footprint to identify any anomaly that exposes it to the dark world of hackers. By stopping any unauthorized encryption in its systems, SPE will succeed in developing an effective risk mitigation strategy that safeguards its digital interests and ability to overcome various scenarios that undermine its performance in the competitive film industry. Likewise, limiting employees from sharing their user credentials or incorporating external devices when performing work-related tasks should be prohibited to eliminate the possibility of extortion in the workplace. Besides, SPE can install anti-malware security features to overcome the challenges attributed to the ability of the external groups to exploit the existing security loopholes in SPE’s network. By introducing multifactor authentication processes, it will become easier for SPE to prevent any futuristic attacks targeting any of its networks and features.

Business Critical Assets

Apart from Sony’s entertainment portfolio, the company relies on a wide range of systems and processes in exposing consumers to an authentic film experience. In this regard, SPE’s corporate infrastructure such as its IT network and enterprise applications play a critical role in the realization of various goals and objectives. Importantly, SPE’s employees use various devices such as mobile phones and PCs to perform a series of tasks that contribute to the realization of its desired goals and objectives. From this realization, safeguarding the security of these devices and other credentials used in creating a unique customer experience should be SPE’s priority in the business environment. Even though it is becoming impossible to have a foolproof system, SPE should constantly invest in research and development to identify suitable approaches that can be used to overcome emerging issues in the business environment.

Intellectual property in the film industry is an important role that influences SPE’s profitability in the business environment. When hackers have unlimited access to private and confidential data, it becomes difficult for the film corporation to work with different stakeholders in the entertainment industry. In this regard, SPE should invest in a security system that safeguards the rights of different players such as script writers and film directors. After the attack, it was feared that Sony lost a significant portion of its revenue because of the availability of pirated content in the business environment. Leaking confidential content created serious privacy issues that undermined Sony’s role as a market leader in monetizing its produced content. From this realization, the brand’s reputation was damaged, as many people accused SPE’s leadership of its inability to create an enabling environment where professional rights were undermined. Therefore, content protection is one of SPE’s main asset that should be protected to achieve the strategic goals and objectives responsible for its success in the competitive film industry.

Customer experience in the modern world is an important aspect of business that many organizations have embraced to maximize their profitability in the competitive business environment. While organizations may vary their approaches, delivering a positive customer experience fosters brand loyalty and increased revenue generation because of high consumption rate. Today, many consumers associate with streaming platforms that expose them to quality content that meets their expectations. When Sony was hacked, many of its customers encountered a series of problems that hindered them from accessing their favourite content. Any delays encountered in the streaming site compels customers to switch to other platforms because of the open nature of the video-streaming market in the contemporary community. The availability of a wide range of options provides consumers with a certain level of control that undermines the influence of companies such as SPE on their decision-making process. Therefore, SPE’s ability to maintain a positive customer experience is one of its main approaches in accomplishing its goals in the competitive film industry.




Aldawood, H., & Skinner, G. (2019). Reviewing cyber security social engineering training and awareness programs—Pitfalls and ongoing issuesFuture Internet11(3), 73.

Sharp, T. (2017). Theorizing cyber coercion: The 2014 North Korean operation against sony. Journal of Strategic Studies40(7), 898-926.

Weisman, A. (2014). A Timeline of the Crazy Events in the Sony Hacking ScandalBusiness Insider.

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