...To: Kelly Johnston, CEO From: Chief Restructuring Officer In Reference to: Executive Summary: * Eastman Kodak is an industry leader in developing, manufacturing, and marketing different imaging products for leisure, commercial, and medical use. * Recently, Kodak attempted to reorganize its architecture * Kodak has been slowly executing a plan to make the transition from a film business, to a profitable and sustainable digital company. Kodak has faced great difficulties such as: * Restructuring costs * High competition * Rapid growth * Low profit margins. * Our company’s architectural restructuring plan was motivated by: * Competition * Our virtual monopoly was eroded through the entry of other firms. * Technological Advancement * Advances in technology have allowed firms to produce new products faster. * Changing Market Environment * These changes have caused us to fall from a once prominent monopoly in the film industry, to such a small player in the digital industry. * To win back market share and increase profits, Kodak did a mass restructuring that failed to provide the expected results. * Decentralize Decision Making * Altering the decision making process from a top-level approval requirement to a more decentralized decision making process of small business units and managers...
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...Eastman Kodak Company es una multinacional de EE.UU. que produce imágenes y material fotográfico y equipo. Bien conocido por su amplia gama de productos de película fotográfica, Kodak es reorientar en dos mercados principales: la fotografía digital y la impresión digital. Políticos Ley de EE.UU. exige que todos los derechos de autor tiendas de fotografía que se abstengan de impresión o la liberación de las imágenes digitales tomadas por fotógrafos profesionales, sin un comunicado de los derechos de autor (2005, 2005). Las imágenes tomadas por fotógrafos aficionados pueden encontrar dificultades en hacer que sus imágenes de aspecto profesional en la impresión, por lo que afectan a las ventas de impresión fotográfica. Económica En 2002, la creciente demanda de cámaras digitales provocó la reducción de 2,6% en las ventas tradicionales de película fotográfica, esta tendencia se espera que continúe en el futuro, las impresiones hechas de películas tradicionales disminuyó en 700.000 durante el mismo año. Las ventas de cámaras digitales en 2002 ascendió a 2,96 mil millones dólares USD, tomando una porción considerable de los ingresos totales de la industria. Disminuye el precio de la cámara digital que hace muy asequible para los consumidores más, lo que a las demandas aún mayores. Socioculturales Hombres (58%) tienden a comprar cámaras digitales más que las mujeres (48%), las mujeres, especialmente las que tienen hijos sin embargo, son los que utilizan las...
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...Name: Professor: Class: Date of submission: Turnaround strategy for Kodak Introduction The rapid changes in business environment and increased domestic and global competition have made the business environment to be more unstable. Organizations of different sizes are struggling to survive if they do not change according to the changing business environment. Many organizations have realized the need to change in order to survive in the changing business environment. Businesses which do not change are getting into trouble due to some factors some of which are internal while others are external. The businesses can easily get a turnaround if they properly diagnose the symptoms leading to failure and take collective action. The concept of turnaround can be described as taking action when a firm is facing a financial disaster or to prevent the firm from having a financial disaster. Turnaround does not only involve transforming which has declined but also those whose management fell the results are not satisfactory (Mason & Gerard, 160). Kodak one of US most recognized company which has been in operation for over a century has been struggling for years due to its slowness in adapting to the changing business world. The company had been one of the leading image solution providers in the world for many years. Established in 1880 by George Eastman Kodak become one of America’s well known company by helping to establish the market for camera film and the becoming the market...
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...Case Study: Eastman Kodak 1. The different factors that motivated Kodak to change its organizational architecture are: A. stiff competition. For many years, Eastman Kodak had control on the film production industry. The firm had managed to time the release of its new products to meet customer demands. However, in the 1980s, Eastman Kodak’s virtual monopoly of the film production industry was rattled by the entry of Fuji Corporation’s high quality film. The new product from Fuji Corporation wore away the big market share of Eastman Kodak. In addition, other generic store brands of film began to emerge in the market, making the competition in film production industry tougher. The entry of new players as well as the improving market share of competitors has eroded Eastman Kodak’s virtual monopoly of the film production industry. B. technological advancement. While Eastman Kodak may have been one of the pioneers in film production, technological advances have paved the discovery and creation of new products. Advancement in robotics, design capabilities and improved communications has allowed faster and easier development of products. Thus, new products can be introduced in the market within months instead of years. Thus, consumers are presented different products in various styles with numerous functions. The availability of many products in the market made the film production industry more competitive. C. changing market environment. With technological advancement...
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...rights become decentralized. Second, methods of rewarding individuals determine how the organization will provide incentives to its employees. Organizational goals and employee’s productivity play great roles in determining a scheme of remuneration. Some organizations repay their employees through financial rewards such as the monthly wage, and cost of living allowance, and other benefits. Also, some firms offer nonfinancial rewards such as improving the workplace and enhancing the employees’ skills and knowledge through trainings and seminars. Third, structure of systems to evaluate the performance of both individuals and business units. Every company has its own way of evaluating the performance of each department and employees. Such evaluation system is dependent on how...
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...Eastman Kodak, Fujifilm Innovation vs. Tried and True Introduction Eastman Kodak and Fujifilm have numerous accomplishments to brag; they have both amassed large success in the photographic commerce. While Eastman Kodak had the upper hand in the industry for nearly 100 years, Fujifilm has managed to flourish while Kodak filed bankruptcy in 2012. Fujifilm appears to have strategically implemented an equation that will thrive as long as they continue to invest in innovation, and navigate market changes. History Eastman Kodak and Fujifilm have been competitors since Fujifilm’s inception in 1934. Eastman Kodak had more than half a century worth of discovery and expertise over the incoming Fujifilm. However, when Fujifilm opened operations January 1934 within a month’s time they were producing all the same products as Eastman Kodak: roll film, photographic print paper, dry plates, and x-ray movie. It took George Eastman, inventor and proprietor of Eastman Kodak 25 years to invent color film (Eastman Kodak, unknown); in detail, George Eastman was renowned for very cautious designing temped with endurance, he did not hurry discovery and breakthroughs he was able to take his time because the industry was somewhat new and there was no real competition. As Kodak was ascending the ladder of success, George Eastman and his group of inventors had conceived many first. Including, the first dry plate formula along with the first patented appliance for organizing large amount of...
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...Report for Eastman Kodak Company Bryan Espichan June 18, 2014 Strayer University: ENG 315 Board of Directors 123 Main St. Rochester, New York 14652 June 4, 2014 Dear Board of Directors: The following report concerns the strategies for Eastman Kodak Company to recover from bankruptcy and improve products. Since 1880, Eastman Kodak has been known for their high quality photography equipment (George Eastman, n,d). However, in 2012, Kodak has filed for bankruptcy due to many reasons including failure to keep up with improvements in technology (Mui, 2012). The Research Department is planning to restore Kodak’s former prestige by improving the company’s ability to adapt to the rapid technological advancements. In order to do this, we were able to agree to present the Board of Directors with two solutions which are: A. Allow the research department to hire five new employees to increase productivity. If we hire younger and enthusiastic minds working together, the research department will be able to work more efficiently. B. Allow the research department to contract four experienced scientists from different companies to assist the research staff. If we have more experienced minds working with our research department, we will be able to work together to invent better products and discover new technology. The two options presented on this letter have been carefully analyzed using five different criteria which will be explained in this report. The research department...
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...Kodak and the Digital Revolution [pic] [pic][pic]Brief Overview: Kodak is a multinational American corporation which has become a household name most known for its film products. The company has come face to face with many changes due to the digital revolution which has created a rapid changing photography industry. George Eastman began Kodak in 1880 and introduced the first Kodak camera in 1888 coining the slogan “you press the button, we do the rest.” Eastman held a high standard for the company when it came to competition however with many managerial and product line changes, Kodak has slowly fallen behind in the industry. The company has experienced many shortcomings with the most recent trend of digital photography. According to Exhibit 7, from 1998-2002 Kodak was 2nd to Sony in the U.S. for the percent of units sold. The company is now considering layoffs as market share, film sales, and company revenues are down. Problems: § The company is faced with multiple managerial problems. First, the company lacked fresh blood in its management team. All of its CEO’s primarily came from the manufacturing jobs within its own company. This hurt the company overall and put a damper on keeping up with technological changes and competition as “Kodak avoided anything risky or innovative.” Second, when the company finally did add new blood to its management team things still didn’t look up. CEO Kay Whitmore was added in 1990 and changed the focus to “film based technology” such...
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...Analyzing Managerial Decisions: Eastman Kodak by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning November 24, 2013 1) What factors motivated Kodak to change its organizational architecture? There were several factors that persuaded Kodak to make changes to its organizational architecture in 1984. Kodak had come to the conclusion that its present organizational architecture did not fit the current business environment for the industry. The biggest factor that persuaded Kodak to make a change was the growing competition in the industry and losing the dominance it once had in the film market. The emergence of new product being made by Fuji Corporation dwindled away their market share. In the early 1980’s, Kodak saw their share price drop from a high of $85 to a low of $71 in 1984. This was cause for change to its organizational architecture. In order to stop the bleeding, Kodak realized it had to restructure and react quickly. With developing technology, Kodak was losing ground fast and was no longer the conglomerate it once was. 2) What mistakes did Kodak make in changing its architecture? Kodak was faced with trying to regain market share. It needed to quickly make changes to respond to shareholders concerns. There were obvious advances in technology that concerned Kodak. Kodak restructured creating 17 new business units with profit-loss responsibilities. Unit leaders were given increase decision-making...
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...rights become decentralized. Second, methods of rewarding individuals determine how the organization will provide incentives to its employees. Organizational goals and employee’s productivity play great roles in determining a scheme of remuneration. Some organizations repay their employees through financial rewards such as the monthly wage, and cost of living allowance, and other benefits. Also, some firms offer nonfinancial rewards such as improving the workplace and enhancing the employees’ skills and knowledge through trainings and seminars. Third, structure of systems to evaluate the performance of both individuals and business units. Every company has its own way of evaluating the performance of each department and employees. Such evaluation system is dependent on how...
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...Eastman Kodak Company 2010 Annual Report on Form 10-K and Notice of 2011 Annual Meeting and Proxy Statement SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K X Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the year ended December 31, 2010 or Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from Commission File Number 1-87 to EASTMAN KODAK COMPANY (Exact name of registrant as specified in its charter) NEW JERSEY (State of incorporation) 343 STATE STREET, ROCHESTER, NEW YORK (Address of principal executive offices) Registrant’s telephone number, including area code: __________________________ Securities registered pursuant to Section 12(b) of the Act: Title of each Class Common Stock, $2.50 par value Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [X] No [ ] Name of each exchange on which registered New York Stock Exchange 16-0417150 (IRS Employer Identification No.) 14650 (Zip Code) 585-724-4000 Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X] Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding...
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...ESTRATEGIAS DE DIVERSIFICACIÓN Introducción Nos correspondió como grupo analizar y exponer las distintas estrategias de diversificación existentes. El formato propuesto tiene que ver con el fomentar un debate al respecto pues este tipo de herramientas tiene tantos adherentes como detractores. Por una parte está el hecho financiero de diversificar los riesgos para tener un mayor control, lo cual puede ser muy aconsejable en tiempos como los actuales en que la competencia en muchas industrias y mercados es muy pareja, a causa de la gran cantidad de información y el nuevo papel fundamental del consumidor y su satisfacción integral como principio y base de la producción, deben ser tenidas en cuenta por toda planificación estratégica. Pero por otro lado está el clásico dicho “quien mucho abarca poco aprieta” pues por diversificar demasiado se corre el riesgo de perder la esencia u origen o forma propia de hacer las cosas, perdiendo también el control pues no necesariamente somos especialistas en todo. Queremos llegar a una especie de consenso donde se vea tanto lo positivo como lo negativo analizando casos emblemáticos en estos dos sentidos y que el auditorio o lector sean quienes juzguen dónde está el equilibrio óptimo. Clave para esto será el papel y definición de la ventaja competitiva de cada negocio o empresa. Nos adentramos sin más, al análisis de este tipo de estrategias y la aplicación a los distintos...
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...Polaroid Estrategia 3. Enfoque estratégico de la empresa Desde hace algún tiempo, el enfoque de la compañía Polaroid fue cámaras instantáneas. Ellos fueron un éxito, ya que muchos podrían ver sus fotos. Además, la letra pegadiza canción "Shake it como una foto Polaroid" ayudó a difundir el nombre de marca a las poblaciones múltiples. Como las cámaras digitales se hicieron populares a través del tiempo, Polaroid perdió la concentración en su principal punto de venta: la fotografía instantánea. Sin embargo, Polaroid cree que esta nueva década es el momento de recrear sus cámaras instantáneas con la misión de revisión y nueva serie de valores y visiones. Actual Misión "Para poner la última tecnología de punta en manos de la gente y darles el poder para usarlo cómodamente, asequible ... y en un instante." Polaroid misión siempre ha girado en torno a la conveniencia del cliente y la facilidad de la tecnología. Su punto fuerte, la película instantánea, sigue siendo un legado en la empresa. Al asociar sus productos con precios razonables, la comodidad, y sobre todo de forma dinámica las continuas innovaciones, Polaroid se ha arraigado como na de las mejores marcas a los ojos de sus clientes, especialmente los aficionados. Sin embargo, en lugar de las tendencias actuales del mercado, ha llegado el momento de Polaroid para revisar su misión para incluir los siguientes aspectos y valores: * Experiencia: Más que un producto, las nuevas cámaras Polaroid servirá de experiencia...
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...Kodak: Changing the Picture Synopsis The case begins by recalling Kodak¶s storied history, which began in 1888 with its introduction of the Brownie camera priced at $1.00. By 2000, Kodak was one of the most recognized and trusted brands in the world. However, by the year 2000, the company faced many challenges. Its stock price had plummeted, and it had begun laying off workers. Even worse, when the September 11tragedy hit, consumers began to flock to digital cameras, and cell phone manufacturers beganto offer camera phones. As if all that were n¶t enough, Fuji was slowly but surely exposing the cracks in Kodak¶s marketing strategy. This was especially true of the move toward one-hour photo processing. In early 2003, the company began a major reevaluation of corporate strategy. In the years following, Kodak reduced its dependence on traditional photography. The new direction for the company would focus on non-photographic markets, digital markets (such as inkjet printers and high-end digital printing), and medical imaging. The company would no longer invest in traditional consumer film, which, along with photography, accounted for 70 percent of Kodak¶s revenue and all its profits. By 2004, the company had been significantly restructured in a manner reflective of the new strategic directions. By 2006, it appeared that the new strategic plan was not working, as evidenced by heavy losses and a declining stock price. Discussion Questions 1. How are the market...
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...Eastman Kodak Company: Funtime Film 1. Cuáles fueron las causas de la pérdida de mercado de Kodak y cuál sería el desarrollo del mercado si Kodak mantiene el “status quo”? La participación de Kodak en el mercado de Estados Unidos disminuyó de 76% a 70% en 5 años, debido principalmente a que sus competidores (Fuji y Konica) ofertaron versiones de los productos a bajo precio. Fuji comenzó su seria incursión en el territorio de Kodak cuando captó la atención de los consumidores convirtiéndose en la película oficial de los Juegos Olímpicos de 1984, lo cual implica que la competencia estaba atacando exactamente el mismo mercado objetivo. Además ingresaron nuevos competidores como Polaroid. Adicionalmente, los competidores empezaron a ganar participación a través de marcas propias, que es un segmento en el que Kodak no puede vender. Finalmente, y teniendo en cuenta que los consumidores tienden a considerar las películas como un commodity, Kodak no está ofreciendo ningún factor de diferenciación que le permita justificar un precio más alto y mantener su porción de mercado. De mantener el “status quo” es probable que Kodak no logre asegurar la fidelidad de sus consumidores (el 50% de los compradores es “leal a Kodak”), y que cada vez más de los consumidores que cambian de marca o deciden por precio se inclinen por la competencia, disminuyendo así la participación de mercado contra competidores que atacan con una calidad similar los diferentes segmentos. Considerando...
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