Global Strategy and Leadership

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Exam cases:  Kodak  Virgin  Australia Post Pre-seen exam information Semester 2 2012 Global Strategy and Leadership © CPA Australia Ltd 2012 Case Scenario 1 Kodak case facts Eastman Kodak Company (Kodak) was founded in the late 19th century by amateur photographer George Eastman in Rochester, New York. With the slogan ‘you press the button, we do the rest,’ Kodak gave consumers the first simple camera in 1888, making a cumbersome and complicated process easy to use and readily accessible. A major multinational organisation, Kodak was listed on the New York Stock Exchange and became a powerhouse in the photography industry. The company led the way as an innovator, launching a large range of new products and…show more content…
At a court hearing on Thursday evening, a lawyer representing Kodak creditors questioned management’s plan to borrow $US950 million to stay afloat during the bankruptcy process, noting the company had burned through $US2 billion in the past two years trying to reinvent itself. ‘From our perspective, what’s past is prologue’, said lawyer Michael Stamer. ‘They have taken what we believe is reckless and destructive spending and imposed them on this case’. At the end of the four hour hearing, Kodak won approval for $US650 million in interim bankruptcy financing, led by Citigroup. Under Perez, who joined Kodak from Hewlett-Packard in 2003 and became chief executive in 2005, the company has tried to reinvent itself by focusing on printers, packaging and workforce software. Perez financed those efforts with billions in licensing fees from Kodak’s intellectual property, but analysts warned that Kodak was burning through cash too quickly and could eventually run out. Kodak announced in July that it would try to sell some of its digital imaging patents, hoping to cash in on a frenzy for intellectual property that drove Google’s $US12.5 billion takeover of Motorola Mobility. But Kodak failed to draw enough interest among potential buyers, driven in part by fears of the company’s deteriorating financial health. Mr Perez said his turnaround efforts were hurt by the recession, which slowed new business growth and expedited
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