To: Kelly Johnston, CEO Kodak
From: Head of Marketing Operations, Kodak
In Reference To: A Kodak moment; drawing your attention to major architectural flaws within our company, specifically the MAPP plan, as well as solutions for more sustainable options for future structures.
It has come to my attention that there are some major flaws lying inside our organizational architecture. These flaws lay in the foundation of Kodak`s organization structure and so we cannot move forward until these basic errors are corrected. We are seeking companywide success and must act as a company to achieve this.
Throughout its history we`ve experienced dramatic economic upturns and downturns. We are currently trying to pull ourselves out of
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Something needed to change, and the leaders of the time decided to change its organizational architecture in hopes of maximizing productivity and innovation while minimizing loss of profit. At the time, leaders felt that by following other companies lead, decentralizing the company would stimulate innovation. This is an example of benchmarking, where we shadowed other companies business strategies. This decentralization would emulate the new “lab to market” market structure. In sum we went through two major architecture changes; decentralization and the Management Annual Performance Plan (MAPP) and neither was particularly successful.
Analyzing What Went Wrong
Several major mistakes were made when our management decided to change its organizational architecture with these two plans.
I will begin by analyzing the decision to decentralize our management. This can be summed up as Kodak simply changing the assignment of decision rights within the company.
I believe this plan was not successful because it was incomplete, which is rather obvious. Our leaders had the right idea in decentralizing the company; however they did not follow through with this decision. What I mean is, is that when Kodak leaders split up the company into seventeen units, there needed to be seventeen changings of incentive and reward structures, possibly more. Experience tells us location isn`t everything, common sense tells us money isn`t
If I were responsible for solving the problem, in addition to Kodak’s repositioning strategy, I would do the following:
Question 1: What had been Polaroid’s overall growth strategy? How did this affect its HR planning and strategy?
Organizational Structure Organization structure is the differentiation; that is the way the organisation is differentiated into tasks, responsibilities, departments and hierarchies and the integration (the way the organisation is coordinated to form a unitary whole). It defines how activities in the organization are directed toward the achievement of organizational aims. The structure provides the foundation on which standard operating procedures and routines rest, determines which individuals get to participate in which decision making processes and thus to what extent their view shape the organization’s actions (Stephen, 1987) United Parcel Services Organization Chart United Parcel Service, Inc. (UPS) is the world’s largest package delivery
Kodak is known for providing the quality services, innovative products offering the best quality to customers. It developed competitive advantages and satisfied its customers during many years. Kodak has evolved different strategies in the field of traditional photography where it brought innovations and modification. Kodak has a successful history in the industry. According to the case study, the main reason behind the success of Kodak in the industry is its quality.
In Phase II we ensured external competitiveness by analyzing the external market survey data on total
The problem in this case is Kodak's steadily eroding market share and shareholder value in the film rolls market. This is especially undesirable given the fact that the market has been growing at a tepid 2% annual rate and the steadily increasing threat from competition. Kodak needs to come up with a strategy for corrective action so as to arrest this decline, regain market share and increase share holder value. Kodak's strategy is to reposition itself by targeting a new segment of price sensitive customers and re-segmenting the super premium customers’ space by including a wider segment of special occasion customers.
This model was developed by Tom Peters and Robert Waterman (Mindtools 2012). Essentially, it aims to improve the overall performance and productivity of an organization while aligning all departments to suit the shared vision of the organization (Peters 2011). There are a number of benefits within its flexible nature and ability to look back and analyze the success of a previously implemented strategic change within the organization (Simister 2011). It is retroactive, yet it can be an important diagnostic tool in learning for future endeavors of change (Peters 2009).
Drivers for change come in two categories, internal and external. In the simulation, "Organization Structure", the pretence was that the stagnating system integration market, lead the CEO to
When making changes to its organizational architecture, Kodak should have designed it with following characteristics in mind: 1) assignment of decision rights, 2) methods of rewarding individuals, and 3) structure of systems to evaluate the performance of both individuals and business units (Brickley, 2009, p. 341). When changing organizational architecture, it is very important to keep in mind that the three components of organizational architecture are interdependent and need to be coordinated (Brickley, 2009, p. 350-1). Simply stated, the company did not implement a rewards method and performance evaluation system (e.g., the MAPP) at the same time it began changing assignment of decision rights (e.g., restructuring into 17 new departments). When one component is changed, the other components should be changed too. Holding employees accountable while simultaneously implementing a decentralized decision making approach would have helped Kodak to improve the effectiveness of the change in architecture. The company had a stranglehold on the industry and was set it its own company
In my March 6 memo, I discussed the need for Kodak to revamp its core strategy and regain popularity. Eastman Kodak has been the leader of photography and printing products for nearly 130 years. Over the last few years Kodak has been in distress due to its poor fundamental shift into the digital age. Lack of strategic creativity led Kodak to misunderstand the industry in which it was operating. This lack of strategic creativity was costly for Kodak.
In general, Kodak has done well in the innovation implementation. This paper mainly discusses the innovation system within the group also influence the innovation
Norwood wants to restructure Polaroid’s debt and equity to maximize the company’s future potential. During this restructuring, Norwood wants to keep the cost of capital low, create value, and preserve Polaroid’s investment grade in order to allow for future borrowing at investment grade status.
To account for their miscalculation in film sales, Kodak is undergoing a massive digitally based shift. Kodak plans on building a stronger base in its consumer, medical, and profession imaging products. However, this shift does not come without a price tag. Kodak’s projected spending could reach as much as $3 billion in future investments to aid the shift. With these investments Kodak claims a tremendous turnaround in revenue. Kodak anticipates reaching $16 billion in revenue by 2006 and $20 billion by 2010. To pay
While Kodak has historically been a well-established brand name in the marketplace, it struggled to find a niche when the industry morphed from a film-based market to a digital-based market. Kodak has struggled to successfully evolve its film-based business structure to the new structure of digital-based technology, which has allowed for competitors to enter the market, decreasing Kodak’s market share. Competitors (such as Canon Inc., Fuji Photo Film Co., Hewlett Packard Co., Nikon, and Sony Corp.) have posed major threats to Kodak’s livelihood. Kodak faces a 5% drop in film sales (2001-2003) and a 3% reduction in overall revenues over the same time period. In addition, revenues and net income are expected to be fairly flat (or decrease) in future estimates. Kodak faces much pressure to revitalize their business through digital imaging, a radical innovation, or risk being eaten alive in an industry they thought they controlled.
Background Eastman Kodak Company, headquartered in Rochester New York, was founded in 1889. The corporation, now multinational and focusing on imaging and photographic equipment, posted revenues in excess of $6 billion in 2011. During most of the 20th century Kodak was dominant in the photographic film industry in 1976 it held 90% of the market but began a downward slide once the Internet, digital cameras and computer processing grew. By 2007, Kodak ceased making a profit and in January 2012 filed for bankruptcy protection and ceased making cameras, video cameras and began to focus on the corporate digital imaging market (De La Merced, 2012). In evaluating Kodak's corporate strategy from the mid-1980s onward, we find that there four major management paradigms in place during this transitional period: