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Eastman Kodak: April 2020
Eastman Kodak: April 2020
Eastman Kodak: April 2020
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Eastman Kodak
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Eastman Kodak
Raj Patel
TABLE OF CONTENTS
INTRODUCTION ........................................................................................................................................ 3
VISION ......................................................................................................................................................... 4
MISSION...................................................................................................................................................... 6
STRATEGY ................................................................................................................................................. 9
ORGANIZATIONAL CULTURE ............................................................................................................ 11
ORGANIZATION STRUCTURE ............................................................................................................ 13
RECCOMENDATION .............................................................................................................................. 15
REFERENCES ......................................................................................................................................... 17
EASTMAN KODAK 3
INTRODUCTION
• Idea did not reach to the right source for development / implementation
• unidirectional growth
• Irrelevant Information provided by company
All five concepts are stated and discussed briefly by using course learned
concepts and researched from authenticated resources. After stating and discussing
each concept, all three issues are explained by relating to that concept. Apart from that,
there are some concepts which is interrelated to each other and by thoroughly
examination, it has derived for every concept. For instance, Eastman Kodak has major
symptom that, it skipped digital revolution which might described in every concept.
However, by deep research and proper justification, also by considering the issue, it has
differentiated with different concept. Furthermore, individual concept has examined in
the end for its accuracy and it leads to the recommendation.
Recommendations have divided into three parts for all three issues. Every
written issue has recommendation by considering all five concepts written and explains
in the body of the report.
EASTMAN KODAK 4
VISION
Issue: Idea did not reach to the right source for development / implementation
Eastman Kodak has vision and values that explains their wiliness to develop
technology. Additionally, elaborating vision statement and considering core values, core
value of being innovative company is not relevant to what happened to company. There
are some direct and indirect reasons involved in this failure that are,
Issue: Idea did not reach to the right source for development / implementation
[Cont.]
failed to stand for their core value which is impacting presently to company’s capability
of implement ideas.
Finally, Kodak was focusing on development and invention but did not invested in
it (Anthony, 2016). Also in New-York time magazine response to Kodak’s digital camera
as ‘’ that’s cute – but don’t tell anyone about it.’’ (Anthony, 2016) Which states that
innovate something but not implement it.
Having clear vision on their core competences helps companies grow. Eastman
kodak has core purpose to reduce waste to make film looks good for customer which
they were failed to do so. Instead of looking in single directional they were trying
different direction and various fields to achieve. Kodak has lack of concentration on their
core competencies which as, image processing, cameras and many more. Various
reasons are,
Kodak has core competencies on making films and camera but with that it tried to
jump into various fields. Kodak is working on different fields. Films diminished after
digital camera came and they were no longer have focus on cameras. Instead they tried
to develop new technology rather than use and develop their core competency.
Additionally, Kodak were jumped into different products segments for instance,
Cameras, printers, accessories, 3d printing and eyeglasses lenses rather than focusing
on their core competencies (Kodak, Consumer Home, n.d.). They were largely focused
on their camera and film business in 1994 (FLAMHOLTZ & RANDLE, n.d.) but in
present only camera they produce is not that advance as others.
Kodak has latest innovation and products that are having positive impact on
market. In the contrast of that, Kodak was claiming to be great in technological
advancement in cameras and reach everywhere that directly connected to sales of
EASTMAN KODAK 6
Eastman Kodak, but it all went wrong. According to report of Petapixel. Total sell was
about 2.4 billion USD which significantly dropped by 34 million USD (ZHANG, 2019).
Reason to relate this as irrelevant information, in 2011 Kodak aware every investor that
sake will increase and investor should invest more (Zaxarchive, 2011).
MISSION
Eastman Kodak has mission which states ‘’ We plan to grow more rapidly than
our competitors by providing customers with solutions they need to capture, store,
process, output, and communicate images- anywhere, anytime. We will derive our
competitive advantage by delivering differentiated, cost-effective solutions-including
consumables, hardware, software, systems and services-quickly and with flawless
quality’’ (Dr. Palmer, et al., p. 44)
Issue: Idea did not reach to the right source for development / implementation
Imaging industry did not have many known software companies, in which kodak
is one of them. With the time, many software and computer companies entered in
market [i.e. Microsoft]. Competition started and amid 1100 patterns, kodak resisting to
implement new software in camera as well as image processing (AFZ, 2015).
Software industry was not like photography business where kodak was too big.
Implementation and development of software is agile and frequent changing field and
organization is only focusing on image processing software which is less than half
revenue of any organization (Dr. Palmer, et al.). therefore, implementing and developing
new ideas are rudimentary which Kodak fail to achieve.
As discussed above, company has no similarity in what their vision is and what
they are doing. For mission statement Kodak is very much accurate in its mission
regarding unidirectional growth because it is something everyone should do while
making mission statement. However, they were focused in their product solution
providing. Moreover, after bankruptcy kodak were more focused on type of services it
provides. Therefore, the only issue with its mission statement is its solution providing
ability (Kodak, Consumer Home, n.d.). Kodak provide many solutions that create issue
to decide what to focus the most. Decision of making priority is issue generated with
such kid of mission statement.
EASTMAN KODAK 8
Mission statement clearly stated that they provide solutions anywhere and
anytime. Kodak is worldwide firm but not everywhere. One of the solutions kodak
provides is kodak kiosk. Kodak kiosk is part o kodak movement and they announce that
it will be provided worldwide (kodak, 2020). They believe that the moment spending with
kodak will be memorable but there are several cases of kiosk failures (Photo kiosks fall
victim to Kodak's collapse, n.d.)
Additionally, Kodak is claiming to be cost effective, but it was not the case for film
profile. Kodak has quality films but cost with its rival Ilford, kodak is not that cost
effective. Kodak film is original which is been copied by IIford and the result were
amazing which states best quality film can be produced with minimal cost. Kodak is
producing its product with considering every aspect but topmost is brand value and
name. That makes kodak costly and it is not stand for what kodak is reflecting in
mission statement.
.
EASTMAN KODAK 9
STRATEGY
Eastman Kodak has strategy with wide perspective regarding different strategies,
it incudes Corporate level strategy, Business level strategy, Functional level strategy
and Technology strategy (Dr. Palmer, et al.).
Eastman Kodak stated its corporate strategy as a growth strategy that includes
Imaging technologies, products, and services (Dr. Palmer, et al., p. 48). Kodak is global
technology company which is focusing on print and Advance material & Chemicals.
(Kodak, Investor Center, n.d.) Similarly, Business level strategy involves customised
solution on-time, less budget and with minimum service disruption. Moreover, it involves
providing solutions to business efficiency improvement (Kodak, Kodak Serices for
Business, n.d.). Specifically, resource and capability analysis, value chain analysis,
human resource management, market & sales, technological development, etc. are
division of functional level strategy. (Dr. Palmer, et al.). Lastly, kodak is technologically
advance that gives leverage to explore various fields with product range 3D printers
(Kodak, Consumer Home, n.d.).
Issue: Idea did not reach to the right source for development / implementation
Kodak is well known for its ‘Razorblade strategy’ As kodak was major producer of
camera and film in 20th century, they adopted strategy called ‘Razorblade strategy’. In
this strategy they were selling camera at low cost and film at higher margin. But they
failed due to resisting to change the strategy (What’s Wrong with This Picture: Kodak’s
30-year Slide into Bankruptcy, 2012). They were facing economic crises (Time and
Crisis Management Recorded, n.d.) as their stock in New-York stock exchange plunged
by 35 percent. (Kodak files for bankruptcy, 2012)
EASTMAN KODAK 10
Issue: Idea did not reach to the right source for development / implementation
[Cont.]
As described above, Kodak was one to invent digital camera but could not
implement this. Kodak had existing model and they were very much profitable in that.
That was the reason they skipped the digital era which failed them and brought to the
bankruptcy on January 2012 (Kodak files for bankruptcy, 2012).
Also, it was focusing on outsourcing strategy that loose concentration of firm from
core competencies. (Kodak, business process outsourcing, n.d.)
In past, Kodak had adopted strategy named ‘Razorblade strategy’ which made
them successful and helped them to generate revenue. They were claiming to be
successful before 2012 when company filed chapter 11 bankruptcy. However, at that
time company was blaming not to develop digital technology (Dr. Palmer, et al.). But
with time it was clear that their data and information was irrelevant and primary cause is
resisting to change strategy (Anthony, 2016). In other word, Company was blind with
revenue and present success, so they did not focus on future and they blame not to
implement digital camera. It is the reason of that past data/ information irrelevance.
EASTMAN KODAK 11
ORGANIZATIONAL CULTURE
‘’Growth and innovation can only realize by sustaining a world class culture that
positioned kodak as employer of choice.’’ (Kodak, see us now). kodak helps determine
and develop collective identity by considering each person’s strength and creativity also,
both experienced and fresh talent appreciated (Kodak, Welcome to careers at Kodak,
2020). Fully integrated talent programs and achieve business objectives with
maximizing potential of individual and organization, integrate diversity is important in
kodak (Organiizational Structure and Culture, n.d., p. 27).
Issue: Idea did not reach to the right source for development / implementation
Issue: Idea did not reach to the right source for development / implementation
[Cont.]
In the opposite of Kodak’s CSR activities, employees were finding issues to deal
with legacy of business which was shrinking significantly. Also, company outsourced
some experts to fill gap of expertise, internal knowledge was underdeveloped. Also,
internal employees with great ideas did not approves by management. For example
Steven Sasson who invented digital camera, he was internal engineer but didn’t
approved and said that as scrap idea (Pangarkar, A failure of focus: Lessons from
Kodak, 2012) in current situation company has become outsourcing company which
thinking about better workflow solution. (Kodak, business process outsourcing, n.d.).
Kodak culture has a downside that for manager it is very tough to consume that
their hard work of doing research was getting wasted as higher authority has no specific
ideas whether to implement that idea or not. In other word higher authority was
confused which idea to be invest and which not to. This culture was called as ‘relatively
laissez-fair’ culture (What’s Wrong with This Picture: Kodak’s 30-year Slide into
Bankruptcy, 2012). It is against their culture where Kodak is focusing on employee
development program.
Kodak was outsourcing talent from outside the company which generated lack of
talent in the organization before 2012 (Pangarkar, A failure of focus: Lessons from
Kodak, 2012). That was the reason company had lack of talent. Additionally, company
is working on outsourcing to provide service as third party do operation and
responsibility (Kodak, business process outsourcing, n.d.). Their information provided
was not clear and created complications to follow.
EASTMAN KODAK 13
ORGANIZATION STRUCTURE
Eastman kodak has changed its of structure after many years of research and
analysis. From traditional forms of organization structure, Kodak chose to follow
geographical departmentation as they have various department and segments to control
(Organiizational Structure and Culture, n.d.). Moreover, they also have derived different
segmentation with clear separation. For example, print system segmentation will
operate as separate segmentation named traditional printing segmentation.
Issue: Idea did not reach to the right source for development / implementation
kodak had organizational structure with multiple. Kodak was resisting to change
its operational strategies that ultimately made them to stick with current structure.
Eastman kodak has centralized structure which need to be changed or that need to be
improved in such manner that power will flow easily and implementation of new idea to
manger and employees gets promotion (AFZ, 2015).
Kodak failed to change its operational ideology and so organizational structure till
2012. that had huge impact on company’s revenue as well as growth in market. Due to
this, company was struggling financial crisis (Time and Crisis Management Recorded,
n.d.) which led them to bankruptcy (Dr. Palmer, et al.).
Eastman kodak had evaluated various aspects and its structure has changed
from 2020 (KODAK, 2020). Organization growth might helpful if the company change its
EASTMAN KODAK 14
Issue: Idea did not reach to the right source for development / implementation
[Cont.]
structure. Additionally, Eastman Kodak had continuous growth after implementing new
structure but the struggle is that they cant stop following competitors corporate structure
(KODAK, 2020).
Company had centralized structure from beginning which and they did not think
of changing it until they filled bankruptcy. Company were profitable and happy with their
revenue that was reason not to focus on structure change (FLAMHOLTZ & RANDLE,
n.d.).
Eastman kodak was struggling to decide the organizational structure which was
directly related to its organizational strategies. As Eastman kodak has geographic
departmentation type of centralized structure, they has more opportunity generated than
highly centralized structure. (Organiizational Structure and Culture, n.d.). Information
provided in press release in 2012 (Rangel, 2012) and annual report of 2020 (KODAK,
2020) has stated clearly different structures and plans. In 2012, due to file bankruptcy,
Eastman Kodak were stating different future plants and claimed to change
organizational structure to decentralized but from report of annual 2020 structure is
centralized but with geographic departmentation which is ultimately ingle officer take
charge of whole region/country related departments (KODAK, 2020).
EASTMAN KODAK 15
RECCOMENDATION
From all five concepts including Vision, Mission, Strategy, Organizational Culture,
Organizational Structure, recommendation have provided for all three issues that is,
1dea did not reach to the right source for development / implementation
• Unlike past, Kodak should implement and invest in its concepts [1000 patterns].
implementation.
• Any developed idea should be in implementation stage and consider everyone’s
idea as important.
• A field like software development, Kodak should not get into the field of software
development field.
• Kodak should get updated with its strategy. For instance, kodak should not stuck to
one strategy- ‘Razorblade’.
• Kodak should focus on what their culture is expressing as it must follow rules for
employee’s development.
• Organizational structure change may be tough but kodak should change
organizational structure to decentralized (Organiizational Structure and Culture, n.d.)
as there are different divisions are there to handle.
Unidirectional growth
• Kodak should concentrate on its core competencies which is Camera and films and
develop it.
• Instead of solution providing as outsourcer (Kodak, business process outsourcing,
n.d.), Kodak firm must focus on core competencies [i.e. cameras]
• Kodak firm’s higher authority must do measurable decisions so hard of managers
will not get wasted.
• Kodak should consider aspect and in the sake of having successful, having same
strategy and structure do not work well.
EASTMAN KODAK 16
• Eastman Kodak should give statement after doing certain analytical measures.
• Organization should not emphasize investors to invest just because company
believe in increment.
• Firm should implement what they mean in mission statement.
• Instead of blaming digital camera technology implementation failure, kodak should
accept that it was failure of resisting to change strategy and act accordingly.
• Kodak must take care for information and future claims that claiming of future might
be dangerous.
EASTMAN KODAK 17
REFERENCES
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market-leader-to-bankruptcy/
Anthony, S. D. (2016, 06 15). Kodak’s Downfall Wasn’t About Technology. Retrieved from hbr.org:
https://hbr.org/2016/07/kodaks-downfall-wasnt-about-technology
Dr. Palmer, Charles, M., Catherine, P., Hugo, S.-R., Todd, T., & Carol, W. (n.d.). Kodak. Integrated
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EASTMAN KODAK 18
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