FINANCIAL MANAGEMENT

UNIT 1 ACTIVITY 2
KODAK CASE

GROUP 4

MARTHA MILENA MENESES ID 731813

KAREN LORENA MONTEJO ID 641325
ENEIDY VARGAS GUERRERO ID 767167
NANCY MILENA RUEDA LEÓN ID 767217

PUBLIC ACCOUNTING
FACULTY OF BUSINESS SCIENCES
CORPORACIÓN UNIVERSITARIA MINUTO DE DIOS

NRC 40-10381
BLANCA EUGENIA TARAZONA SÁNCHEZ
2022

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 INTRODUCTION

With this work we seek to apply the concepts of financial management and how important it is
internally of a company, within its functions is responsible for verifying how the company's
finances are going, if the income it has is sufficient to cover its debts or on the contrary you have
to take another financial debt for the leverage of the same to expose a little more thoroughly has
been taken as an example the Kodak company that due to bad decisions and interpretations from
its administrative area was taken to the broken bank in 2012.

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 KODAK CASE

"You press the button; we do the rest"

Eastman Kodak Company commonly known as Kodak founded in 1881 in Rochester, New York in
the United States of America, a leading company and pioneer in the photography market for
decades and one of the first companies to start digital photography, producer since its inception of
the photographic roll and from 1888 also began as its own producer of photography devices, With
his way of production and the simplicity of his cameras, he put the world of photography within
the reach of the average American population.

Poor decision-making and his excessively conservative acting failed to understand the meaning of
a technological transition that was threatening his business.

He did not know how to adapt to the changes of the twenty-first century. However, it is a bit
simplifying the vision of the company trapped in analog photography, grim to the changes, since
historically it had invented the digital camera in 1975 and began to launch its first digital cameras
to the market in the nineties.

Kodak broke overconfidence, lack of vision, perhaps a kind of arrogance as heavy as its size,
bureaucratic stagnation and, above all, trying to resist during the digital revolution with an archaic
business model, away from the consumer of digital environments, based on the sale of film and
printing.

The inaccuracy of renewing a culture of marketing with characteristics that worked before the
common use of the Internet around 1990, perceiving a new social paradigm in the way of sharing,
using, and capturing photographic images, that is, a new social culture of the image created with
mobile phones and developed through the Internet and social networks since 2000.

The rise of Asian giants as relevant players in digital photography begins in 1990, Canon, Nikon,
Fuji, Olympus, and more recently as Panasonic, Sony, LG and Samsung accelerated the end of the
Kodak paradigm.

His biggest mistake was to play everything to a card and continue betting only on cameras in a
world that was heading without brakes towards the use of cameras on mobiles.

Put all the resources into the production of cameras that were really going to a lost and broken
bottom. This is simply due to a natural fear of losing lifelong buyers, entering unknown markets.

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In 2000, with all that digital transition boom and the panic that ensued with it, 72% of Kodak's
revenue was due to film-related sales, compared to Fujifilm's 60%. the digital era arrived and,
later, mobile phones with a built-in camera.

Starting in 2006 it suffered a fall that finally led to bankruptcy in 2012.

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 CONCLUSIONS

We can conclude that financial management is important in every decision that is made; since
later it will be the reflection of the result of each operation, it will tell us how good and successful
they were depending on each company name or activity that is developed.

The Kodak case, put into consideration tells us that even if you have the experience and trajectory
for more than 20 years does not mean that your finances will always go in the best way and you
will not be exposed to failures or losses; it has to innovate to go beyond the needs that are
required, in order to make it easier and more practical for the case the use of digital cameras.