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Tyco International PDF
Tyco International PDF
ROLL NO: 13
Introduction:
1963 — The Kodak Instamatic cameras and cartridge loading films made the
process easy for amateurs. The company sold 50 million Instamatic cameras in
their first seven years.
The late 1980s — The rise of digital photography with analogue cameras
sales decreasing and digital camera sales increasing.
1984 — Customers switched from Kodak to Fuji because the Japanese colour
film was 20% cheaper than Kodak’s.
1991–2011- Kodak released various digital products, but sales kept falling.
Corporate scandals at Kodak primarily revolve around its decline in the digital era
and mismanagement of assets, rather than a specific scandalous event. Here's an
overview of the key events and factors that led to the corporate scandal at Kodak:
1. Digital Disruption:
Kodak, once a dominant player in the photography industry, failed to adapt
to the digital revolution. Despite inventing the first digital camera in 1975,
the company struggled to capitalize on this technology due to internal
conflicts and fears of cannibalizing their lucrative film business.
2. Failure to Innovate:
Kodak's management was slow to recognize the potential of digital
photography and underestimated its impact on traditional film sales. Instead
of embracing the digital market, they clung to their traditional film business,
which ultimately became obsolete.
3. Misallocation of Resources:
Kodak invested heavily in maintaining its film-based infrastructure, rather
than shifting focus towards digital technology. This misallocation of
resources weakened the company's ability to compete in the changing
market.
4. . Missed Opportunities:
Kodak missed multiple opportunities to acquire or partner with key players
in the digital photography industry. For instance, they declined the chance to
acquire Instagram before it gained significant popularity, which could have
strengthened their presence in the digital space.
2. Lack of Accountability:
The board of directors failed to hold management accountable for their
strategic decisions and lacked oversight, which allowed questionable
practices to persist.
Role of Executives and Questionable Decisions:
1. Inability to Adapt:
Kodak's executives failed to anticipate and respond effectively to the digital
revolution. Despite being aware of digital technology's potential, they were
slow to embrace it, leading to a significant loss in market share.
2. Resistance to Change:
Executives resisted internal efforts to transition to digital, fearing the impact
on their profitable film business. This resistance hindered innovation and
strategic decision-making.
3. Poor Investments:
Kodak made questionable investments in non-core businesses, such as
pharmaceuticals and inkjet printers, without achieving significant success.
These ventures diverted resources and attention from their core
competencies.
4. Intellectual Property Mismanagement:
Despite owning a vast portfolio of valuable patents related to digital
imaging, Kodak failed to monetize them effectively. They lacked the vision
and strategy to leverage their intellectual property in the evolving market.
Overall, the corporate scandal at Kodak was driven by a failure to adapt to the
digital age, misallocation of resources, a misalignment of interests between
shareholders and management, and questionable decisions made by executives.
These factors collectively led to the company's decline and loss of its once-
dominant position in the photography industry.
CONCLUSION:
In conclusion, the Kodak scandal serves as a warning about the dangers of failing
to adapt to changing market dynamics and mismanaging resources. It underscores
the importance of embracing digital transformation, fostering innovation, and
having a long-term vision. The case also highlights the significance of effective
risk management, strong governance, and a customer-centric approach. By
learning from Kodak's mistakes, businesses can strive to be agile, proactive, and
adaptable, positioning themselves for sustained success in today's rapidly evolving
business environment.
END