Review the case study for Kodak. You will need to discuss the range of management issues that are contributing to the current situation. You will also need to identify a range of interventions that...

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Kodak Case Study
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Introduction
Globalization and changing economic factors require the companies to evolve on an
ongoing basis. The organizations transform the ways of conducting the business. Companies
through their strategic management plans set the goals that the organization needs to achieve. In
the process of working towards these goals, the companies need to have an effective monitoring
process in place. This function of monitoring evaluates the progress of an organization and
identifies changes in the external environment that might be obstacles in the way of attaining the
organization goals. The companies poise to meet the demands of these obstacles through
effective leadership and efficient management process. But successfully achieving this is
difficult. Founded by George Eastman, Kodak was once the market leader of photography
technology. But its strategic failures failed the company. The irony of Kodak is that it was the
company which built the first digital cameras in 1975. The technology was followed by other
digital camera manufacturers, smart phone manufacturers. The business culture at Kodak gets a
lot of flak. Kodak was very slow in responding to the technological changes. It failed to keep up
with the pace of market adoption of digital technology in photography.
The objective of this assignment is to identify the key problems Kodak is facing. It also
identifies the most important for the organisation to manage at this time. The assignment
assesses the management issues are contributing to the development of these problems. Then the
assignment moves on to reflect on the intervention options that are available for managing these
problems. In the end it identifies the ongoing management issues that the organisation is likely to
face.
Key problems Kodak is facing
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Kodak is guilty of efficiently deciding its own fateful disappearance, or in the very least,
the company’s present dilemmas. Kodak is a case of repeated strategic failure. It was not able to
take hold of the future of digital age speedily enough and even at the time when it did so, it was
executed very slowly under an incessant change strategy and eventually it did not fit
comprehensibly as a key ability. The company is in great trouble as the company’s revenues
increased by just 3% to US$10.07bn as well as the net-loss from regular operations amounted to
US$1.32bn, against an income of US$139m in the year 2005. Even the company’s chief resource
abilities have been under fire since the value of ‘Kodak’ brand decreased by around approximate
33% – a loss of around US $2.6 billion alone. The company is facing serious problems. Kodak is
really in trouble, just as several other companies – particularly under the present sluggish
economic environment, but what detaches Kodak from various other similarly distressed
companies is the repeated failure of approach at Big Yellow. First of all, Kodak was deficient of
the frame-breaking behaviour postulated through the GTP (Generative Thinking Perspective)
approach which could have otherwise permitted it to ask correct questions of its association with
the market and also help in developing appropriate scenarios of the future of photography and
imaging (Gavetti et. al, 2005). Moving ahead, the speed of technological change needed that
Kodak act speedily, but still believed in silver-halide times, where Kodak required blending
latest techniques. Kodak responded slowly to the technological advancements (Wit & Meyer
2004). Further, Kodak possessed abilities in paper and film, photo and chemicals processing,
however the latest digital age was diverse: it depended on technology.
The most important problem for the organisation to manage at this time
Out of all the problems discussed above, the most important for the company to manage
at this time is Kodak’s slow response to technological changes. Evolutionary alterations had
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failed Kodak in years leading up to such point and now revolutionary transformation was
essential. The digital age had moved the imaging segment and at present Kodak required to apply
the similar revolutionary change internally. Taking into consideration the present competitive
and continuously advancing business world, it is highly essential for companies like Kodak to
response quickly to technological changes or advancements so as to ensure long term existence
and sustainability.
Management issues that are contributing to the development of these problems
Market signals came in 1981, when Sony Company announced it would introduce
Mavica. In spite of managers becoming concerned regarding the prolonged existence of silver-
halide technology, several found it difficult to believe in something which was not as money-
making as traditional film. It was not just a case of late actions, as although it was apparent the
business required shifting on to digital bandwagon. The...