Kodak

3 Pages 637 Words

"To compete in today's world, we needed a business model that allows us to make full use of our assets. These changes put us on a path to achieving that goal." - Kodak Chairman and Chief Executive Officer Daniel A. Carp.









BACKGROUND
The Eastman Kodak Company was founded in 1880 as a full-service photography company, manufacturing cameras and film that the customer returned to Kodak for processing and printing. The company now employs approximately 100,000 people worldwide, with approximately 39,000 of those in the Rochester, NY, area.

PAST PROBLEMS

Kodak’s problems included:
· Unrelated diversification;
· Long-term under-performance in its core businesses; and
· Poor long-term strategy.

CURRENT STRATEGY

Kodak’s goal is to be the number one or number two positions in markets where rates of return consistently exceed the cost of capital. In 2001 Kodak announced a new strategy: to tackle digital imaging head on. Their action is based on the knowledge that demand for traditional products is declining, especially in developed markets. Kodak’s chairman and chief executive Daniel Carp had the following to say on this topic, "Given this reality, we are moving fast - as digital markets demand - to transform our business portfolio, with an emphasis on digital commercial markets. The digital world is full of opportunity for Kodak, and we intend to lead it, as we have led innovation in the imaging industry for more than a century."

PAST ORGANIZATIONAL STRUCTURE

Previously, businesses shared those responsibilities, which affect sales and earnings with the company's Global Operations division and other corporate-wide departments, an arrangement that increased complexity and cost while reducing accountability. This structure could be considered a bureaucracy approach, which has certain shortfalls such as: functional unit goals can override the overall goals of the organization and obsessive concern ...