1101IBA- Management Concepts
Assessment 2: Report
Report on Strategic Management at Eastman Kodak
Tuesday, 23 September 2014
Once a great leader and legendary brand in the photographic film industry, Eastman Kodak is now fighting to recover from a tech revolution that is strangling its core business. Kodak Chief Executive Antonio M. Perez is on the road to innovation. Taking in to consideration of the mistakes and lessons learnt from the past, Perez is reinventing the company’s core business model. As Perez reassembled the business he replaced a lot of executives to get the organisation ...view middle of the document...
This report will go in to depth about strategic management within the organisation, discuss the relevance of strategic management theories, and will make recommendations for Kodak to take in order to implement strategic management within its company.
Kodak’s biggest flaw is that they always underestimate change on the market. As stated previously Kodak is always one step behind competitors. For instants, one example of this would be when Kodak offered consumers top quality cameras for reasonable prices and released a brand new printer dock. This would have been very successful for Kodak, however the executives were not aware of how fast every competitor would race in to the market all going digital. This was all Perez’s leading innovations for the company. Kodak strives off the main key for the organisation ‘product innovation’. However this did not lead the organisation to have many success stories.
Yves L Doz and Wilson.K (2012) say that, “Innovation can no longer be the preserve of the traditional notion of science-and technology- based ‘invention’ or new knowledge creation.” They argue that the concept of innovation is more about new services, value propositions and business models today then what its original concept was. If Kodak had implied strategic management they would have been more prepared with the arising situation and acknowledge a strategically plan in order for Perez’s innovation to be completely successful. Therefor it is evident that Kodak should implement strategic management within the company.
Although Eastman Kodak had a lot of different strategies they were not as successful as other businesses in the market. For example, Ditmore.J (2012) states that Kodak only had part of the successful formula. This included innovation and experiments but they were unable to take the failures and adjust their delivery to match what was required for marketing success. Ditmore.J (2012) also writes that in order for Kodak to find new markets for success they should have executed more effort across more diverse product sets for this to work.
To examine this argument into greater depth, senior consultant Baldwin (2001) quotes that “Good strategic planning should lead a company to growth, increasing profitability and growing market share over time.”
Strategic planning defines long-term needs, sets goals or objectives for the future and requires certain steps to achieving them. Without Strategic planning a lot of companies, like Kodak, are not as successful as required. As Kodak was once a great leader in the photographic film industry the main problem within the organisation was that new industry trends throughout the market were being ignored. This lead to the competition becoming more successful. Senior consultant Baldwin (2001) also comprehends that the rest of the market were open to innovation and new developments outside the current technology. He believes that unchallenged recipes for success can be the...