Establish five (5) key objectives for Eastman Kodak that encompasses the operational, financial, human resource aspects of the business. Next, argue that each of the established objectives is essential to the success of the company within the Cloud service industry.
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The presented case study explains why Kodak is no longer profitable. The company is currently facing numerous challenges. Such challenges are currently making Kodak’s business strategy unsustainable. A new business consultant “would recommend the most appropriate Corporate-Level Strategy for the company in order to increase its profitability, improve declining sales, and expand Kodak to the emerging Cloud Service Industry” (Hill & Jones, 2013, p. 68). The company should identify five key objectives in order to achieve its objectives and goals (Coulson-Thomas, 2013). Eastman Kodak should ensure such objectives encompass the financial, human resource (HR), and operations of its business. I would therefore propose se objectives as the new business consultant at Eastman Kodak:
- Identify a successful company in the industry to form a new merger.
- Ensure the firm invests a lot in its Research and Development (R&D) department
- Embrace a better business model (BM) that has the potential to support the company’s departments
- Use modern technological processes to execute its business operations.
- Embrace a positive organizational culture that supports effective communication, decision-making, teamwork, and information-sharing
It is agreeable that the Cloud Service Industry is becoming profitable. The above objectives will ensure the company succeeds in this new industry. For instance, the proposed R&D department will ensure the company succeeds in its cloud business operations. The use of modern technologies will support the company’s culture. Eastman Kodak can collaborate with a successful partner in the targeted industry. The strategy will ensure the company remains profitable. The company’s HR department must hire individuals and managers based on their competencies and skills. They should also be ready to address the challenges affecting the company (Coulson-Thomas, 2013). This strategy will ensure the company is on the right path towards achieving its goals. The above objectives will ensure the company competes successfully in the Cloud Service Industry.
Analyze Kodak’s horizontal and vertical integration strategy and determine the corporate level strategy that is more appropriate for the company to establish a competitive advantage in the Cloud service industry. Provide a rationale for the determination.
The best mission for Eastman Kodak is to establish its competitive strength in the Cloud Service Industry. Eastman Kodak currently uses both vertical and horizontal integration approaches. The above horizontal strategy has increased Kodak’s assets. The company also expanded its business operations in the 1980s. The acquisition of new companies, such as Eikonix Corporation and Disconix, expanded Kodak’s business operations (Jones, 2012). This integration strategy supported the company’s goals. Kodak’s vertical integration approach has also transformed its business operations. The introduction of new products and services in the company has made the company more profitable. This discussion explains why a vertical integration approach can be essential in supporting the company’s future goals. The strategy will make it easier for Kodak to establish a better competitive edge.
Although “the company’s business strategy and model have been ineffective, a new approach will ensure the company combines its efforts with a successful company in the proposed industry” (Coulson-Thomas, 2013, p. 34). The best business approach towards achieving this goal is by merging with profitable companies in the selected industry. The strategy will ensure the company acquires the best competencies and technological skills in order to support its objectives (Coulson-Thomas, 2013). The approach will also reduce the costs incurred at the company. The objectives proposed in this paper will also ensure Eastman Kodak engages in positive practices. These recommendations will ensure the company understands the issues encountered in the targeted industry (Hill & Jones, 2013). This practice will make it easier for Eastman Kodak to engage in profitable business operations.
Determine five (5) ways in which pursuing a multibusiness model based on diversification may increase profitability for the company. Provide at least two (2) examples of such use of a multibusiness model from industry to support the rationale.
Diversification is a powerful multi-business model that can make every firm successful. This business model has the potential to support the profitability of every company. Eastman Kodak has embraced the power of diversification in order to become a leading company in its industry. For instance, the company “began to produce new products such as inkjet printers, digital cameras, and kiosks thus emerging competitive” (Jones, 2012, p. 5). This business model has been supporting the company’s goals. Diversification “can make it easier for Kodak to compete with various corporations in different industries” (Hill & Jones, 2013, p. 49). A good example is investing in the Cloud Service Industry. The approach will also minimize the company’s business risks, thus improving its income levels. The “process will also create new departments and products that can increase the company’s profitability” (Jones, 2012, p. 5). The approach will also make the company more profitable. Diversification also reduces “the dangers and risks associated with a specific industry” (Hill & Jones, 2013, p. 67). This approach encourages a company to operate in more than one industry. Diversification will make it easier for Kodak to form new partnerships and mergers. This strategy will equip Kodak with new skills and competencies, thus improving its profitability (Hill & Jones, 2013).
Several companies have achieved their potentials through diversification. Hewlett Packard (HP) is one of the leading companies in the world. The company produces printers, e-materials, cameras, and tablets. Such products have made it easier for HP to compete in different industries. The strategy has also increased the company’s profitability. Another diversified company is Virgin Group Limited. The company’s businesses “cover different areas such as entertainment, air travel, financial services, digital media, and health” (Hill & Jones, 2013, p. 139). This approach has played a critical role in supporting the company’s goals. Eastman Kodak can learn numerous lessons from Virgin Group and Hewlett Packard in order to diversify its businesses.
Recommend one (1) implementation strategy for Eastman Kodak that considers organizational design, strategic control systems, structure, and the type of organizational culture fitting for the organization and its new industry. Justify the recommendation.
The “best implementation strategy for Eastman Kodak should take the form of a powerful organizational change” (Hill & Jones, 2013, p. 92). This organizational change will address different issues “such as organizational design, structure, culture, and strategic control systems that can support the company’s new strategy” (Hill & Jones, 2013, p. 94). The “purpose of the proposed change is to ensure the company embraces new practices such as planning, acquisition of resources, and promotion of positive objectives” (Hill & Jones, 2013, p. 103). The first step towards implementing the proposed change is by identifying the challenges affecting the company. The proposed change should deal with existing obstacles. Critical analysis can outline the required resources, ideas, and inputs to support the proposed change. The concept of planning will also support this new strategy.
The company will also implement the targeted change by merging with an appropriate company in the Cloud Service Industry. The managers should ensure every employee supports this implementation strategy. The company has failed to achieve its goals because most of its managers have not been collaborating with their employees. The above strategy “will make it easier for Eastman Kodak to monitor its operations and involve every stakeholder in the decision-making process” (Jones, 2012, p. 6). Strategic Planning (SP) will also make the company successful. New improvements and recommendations will be critical towards supporting the company’s goals. The leaders at Eastman Kodak should also promote “the concepts of assessment, evaluation, and planning” (Hill & Jones, 2013, p. 84). This approach will ensure every control system produces positive results. The practice will eventually produce a powerful organizational design. The new organizational culture at the company will ensure the company competes successfully in its new industry.
Speculate on the way in which both the corporate-level strategy and the implementation strategy you recommended in Question 2 and Question 4 would support ethical business behaviors. Analyze the significant manner in which ethics, corporate social responsibility, and environmental sustainability impact the implementation of the strategies that you have recommended.
A good organizational culture has the potential to produce the best results. The proposed corporate-level strategy will ensure Eastman Kodak focuses on its objectives and goals. The company’s Chief Executive Officer (CEO) must support the best ethical practices and ideas. Every successful company depends on the support of its stakeholders. That being the case, the ethical practices of a company will support its business goals. Corporate social responsibility (CSR) and environmental sustainability are powerful practices that can make every implementation strategy successful (Hill & Jones, 2013). These practices will ensure every stakeholder is part of the proposed implementation strategy. The employees should also be part of Kodak’s corporate-level strategy. The practice will ensure the company merges with an ethical company in order to achieve its goals.
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It is agreeable that Eastman Kodak will not achieve its business goals without engaging in ethical practices and activities. A company that promotes such practices gets the best support from every stakeholder. This new relationship will ensure the company achieves most of its business objectives. According to Hill & Jones (2013, p. 58), “every successful company should support the surrounding community, safeguard the natural environment, offer good working conditions, and promote ethical business activities.” Eastman Kodak’s CEO should, therefore, embrace the above practices in order to achieve its objectives. These elements work effectively towards supporting a positive business model. The above business model will ensure Kodak understands its social and legal obligations. This practice will ensure Eastman Kodak promotes the best practices in order to emerge profitably.