Q1what strategic errors did Kodak make in the period since 1990?
Keeping in mind the movement toward digital photography, one can conclude that Kodak failed in developing strategic steps on executing a variety of manufacturing processes, which could ensure a company’s competitive advantage. The extremely high demands of the modern business world require the companies to be ready to meet a wide range of different requirements. Generally, when discussing Kodak’s strategic errors, one can probably point out that the company did not take into account the impact of globalization on management policies.
In other words, it seems to be obvious that photography is considered to be a rather perspective branch of the business; so, there is no wonder that a new group of competitors appeared. It should be noted that “the problem for US policymakers and companies competing in a global marketplace is this: the trend toward outsourcing has gone beyond simple assembly-line work” (Gerdeman 2012).
One more important aspect, which cannot be neglected, is that most technological devices were also produced overseas. For this reason, Kodak had to note that there were not only domestic competitors but also numerous foreign companies, which represented the threat to its competitiveness. The growth of digital photography blocked the company’s chances of producing high-quality products. An ineffective managerial system is also recognized to be an important factor, which caused the company’s disastrous fallout.
To prevent the negative consequences, the company had to develop a special plan on how to overcome the difficulties. However, managers chose the opposite strategy and started investing in disruptive technologies. It was the most serious strategic error Kodak made. The company’s administration seemed to miss that the decision-making process is to be based on careful reasoning; while jumping to conclusions can lead to extremely dismal outcomes (May n.d.).
Q3/what strategy should Kodak adopt now to remain viable and over time, become once again a successful organization?
When discussing the strategies Kodak is to adopt now to become once again a successful organization, it is necessary to state that it is the company’s organizational culture, which is to be reconsidered. First of all, there is a strong need to fully engage employees in the company. Thus, as far as employees will be cognitively and emotionally involved in a variety of organizational processes, they can positively contribute to organizational objectives achievement. In other words, one can conclude that engagement can be regarded as the key to organizational effectiveness improvement (Harter et al. 2002).
Before taking certain decisions, a variety of steps must be followed. Thus, when some problems or dilemmas appear, the managers are to think about the major causes of the problem. Identifying direct and indirect stakeholders is also important, to determine a wide range of potential ways, which can be followed to succeed. So, it is evident that seeing the things from the third hand is considered to be the most appropriate way, which the company is to rely on to increase its competitive advantage and therefore, to impact on turnover and productivity positively. Determining the potential consequences and actions can clarify the company’s goals on a priority basis.
It should be noted that Kodak is to identify its short-term goals and long-term ones. The Sarbanes-Oxley Act must be taken into consideration by the company’s managers to prevent information leakage: therefore, one can conclude that whistle-blowing must be encouraged if it can be morally justified. Employees, in turn, must understand that “Responsibly blowing the whistle avoids charges of being merely a disgruntled employee” (White n.d.).
References
Gerdeman, D 2002, ‘Kodak: A Parable of American Competitiveness’, Harvard Business School. Web.
Harter, J, Schmidt, F, & Hayes, T. 2002. ‘Business-unit-level Relationship between Employee Satisfaction, Employee Engagement, and Business Outcomes: A Meta-Analysis’, Journal of Applied Psychology, vol. 87, pp. 268-279.
May, D n.d., ‘Steps of the Ethical Decision-Making Process’, Ku.edu. Web.
White, R n.d., ‘Whistle-Blowing’, Msj.edu. Web.