The current technological development has affected the growth and performance of Eastman Kodak. The company is facing a high chance of becoming bankrupt (Jones, 2012). After joining Kodak as a Business Consultant, I would recommend five key objectives that encompass its financial, operational, and human resource aspects. The first objective is identifying a profitable company to start a new partnership. The second objective is replicating a profitable business model that supports its major divisions.
The third one is investing a lot in research and development (R&D). The company can also identify new practices to minimize their risky investments. The fifth objective is redefining Kodak’s organizational culture and performance. These five objectives will ensure the company establishes a new financial, business, and operational strategies (Jones, 2012). These objectives will make sure the company succeeds in the cloud service industry. Increased investments in R&D will produce technological ideas and promote Kodak’s cloud business.
The reduction of expenditure in other risky investments will ensure the company focuses on its cloud service business. Kodak’s human resource (HR) department should hire new leaders and employees who can make the company profitable. The decision to form new partnerships with different companies should focus on firms that can implement Kodak’s cloud service. Eastman Kodak can hire new individuals to present technical ideas. HR must identify and address the challenges affecting its employees. The approach will expand the company to the competitive cloud service industry.
Kodak has always used horizontal and vertical integration strategies in order to achieve its business goals. Kodak’s horizontal integration strategy made it easier to acquire and operate new assets in its business. The approach expanded the company’s operations, thus making it profitable throughout the 1980s. The company acquired new companies such as Disconix Inc. and Eikonix Corporation.
The corporation also increased its involvement in health products. Kodak’s vertical integration strategy has also improved its performance. For instance, the firm acquired Sterling Drug for over $5 billion. Kodak also introduced new services and products in order to reduce competition (Jones, 2012). The decision was relevant to making Kodak a leading player in different industries. According to this discussion, Eastman Kodak should use its vertical integration strategy in order to establish a competitive advantage in the cloud service industry.
The company’s business model has not been producing the best fruits. The above strategy will ensure Kodak acquires new partners that can make its digital business successful. Eastman Kodak can also collaborate with successful companies in the cloud service industry. This approach will make Kodak successful. Vertical integration will ensure Kodak reduces its business costs (Mendes, 2013). The strategy will ensure Eastman Kodak engages in better operations in order to emerge profitably.
Eastman Kodak succeeded after embracing diversification. The company’s multi-business model increased profitability. The desire to “pursue a multi-business model based on diversification can significantly increase Kodak’s profitability” (Mendes, 2013, p. 18). Kodak decided to produce inkjet printers. The strategy made it easier to compete against leading companies such as Hewlett Packard and Canon (Jones, 2012). Kodak produced cheaper digital cameras, thus competing against Sony and Fujifilm. The firm “also introduced digital kiosks” (Jones, 2012, p. 13).
The decision to acquire new companies in the cloud service industry will make the firm successful and profitable. Kodak can use the approach to team up with new partners in the industry. A multi-business model is the best plan for reducing the costs of doing business. These businesses will support one another, thus promoting performance. The business model will also promote diversification. The company “will create new sources of income whenever there is an economic crisis” (Mendes, 2013, p. 21). The approach will reduce every risk associated with a single industry. The decision will ensure Eastman Kodak operates in different industries.
The plan will “equip the company with new ideas that are applicable in the other business segments” (Hill & Jones, 2013, p. 89). The model will make it easier to leverage resources. The above business model has the potential to increase Kodak’s profitability. Walt Disney Company became successful because of its animations and movies. The firm diversified its business by creating vacation properties, cartoons, and theme parks. Samsung is a profitable producer of smartphones and television sets. The company has used a multi-business model because it produces military equipment, watches, household gadgets, and ships. These two companies explain how such a multi-business model can make different firms profitable (Hill & Jones, 2013).
The best implementation strategy for the company should consider different issues such as organizational culture, structure, strategic control system, and organizational design. The best implementation strategy “will embrace appropriate ideas such as planning, identification of goals, and consideration of culture” (Hill & Jones, 2013, p. 149). The strategy should have these steps:
- Strategic focus: Refine the strategy
- Assessment: Analyze the required resources and inputs
- Planning and Execution: Identify and implement improvement plans
- Continuous Improvement: Analyze results and promote employee participation
The leaders should execute the above strategy in a proper manner. The company’s earlier CEOs failed to involve their employees and workers in various stages. They delegated duties while focusing mainly on the targeted goals. They embraced Kodak’s traditional cultural values and practices, thus making the firm less profitable. The proposed implementation strategy will ensure the company plans every activity in a proper manner.
The manager should ensure every activity is operations-driven (Jones, 2012). The other approach is ensuring everything is action-oriented. The execution stage will require every player in the organization. This “implementation strategy should promote constant planning, communication, decision-making, evaluation, and assessment of results” (Mendes, 2013, p. 23). The strategy will support every control system and organizational design. The company will identify a new culture that can produce good results. This implementation strategy is appropriate for Eastman Kodak because it has made many companies successful.
Many successful corporations support ethical business practices and behaviors. The proposed strategies have the potential to make the company profitable. After emerging profitable, the company’s CEO will begin to focus on issues such as corporate social responsibility and environmental sustainability (Hill & Jones, 2013). The proposed implementation strategy will also ensure every employee is part of the corporate-level strategy. This approach will ensure every employee engages in different business activities. The company should use its vertical integration strategy to improve its performance.
It will be appropriate for Eastman Kodak to “promote the best ethical practices before and after achieving its business goals” (Hill & Jones, 2013, p. 172). Unfortunately, the company might not achieve its goals unless it embraces the best business approaches. It is mandatory for every company to engage in corporate social responsibilities. Such responsibilities include “promoting ethical business activities, supporting communities, and safeguarding the environment” (Hill & Jones, 2013, p. 134). These requirements will compel the company to work harder in order to have a successful business. This situation explains why the firm should undertake the relevant measures in order to succeed in the future.
Reference List
Hill, W., & Jones, R. (2013). Strategic Management: An integrated Approach. Independence, KY: Cengage.
Jones, G. (2012). The Rise and Fall of Eastman Kodak: Will it Survive Beyond 2012? Web.
Mendes, G. (2013). What Went Wrong at Eastman Kodak? The Strategy Tank, 1(1), 1-28.