SUBMI111LD BY....

J. RUBIA BHA1IA
2.SRASH1I JAIN
3.LAVINA MANSUKHANI
4.RUPALI JAIN
S.NLL1U KUMARI
,. ...
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1. SMALL INTRODUCTION TO THE CASE STUDY
2. QUESTION ARISES FROM CASE STUDY WITH SOLUTION
FACTORS MOTIVATED KODAK TO CHANGE ITS
ORGANIZATIOANL ARCHITECTURE?
WHAT MISTAKE DID KODAK MAKE IN CHANGING ITS
ORGANIZATIOANL ARCHITECTURE?
WHAT MIGHT KODAK HAVE DONE DIFFERENTLY?
HOW THIS CASE RELATE TO MANAGERIAL ECOMOMICS?
Foi many yeais, Easiman Kodal lad a viiiual monopoly in film pioduciion.
Tley aie eaining laige piofiis. By iŭŬo's Kodal mailei enviionmeni lad
clange maieiially. Tle Fuji Coipoiaiion pioduced ligl qualiiy film ilai
eioded Kodal mailei slaie. In addiiion , iŭŬo's wiinessed a ieclnological
explosion. Impioved communicaiion and design capabiliiies and ioboiics
allowed companies io biing new pioduci io mailei wiil in monils iailei
ilan yeais. Due io significani piessuie, Kodal's siocl piices goes down. Tle
company iealized io clanged iis oiganizaiional siiuciuie, iley quoie "Colby
Clandlei" as CEO in iŭŬŨ. Duiing iŭŬŨ, undeiiool majoi coipoiaie
iesiiuciuiing. Unfoiiunaiely ile plan lowevei, did noi lave a laige impaci
on manageiial inceniives oi coipoiaie piofiis. Fiusiiaied by ile coniinued
lacl of success, Kodal's boaid of diieciois fiied iis CEO in iŭŭ¸, because
iley was noi ieady io compeie lead-on.
CIangcs in iIc cconomic cnvironmcni iIai incrcascd Kodal's
aliliiy io conirol iIc iiming of ncw ¡roducis.
TIc nccd for ccniralizcd dccision rigIis io cnsurc iIc com¡any
lc¡i u¡ wiiI iis ncw com¡ciiiion.
Incrcascd com¡ciiiion from Ja¡ancsc and gcncric lrands and
ra¡id iccInological cIangc.
Incrcascd undcrsianding of iIc rolc of organizaiional
arcIiicciurc in im¡roving firm ¡crformancc.
Inicrnal cIangcs in managcmcni and falling siocl ¡riccs.
Ii iniiially cIangcd iIc dccision rigIi sysicm io a morc
dcccniralizcd onc wiiIoui maling corrcs¡onding cIangcs io iIc
cvaluaiion and rcward sysicms.
Ii dcsigncd an organizaiional arcIiicciurc lascd on iIc good
ciiizcn modcl raiIcr iIan on iIc Ia¡¡y is ¡roduciivc modcl.
Ii crcaicd ioo many ncw lusincss uniis iIai madc iIc
cor¡oraiion's o¡craiions cumlcrsomc and rcduccd communicaiions
among managcmcni.
Ii failcd io incrcasc iIc s¡ccific lnowlcdgc of u¡¡cr managcmcni
io su¡¡ori ccniralizcd dccision maling.
Ii iniiially cIangcd iIc cvaluaiion and rcward sysicms wiiIoui
maling corrcs¡onding cIangcs iIc dccision rigIi sysicm.
Ii sIould Iavc rciaincd a ccniralizcd dccision maling sysicm
lccausc u¡¡cr managcmcni Iad sirongcr inccniivcs io worl
iowards iIc succcss of iIc com¡any.
Ii sIould Iavc dcvclo¡cd a dcccniralizcd dccision maling
sysicm carlicr io su¡¡ori iIc cIangcs ii madc io iIc cvaluaiion and
rcward sysicms.
Ii sIould Iavc dcvclo¡cd an cvaluaiion and rcwards sysicm
carlicr io su¡¡ori iIc dcccniralizaiion of dccision rigIis and, wIcn
iIc sysicm was finally im¡lcmcnicd, ii sIould Iavc cnsurcd iIai
rcwards lcncfiicd iIosc wIo madc good dccisions raiIcr iIan
iIosc wIo wcrc good ai officc ¡oliiics.
Ii sIould Iavc lrougIi in ncw managcmcni wiiI morc s¡ccific
lnowlcdgc of Kodal's com¡ciiiors.
Ii sIould Iavc rcduccd iIc ¡crccniagc of com¡cnsaiion iIai was
iicd io a variallc lonus.
Kodal uscd a sulo¡iimal arcIiicciurc in iis ncw cconomic
cnvironmcni, wIicI rcduccd iIc inccniivcs of managcrs io malc
good dccisions. Uniil iIc arcIiicciurc was corrccicd, iIc com¡any
coniinucd io losc marlci sIarc io com¡anics iIai wcrc lciicr allc
io o¡craic in iIc ncw c×icrnal cnvironmcni.
Kodal losi mucI of iis marlci sIarc lccausc ii was noi
¡roiccicd from forcign com¡ciiiion ly iariffs. Proicciing domcsiic
indusirics is im¡oriani for lcc¡ing iIcm sirong.
Kodal was noi allc io grow as fasi as iis com¡ciiiors lccausc ii
siaricd from a largcr lasc; small com¡anics arc allc io gcncraic
fasicr growiI duc io iIcir iniiial small sizc.
Kodal was allc io survivc lccausc ii was iIc largcsi com¡any
and could rciain iis marlci ¡owcr cvcn in a ra¡idly cIanging
c×icrnal cnvironmcni.
Kodal uscd a sulo¡iimal arcIiicciurc iIai was noi dcsigncd io
worl in an cnvironmcni wIcrc iccInology cIangcs ra¡idly. In
sucI an cnvironmcni, ccniralizcd dccision maling worls lcsi
lccausc iIc u¡¡cr lcvcl managcrs can lcc¡ iracl of cIangcs
affcciing iIc indusiry and dcvclo¡ s¡ccific lnowlcdgc nccdcd io
ovcrscc all arcas of iIc com¡any's o¡craiions.

%45.8 .

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